The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-05-01
SUPREME COUaT-CAAEsESS.
The Erie Observation-Disclosures in the Schel
Case.

The Erie Observation-Disclosures in the Schell
Case.
Before Judge Sutherland
The adjourned ten motions In the Schell branch of
this case came up for hearing yesterday morning.
Considerable argument ensned as to whether the
several should be further adjourned during the
tendency of the proceedings in another court Coun-
sci having been heard at length on both SIDES the
court decided to hear the motions.
Judge Sutherland asked which of the cases would
be first proceeded within
Mr. Eaton said he proposed to take and argue them
together.
Mr. Rapallo objected to an amaIgamation.
MI Eaton said If left to his selection he should first
argue the Schell case.
Mr.. Rapallo observed that it was suit to vacate
companied by an anidavit, together with a copy Of
complaint in the case or the Erie Rail-
way Company vs.. Fisk, containing various
he (counseD wished to reply to that COM
plaint either by answer or allidavit, so that the
court might have 1t to adjudicate upon. That
answer had not yet been prepared, but had nearly
been completed. Instead OF meeting the objection
upon the order show cause in the case Of the pre-
lminary injunction, the other side make an indepen-
dent motion to vacate that order Counsel con-
tended that 1t was novel and unprecedented prac-
tce and should not be allowed to prevail. IL broke
up al order In injunction proceedings, and he con-
tended that was contrary to the usual practice Of
Mr.. Fullerton submitted that the other side tied his
clients hands and prevented them from litigatng
Wnle they went on themselves.
Mr.. RapallO urged that where preliminary injunc-
ton had been granted In an order to show cause it
was not competent to move to vacate that pre-
limnary injunction before dinerelt branch OF the
court instead OF waiting for the time for hearing the
order has arrived and when the whole matter comes
up.
Afer much discussion,
Judge Ingraham said he thought IL he heard this
motion to vacate the injunction and should deny IT,
he could continue Ivy his order till the hearing OF the
case had terminated and IL would be his duty to
make such an order. He, however, would consider
the question.
Mr.. Eaton argued that the important parts Of this
Injunction involved questions OF the authority Of the
Erie Railway Company rs a corporation TO issue
Stock to convert bonds of guaranteed bonds Of
other railway companies TO- take steps for its extern
sion. nc. Counsel reviewed the facts Of the case,
which had been obtained In the case and cOntended
that the objections of the other side quite
tenable. Counsel then proceeded with his motion
to vacate and dissolve the Injunction in the case of
Schell. He reviewed the principal points OF the in
junction sought to be dissolved, one Of which pre-
vented the Erie corporation from making any contract
with any railroad company and from leasing, operat
ing hiring the roads stock OF any other company
and from paying any expenses costs or counsel fees
for any suit brought In the name OF the company
against Fisk upon which they could be charged or
held responsible. Such an injunction AZ this, he
argued, could not he maintained, unless the court
was determined either that this company shall have
no right to defend itself against whatever attacks
parties may make, or else that Judge Of this court
has so far disregardcd his duty and the common pro-
prieties and decencies Of judicial action that he
ought to be rebuked, and the officers Of this court
ought TO be deprived OF the ordinary opportunities
OF pursuing their calling Of defence OF this corpora
tion-a corporation which would seem TO be treated
80 far az an outlaw and outcast and TO be deprived
OF all the privileges and opportunities OF sellpre
servation that they cannot even appear by counsel i'm
court TO raise its voice In its defence. Counsel pro-
ceeded with review OF the more Objectionable
points In the Injunction, which from time TO time
created considerable discussion on the points OF law
raised. The case stands adjourned.