New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-01
THE ERIE WAR.
ARGUMENT ON THE ORDER TO SHOW cAus,
ANOTHER BATCH OF APFIDAvrrs.
L Ii IL Il

Henry d. Whelpley and others agt. the Fri.
Railway Company:-Ths case came up in the u0,...
States District Court yesterday before Judge Nelson
an order for the defendants to show cause why La
Biatchfords order appointing Jay Gould Receiver sh,
not be vacated.
D. D. Field, Judge Porter, E. w. stoughton tgar.,..
A. Seward. and Dudley Field appeared for Mr. whspas
and the Company. Judge Pierepont Mr. Rsoa,..
Charles OConor. and d. b. Eaton for Mr Belmont s,.
Others
The case being called at Ii O'clock Mr. Rapo,o .,,..
that notice to show had been served unon ~,
plaintiffs and defendants attorneys and upon JAY s.S
Mr. Seward, OF counsel for Mr. wbepley. areusd ,hs.
the stock owned by Mr. Belmont not affected nv ~.
Issue in the case and asked for order OF reference
The Court refused the reference asked for a
The answering afidaylts were then read Mr. sev.,.
first read an affidavit OF Mr. whelpley, as follows:
AFFIDAVIT OF HENRY b. wngLPEY.
United States Circuit Court.-Henry b. whelnlex -.
The Erie Railway Company-United States OF Am.,ss
any 81 & this sn H Hss
Court under the advice OF his counsel for the purno.
having the question decided by this Court n I'M
toned tile genuine stock Of the defendant whetss,
the Certificates thereof no legal rights as socpS"S.
said company; that the proceedings which have
cerned cousive and that they were not ptenssS son
deprive either Belmont or Lucke, or other stOckbolss
of said company or any other person, OF their renedS
that the taken with the intent Of pr)carins
from this court, by az speedy decision possible d.
for tie benefit OF ali parties interested the deco
thereof That If the said Belmont and Lucke are holder
OF the same kind OF stock that held by this deponens
then this said action was brought az much Tor the
protection of their said stock IA that OF this depo
nent or any other holder This depOnent further saw.
that IL ia tue that at time he was clerk IN the an
pioynent of Messrs Fisk Beden & Co.. but he deniss
That he has been In their employ for the last ar
sonts He AYERS that for about the last three month";
he has been engaged and now engaged In busnesson
chased or that he holds any stock Of any kind. IN
Guiding that mentioned in the bill herein for the purpose
other IN the preparation Of any frauds ala
them in doing any improper act whatever.
The following adays were then read by Judge Porter,
AFFIDAVIT or JAY GOLD.
Jay Gould, being sworn says, that since the present
Board OF Directors was eessea wneh was On The 18Th
have issued by the defendant that all OF the bonds
issued by the defendant re SO issued by prior 70 the
election there has been stock issued by the defendant
except such was issued on the conversion OF bonds
aforesaid Issued pror to the said election and In pur
sance OF the agreement contained In sad bonds thai
the would be converted INTO stock at the option Of
further say that the moneys arising from the ISSUING
Of the said convertible bonds were not kept separate die
tnct and apart from the and funds Of The
said Company, but tho same were mingled with the esr
raj funds OF tde Company, and were kept as such oh
funds were kept aud could not after the rscept then
tlcular bond bonds otherwise identified the Con-
pany however kept on IT'S books proper accounts showing
further say that an affidavit was made by me In the
action In the Supreme Court In which said August Bel
mont and Ernest Il. Lucke were plaintiffs and that 10
said affidavit met and cOntr0yerted many OF the aega-
tions the complaint In said action. That the ssd
affidavit was not then completed for want OF opp0f.
