New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-02
THE ERIE WAR.
Continued from First Page.

passed upon by your Honor to compass larger than
the real Issues Of law and fact have endeavoted 10 90
so III Dre1 statement presented ana WIN that snaI,
not have much To enlarge upon much has been said
about judges and counsel aud other matters instead OF
parties whose motives and interests concerned that
may be allowed TO say word in reference to one OF the
counsel on the other side and In reference To myself The
counsel who last addressed YOU this controversy was
in the previous on the same side on which he now is
that can he ascertalned. have also been engaged as
counsel against the action OF the Erie Railway Com
0 %e have Jbad eonsl T means cf knowing ali
about this controversy. will endeavor to systematic
this thing little, with view OF bringing your HOnOrS
mind to perceive the real matters involved In this contro
veTsy. About the 10Th OF February 1865 certain Dlree
of this Erie Railway Company caused 10 be Issued
bonds. with the privilege OF converting the whole into
stock at tho option Of the holder within certain period,
say years These bonds issued and sold princi
pay 10 director OF the Company at very low rate,
giving him great profit, and they were subsequently III
very objectionable ACKNOWLEDGEMENTS i'm point of
form and into stock and that stock
sold IN the market In such way as TO Insure
on the 18th OF October, Mr. Gould elected TO office.
Yes. the Company continued IN his position MT Jay
Gould the hero OF all these transactions much talked
ola man who had been condemned by the courts con
demned by the Legislature, and, more than al. against
his WILL expressed again and again They left IN
his possession don't know how many millions OF the
Company's money. All at once Mr. Gould becomes Presl-
dent OF the Company and Mr. Fisk Is with him in the
management Of the Company. Now, where arises the
precise matter OF the present controversy ou1se,
quent To this election there appeared IN the market
great amount Of additional stock OF the Erie Railway
Company. THIS stock market Is very deIcae thlng,
and it, movements are watched with the greatest interest
by hundreds Of dealers When il became nearly certain
that additional stock had been issued, the Stock Ex
change that looks to the interests members and
hope OF others also appointed committee wait upon
Mr. jay Gould and inquire II any such issue nau Dech
made. They learned from him that there mad been
large additional issue. The statements and dispositions
already made warrant then, the charge that Mr. jay
Gould and the direction had issued s2OCOOCCO worth
Of additional stock. Now, what answer do they make
TO charges They say IN the first place. that no
additional stock was issued before the election ana none
after the election except for the purpose OF taking up
convertible bonds issued before the election Now TINS
~ answer at all They deny that they nave Issued
any additional stock, and then admit that they Issued
large amount Of convertible bonds which after election
they took up NOW, on the ION OF NOveuDer he1srs.
Belmont aud Lucke, tho holders OF 1000 shares OF Erie
Railway stock filed their complaint and Obtained I "a
special order TO show cause why an INJUNCTION should not
be granted and receiver appointed THIS was TO DO
heard the 23d Of November thus giving the other Side
full week ~ prepare ON the loth OF November, 'lI.
Jay Gould went before MI Justice Barnard, and III an
affidavit appended TO petition signed ana presenter ny
himself says, IN relation 10 the sOODUO lhat STOCK VI
the Company could be- bought at 81 ana suggests
that inasmuch this difficulty presented Itself It would
be In the interest OF the company 10 WhuaN SlyVODU
OF Its stock; and he obtained an order allowing
Jay Could the pFgskse t6at "haT Gaye d e
strated that there has been a largo additional
OF stock and the point now whether at issue was
legal Letting remain for moment the question whether
there any law allowing the issue, remark that great
pains have been taken by counsel on the other SIDE 70
impeach the assertions nale ~ andaylts Dut II Wouu
he wrong In 10 take up your valuable time IN showing
that these denias entirely Irrelevant Admit that
variety OF accusations are well founded the lear
ned counsel who last addressed you said that with All
discussion has grown ont OF that issue OF stock thuk
the evidence very strong that THIS STOCK has been
Improperly applied We have surmised that this issue
took place with reference 20 the election Ihty dcy H.
