New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-02
PRICE FOUR CENTS.

tanned nothing untrue and omitted nothing necessary n
the termlnation OF the question presented VIZ Thetne
inc directors authority TO issue convertible bonds II
sn sat was friendly that could not alter me crcun
providing for the submission OF controversy without
acton the only recourse possible for the determination
OF controversy where the parties are personally
hostile is by friendly suit which suits OF frequent
occurrence and are not discouraged by Courts The
Dartmouth College instance. The next point
Ar. Fleld discussed was was there any deception
OF DIT; Gould to be receiyeri Nothing untrue
%as who cOeeteS to M
Goudf 10 was not counsel said the parties the suit,
get hold Of the money that tie complaint comes Mr.
Belmont had suit Of his own in the State Courts in
Court a the S Wa entitled cS c et
monts receiver asked the protection OF the
needed II there funds in the ct an officer Of
tins Court and any person r interested thinks them In
But it appeared unseemly in suit, for the
@eSt of the present Incumbent simply that
he might have his Office But putting the
Mr. Belmont and Judge Davies had proper locus sandi
here did they disclose the Court DID not know when
it appointed Jay Gould Receiver There was nothing
against Mr. Gould but insinuatiOns 1t was alleged;
First That he concerned In the Issue OF convertible
bonds Second, That purchased his election by Iaau
lent means and third That he had used the money OF
the Company for his private purposes The last TWO ale
cations completely disproyed counsel sald Dy
the afdavts made against the petition thathe would not
delay upon them Upon the first pGlnthe only one Ss
bonds legally issued not he would beg to re1er h
IN Gs s to sns S Mr. Field oOnaed that
the policy Of the State mad always been to enable dec
to capitalize their debts so that the debts OF tue coz
poraton shond be evenly divided between the stocKh9a
The learned counsel on the other side appeared 10
with fixed capital That was a mistake. The original
corporation which built the Erie Railway was company
LIST, and the Company he present One) was com
pany formed, not of capital at all but OF
the outstanding obligations OF the old Com
pany which were indehute IN amount ire seyentasee
ton OF the incorporating declared the right OF the Com
taxa railroad they then Opcr
atng, and TO issue in exchange for ~ any additlondt
the stock OF the Company so taken up Erie
like the Hudson River Railroad, Company OF nKed cap
ita But what if t even The 2sth section OF tho
general act gave the power issue convertible bonds
and that power had been nyarable by tho vanderbilt.
roads and no later than last year ior Ihe pppss Ot
building road in Canada. The learned counsel then
went into history OF railroad legislation IN ths
for fixed capital OF the amount that In the opinion
OF e rSa Ssy the h Of and the
apparatus necessary for running IT, Inc next moulF
sion Of capital at an expense less than $4,000 per mile
The counsel then went into refuat0n OF the IDEA tHa
the stock In had been thought by persons that the
section general law providing for an Increase OF
antagonistic and inconsistent with ana CONSEQUENT!
9yerTude the previous section TINS Ser Was @ the M
ferent sections of different characters me power
had in its purview a general ante-coneeyed policy.
