Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1868-11-26

20 - Nl'tAsNA's"N W Ah&We#
IA 1eimonts counsel, Judge Sutherland
granted an order requiring the defend.
a ats to show cause Tomorrow morning, at
ten o'clock, why Judge Rarnards stay If
proceedings should not be vacated.
Henry Il, Whelsey, Esq, Of New Jer,
sey' has carried the war into the United
States Court, before Judge Rlatohiord, ly
Ming compliant delaying the formation
Of the Go.
The claim Of the Co, to a power 10 issue
new stock, in accordance with tho pass.
age on tho 10Th, Of February last, author,
izing it,
Whelsey alleges that under the resom.
ton convertible bonds were issued for
over 100000 for which 2OOOOO share.
have been issued, He bought | 200 shares
OF this stock having no reason 10 believe
that the stock was not a part Of the rrgu-
Erie stock. Allegations have since br,n
made that the stock is not genuine and is
now unsalcable ut It's read value. lie
asked the court To inquire into the validi,
~ OF the issue If the stock, and il il
should be found to be illegal, 10 compel
the company to give back is bonds, and
il that was beyond their power, To repay
him his money, Meanwhile lac asked for
an injunction 10 prevent them FROM part.
ing with their property 50 as 10 leave him
remediless, and that a receiver be appoiu.
ted and that the Company be directed to
transfer enough property OHM 10 meet
the claims OF the plaintiff and other, sit
uated in like manner,
The present treasurer Of the company,
Mr. lav Gould was apnointrd 49, its re-
eeiver, and his security is fixed at - 900,
900, A stay Of proceedings was ordered
in the Belmont case. IL was also ordered
that the company should transfer TO Mr
Gould sufficient money and securities to
be held by him subject to the further 81.
der OF the Court, and to place in his
hands - 100000 to protect,tho rights OF
the plaintiff and other stock holders, To
abide the event of this suit
! Two new suits have also been begun
by the Erie Railway Company, one
against Belmont aud others, and the See
ond against Richard Schcll, Daniel Drew
and Frank Work In the first the com
pany claim 81 900, 000 against Tho 4 fcud-
ants for hampcring them in the course Of
/ their business by means OF the sui', last
spring and thos, that have boon recently
begun.
Jay Gould, inIho complaint, sets forth
that in February and March lsGs, the de-
PENDANTS Schell, Work and Drew engaged
in a speculative operation by which the
business of the plaintiff was intcricrod
with, that the legal proceedings which
resulted in the appointment OF - receiver,
were not in tho interest of the plaintiff or
stockholders, but were made Gov the pur-
pose of aiding Schcl and Work ia q stock
operation; that in some Of the legal pro-
cecdings, the officer, then in charge of the
road, were paid q large sum OF money to
compromise 1t is also alleged that in
June 1868. the affairs Of the road were
Eldridge Thompson, Drew, Jay Gould,
and James Fisk, IT., and EllridEc, Drew
and Thompson eorruptly paid OF tho
funds of the company, Si29,2l0, TO settle
the suits. that Work received $15O000,
3 al .1.,,.-l.t g,fa L. ~
for the company S5,0OD00O of Its own
stock, for which he paid about ) 100000
more than it, actual value at that time.
Gould then recites herecent spcculations
in Erie stock, and says that Schell and
Work induced Belmont and Locke to
bling suit against the company, alleging
that it was done for the purpose Of affect
/ ing the value Of the stock, and eventually
settling the sui, for money to la paid by
the company, and .'at offers have been
made to agents 81 ,le company 10 settle
said suit if the company would pay a
/ large sum OF money.
/ The loss by the Trinity building FIRE is
estimated at over s350,00o Til, total
loss of the firm OF Hatch & Co, lit6graph-
ers, is not less than $2jo,ooo, IN Which
there is an insurance oi Gully *5om".
The Rosenburg r.'a: .......uu frauds
were on argument bcior. Jpdr,, Nebon
and Blatchford in Tho : Circuit Court
/ to-day