The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-01


mo- party to that litigation has Ia the right 70
show that these very persons are unit to b.
receivers for that corporation. After the SET
Element no one was anxious to reopen the coa-
troyersy until these parties reconmancei tina sam3
oreasiona Very shortly after the election In October
last 1t became apparent that large amounts OF new
stock were being ssuel. and the New York Stock Ex-
change appointed committee to inquire OF the Ilfis
Raj road COMPANY abons these issues Of STOCK. Fiji,
comm ttee consisted OF DR.. Christian ;. Sloan anI
Two other gentlemen. tMr. K. reli dr. Sioan's al.
OF complaint aliaass that il amountci 20 ssoo1e1o.
THIS alarmed Mr.. Belmont, VINO siili had his 4oes
snares 2. stock. lie hal thought tat periiaps NJ:
OF the stockholders. Yet you hnt he receives
seooooo9 OF Daniel Drew, issues another million q
stering bonds gets all the earnings IA amounting To
more than 81. 100000 month";, aad yet Is in danger
Sock Of * nSy nes1 n they can more
Erie bonds. When Mr. Belmont learned these
facts It was time for him TO make sous
comes into court under such circumstances 10 be
driven ont BY sneefs and tannts toat Ia Is in stocs
undertakes to meet this moncyel monopoly AMI no
desperate men managing those immense rcsourccsl
ask II we are not entitled 20 all the protection the
But that is not oil, your Honor They next 60 t.
Court OF the state appointing Gould receiver OF an
the money OF the COMPANY without notice TO M.
DOUBT shi iSS an Sn N nunc
tlon against everybody they suspect might bring
asut asanst them to rip up thesc sraas aS's
making applc atom for tho appointment Of rc-
ceiver These papers arc even verified on me san
That they were running race to see who should get
receiver appointed arst; In the andavlrs ~, u
conversation with Drew. when Drew said he knew
what was doing antthat he would go over TO the
enemy meaning u.s. and make on alidavt II they
did not agree to hts term and give him some facility
In carrying on his stock dealings aud specula'ions
Your Honor can SEQ from the afidavits wherher
there was any ground for the charge made aga,n-t
Us that we were In completely with Drew, who was,
in fact trying to use both parties for his own beneat
trvinr In M "A
Counsel then quoted PassaeS IRON .as oTaee
order OF the cours, authorizing .that during the
penlency OF the order the parties should be re-
strained from commencing all procee iings or SUITS
cess OF the number OF shares the 60 npahv was
authorized to ISSUE and to restrain them from apy-
ing for an order from che courts on OK rarte appca-
tions or otherwise that might hinder or enadrrais
the company &c. or apply iiig for the ap.o avneIs
OF receiver" and then concludes, ABB " -
ordered that jay Gould DC anl IL hereby appointed
TO take charge and control Of said moneys oil TO
What mencyss The moneys OF the Erie Rai-oaa
Company. We say that from begiinias q cal. y
c car 81 au y v could ~ d 70 keen in MS cnce the
clutches OF himself and Fisk tosether-,he lnmnefs
Of the Erie taroad Company Your aonnr W.,i re
how consistently with every act OF MS Is THIS ca.S
Counsel then read further from the order OF !ndgs
Barnard as follows:-"Or OF an executive com nitee
| VINO may have authority under the constitution or
| charter OF the company"
Your Honor sees that tint throws the mantle of
Jud ge Barnard around these parties to secur. hea
II the management or the un Is Of which a 81 y es-
ecutlye CO nintee they were tho cistoans. And ir.
the your Honor will bear IN minltat we rhar.s tAess
parties with using tho moneys OF the company ~
spcou:aons to corner railroad Stock OF tae core.
| nany--we charge them liz the complaint in al,np,t
these very words Now we do not OBJECT 10 tie price
stock goag up no. nT an, ha ienn s and
haiarded by their issnB illcsiSmate stock, usias
the company's money TO purchase II atany price %
serve their ends aGd pnt nlney III yh"r POCKETS
at The expense OF the company. That was orr clrgs
before we had seen their petitioa. and venture to
gay that had they seen those charges and OR all
davis they would not have instituted thoss procead-
| ings for they would have beel coguosit To 6ieSo
Counsel then quoted the order granted on petition.