The power OF the Directors 10 increase tie stOcs
through the medium OF convertible bond was one appro
pirate 10 extraordinary emery and to meet nme
date wants and give the Directors the best chance 0,
favorable market But the power OF the Erle Copay
to issue additional stock not altogether depehua'
upon tue general act 10 bad power 20 scese 'o S
render Of the franchise OF any railroad company ~ ' ,t
State NewJersey, or Pennsylvania aud issued US
own new stock therefore There was no llnt
10 its power Of absorption: it mi ght take H. ~ eoOd
form the Junction every line OF railroad IN NcW-fhgiAn'
SsneUt Tor ts own new stock to Tue amount Of $4,000
900 sooooO and all that power was conferred 9p9O
He would not dwell longer upon TINS poln ino quS
| va fhe OF the who make tlk
application for the appointment Of Judge Dawes az re
ceiyer IL was made In the interest OF Belmont Scheh,
Work and Drew made In the interest OF persons
who have entered into comblnatonto Speculate ~ nc
stock OF the Erie Company by means OF the Oh
the courts charge Mr Field proceeded and desired
my learned friends opposite 10 take up the claensc
ton Of last Spring that the litigation begun and
carried in the interest Of most corrupt stockJooo-
/ combination. suit compromised Dy one
OF the grossest frauds praciced aud that TINS ssl
suing the same ends don't include Mr. Davies III any
thing that am 10 say about the parties lie ls meeS
an Ofieesecker, and entitled 10 all the dement's WHICH
that character gives him. mpute nothing Oh comDha
on or conspiracy him unless It may oe the com
those who expect to profit by the OF his appc
ton speaking now Of those who propose 20 pse
charged IN Of aihdays with having mace q par
gain with Work. Schel, and Drew TO carry on TINS ltIs
lion in ther-Work, Schncll and Drews-ntelest they
TO bear expense Of the SUR, relieving Belmont Ssd
Lucke Of the burden And there is no word Of eo1tadc
| ton Of that affidavit Belmont is the creature OF
n,oysd rom behind by Schnel and Work. They
Were the original conspirators in the grand
! coup that was begun last Spring and consuinina-
attempt as Drew himself now cOnfeSses 10 alass eoi"
sal fortunes by the movements OF the stock Board we
be effected by the iJunctlohs anu p9sssses %
the Courts be got ON one side or the Oter rive spa
rate suits were Instituted The counsel gave an ePl.ou
lied account OF the Erie warfare OF last March ana con
tnued Schell aud Bioodgoods actions WERE ne saiu,
brought the same day ana az the SANG noui, w.
! and even in the Boodgood bill the name OF hShala
sche merely scratched OUT ana the name Oh p 100,
good inserted Ana yet WaS uoM y,"'n and th"t
/ Mr. BloOdgoOd was AN independent party, ahu tnat
his counsel Judge DAVIES WAS PeLLieS'SS i ar1
pendent party having connection with the scie ara
Work scheme. The litigation into wich FISK aun nona
entered only IN clfdefense was continued day er Gay
In the Courts. The challenge was rolieu uonn % az
CIr Fields side; that it was speculation gotten up
the purpose OF camping Ia S,oI 6 q Ibe pyoof was at
lenge was nomnaly taken w Nis ule ,tD mil tne
tempted the other side shrked the matter uh.i 'n9
NJ Iniv Drew EdrIdge schell, Work, and others met
and entered into "a combination as corrupt anu haktV
control of a corporate franchise and property They
first agreed 10 relieve landerDht OF nv nv
right could there be to take the 100000 OF Ene
money dhe receipt for which he held IN hs handl and
losses in the Erie specuation 1t might just we'll have
been expended in paying the national uspI Oh @.
10 an honest purpose. But IL indemnify stock san.sr
ike Vanderbilt out Of the Ere Treasury WAS IS o Un
more were paid over TO the Boston, Erie, and Hart,
ford Road, When the stock OF that Company quoted
i'm the market for " or -. And again, AotOov
more s"V sSo Of Which, was ont OF the special fund
10 touch which was felony According 70 sne the
orr ginal conspators and their counsel IL would DC
smiling To the Intelligence and understanding OF any a
IN sy that this was not gross breach Of trust soov
was paid for Receiver and $4,000 TO Wors iha ,S
the srandalols compromise made by the nrsl paIues
and those were (Mr. Field asserted eAaety uo ' n
parties moving III this Court IL was tG bs Farmer
irnversy the same men who compromseu tue loa nna
sit who now start this suit seeking To- attain the
end as before by the same means was Ps INC Counsel
naSt Went INTO am argument that there was no rea.
ground for the appointment OF any rees g, a IN ,h
nnorstrons 10 law down proposition OF Jaw III 'ns
s,ots ,Sst II received note from b. and that oeeSn