unity and sufficient time therefor The Court in which
the action the argument OF which the said affidavit
intended to be used having. at the earnest eots
ton OF the counsel for said Belmont refused any
postpOneent Of the said motion to procure said adA
VAT to be completed that have yet had no opportu
nifty 10 meet the charges made in the complaint Of saM
Belmont against myself and my associates IN the Board
OF Directors Of said Company. and which charges 90 M
as they impue my directors any official mt
conduct, declare to be untrue. Since the hearing
sud motion in the Supreme Court. have been engaged
action In the State Court and have not yet fully con-
pleted the same That copies OF SAID ahdans Az
therein, and In addition thereto say;
As TO the allegation in the complaint OF said Belmont
securing sufficient number of votes at the election In
October 1868, certificate certificates for 10000
Srsaaded Conversion Of bonds Of the said
Company. deny the same. and say thai the same u
wholly untrue. and such certificate cerneaes and
no sGch share shares made issued. OF
prepared or issued, and thar no such preteaded
made for the purposes alleged IN me sd
complaint or for any other purpose. or NJ ALL and ta
knew shares certificate TO which by any posse
ty the said allegations In the said complaint could refer
further cay that all the cast at the said election
IN October 1863 cast In favor OF the present Board
and that said Board unanimously elected as viii ~
pear fully by the affidavit Of Mr. Peck, one Of tho
Inspectors said election aud in regard 70 the charge
coyerv intimaed in the com plant that stocl holders
siding abroad could attend the election per-
were, may be- prevented from voting at the eco
shall be voted on only by the stockholders in perso0
deny The and aver that no such bylaw has ever
been adopted or contemplated and deny that any alien
stakeholder has been can be prevented from voting
the elections OF SAID Company by any action OF the Board
OF Directors thereof and nc the last election large
amount OF stock. which believe aud which was claimed
to be property OF nonresidents voted by PROXY
further say, that the allegation In the petition ?.
August Belmont herein that the stock mentioned III the
bill herein put caused 10 be put into the name Oh
the complainant by me is untrue. further deny thai
10 nj fha hNa
any shares OF stock OF the issued in exchange
therefor otherwise for the purpose OF obtaining the poe
from circulation. dyerting the same from the ordinary
channels OF business of creating scarcity OF money %
of depryng the public OF the facilities OF leans roa bana
mOneyed Institutions or OF creating depreciation IN
money securities and that the allegations In TIA,
behalf made In the said complaint untrue. deny ne
allegations in the complaint OF said Belmont IN regard 70
the amounts OF money received by from the earning.
Of the Company and other aud deny the sad
amounts in said complaint correctly stated or thai
the said have not been kept in the treasury OF the
company or nave not $1,000 70 It's credit OF tnat vac!
individuals but that all the moneys received by me
for and on account OF the said Company have been hea
by treasurer aud IN the stated former
affidavit
deny that any portion Of the money of tho Company
has been secreed concealed removed To Canada OF
elsewhere beyond the jurisdiction OF the Court or thai
the have been used in the private specuatons OF
Fisk and myself, or OF either OF MS.
As 10 the allegation OF the complaint that by making
issues OF stock and locking mp the proceeds thereof and
rendering money the price OF the stock has been
reduced IN the complaint mentioned, deny the same
and say is untrue and also deny the allegation thai
Fisk and myself have been enabled have IN fact y
the in the complaint charged. obtained specuA'
tive contracts for the delivery OF stock OF the Company
rendered the stock raised the price on the
market temporarily and hcttiousy, that have in
tended designed 10 the results objects IN the
behalf charged In the said!complaint
The allegations in the said complain! IN regard 70 oe
pecuniary means and responsibility OF MI flsk ana ny
self are untrue and deny the same OF my own Hnorr
edge. aud believe tho same 70 DO untrue 90 fsr " 10
spects Mr.. Lane. u., h.
i was advised that this suit would he commenced by
the complainant and being assured IN my own nru '
my conduct tho President ana a. a. ~,
and as the Treasurer OF the defendant have Deen III az
respects just aud correct and behaving That te
my associates in said Board had also been III All ph
lust and correct expressed my willingness thN sucn
anil shoud be commenced In this Court for the purpose
Court for Its determine ton tne