datei November 49, 1850. la the case OF ictntosa
| against tie Erie Railroad Company ana o.nefa.
winch order was modified to read iollows:' That
the said Jay Could Dc auJhOTz, 81 10 Apply So mucn
or The moneys o. tine co I, e a. rs are AZ n ms rs
| necessary to purchase or withdraw N, .oiio01
shares mentioned AMI specified ~ sail pe;iM2T5
| provided such purcpase be dial, at fsasonibid
market pfice al. hot abov, pat."
That Chamber orler, your Honor authorEes tn0
accuse him with trying 20 do without AZ ordc-taf
Is investing the railroad company's None IN slccu-
aoa e the so.ns o. Twenty n s Re anst
suit also, and restrained rs from prosecuting
any suit for the appointment OF rcce,yo'. a co
| of that order was served on Mr.. Henon, alter no
hal caused the complaint on his suit Cd be served
upon them and necessarily tcd MS hand.. We Mcrs
anxious to 90 with OR motion 70 = receivcrshi..
but this order stayed from taking aav action la tns
matter Mr.. Belmont fled his answer DENYING In
in stock spccu ations connected with ir,e. with tho
exception Of those four Thousand shares referred 70;
ana !aa' ,d ne at t he Wss not
curnIrinS OF Stherwise depressing s saluc uut "a ts
contrary that he was Interested IN eanancans ~
value He mfr Eclnon denied eip'ia cai'y; also,
that he had auy connection with any person SO INT r.
estsd i'm stock Operations. On these pane was OF.
taincd an order from Judge snthcranI 70 sao1
",mss rrsurnahie ~, 7snr,.v WIN al the proceed
ings s,ould not be act aside. Coinsel al that tims
argued that there was no power on jnigi o,t''da
stances presented in ths case. He argued that tns
order appointing receiver was one waich saouid
socso sns 10 v Srsa '2sr except y
TINS cose. But everything was done on the
other sl'le for the purpose OF delay. We Were moi
to be charged and could MT bc charged with delay
We pressed the motion With all the .igor we cou;d,
and Judge Sutherland decided to hear the wn"ls
c.se between two and three clock that afternoon.
after he had decided TO vaca,s the order the Mcin-
,osr .e:s!n:s While copg q vas arguing the ny.
the OTHER side came over 10 this Court and signs
conac,. In the name OF the railroad company waiv-
inr uos,ca ~ motion and accepting appearance
wv ts uSlce o. a,sd the order Obtained for as
appointment Of Could as receiver ONr f;ss charge
IS tnai this was coisve prScee & whc'p.ey uus
for afriaiucnt purpose. Gould hnss'. ave tl,as
when the b. was beng drafted he suggested tis. "
| was the proper person to he a,pohntei receiver.
Mr. Picrrepont-He louidl Specifically says thas
he was the proper pcrsoa - be the receiver IN M
Mr. Eapallo-If your Honor piSese. can 1t be de-
MED that the whole object tho proccsal.gs in This
case was TO frustrate procce1n ~ aiii action ol
| the supreme Court OF the state. the Court
| t.iat had already obtained jnrisl,ction In the
| matter, and which was about appointing -
| receiver Judge Sunderland. after hearing tho
moiion dcicrroincd that 1t was case in which
| mpcra.iYely demanded a receiver, anu he thought
| he would name a rccei vcc against whom the 10 low
OF suspicion or reproach Inl1 not be found, gan
| tleman WAC had recently lie the Ill chest position
on the bench OF the state-tho late pres ding
| Judge OF the Court OF Apreais-and that he
| Cudgo suhcIlaod would iaalic such norni
| nat0n OF receiver that the word might cay
! that whatever had heretofore ira spied with
! regard 10 the road tie pro. ery or tile COMPANY
should No least be AL thn frustrated by
tho action OF the other side oh aiming an order IN
this court II TO set ASIDE that order the pres
! ent notion aud proceedings were had.
Counsel havine Moulded Judge Se'son informed