The New York herald., 1868-04-22
THE oURT S il.
THE ERIE RAILWAY CASE.

The Alleged Contempt OF Erie Railway Oi-
Observation-Disclosures OF William Heath,
James M. Ellis, Martin Il. Greene and
Others-Spicy Developments and Legal
Tournament.
Before Judge Barnard.
The hearing OF testimony in the contempt rr O.
cecdings against Messrs. Gould, Lane Thomps on,
Skidmorc and Davis, directors OF the Erie Rav way
Company, was resumed yesterday In the Sur RENE
Court, General Term room, before the referee.
A large crowd of interested spectators We in at
tendance. The usual array Of counsel on ach side
was present.
TESTIMONY OF WILLIAM HEATH
william Heath, a member OF the firm OF william
Heath Il Co., brokers, was the first wi ness called
for the people, AMI was examined by r. Clark, tes-
tifyng that he presumed he was in New York on the
7th and 9th days of March last.
@. Did you make a sale OF large amount of Erie
stock or about the 9th Of Marchl
Question objected TO by Mr.. Fieb | as immaterial
and objection overruled by the cour t.
A. presume sold some Erie " ock on that day.
@. What amount Of it did you Sc IL on that day? A.
I could not tell with precision VIII II amount sold.
@. State as nearly as you can. A. To the best OF
my knowledge did not sell any
Q. Did your firm sell any on rat dayP
Question, objected 10 on he ground that the
answer VIII be based upon hev say and not upon the
cusson BY counsel and the q jecton oVerfuled.
A. think-yes, sir they a d!
q. state the amount as near az you can. A.
O. Did your lrm sell any stock that day through
other parties2 A. Yes, 81 {; Mr.. Lippncot is the
| not positive as to him.
Q. What amount diJ he seP A. About 5000
| shares.
O. Did you not sell more than 49, 900 shares that
| day2 A. think not
q: on whose, bch1t did you make those sales9
Q. VINO was your prlncpala Objected to by Mr..
Field as asking a conclusion from facts not yet
Mr. Clark-Thc uestion is put in the right form
Mr.. Field trisine I've are informed that the ques
'' Question repe9 ed A. James Fisk, IT, of the firm
Q. Was he a. director of the Erie Railway Com
| panyY A. do n't know.
O. Don't yov understand that he Is a director?
Objected to 10y Mr.. Field that the question has been
| answered 80 lar as the Witness knowledge goes.
sr"lauehm r|wand desire to elicit my own answers
The court ruled adversely to Mr.. Clark, who then
said, 81 w!l waive the Question" Great LAUGHTER
and a reminder from the court that this was not,a
theatre. If the conduct was persisted In the court
woid have to be cleared OF all but those per-
sons.whO were engaged In the casc)
q. When were you employed to make those sales ?
A. On the day the sales took place; cannot say
wliat1 ay 1t was.
| O. Have you boOkkceper, and what Is his name ?
] A. have; his name Is Henry Hooper.
! Ms. Clark ito his associate cOunSel-SubpGna him
10 produce the books of the firm.
O. Whereabouts were you employed to make those
saes2 A. do not recOlect.
@. Where did you sell the stock9 A. don't know
whether sold it in ''the street, or on the stock
board; II was one or the other: A..
| q. Who rresena at the time the order was
given to sell the stock2 A. don't think any one
| present.
Q. Did you receive thc certificates from Mr.. Fisk
| A. No, sir.
O. Did you make deliveries Of the stock in accord
ance with your saesY A. DO you mean individual
ly2 cannot say; presume we delivered 1t.
Q. Did you recsiye any money for those shares
@. Did the firm receive itP A. I have no knowl-
edge whether the firm received any part o! the
q. Did you receive any checks for itP A. do not
| know, sir.
Q. Your books. presume, win show? A. ] pre-
q. Who has charge'of your books3 A. j presume
the bookkecper has.
O. Did YOU see any, of the cer.iAcates2 A. No sir
q. Have you delivery cerk2 A. No, sir, none
that are called 80.
q. Who makes the deliveries Of stock2 A. The
o. Can you give the dates OF the ccrtincates9 A.
O. what did you do with the proceeds OF the sale
of tnat stock2 A. ididn't do anything with it.
q. What did your firm do with the proceeds A.
; don't know, Sir.
O. Have you any of 1t still in your posscssion2 A.
o. Dou you mean TO say you don't know whether
any Of the proceedsOf those saea are still IN your
o. Al what price did you sell that stock A. AT
various prices; in the neighborhood OF rs to 81.
q. What was the gross amount of those Salesp A.
don't know sir; suppose could figure h out.
Q. Was it upwards OF s2,0oo,ooR A. Yes sir;
about s3 COO 0O0 I should say.
o. Do you mean to say that you 40 not know
whether you have or have not in your possession that
money! A. not OF my own knO wledge.
q. DO you know from any member OF your firm or
your cashier? A. No, air.
o. Have you never asked the question: A. No, sir.
O. You have had curiosity on the subjGct2 a.
Not the slightest. llanghter)
Q. Do you keep hank accounts and If 80 in what
banksS A. We do. In the Fourth National Bank and
the Bank OF New York.
Q. Who signs checks OF your firm drawn on those
banks2 A. Myself aud my partner, Mr.. Ellis.
Q. Have you, not, signed check on any Of those
banks for any portion OF the proceeds OF the sale o
that stock2 A. don't know, sir.
| Q. What is your best recollection on the subject
A. | sign them ali In blank.
O. Was any party besides Mr. Fisk party to youl
employment for the sale OF that stock9 A. No, SIR.
q. Where Is Mr.. Fisk2 A. don't know
a. When last did you see him2 A. About month
ago.
O. where9 A. At Tayior's Hotel in Jersey City.
q. Did the price of Erie stock rise or fan In thu
market consequent upon your salesp A. DOM
@. Are the books to which you refer stn in the
| onice2 A. don't know.
o. Have any OF your books been destroyed A.
don't know, sir.
O. Have any, 80 far "a you know, been destroyed
a. 1 have no knowledge on the subject
by Mr.. Ficld--Were you present when any OF this
stock was soldP A. I was present when some OF 4
By Mr.. ClarR-who did seli this stock that YOU
didn't sell yoursefa a. Various porscns cir.
| o. Name them, sir. A. | have already named
them, sir; Mr.. Lipplncoh was the only ono remem
o. win your books show WHO sold the remainder
4. don't know whether they will or not.
The testimony Of this witness being considered
closed h,. fied moved TO strike IL out as no
proving anything.
The application denied on the grounl that tn,
DoVkS WOhli nave 10 DC prOuuCcd Dciorc ~ couiO ~
determined whether anything had been moved ol
not
Mr. Clark then resumed the direct examination
and ccitcd rom the witness that Mr.. Moss, tnC
assistant VI the witness In his Office, sold some o
the stock.
Mr.. Fullerton asked witness whether Mr.. LapsleJ
had sold any OF the stock, and witness replied thai
he thought Mr. Lapsiey had sold about i've thousand
shares; witness could remember no others.
Mr. Heath was notified not to leave the court, q.
he would he recalled.
TESTIMONY or JAMES ". ELLIS.
Mr.. Ellis, being called as witness, c0nversed
privately with Judge Barnard few moments, and q
its close the court staJel that Mr. Ellis was the busi
ness partner OF the former witness. They, together
with their clerks, had been subpnnaed rs Witnesses
aud their oice left without any one to attend I,
business. The court would therefore suggest tina
| Mr.. Heath be permitted to leave to attend to lii