The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-01

Attorney General OF this state filed bin. con-
dncted the proceengs BY his authority AGAINST this
company and some or the directors TO resta'n anv
further issues of stock OF this description on the
ground OF want OF power. In that complaint tho
Attorney General obtained an Injunction restraining
the company from issuing any further STOCK, or
issuing any further convertible bonds or converting
Tie njnnc covered other matters; bnt VIII try to
leave ont all that Is xtrane0us IN this Gaze on the u
OF March hat Injunction was served ON Messrs. rev
Fisk am Could Eltlrdge the president, and some OF
tie directors; and 80 happened that they were ust
ON the point OF issuing another - 0)l ooo ana Ihe
in JUNCTION caught them by half on honr. MT. Drew
swears tina, he hal got the bonds and was about 70
convert them into stock when he was served Win
this Injunction. While that Injunction was pending
and In force Mr. Fisk took from the once o. tue com.
pany two hooks Of certificates OF stock which had
been prepared for issue, containing 81 soo ooo each
srI ss Gopid. Martin co..and the other
sa,soo,ooo were made on, to Mr.. Flsk's arn.Fisk,
i,elden Co. INT r. proceeded 70 read at lent nth
obtained and placed In the hanis o. the oicera AMI
these parties ned In the nlght-and yonr Honor
at at night to Jersey City. where they re-
Inalned for weeks and weeks, until neT0ha-
lions ef - ss brought r. b9 nsm e wnn
that NJ understood from Fisk that about $50 600 900
had been issuei since the October election. Your
Honor will bear In mind that In one OF these anda-
Wits there is denial that any convertible bonds have
been issued since the october election, and also that
cept 10 the conversion OF bonds issued before Octo
bar IL. Your Honor will see how evasive that H.
they had issued the bonds between July ana Oc.o-
be and did not convert them into stock until Octo
her That explains II, and there u no contradiction
Thoy are charged In the complaint with having In
that that msncy IS not deposited In any bank to the
credit Of the company. In their denial they say tney
nave not got 80 much money but 40 not iny av e
done With 1t. They deal In generalitles But u tue
truth we're told your Honor would ind that It Is
loaned to the firm OF Smith, Gould. Morton 20.
have now reached the point where the attorney ,rn
General issned his against tnis asl issue
An thai took s place in the early par Of March The
fac that they had thus Ia violation OF the orders OF
the Cont n r sS sss son 81 ss0n arae
holder aud Mr.. BloofgoOd, the client then OF one OF
nv present associatc' commenced suits as STOCK
little better than the Attorney General In keeping
these pc ople within bounds They were largely in er.
u the Of o's so. * tr s e0m paon
market deprecated the stock x, they .. hell
and was rulnous to them. when this contrsversy
per cent The charge was that Fisk, Gould and
Drew were interested In short speculations. ON the
s50jO013 OF stock and in one day the whole Of that
stock was sold. The stock wnich In the morning.
was at % would not bring 10 in the afternoon. 'he
suit Of Mr. scneil ,lcd on that very day, shor
t to try and sop the issue Of this stock But tlat
was disre,ardcd also. Then the attachments were
issuci and these parties ned to New Jersey. Detec
tiyes were employed AMI We finally succeeded IN
catching Mr. Gould in Albany, where he hal gone
for the purpose OF getting some relief from the Leg g.
iaturc AZ time went on the other defendants came
in ami the proceedings went on In this conte npt
proceeding. imnedi.ssly after these parties Ma
cation to tho Supreme Court to appoint q recciy:r
of the money Wach had been relilci from the sale
OF this stock; very similar application to the oiis
made By tho bill In this cause. ITO ALLEGED that these
moneys were in the hands OF Fisk a1d Gould. ani
OF OF ii receiver was appointed Ills pro.
ceedinys were stayed by orders, and nm appeal was
taken 10 the General FERN; ani, iinay, tac GcierL
Term, alter ar..lnanS, affirmed She aDponrnent of
that receiver. In the nleansilne mo Ions were male
on benalf " the railway COMPANY AMI these direct
ors to dissolve the iniuncsons which hal bee 4
Granted prohibtn further Issues stock ard FUR
ther conversion nJo STOCK OF the ouIatandiny con-
verSbc bonds Of the eompaIy Those motions ,Ii
or twelye days were occupied In their discussion.
