The New York herald., 1868-02-20


Ihe peion then proceeds state that the 3st OF
DecenbT 1866 by The stock books oil the company aud
,ts annual report for tnat the total capital stock
.ssueo wss 25l 05s shares of 500 eaca making
. total valuation of $25, i05 S00-eonsseiag oI pre-
TERED stock sS,oSo.7oo. and siooIo 100 oil com.
mon ock, ito conmJn stock beiLg composed OF
Ell $50 900 issued IN exchange for fourth mortgage
oouds he o,d conpany s. 200 600 Issued part
81 the S5 600 900 constrlct stock thai to company
authorized 10 issue only ug 81, 500 oO0
oi con Ia luction stock tna panie Drew III
organization of the Erie Raimay CuIniauv has ben
one ol the Board oI directors ald . member
vf The Exec tive COMMITTEES, and has, drug all
such time. exerted ling Influence over
6on OF these boards 10 possessed oi great wealth aud
money cd capnai and has neen all times largely
engaseu IN Specializing ~ Erie halya stock, but
he Lad mad. any sucn snor sales 10 ms in,er
es, 10 uepress said STOCK in order that he gut
SsnCs Ssrcsase mt cnespy' hs' n order ,,@ 50 70
various expeoenls. and that one OF The most enecnat
OF these devices was to throw large quau!iues OF the
soc- upon ,he uiarnei, al ono time masng the supply
10 exceed 'he demand, ca lsink parties "no mad bor
rowed or advanced money on hypothecatons Of their
stock sacrltce stock lar tpe payment of
Nav. 1865, Drew had Tor monlns bsen en-
gagged IN MAKING heavy "shorr sales OF Ere
Al from 500 10 SO per share tasering S9J and ,nat
he required sucn largo aasuoss o. st.cs " MI tIese
sales; that II ne had been compelled go in o the
maoo, would have materially advance aud diminished
thereby his proh ): that tlat tno the COM
pany naa 9n s4Ia rs .ns 5000 shares ,s ,e%snng
TINS latter stock the company had sold
more iban S. 500, 600 Of converb,. bonds England;
tDa about that time Daniel Drew by OF hts
inuence aud to lurther MS Individual benefit obtained
coutro of these 2s 600 shares, aua also unsecured
So 900 600 worth vi bonds utoned, with the
understanding tnaI he migal convert tue bonds
ino stock aud reconver them Vt his pleasure aud tlat
he might also dispose Of the whole 5S O0O)
shares aimed converted oonds ho agreeing
70 advance The compauysxy per cent ON ne par of this
stock and to have the use and control Of tor tSo years.
and the repay ment OF tue with Interest ne
toe stock aud sucn Ounds not con
ve.ied, that NO security was taken from or given by
hiin the tbis stock aud bonis the value
thereof that Robert H. Burdeli ,nen president OF Tho
company, was interested with Drew IN th. OPERATION
and ina. Drew corrup'iy savs pecuaary m m
nin, said Drew" mat Notwithstanding such
delivery to Drew or this stock, and the placing by
him of such stock the Market the directors, IN their
annual repor Tor the year 1865 tue fact OF
the o. Stock and stated tho amount OF
ths company's carual TO be so, 5,1lL2lO and the
in the stock u consist in The issue Of Of
additional stock wneIeas in ruh bv this unawui issie
- Drew Of 3d. 600 shares tue capital stock a. the
date OF the report tDecemoer 81 Increased 10
$50, oil 20, and the increase during tho year had
So $685. 4l0, instead Of $54I0; thai Inc annual
report OF the directors contains whaloye, OF
these dealines with Drew, part OF tue ansaction
ta IN the directors annual report da,ed ~eptemoer So
1861, issued and circulated by their authority this
transaction was also again suppressed and the total cap
lal stated TO be x25 0O0 l0 that Drew iron time
10 time disposed OF these 600 shares Of said in
making his deliveries 10 III himeut o his previous
Tracts of saie that OF The So 600 shares 600 shares
still outstanding, aud that Drew is accoun able
erelor thai he has recently contracted other 'shor'
saies Of Erie stock and is now largely shorL Of said
sock aud has tins placed himself in position which
makes 1t lis interest 10 depress ts mar
ket valve. and brings his personal interests
in direct conflict with the interests Of the
company and the faithful performsn nee of bis duties as
director; that he IS now wropgiuy endeavorng to de-
press the market value OF Ere stock his profit;
management oil 6S O00 equal exceeding
the advances made by him thereon, aud wron-fuliy
wnhoids sa d stock from the company and con
company had legal power authority 70
