The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-29
NEW YORK CITY.
THE COIRTs.
UNITED STATES CIRCUIT COURT.

fuE OOtkkSs
>~~>~~~~~-~c>.~~--~-~>~-~
UNITED STATES CIRCUIT COURT.
The Erie War-NIOtiOn 10 Dissolve the Orde
Appointing Jay Gould Receiver-Result q
"Talkins Against Timer for a Specific Prr
pose-Order 10 show Cause Granted.
Before Judge Nelson.
HENRY B. Whelpt1 us. The Erie Rail,ray com
pauu.-The United States Circuit Court was sud
denly invaded yesterday morning by an Eruption Q
Erie Railway contestants. The operations OF tn
day were however confined to one body, no oppo
nents appearing, and the proceedings were OF Al
unusually pacific character for Erie men.
Mr.. Pierrepont opened the proceedings by risini
and stating to the Court that he appeared to make
motion which would have been properly made q
Chambers but he deemed II desirable, notwithstand
ing to make It In open court. The case he would
submit to his Honor was an extraordinary one. Mr.
Pierrepont then reclted the orders granted In the
various suits by Judges Sutherland and Barnard,
and then dwelt on the fact that on Monday night
last when the other side was resisting motion
before Judge sutherland, talking against time.
and while one OF the counsel, Mr.. Fullerton
was present, ostensiby taking part in the proceed
ings, he quietly started to the United states Court
here and obtained an order from Judge Blatchford
by waving service Of notice and making the follow.
Ing stipuaiion:-
thereby service copy OF the bill herein named and
Of anoce OF notion and waive farther notice for the in
junction herein and for receiver for In the fourth
as a4 .a o. o A3S
This bill (Mr. Pierrepont proceeded to say) was
presented TO Judge Blalchf0rd and no copy served
and no notice gwen 10 the parties, the whole being
concocted aud done to deceive Judge Blatchiord,
who would not have granted the order had he known
the facts OF the case. Ii was a pity that thing
started in the dark was not kept In tie dark but
was wrong deceive court OF the United States.
Judge Nelsol--Not court Of the United States,
but Judge of the court. The motion was not
granted by the court, but by Judge OF the court.
Mr. Pierpont-Well, your Honor, Juage Of the
Court.
Juoge Nelson-That win do.
Judge Perrepolt. concluding, said that the motion
nov made Was iur order from Iua &c Nelson TO
SHOW cause letarnabie on a day to be named By the
court, why the Order made on Monday night by
Judge BlatcllOrd (Which he said was made after
eight o'clocl SHOULD not be SET aside or nerwise
InoiiEed a might appear Just aud proper to the
court ia the premises
H. Z. Dawes also appeared as the receiver appointed
hy the order ~ Judge sutherland and read a pet-
ion setting forth tie fact OF MS appointment AID
HAT tile or4er ia opposition, granted by Judge
Eatchord nal been issued the same night. Coan-
~ prayed tagt this Court wonl lnterpose aLd say
that nc lDaycs y ne duly and properly appointed
rms IElITi1N on AUGUST BELMONT
upon which th.s motion was founded is as fol-.