they were very thoroughly argued, ana he finally
ciearcst manner possible, basing his opinion upon
the want OF power In tho company to issue tEat
stock An appes was taken rom ina. Gecisi1 n,, eo
the calendar advcrsaris asked leave 0! the Court
| to withiraw tnat appeal. II was denied. We In
| yers1 and tile Court sustained Us. The other side
| declined TO argue anu me decis.on WIS aiilrmet
therefore, SO Tar ~ s s s Any aS ssea a IN .i
/ NV York ~ adverse to this power It was undel
the,e CIRCUMSTANCES that negotiations were opei.t
| With Mr.. Sciuil for settlemcnt. In which took nc
| part until its final consumtaaton. Thls was ths
position OF the parties which cocTccd such settle
mens. on the sle Of the painss We had noshi ,h
| Court might Impose Ill tho contempt proceedings
ON their side they wore anxious to settle IT, IN orae
| that taey might regain the free use OF this iunt
| after the receivers appointment had been Goa
| iirmed. Mr.. ieter b. Swcanv, now one OF tnei
directors, whom they have taken into their 70
\ was the recover. our clients property was at the
mercy or these men. Causes witsch 1t VIII not du
! here - mention led us to fear we could not &c
/ h,nu.e redress.
Nh. sfa,,ul,...n-Mr Sweeny was your receiver
! You mean no reicctlon against hin?
| Mr.. Rapaio-Cegtainls not. But &C did not noini
nate any receiver The first receiver Nominated wa
Certainty one never should h,Ye,assen.ed TO. the
| second receiver had no fundamentally In select
\ ing. He was the nominee OF the Court. Mr.. Schail
under these circumstances negotiated with som,
the directors u settlement or his Claims. the Colr
| required as condition OF dlscliTgng this rcceiy
eysnp, that tile defendants should pay Ihs receivers
fees and also pay the couas,i fees OF Mr. Sohe in TN
| suit. The company assca ell To these tcrIns aad 81
| Order was mado 20 that cilcct-that the receiver
should be discharged on the payment OF the fees an.
expenses. which wee very heavy in this case
MT. Storghton-rhey were 100000
benefit p any Of us. Nothing hat was paid the r.
ce,.er teneGsa Is d.resty o. ,na'rsc.y .. st,.'
COUNSEL ices were hAou ao 80 "n. as mas De~- -.s
f. ND T1a' sn %Snrs was was 10 "a
should MT be S:d to ine. but to Mr. Schell. neve
received that sum sIsctpcaly from any person; but
received payment for ihj services rom Mr.. schell
From wlss fupi was paid, or whether from q fund
"froln which tho money could not he taken without
felony SsS aSsa M ,nss means 81 snogn
PUNISH for contempt 20 b. prosecuted 70 the very
end, had ~ submit to the se,tlenent Of the case
| Ihe nleresls 81 my v..n, me.e uuuer us own Goa
| station. Perhaps he was not bound TO prosecute
| wlan the parties wno injured him Offered
to pay him his losses. AZ 70 settlements with ans
other parties hal nothing TO DO with IL, aud know
not what settlements were made. Mr. ScheiI was ms
only cI,e1t. That settlement woS c0nsuin mated on
me ID or AN Of Juy. on tho 10Th Er Drew resqnei
/ AMI paid oyef these sj,0i00'0 or - 1000 10 Mr.
1 Gould, VINO was appointed treasurer hut nc could
/ NOT control the cOinnitee without making himself
president. Then Mr. Eldridse resigusd his once and
/ Mr. Gould was Iut In HE place ~ president LIZ
Edrlse walked out III the oiiico with $4,o0v, 00) o
! the gric Railway Compagys money. II IL TOT ycuI
/ Honor 10 say whether be would have given UP his
! position n he had no. got that money. What RICH,
had they to cxpond s4,0D1,01D OF the money or the
company, belonging to the stockholders, In buying
pon.ls IN the rod y, Massachusetts, Vi which Ar.
| El,l,idge was E..ssIentY
! M, Stouant.,n-Insre Is no allegation In the bill
.nr in tse AFFIDAVIT adsciug the Integrity, intel
Eence OF o,,cial aciloa Of snY director excepting
these. -. $500. 49,. 80,
snrnrai nrnf. ~. a. huh ChAracLer among them.