issue the 900 shares Of stock vcred from
the bonds aud that Drew kneW this, and In
violation Of bis duty procured It's delivery
10 himself and mingled il with the valid stock Of the
company that IL is now impossible to separate or den-
THY from such valid Stock that the 2S 900 shares OF
construction stock Were also applied 10 different 10
Ihst provided in the act authorizing its issue, and
his official duty; aud tcrthss, that sad Drew
a the annual election OF directors held In this
Board OF Direc.ors but that the nrst
sequent meeung OF the Board one Of the members duly
dissiy ed by the other directors eiectlng Drew 70 nl
such vacancy and he was thsrepon elected treasurer
OF said company that hs dealings between Drew and nj:
codroctor whereby he OBJ aimed and control
OF the 600 shares OF stock wes fraud and breach Of
trust bs part Of all the parties to IT, and conferred
upon him valid right or title: that he Is bound 70
restore the company such stock eQl la amount
Of IT, and 70 account to the company tor al profits
alixed by and CONTROL that In frsudulenlly
Withholding he is guilty Of an abuse Of his trus, and
gross misconduct and 10 using . part Of the trust
property for his own benefit and TO the prejudice Of the
other stockholdsra
sANorBER BRANCH MANAGEMxNT pgvKIorED
Tue petition fursher sho vs. nat about the yoar 1854
Daniel Drew with other directors OF the Erie Railroad
Company was q stockhoder and largely interested In
. railroad company kuo~n a. tho Buffalo, Bradford and
complete and OF very little value; that BY means Of
HIS influence director OF the Erie Railway Company
he procured contract to be entered into between the
last named compauies for the operation by The Err
Railroad Company OF the railroad SAID incomplete and
vaueless road, the terms OF which unduly
favorable Buffalo, Bradford and Pitsbarg Rail-
COmpaUy.
operated from 1885 10 the present time that recently
and since January !, 1858. hs procured some
take from him and his associates Ia the other company
. surrender Of the capital stock OF the said B. b.
amount Of Ens stock valued 81 900 0o0 which was
issued TO him Drew and Of the former directors OF
the Erie Railroad Company; the petition also charges
,Dst this transfer was procured by Drew with the Wow
Of selling transferring the Erie stock exchanged
aud iner by impeding any action for the anuuing Of
the contract between the two companies AMI 10 enabe
lin 10 additional stock for ns erntons the
market; that tho exchange Of stocks prisa
aud without any resolution OF the Board OF rcct-
ors; that Drew subsequently suppressed aud cancelled
fact of such exchange and bis receipt Of the stock
an had - made ~ hs El. s0fS
Company
Tue pst,,ion finally prays for his immediate suspeu-
Upon presentation Of this petition yesterday 10 tho
court the following order was granted by Judge Bar
Tne Attorney General Of the state OF New York.
prosecuting IN behalf OF tue people of New York, hav
Ing presented 20 this court Q petition verified ON
ths io,n day Of February. 1888, alleging
various sc,s Of misconducs and abuse Of his
trust by Daniel Drew, . director OF the Erie
Railway, aud also treasurer Of said comI any, and
Iraying for hts suspension and removal Now on mo.
tion OF MARSHALL Champain Attorney General, and Of
Charles Rapaiio OF counsel u 10 oriered that iho said
appii alton petition b. heari At hts court at
specla term thereof TO be held at chambers. at the CITY
Halt In the city OF New York, tue 2ist OF February
1865 NJ ten O'Clock A. NJ, OF thereafter coun.
Sci can be heard snd That the sad Daniel Dres do show
., at the tme ana place last aforesaid why the
prayer of said petiun should not bo granted and why
such fuftner suc other order should not DO
tue prem may be just and proper
And appearing from said petition that the sad DAN
ie Drew abused his trust uch director hereby
pursuant 10 the provisions OF thc Revised Statutes % the
stae OF New York further ordered ,ha, IN no
aud the urhcr order OF THIS court tho hearing and
decision Of said application, tho sad Daniel Drew be
aud Is hereby pended ION exercising his Office
. director OF tho Ere Railway Company, and he is
hereby prohioitod ,wnile suspended from doing or
attempting nv &C, a. rector o. ssd company
Eutsr. GEORGE g. BARNARD j. :. C.
p.v.. f,..sa