UNITED STATES CIRCUIT CoURr-Rs,ry b. IVhetp-
~ r. tn u e R1ttir1y Company in Equttyy:-Io
tho honorable he Circuit Cour oil the United States
81 america ior me second Circuit aud sou hern DIS
tEct OF New iOrs:-Ih ne petition o. August Belmont
AMI Ernest i. LICke, citizens Oh the state Of New
1olk, respectfully represents
That your petitioners are stockholders or the Erie
Ra way, defendants herein: that some OF the shares
q stock 50 held b. your petitioners, but how many
81 them your pettonsrs are unable 10 state. are OF
lie same .scrpton IS those which are Ia the bin
81 complaint II this SUIT alleged TO be held
ny the complainant herein; but mat all OF said stock
was purchased ~ your petitioners IN good faith Tor
III fuA market value, and in tile ordinary course OF
business anu without notice or knowiedre on The
pait Jour pelltioneTs OF any negaty in the issue
thereoi thai n the prayer Of the said bill OF CON-
piant the complainant states that this action is
thought on behalf Of himself aud all other STOCK
holders OF said company similarly situated and your
petitioners Claim the benefit OF this suit and nasnuch
- they cannot be made conlplainants nereln With
out oustng ms honorable court oil Jurisdiction they
pray that they may be admitted and be heard herein
rs defendants and have the same rights as II they
were compialnants. And your petitioners further
alese that ~ an order made herein on the I'D
Gay Of November, 1865, jay Gould was appointed
receiver OF sufficient cash. money and securities, 10
be held by MIN subject 10 the further order or this
court, TO place IN his hands .S0J,Ot0, to pro-
tect the rgnis OF the plantln and The other holders
u stock named IN said bill, and to abide the event
u tbs suit; and your petitioners further snow, on
Information aao bee, that the SAID appointment OF
the said Jay Gould as sucn receiver is obtained by
procurement OF himself and others acting In concert
with INN for fraudulent and Improper purposes and
by COLLISION and under The circumstances hereinafter
rel lortn, aud tlat The said Jay Gould Is not
proper or sale custodian OF The property in and b.,
SAID order Committed TO his charge. And your peti
uoaers further snow that on the 10Th OF November
l6oo ihey commenced an action IN the Supreme
Court OF the state of New YORK, on behalf IL them
seves and q other stockholders OF the ere Railway
Company, against sad company ana the said Jay
GOu.d, the president and treasurer and a director
thereof and against the other directors OF said COM
pany, for tho purpose, among other things or OBJ
tanning the appointment OF receiver OF the property
OF said company Tor the protection or the SOCK
holders creditors thereof agalns. the frauds and
sconduc. OF sad Jay Gould aud other directors OF
said company VINO had combined with hun ane OBJ
tanned absolute control OF the property aud affairs OF
said company, and were using the same IN
their private specuations; that the complaint In
your petitioners said action alleges, among other
things, that said Jay Gould Is stock broker and
that he, together with TWO or the other directors
OF SAID company, had, for the purpose OF aiding
their own private specuauons issued and sold large
amounts OF capital stock OF said company III excess
or the amount OF whch said company was by law
authorized 20 issue; that tney mad by means OF sales
az said fraudulent issues OF stock aud OF the receip
BY them or the earnings OF said railroad, accunu
lated upwards OF Slo,O0lOJo oil the lund'
OF the sad company, which vast sum the.
speculations, nrst by Withdrawing tie sam
from circulation, and making money ten
porariy scarce and thus reauiiaS tn'
price OF stocks. AID then investing san
money In speculations IN stocks, incuuing the stoc
OF said company defendant; tnat sad complaint a 8
charges other gross frauds and misconduct on III
part OF SAID Jay Gould and his confcderates In III
management of the fGlus and afflis OF said com
pany and Is supported by afildavis, and that COP
uf said complaint and afiidavts Is hereto annexe
and marked "Scnedue A." that upon said con
plant and alfdayits an order, Of injunction was
the 10th of November, 1858, made by his Honor, j.
siah Sutherland restraining said company and Il
officers and directors among other things, 1roi
suffering the funds OF the company 10 remain IN III
possession or under the control OF any OF It's dre'
tors except the treasurer, and from permitting hal
treasurer to make any disposition thereof, e.
eept 10 apply SO much as might be nece
sary TO the legitimate debts and expenses
the company, and 10 deposit the residue III ban
10 the credit Of the company, or to MAX
such other disposition thereof az the Supreu
court might drect "a copy OF said order of II
junction ~ annexed to said schedule "A'); that
order was thcreupon made by said Justice requirin
the defendants IN said action to show cause Deioi
The supreme court at special term, on the Zou
November is63. at twelve O'Clock noon, why n
Cciyer should not be appointed OF tue property {
Raid company ana said order 70 show cause
together WITH said complaint aud order OF injunction
were served On said company and two OF us dire,
tors on the 18th II November itGa that for the pu
pose "a your petitioners are informed and believe
frus rating the erorts OF the piaihins 10 oDtai
the appointment OF proper person rs receiver OF u
Jnnds OF said company and V secure 10 said Jn
could the undue control thereof, an eI pGrie appl
cation was made 10 ono or the Justices OF the -
preme Court IA the name Of Charles Mcintosh q