New-York tribune., 1868-05-07
TIE GREAT ERIE WAR.
ARGUMENT on THE INJUNCTIONs IN THE ST.
PREME COURT, SPECIAL TERM, BEFORE
JUDGE SUTHERLAND.

ARGUMENT on THE INJUNCTIONs IN THE ST.
PREME COURT, SPECIAL TERM, BEFORE
JUDGE SUTHERLAND.
The argument of Mr.. Rapallo on the motion
to dissolve the schel injunction continued yester-
day. Mr.. RapalO again adyerted to the testimony
which had been taken before Judge Barnard desiring 10
have portion Of that testimony taken as evidence In the
sise MT Rap"IIo to specify what portions Of that
TESTIMONY he wanted put In evidence and aher some de-
bate Mr. Rapao said he would be Obliged TO put all of
thar testimony in as evidence He referred 20 the cere
mony OF issuing the bonds OF the 10Th OF February and
taking them Immediately back again In exchange for
"a 600 0o of stock That was mere form 10 enable the
issue OF the stock and 10 illegally initiate the eapml OF
the company The stock Issued without the knowl-
edge OF the stockhoders and arbitrary price Up
10 that time the illegal issue OF stock had not been made
an issue in the litigation. But that transaction alarmed
the stockholders. That after the issuing OF the
injunction in the schell suit. The testimony
referred to showed the intention OF Mr.. Drew on
the I'd OF March to issue another batch bonds He did
So but served with injunction before he had been
able TO convert them He therefore sought Ior means 70
make Ostensibly legal conversion. MT RapauO Iead
from tho testimony OF Mr.. Groesbeck, describing tne
transaction at the house OF Mr. Field on the night OF
March n which an apparent sale OF 600 OF bonds
70 Mr. o. D. Ashley had been made, He proceeded to
show that that transaction had been simply shan lie
proposed TO the process Of the conversion OF those
bonds stock and 10 show that that was also sham
aud wholesale manufacture OF stock he reviewed Ior
this purpose the testimony Of Mr. Dyep, M OTIS, MI
Heath, and others ana reierred 70 MI flsS d
that he would break the party OF MI Bloodgood ana
other purchasers OF the Erie stock He had succeeded IN
breaking down the market on thas same ne ua some some
I'm solid block upon the street There was the spectacle
Of director OF railroad company threatened WIN
bankruptcy by advance In the price OF the Stock OF ms
company more fragrant could not have been pre-
sented. In his outline Of the testimony he had but
ecbly pictured the Nervousness OF that oense Ihen
the directors being aware OF the state OF feeng In the
hessegre they mad the 9qqsf a 70 c1 sS Vr o ae
even the Assembly did not dare TO outrage deceney by
egalizng that issue but they saw an opportuuiy 70
that they did. They ordered that this money
80 g6ane9 sSu be Soa5 9e oSa for no other purpose
Mr.. Rapallo said they had not opposed the m as thus
abatement aud Mr. Rapallo said he would like TO
who was bold enough TO controyert his statement
did not claim excessive physical boldness, but he did
deny that statement After explanation, Mr. Rapao ad;
mtted that he had made his statement from what he had
heard. lie diated further on the provisions OF the bill
as amended and passed. claiming that its effect was not
hold Daniel Drew 70 his bargain buying those bonds
for 100000 aud TO require that money TO be paid ard
used for the construction and Improvement OF the road
The injunction in question had caught the defendants
In the act Of violating It, Was that reason
repetition OF the ofense The only argument the
other side simply 1--WE are too strong for the Judi
and will violate them fast issued; YOU the gentle
OF the Judiciary had better give II up, stop issuing
very specOus argument had been introduced that by the
capitalization OF that stock the stockholders had been
benefited inasmuch as otherwise they would have been
obliged 10 have annually PAID interest on tha amount oI
money but by very simple calculation he would de-
tai stock of the Company about l0O0OC0 then the
number OF shares would be $4,000. The interest on
share each year. An that was saved. But the
depreciation OF the stock caused III one by that
S ON each and every share Thus the holder OF one
shares OF this stock lost ON the sh OF March last
much by this action he could have earned by
stopping the interest for ten years. Mr.. Field made OBJ
lection TO the term g. stock gambling" used by Mr.
Rapaio asking IL the man who bought railroad stock
long was not exactly as much OF a gambler the
who sold it short" Mr. RapalO replied that he
expectation OF enhancing ITS value was acting
perfectly properly, but he who while holding the posi-
that he did possess with the expectation Of depre
catng the value thereof before the time OF delivery so as
10 make himself a margin OF profit, was not only
gambling, but IL was gambling with loaded dice, It was
gambling and cheating In gambling, the most contempt
ibe kind OF cheating AT the conclusion OF Mr.. Rapalos
argument. the Court adjourned until Friday morn
ing. at 10 O'Clock, at which time Mr. OConor Will deliver
his argument.