New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-11-18

before Judge Sutherland August Belmont and Ernest H.
Lucke appeared complainans against The Erie Rat
way Co.. James S. Fske, ir., Fredk "a Lane. Jay Could
Alexander Owen c. Bancroft Davis. VIM. NJ. Tweed
Peter b. swecny Daniel g. Miller jr, Homer Ramsdel'
John Hilton George NJ Groves John Gansen. Charles c.
SissOn, o. w. Chapman Henry Thompson, George NJ
DivGn. and HoratiO n, Onsi ,U
The complaint in this case sets out that tho plaintiffs
are cOpartners and 1900 shares OF Erie common
stock OF them being bought as early as March as
the prices at which they purchased ranging from " w
per share to SIC They include in their action DINER
stockholders who may join with them II then claims
that except under the ninth section Of the General Ra
road Law, the Company mas 10 power TO lhGreas ho
stock that proceeding under that section has 6ee
held has any act OF the Legislature ever authorized
the Increase complained Of 1t then rectes the matters
complained Of in the Erie suits brought last spring ana
the proceedings in those suits that after compromising
with Schell in those early proceedings inc deIenu,s
Jay Gould James Fiske 1r and Frederick A. Lane, en-
tered into fraudulent combination Rhd obtained hDsO
Lutte control OF the affairs OF the Company ana USED them
for their own advantage III fraud OF the rights OF ,hs
dtos and stockholders OF the Company and OF those
dealing the stock aud used the moneys Of the Company
and It's receipts, which alone amounted TO about so
per annum, and the moneys obtained from iurthe'
illegal Of stock in their own private specutloH
and for the purpose of Influencing from DAY 10 u .o
condition of the money market and making money rcIto
or abundant as their individual interests aud specnlatO
might dictate, ana also 10 peipetuo IneN Po"oss 49,
the Company and Its affairs That In pursuance OF ttlI
combination they got EdridGe the President 10 resign
and Jay Gould 10 be elected PRESIDENT ana iieas,Cl
and Fske and Lane members OF the Executive committee
with Thompson and Davis; the first three forming ln
iority with all the powers OF the Directors during te
intervals of their mcctngs That IN order To Induce
Elrdge to resign they agreed To purchase OF BOSTON,
Hartford and Erie Railway Of when Nc Was IIceIuo,
S5OOOOO0 OF bonds AT 80 per cent lhat Mr pfeN' .e
former Treasurer when he resigned handed over 10 M
Could total " upward OF S5@OOO moneys ol tle 'om
pany and then by the pretended authority OF the
Executive Committee, $OO0,@O OF sterling bonds
from '"o which we're realized another 100000
That Gould paid Kdudge account of the before men
toned purchase, f2OOOO and gave hln acccpl'hces au
bonds OF the Company for the balance ana also pau ON
OF the funds Of the Company several millions Tor stock o.
the Company, which 10 was necessary 10 purchase "
carry out his schemes 10 obtain control OF the Company
That they obtained control Of the election OF me Tom
many by purchasing proxies with the funds Of the Com
many That with object place OF the usual 80 days
closing OF the books they closed them 90 uays previous
o the election thus securing the election Of Flske IA
TREASURER and Could Lane Tweed, aud Miller. the lat
ter brother nlaw Of Gould. "A members OF me ENecu
vr Committee That they caused the Committee on Ao
counts TO be abolished. and made flske
Controller, 60 audit ana allow accounH
against the Company: that they changed the byeawh
so as 10 prevent voting the stock except IN person. ana
changed the form Of the stock certificates without pup
Europe that they thus obtained complete control OF te
Company; that the three directors have 40 Tar aDueu
the powers of the Company a. 70 render u liable 70 r
the Schell they Issued three million OF stock making the
amount Of stock at the time OF the election
over S 600 OOO that since that election, they have, IN
violation OF the orders OF The supreme Court, naue
about sl9 ODO0N making an aggregate OF upward
OF sixty millions Of stock, In addition to the preferred
toc and Tho g. 900 ssued FOR the purposes OF the
eccton that al these issues made without the consent
OF the bona ide stockholders had reduced the market
from the sales ~ stock. siuce the election In October
