New-York tribune., 1868-05-06
THE GREAT ERIE VAR.
MOTIONS TO DISSOLVE THE INJUNCTION.


The argument of the motions to dissolve the
iDunctons In the Sche Work. and Peoples suits was
sumed yesterday before Judge Sutherland. Mr Rapallo
asked adjournment for day or two. on the ground
that his own and MIR. 0Conors constant engagements
had prevented the preparation which the cause de-
msnded The Court refused to further adjourn the case
unless with the consent OF the other side They aSo
fused their consent, and the argument went on.
Mr. Rapao SAID the first question was whether stock
holders have rights which may be invaded by the action
Of the directors without receiving protection by means Of
appeal to the tribunals The policy OF the defense had
mass Of other facts attractive to public Interests The
first proceeding this had been the suit Of Work
Mr. Drews transaction in taking 10000 Of stock Of the
Erie Railway Company at GO. paying so percentum OF
upon that amount, then selling that stock at 80 and
paying the amount promised out OF the proceeds.
Company and drew interest on that nominal loan while
he had not been made TO dsburse penny. The com
manipulated ever since and that Of stock
the & Of sse SSt s PaG m %en Sno hSS sHo aaes @
suit against Mr. Drew TO compel him 70 make settle
ment he would to Ills c0drectors and arrange for
cOllusiye settlement That cousve settlement on tho
part OF the Company was what was sought 20 be re-
Shares had been in the sworn report Of
the Company TO the Legislature aud the State Engineer
causing the impression that the t2 100000 OF stock at
which amount the stock Of the Company was fixed by
In existence He proposed to have those reports consd
Mr. Burr objected to bringing up such papers as the
argument went 3D. and asked that tho names the whole
OF those papers be announced to their side to euabe them
some time for examination and preparation.
Mr. Rapallo objected TO having the thread OF bis argu
Judge Sutherland thought that he should not order Mr.
Rspao to name all the papers he expected to produce
suppression the defense CLAIMED that it not stock
was merely pledge OF loan Bat It G was certainly IL
as stock. The complaint further alleged that Mr. Drew
had promised the Board Of Directors that he were
elected Director he would abstain from those mschie
speoula6ns. But In January OF the present year
he had reoommenced such transactions. Mr.. Drew had
going into Walst, and bulDg bearing the stock OF
the COMPANY hoping thereby TO deter MT Work who was
down from 6S TO 60 thereby grossly violating his trust
Tns petition M & further segea spes1iatlye bargain be
tending TO reduce the value OF the Erie stock but advanc
Ing the private interests Of Mr. Drew Mr. Drew delayed
manipulated tho stock in Wast again hoping thereby
S1 s P 70 os qs sdS% be sso 10
excess Of the legally amount and therefore
Company to construct railroad in Ohio was in exCess Of
their powers under the act creating them. And the
Asorney has oeo right to petition for the
restraint Of corporation from exercising excessive
2any to give account OF his official action and for the
removal OF such director upon conviction OF misde-
above petition alleged that the Directors at meeting
on the 18th of February last had taken sides with Mr.
Drew, and had assumed hostile position to Mr. Work
and his ecton that the 10th OF that month
Issue of s50o0oOO OF stock had been made and that
told tho deponent In reply TO his inquiry that issue
had been made except certain issue Of 81 100000 OF
bonds The Secretary afterward rtracted that reply
and by instruction, declined to further Then
Mr. Rapalo continued. the defense asked that ali these
proceedings be stayed naming the place OF IN
Broome County modestiy asking that the Attorney Gene
raj and Mr. Work be required 70 carry their litigation
tloDs. After epjoinng the Attorney General and Mr.
Work in the interest OF the stockholders from proceeding
with their SUITS these Directors the next day issued
900 more OF stock and put them the market He
especially objected In behalf OF the Stockholders 10 the
Of the C0mpanys money for prosecuting the Directors
law case With the money spent In this litigation third
rail could be laid which would bring the Erie road into
CISCO The stockholders Of the Erie Company their
property diluted and debarred, by the secrecy Of the
Directors movements from ascertaininR the cause.
Mr. Bcben saw his stock rapidly depreciatng. and
asked defense OF his property that the Directors might
be debarrod from continuing their unlawful The
injunction had been served on the Directors OIL the oh OF
March, the day 10000 shares OF stock had been is
sued and sold by Mr.. Drew through DIR. Fisk and tho
scheme of bearing the Erie stock had completely sue
Deeded Such transaction was no borrowing OF money
On bonds application Of bondholders Then 1t was
that Mr. 6che had brought his suit and aked that the
Directors be restrained from further illegal issues. II
ever cause existed for injunction the facts named
supply On the 10th of March the report Of the Execu
tive Committee came out saying nothing about the last
OF o0 900 OF bonds 1t plain that those Direct
cOnfederated with Drew and his calls showed
that he was still short report was then made design
oddrawn TO the wOrthloesnee5 OF the road Tor
he purpose OF excusing that Issue Of 0o0 OF stock,
He submitted that the act Of the Legislsture did not
bear upon this motion.
Mr. kapallo will continue bs argument this morning at
I o'clock.