New-York tribune., 1868-12-19
THE ERIE VAR.

ARGUMENTS OF MR.. RAPALLO AND EX-JUDGE
PORTER.
In the Supreme Court, Chambers, before Mr..
Justice Cordozo Belmont aud others agt The Erie Rail
way Company and ohers Mr. Justice Cardozo adjourned
the two cases which yet undsposed Of ON his caen
dar IN order TO get rid OF the Erie cases.
Mr. Eapello resumed his argument. He had been en-.
deavoring TO show when lie stopped yesterday that
the charges OF the complaint that Fisk and Gould had
been engaged In schemes To control al LOCK up money
and had sold this stock means 10 do so we're unde
MED They had denied that ihey had used hs none! III
their private speculationS they locked IL up lhy
didn't use il. They had denied the issue 81 tins stock @
tie purposes charged They ara h3t POI, & deny lne de-
probation of the stock only that they dd not purpose IT,
Then they seek the ala of the Court To use THIS money to
buy up the stock As to the secrecy charged nor even
Mr. Diyen they YcepTesdent OF the Company, knew of
NJ even they have not revealed The amount uf stock
issued hut strive 10 conceal IL from the Court lt -
alleged that the moneys arshg from ls et9ck arS unie
IL ia not under Flgs, but under GOulds control III the
Rrceiverrhp 10 be of particular fund. the fund
was pointed out Bdt m such caae ~ this no limitation
to specific fund l. required Mr. Rapallo agreed mat
the Whelpley suit failed because because there was
Company. He stood IN the posll9l OI a creditor
without Judgment, but IN this the plaintiff showed
relation OF eesie que trust toward the whole fund The
secrecy Of tie transaction an important question In
this case. II alleged that fund OF slGUOwo lad
been accumulated; that $ 100000 bad been received dur
ing the past yeara sum FAR exceeding The legitimate OK
penses Of the company They had not told what had
become Of this money They had not made the disclosures
which an honest trustee should make when called on 10
court Of equity give account ~ his trust They Ueio
virtually al this time c0nceang the whole facts. Iay
Gould spctOn guide 90 show that Tho Company
had fund unnecessary for the purposes Of the road win
which the could buy IN S2001OOO Of stock In tho last
they had hurried To bring forward proofs OF the need
of the money for the purposes Of tho ROAD In TINS SUIT
they had done nothing OF tins kind IL these gentlemen
they had fuuud the true EldOrado-a method TO corner
money aud then stock, To sell stock, 10 Ock mp
money to depress stock aud then with thai money %
buy M the stock at its depressed value with such
machinery they could absorb the whole capital OF
the country. They had disregarcd the law which iOr
bids railroads tn buy I'm their own stock
MI Ftpld "a
Mr. RapallO said that lac understood oil the general
railroad act applied 10 the Erie Railroad Company:
MIR Field said OF the SECTIONS before the sih were
There had been haste In urging the argument before
Judge Sutherland Had there been nothing but fair
purpose on the part Of the defendants to complete their
ahdayits and he would not have urged on inc Court,
md The Court would not have granted such haste. But
from the institution OF the Mcintosh suit, the Instant u
was found that s0ckolder proposed to claim his rights
kOder from prosecuting his actOn even from sefy-
defendants from the eX parte appointment Oh one
OF The parties Receiver from the hurryng TO ana fro
OF 10 was almost defnOnsraed tat hs dehy
was sought merely embarrass the Court with collat
era proceedings and not honestly TO complee thelr
papers They had ia fact commenced another SUI IN
hot haste and beaten them In the by about half an
hon Mr. RapaIlo argued at some length that tho
Mcintosh and the Wbclpley suits were cOlluslye,
When such things going on was not the court fght
refuse delay On that very occasion theJ Ieaa very
long AFFIDAVIT ON the virtue steel rails and then at tho
conclusion brought ia the affidavit OF Jay onu very
complete paper, IN print ihat was n dar n%, Wu1
not His Honor, under al these cuoumsulces, iesnnk
that he had an honest before him. have put down
his foot 10 prevent the rendering o. MS W.
The result proved that this suspicion was correct Inc
time wasted on uninateAl afdayits WAS ample Tor the
completion VI these aidayts, it was their own Dunc-
lion that had prevented The SERVICE Ol parties, anu now
they complained IT, Mr. Rapa0 then took up the ar
zuueut tho practice rchearuR All MI Wander
pOers arguments wero " show that IN some caeeS