amounting many millions, have been received by them
as part on tcir pans 20 t'U iI' , ~, M ~
ycrting large amounts Of money rom The ordinary clu
market aud ~ further the stock spccuatous Of F-kc
Could That these issues are DO violation ~ Jaw, ana VII
eadto the utterrun and destruction INC Iompay Ina
~, ~ t' Coypp,rv Lu ufder The control OF
have secTeted some PORTIONS ~ this and sent some
100000 10 Canada. That Flske is man OF 40 means
Ia IA Ia
the three together not ~ sufficient pecumary repuu
sitit TO render them safe custOdians % such large
sum That among their transactions have been the pu
chase OF large amounts estate Tor which the Com
pany has charged prices large portions
~ 3trb arc r,,f directiv ar tudrectiy 10 these III
rectors as bonuses Among the rest, Pixies Opera onsc
charged to the Company ss50Oo Nine dwelling houses
i'm Tweutythrdst and land n Hoboken. charged 20 the
Company $4,000. aud other real estate ~ Jersey
named got 81 10000 Of bonus That the Company
largely indebted aud IN danger 81 insolvency uLdsr rs
present mana cement The complaint then prys Tor an
Injunction and Receiver, and the removal VI TIE present
mis- complaint Is supported by anidavIts Of Daniel
Drew rcCtlng the proceedings Ia the old aud affirm
Frank WORK, b A & BI"wh' sftths Ioith ttt ne ms
examined the acs Of the Legsiaure sct forth ~ the
a Examined tho printed report 81 the Directors ~ tho
Erie Railway Company Of eo,nher 1870 ANA tat fruil
pauy had ,sued NG.5sOOo Of common stock beside up
wards Of $4,000 Of preferred. sOck, and the following
Christian s. soan made au AFFIDAVIT settling forth
In substance that be D. member 81 the New
Ncw-York stock market That the Erir Hallway
Company. The amount was not known 10 The public
on the 18th 81 October committee Was appointed BY
Company la respect 10 such reported Issue az new stock
The Committee consisted ~ William A. Smith, james NJ
Committee called at the Office OF the Erle Company 10
make inquiries on the subject Ihty 80" aud cohFeIstd
with jay Gould, the President 81 tie Company aud
stated To- him that 10 was reported that there had recent
~ been new issue Of stock Of the Brio Cos Mr Gould
said the Committee That there had that the Co had
lately Issued a0COv0 OF eonVeru1@ bonds mat aDnut
100000 OF them had been converted into stock aud that
the rect would be. They then asked him what was the
object Of this lilo stated that It wa TO pay Aoo
900 OF acceptaDces given by the Erie Company To- tho
OF bonds OF the named Company, which had
been bought by the Erie Company and also To pay for
10 save the Erie Company from bankruptcy. They
asked hun If there any further ISSUE contemplated
lie said II not contemplated To lssue any more unless
in certain contingencies IA which event more might DO
issued. - 49, .
ON SS COMPLAINTS iSl .es spd the Dr. chh
nay .. ,s an ~ m p e, Cor &C. how e, be,, s.
The justice, this Court Special f,rts wby
Receiver ihood not BE- appointed q ise property acahs ngu
jus, JosiAH sUTHEHLAsp,
Andialso The following injunction
verified sad AFFIDAVIT, attached that ,udsnt ground, ,
do Sts order ts.s an farther order Of @ csr Ss de-
this ,eiou aud each Of them Their n.r, and do
absolutely des and refrain iom doing sanerinE act whereby The
The nunb, Of shares capital -oct oi the
defendants the Ere RAry COMPANY be Increased beyond the
the hands Of bona & holders and Ak
Ing signing uss o. permitting to Be made signed ,'usd any
certificate Of ,ocf Of sad companI except for ok Of sad
ousanfug
holders the surrender u cshos
ArtualN outstanding, And held BY bona
ne holders and from issuing permitting 10 be
issued any certificate Of additional stoe Of oompant De
fsndani ABa do hereby further order that dodsns il. action
each Of them their ohes aud sge do absolutely dss
hAn from removing suffering permitting to be removed any Otths
booft tsuues funds Of the defendant the Eric
RAuhy COMPANY beyond The jurisdiction Of this aud from
secreng suffering the Of them 20 be .e
oeaed and nso from permitting Of the funds securities Of said
ber0n Of this Court
the oont the directors Of
regularly appointed Treasurer thereof and permitting
apply thereof
be the payment Of the legitimate debts and
sd and depo The Fssdne