New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-11-30
TIE ERIE WAR.
NEW CoMPLICATIONs--A NEW ORDER TO SHOW
CAUSE,
TO SHOW
Joseph II. Blaelh

NEW COMpIICATIONS-A NEW ORDER TO SHOW
CAUSE.
In the United States Circuit Court, on Sat
urday before Judge Nelson IN re the appointment OF
Jay Could Receiver, etc. Judge PierepQnt appeared in
Court. and moved. papers detailing Che late pro-
coedngs in the State Courts In the Ere matter that tia
order OF Judge Batchford, appointing Jay Gould Re-
cever be set aside aud that August Belmont be allowed
to come in as a party defendant in the suit. on the
ground that Jay Goud control Of the Road Receiver
was detrimental to its interests, and particularly to
the interests OF Mr. Belmont, as stockhoder
Judge Dawes said that his duty Receiver Of all the
funds Of the road required him to and oppose
the appointment ~ Mr. Gould Receiver portion Of
the funds the road. Mr. Charles OCon0r desired thar
II tbe order was granted IL should be a short order
ude Nelson understood this To- be motion an order
10 cause ia ease pending In that Court, why an
Injunction Heretofore issued m the case and an order an
pointing receiver, should not be vacated on papers
grained an order 10 show cause reurnabe on Monday
but said he would not present decide TO Mr. Belmont
hcirg made party. He Judge Nelson was inclined "a
think any marty Interested bad right % come n in
DESPITE the question OF citizenship; but he would
dIlu'f think II necessary TO decide that POINT
upon the IuerIts after full argument had been Lad.
rescuts that petitioners stockholders Of the Erie
% ~ ~, ~ s,id sock 80 held bv vonr peritioners
bur how many Of them your petitioners are unable to
a. @ 20 ~ ~, ths suf alleged 10 he held bv The
complainant herein. but that all OF said stock pur
,' III o,d m tbo or,linar, course 81 business and
without notice or knowledge the part ~ your petition
ers 81 any egaty in the issue thereof taat Ia the
prayer OF the said bill Of complaint ne com aaut states
that this action Is brought on behalf Of himself and al
other stockholders Of said Company similarly situated
and your petitioners claim the benefit OF ~; suit
herein without ousug this honorable Court 81 Juiisde
lion. they pray that ,th.y may ne sSal.I,u ase
,r H. hat hv r order made herein on the 23l day
.atflt.r I1yl
sufficient cash, money and securities, 10 be hed Dy hl
subject 10 the further order Of THIS Court 10 pace ID m
hands 100000 protect the rights OF the plantn aud
the other holders 81 stock named IN said Oil aAd 70 ABIDE
the event Of this suit And your petitioners furthe
show on Information and belief, that the said appoint
ment Of the adJay Gould such Receiver was obtained
by procurement OF Ense and Others acting ia concert
with HIM, FOR fraudulent and improper purposes ana ny
colu-on and under the circumstances hereinafter set
forth and that the said Jay Gould not proper or safe
custodian OF the property in aud by said order committed
his charge. And your petitioners further show That
on the l6h Of November l55 they commenced an action
~ themselves and all other stockholders OF the Enc Ran
way Company, against s9d company ahd ssa jay
thereof, and against the other Directors OF said Com
pany for tue purpose, among otIer tnnss' Of Sc
property ~ said Company. FOR the protection
~ she stockholders and creditors thereof agelft
the fraud. and misconduct OF said Jay Gould and osr
Directors Oi said Company, who had combined with hun
and obtained absolute control Of property and ~
fairs Of said Company aud using the same in their
own private spcculaous. That the complaint IN your
Petitioners action alleges among other things that said
Jty Could stock broker, aud that he together with
ty OF the other Directors OF said Company. Aad for tie
purpose Of aiding their private specuatOns, issued
and sold large amounts OF apal stock Of said Company
m excess ~ the amount which said Company by law
authorized % issue That they had by means OF sales Of
said fraudulent OF stock and OF the receipt by them
of tile earnings OF sald railroad accumulated upward "
sixteen millions II dollars Of TIC funds Of the said Com
pauy. which they used for the purpose OF
noting their private speculHous, hrst, by withortMug
the same from CltculauOO ana making money lrWpV
ray scarce and thus reducing the price OF stock, aud
investing said money I'm SpcCulatOLs IN stUCAs, In
Gliding the stock Of said Company.
On the petition the following order was granted:
At stated Term, &c. present, the Hon samuel Nelson
Judgc-Hcnry i. Nhclpley agt The Enc Railway Com
pauyOu the petition of August Belmont and Ernest b.
uckc dated Nov. u, 1865, ana the papers thereto at
tlchcd and therein referred 20 and the petition VI
Henry T. Davies, Receiver dated Nov 81 1865 and the
papers therein referred and the bill OF complaint
stipulation, and other papers and proceedings IN THIS
cause; and motion OF G. A. RapallO aud Samuel l. ".
Barlow, Solicitors FOR August Belmont and Ernest b.
Receivers Let the plaintiff and defendant Ia this action
and jay Gould, the Receiver appointed herein. show
cause before Circuit Court Of the United States for tie
second Circuit aud SOU hern District OF NcwGOrk, 10 De
held M the city OF NewlOrk the 5Ot day of NOyem.
brr 1865 IL o'clock a. ~. Whl the prayer Of the said
order should he uade IN the premises shall be Just
aud proper. And u is further ordered, that copy ~
TINS order be served the attorneys for the paut1
and for the Eric Railway Company IA this suit aud upon
the said jay Gould; ana that the service upon the latter
De made either personally by leaving the al BIS
place Of residence with some person OF suitable axe on
the premises Aud the parties IN this SUIT. and their ~
spcctive attorneys and counsel and the CLERK OF tl'
Court, are hereby forbidden from dscOutnug ar cuI-
seutiug to the dscOntnuance of this action uuth airr
the hearing upon said petition, and the order OF Tue
Court tAcreupOn. Attest, etc.