The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-25

Work the latter being at the time director
81 sse Erie Railway proeeeengs
against the SAID Drew and the Erie Rall,
,ss = COMPANY ana a.. scs sns WORK a. pap
Tins, and others In the names OF the feople oi tns
State, and others In the names OF private naviduas
In league with said Schell and Work; out all tho
said actions and proceedings were entirely under
the control OF the said Schel and Work. no counsel
appearing or acting therein, who were not eegaged
Slth-That in some OF the proceedings aforesaid
the treasurer OF this plaintiff WAS Irom
| fered with by numerous injunctions and receiver
was appointed 70 take charge OF about 81, 900 be-
Sepenth-That none OF the said proceedings wero
commenced or carried on with real intention TO
benefit this plaintiff its stockholders a. such,
although such intention was pr0fessed In the plead
ings but The same were carried on only for the pur
poses OF helping the said Sche and Work and their
conederates In their stock speculatiOns and OF
complishing their private ends irrespective Of the
real interest Of this plaintiff and a. soon a. they
found that more money could be made for them
selves by compromising said proceedings than by
carrying them on, they entered into negotiations
with said Drew and with John ). Eldrdge who was
this plaintif for the dscontnuance or said proceed
iDgs. in consideration OF the payment 10 them OF 0
Eighth-That in June 1885, the affairs OF this plain
TIT were managed by an executive committee Of FIVE
consisting OF the said Eldridge the said Drew Henry
Thompson, Jay Could and J. G. b. Davis; and that
the said Eldridge, Drew and Thompson. for certain
corrupt considerations entirely apart from any In
said Schel out OF the funds Of this plaintiff, the
OF $429 $50 In settlement OF the said proceedings of
which said Work received $780, 0O0), and also agreed
to and did buy from friends OF said Sche, for
count OF tins plaintiff s60000o0 OF its own stock
til about 81 ,000, 900 more than the same was &C
tualy worth or could then have been purchased Tor
in the market.
No,us--That In October and November, 1858, the
defendants Schel, Drew and Work, entered into
another speculation In Erie Railway shares In which
they became involved in heavy losses, from which
Terence OF the courts, and encouraged by the COM
paratiye success Of the said Sche and Work In their
former litigation they induced the defendants, Au
gust Belmont and Ernest h. Lucke, to commence an
action az inst this plaintiff and ts directors, IN
| the appointment Of receiver. the said Scheli, Drew
and Work furnishing the Information and managing
the suit free OF expense to the nominal paintiiS on
| record.
7enth-That the object OF the defendants schell
Drew and Work in carrying on the said suit u not
the promotion in good faith OF the interests OF this
plaintiff OF Its Stockholders, but only to secure
profit for themselves by Affecting the price OF stocks,
and by eventually settling the suit for money TO be
paid by this plaintiff; and they, or some OF them,
have already offered to agents OF this plaintiff TO
withdraw said suit II this plaintiff would pay them
Eisueath-That in the former litigation judicial
decisions were made to the prejudice OF this
planrr which purpOrted to be made upon
argument and to be valid and binding judy
ments, but which were in fact made by
OF the said Schell and Work, In pursuance OF the
compromise hereinbefOre mentioned; and that ths
be made or attempted In the litigation now pending.
TUeJ1h--That all the said proceedings have been
greatly injurious to this plaintiff deprecating its
terest than 1t would otherwise have to pay, causing
1t to lose advantageous bargains, hamperng its Of
ncers In performance OF their legitimate duties,
while In Consequence OF the fraudulent management
and premature settlement OF such suits principle
Is settled and no advantage whatever Is gained for
Wherefore the plaintiff demands Judgment
First-That the defendants, Belmont and Lucke.
compromising the action brought BY them against
this plaintiff.
Injunction from entering into any bargain nego-
hation with any oflcer, agent or servant OF this
plantr for the purpose OF electing any compromise
or settlement OF the said action or OF any proceed
ing therein, and from receiving Offering to receive
any money, reward or valuable consideration OF any
kind whatever for abandoning or disseminating the
said action or any proceeding therein.
Thtrd-That the defendants, Belmont ana Lucke,
be required to carry the said action In good faith
for the interest OF the stockholders OF the Erie Rail
way Company and without submitting the same in
whole or In part to the direction or control OF per-
sons who are not openly joined AZ parties plaintiff
Fourti.-That the defendants pay to the plaintiff
FIELD L SHEARMAN. PLAINTIFFS Attorneys.
CITY and county V Nec YOrk:-Jay Gould being
sworn. says that he IL the president OF the Erie Rail-
OF hts own knowledge except as to those matters
which are therein stated to be upon information and
belief and that as TO those matters he believes 1t to
be true. JAY GOULD.
sworn November "a, 1888, before me-MoGTIMEa
SMITH, Notary Public, New YORK.
Another suit In the Krie COMPANY, or Fisk
Gouid-Lans Intercst-IIow and by Whom
the Old Erie War Compromised
Sf29,2JO Pnid to Richnrd ScheII for N
Di-consinuance-Nice Expose Of Jobbery.
The following complaint also served yeser-
day.
The Erie Rdnrdt Company rs. Rtchd,d Srheu
Daniel Dre,r and Frank Work.--The Erie Railway
COMPANY plaintiff, complains and alleges
fHS-Ihat at various times during the months OF
February and March, 1865, actions and other pro-
ceedtpgs In equity were commenced in this court by
the defendants, Frank Work and Richard Schell and
By the people Of the state OF New York. and by other
persor = against the Erie Railway Company and ia
directors, and against the defendant, Daniel Drew,
who was then treasurer Of the Erie Railway Com
pany
Isec0nd--That In such actions and proceedings IL
was alleged by the plaintiffs therein the defend
ant, Drew. In combination with other persons then
controlling the affairs OF the said company, had
caused certificates OF stock In the said company to be
Issued largely III excess OF the amount authorized by
law and for fraudulent purposes and II prayed
OF the court that all such issues OF stock might be
restrained for the future aud that The stock Issued
Ia the past might be retired and cancelled.
Thud-That the action brought aforesaid BY
the people Of the State OF New York, IA well all
the other actions and proceedings aforesaid was
brought at the nstigaton and under the control or
the Defendants Richard Schell and Frank Work;
that arrer t6s Said action and proceedings had been
carried on for some time the said Schc and Work
proposed 70 the defendant Drew and to sundry other
directors u the Erie Railway Company to negotiate
compromise and 70 effect discontinuance OF all
I5urh~That / compromise was accordingly ar
isuged between the oefendants Scheil and Work, on
one ~ide and the deis.ndants Drew, John I. FL
bridge tneh PRESIDENT of lid company, and Henry
thompson, tRen director - said company, on the
other side by which 4 WAS ons lue s .nsn Ss
pany the sum of san, $50 TO he pao 70 sald Scheh
In satisfaction OF his claims and that In reupon the
said Sche and Work should procure diScontinu-
ancc Of all the actions aud proceedings hereinpeiore
mentioned y
FVy.-That the motions which led TO the said corr
promise were not upon either side founded upon aoy
consideration looking 10 the welfare or prosperity OF
this plaintiff. and there advantage to be
gained by this plaintiff from any such settlement
inasmuch ~ the defendant Drew, was liable 20 re-
pay to this plaintiff oil advantages that might have
been recovered against IL In tho said actions and pro-
ceedngs and was abundantly able to pay the same;
and a far the expenses Of conducting the litiga
ton was concerned the said compromise did not
neye this plaintiff therefrom Ia auy degree:
but the object Of said Drew was 70 throw
the burden of his acts upon this plaintiff; the
object Of said EldridVe was 10 secure immunity