aud say that the election was unanimous Mi OC9noF
then explained how Jay Gould controlling as he dd so
large amount Of stock, could secure an uhauinOus
election Had II been necessary, the S-O0O worth OF
bonds could have been converted INTO stock IN hyo
minutes aud II only because II was not necessary
mat tn Ks, e0 4rsS said MI 6GoHor. this is
IN great degree unimpottant The issue
was illegal and whether Illegal or not, we have arght
To this motion Now they palf '0o US lhaS mi DfnoIt
and LuCkc are very dshouotabe persons NOW Nheiel
the evidence for all thsi They have talked about MI
schen, Commodore Vanderbilt ana others ana attempted
to mpeach These gentlemen FOR some ancied connection
where the proof that Messrs Belmont and Lueke had
anything y do with heI IStemsn N9eTe Is Tue e ,".
them. defy anyone 20 proVelt Ieere J, nov one hlu
Mesrs Belmont aud Lucke not connected WITH them
IN any way and fact which has been res0ea 20
by them A. evidence Mr. Charles A. Rapcllo who was
retained by them as counsel was previously engaged ia
posed 10 be well informed concerning IT, ana now ma.
20 this that man cannotcmplOy lawyer IN CAGE
without being charged with all the crimes Of the lawyers
former oleutsi is u strange that DIT belmont kbo~
ing that Mr. KapclO had been formerly engaged IN the
In relation 20 what counsel ON the other
sids had said about Judge Dayie, Mr. O,Conor.
Court and take care Of his inerests and that this had
asked why tins attempt TO reflect upon the counsel and
entered into somewhat lengthy defense OF the legal
profession ending with the remark that the only reason
why lawyers had often been charged with dishonesty
va beCa often had to represent In
courts He submitted Ia the Judge that al that hau Oeeh
said about counsel entirely out Of the question We
come said he To the precise question ana TIE pro
cCslings that have given rise TO H. me s4Oovg worth
of stock issued, and Mossfs belmont ahu Lucke
bought some q II Ia good iaith Ana mere IL may DC We'll
perhaps, 70 discuss as lar as may DC NECESSARY qcs
ton whether the issue was lawful or nos Ihe Old Ele
Railroad Company was dissolved w. looi ana ne present
" Erie Railway Company arose lko the pheui1 from
It, ashes and passed 10 all It's powers and privileges III
appears that prior TO the Issue OF or % sOck
IN tho sprug OF the year ~ hau lssuou az the s'o.
allowed by the statute referring TO the company and
other railroads, WlthdraWinS ho stoc IL ad
issuing their In its place, which they had
night to do. they lad also exceeded ther DOVER IN tnis
an additional rail additional track they had aever
spent any money IN that way We, Therefore, now ar
rive at the conclusion that far the special law
concerned. this Company had already Issued ls maxi
this additional issue from lhe general Railroad law
MIR OCOnor here read extracts from Tho general Railroad
law Pasid ana spuses t ' ny oeF hs not
be less than $4,000 for each mil. OF track Section en-
acts that when the capital stock OF company formed
under this act found 70 be insufficient TO construct the
road It may be Increased 1Gp ume to tns ~ vote OF
twothirds IN amount Of the stock IN the r0ad secton
49, Subdivision TO- euumeTaes among the powers winch
railroad company shall have that 0f from tlne 70 ue
borrowing money ahc giving a bona secured Dy moIt
gage on the property Tor the purpose OF eohStuek or
operating the road II also provides that these bonds
shall at option the holder he convertible into stock
| Mr OConor then explained how such provision was
necessary, In order 10 facilitate construction OF
though the bonds would be- lie commended that these
last sections hot TO be considered at variance with
preceding gnd that they could not therefore, give
the Directors the power To Issue bonds 10 amount
they h and then To convert them into stock. The
capital stock Of any company should be equal 10 the
amount needed % construct aud equip the road and
all ought be Ia the form OF capital stock Mr. OCOnOr
coponded THEREFORE, thai this issue even II II was fair
was Oh unlawful addition Of t2OO0OOO 10 the stock OF
the Company & had been said that. even II the Issue
not sanOpoed BY law, such proceedings were com
mon and that there not company In the state that
had done thesan thing The facts In the were,
however that every company IN the state had TO make
all report aud these reports had been examined
aud showed thatony three companies had ever done
neither had done TIL within three years aud that
the amounts sSIed very small The Central Railroad.
that had madethe had done 50 by vote
OF the COMPANY And now said Mr. OCOnOr for the lit