The New York herald., 1868-03-26
NEW YORK CITY
THE C0vR rs.
UK,TeE STATES CIRCUIT CoUaT.

The Rock Island, Chicago and Pacidc Rail.
way Case. .1
Before Judge Blatchford.
The case OF Hatch vs. the Rock Island, Chicago and
Pacific Railway was up again for argument yester-
day in the United States Circuit Court before Judge
Blatchford. An Injunction had been obtained in the
state courts at the suit of Mr. atch restrain the
defendants from using certain amount Of stock in
the construction Of road, and demand
ing that the company should call in that
stock. The case was removed from the
State to the Circuit Court on the ground OF Jurisdc
ton, ana motion had been made to remit the case
back to the State court; Ihe arguments on this
branch o. the case nave we s nns ne decision VIII
reference to the Injunction above adverted to.
Several afidayits papers and documents having
counsel on behalf OF the defendants spoke in opposi
ton to the Injunction. He said In the OF his
sds tSat this company had no sht u to s seil s
stock below par. He would admit, for the sake
Of argument That that was so but he repeated that
the stock was sold only about two per cent below
par. the conduct OF the directors had been cen.
sured but he had shown that their actions had been
Counsel adverted to the afidavits, purging, as he
said, the directors from any sinister motive Mr..
Tracy one Of the directors said that at the time he
any stock contract whateveri he merely bought and
sold as any private party might. After the 10th OF
free from any just exception. All the railroad com
psnes aREns Fl getting thin ss
shares, thought Of raising 10000 more shares
for the purpose Of obtaining these steel rails He
pany, and found that his broker sold 5000 Of them.
But upon ascertaining that the company would not
ns ad1 shfss ana 81
his own private act. He merely availed himself Of
the knowledge he had to make some money. That
had nothing to do with this case at all so far he
(Mr. O'Conor) could see. Mr.. Charles Durant was a
member Of the executive body. Mr.. Durant knew
make some contracts, but that they proved disad.
vantageous to him. It was said that the secre.
tary sold three thousand shares short and made
only about $500 by the transaction. He (counseD
said thar in agreeing to and in issuing these forty
nine Thousand shares Mr.. Tracy and the ether direc-
the good OF the company. The company were called
upon to bring In this stock and to be ressained from
making ,ns syeon o ne M
respect to the charge against the company that they
did not transact their business In their own State
Mr.. OConor quoted case to show that the business
Of the board OF Connecticut transportation
company had been performed in New York.
thev WeTe yerv much in The habit or esabshS
corporations with directors In Boston, Philadelphia,
London, Paris and other cities and he liked to know
how there could be meeting OF such directors scat
tered abroad as they were; and In such case IL
quite desirable that there should be subcommittee
directors could not meet without PROPER notice MI.
Hatch denied the power to make the extension
That power had been conferred, so he (Mr.
matters belonged TO the directors and governing
officials, and not to the masses of the share
holders. The moment the other side commenced
these suits they commenced harassing line
OF examination Of the directors, the very questions
put to them being insults. They wanted TO examine
ell the papers and books before the proper time for
making such motion came. The company said
that they would not allow any such thing TO be done
until II could be done by legal process. They had
got mighty liberal rules In the state OF New York as
conducted q suit Of this Kind wanted to examine
their adversaries right or II had been decided by
the courts that, In the matter OF examination, a
party must know the facts he wishes TO prove. He
must ascertain nothing; there must be no fishing
for facts Counsel said that the gentlemen examined
were reluctant before the referee 10 answer as to All
their business operations for the company without
pleadngs and before issue had been Joined. They
declined 10 answer irrelevant questions because by
the law OF the land they were not bound to answer
them. The examination was conducted I'm most
disorderly way. Mr.. O'Conor adyerted to the fact
that there was monstrous habit growing into use
IN this country OF putting inguisitorial questions 10
witnesses without moments warning, and putting
them through nterrogations as to all the acts OF their
lives, including their correspondence with their
wives and children. No such practice existed In
England. He tMr. OConor) resisted IL always, as II
was scandalous abuse that should not be tolerated
He claimed, in conclusion, that this being
. suit brought by pr0fessed stockholders
a. such to regulate and rectify some action Of the
poraton, the courts OF the state Of New York had
ned . violation Of the law Of Iowa, under any Cir.
sunnstances Of this case. his Honors court had NO
corporation was confined TO making them pay their
debts Mr.. O'Conor, for the purpose Of pointing his
argument adverted to the case Of two bedles Of
ffrs' rom tis sultan Of turkey for the purpose Of
carrying on the business Of banking " the