The New York herald., 1868-11-18

Fisk sole comptroller that they have lssned fur
s l d. 81 81 and e q
mencement of this suit, and the common STOCK Is
now increased to about $50 tnas daring no n
year the company hos received about SaoooooOu
from these dnerent sources, an and ! tlas M M tnese ls
now . balance OF about $le 600 900 In the hands OF
these three drectors that tins latter sum IS not oe
posted In the hands Of any bank or trust company
but Is kept concealed and secreted by these direc.
moTev m create n strineency In the money Market
and are using In their speculations that tney nave
made large purchases OF real estate and other pro-
nerty among the transactions OF this nature spec,-
| ned being the purchase OF plkes opera House Tor
sum Of p19pe6y IN n New that sas Io1
for 81 900, nine houses IN Twenty-third street,
steamboats, on Lake Erie 500 900, neal estate in Buff
| falo s30OO00 and other large purchases, taking
! the titles TO the property, or some Of it, III
! the names OF Fisk Il Gould; that they have
made contracts for leases OF other railroads, these
three directors being interested IN purchases and
receiving bonuses In stock and money 10 the amount
charges that they havealtered and fsifed tho books
OF the company so as TO conceal and cover up their
transacions; that there Is danger Of their carrying
the books and funds out OF and beyond the ursdic-
ton OF this court, and alleges other gross abuses and
violations OF their trust directors OF the company
and charges, further, that ,he other directors have
suffered and allowed these three men, their co-d
rectors to control oil the business or the company
and conduct and direct Its management The prayer
OF the complaint then asks thaf they be all removed
from their Ofices directors and members OF the
executive committee; that receiver OF the company
be appointed, and that an Injunction be granted.
The complaint Is supported BY number OF aiiida-
Wits.
AFFIDAVIT OF DANIEL DREW.
Cifg ana comfy or Nec iorI, s.S.--Daniel Drew
being duly sworn says: | WAS digecsor aud trea-
surer OF the Erie Railway Company from October
1867, to July, 1863 aud had been treasurer FOR many
years fpreyious; in February, 1868, the company
made Ten convertible bonds of s5ooo0O cac0 on the
Ss hS es ~ n 81 Ss ns ksa MI % n 70
that they could be converted into stock Immediately
and. and that ! would guarantce him ma againss any
profit was 10 have is he did not pay anything Tor
tie bonds; neither did til after the stock was sold;
the bonds were issued for the purpose or being con-
verted into stock; gave the ponds 10 mr. Croesbeck,
and u few minutes after he returned theln 10 the
company and received in exchange certificates for
So 900 shares OF common stock OF the company: no
sold the STOCK ana accounted TO me FOR the proceeds;
then accounted TO the company for seyents-two
i and halfr cent upon the amount Of the bonds:
on The 81 of March, 1865 ten more convertible bonds
Of 100000 each were made by the company for the
purpose OF being converted INTO stock TOOK them
OF seventy-two and half per cent, but did not at
the time advance or pay ANYTHING FOR them;
an Injunction was served forbiddng their conver-
| sion; on saturday night, the 7th OF March. modo
ley, ~ seventy-seven per cent and gave him GUAR
antee against loss by the pdFchase; he did not pay
any money ior them; he gave his note; nc pledged
The bonds with me as security for the noc, with
! power to dispose OF the bonds; eit the
| bonds ana the note with Mr. Groes0ecS; lie kep5
| them al the 10th Of March. wnen he delivered
| taeni to me: on Monday, tie eth OF March,
1855 rs understood James FISK, Lr.. took from the
| cOmpany's Office Two books oil certificates OF STOCK
| which had been made and signed ready for issue;
each BOOK contained 250 certlfcatea o 100 shares
each as understood; the certlfcates in one uf the
books we're made out in favor OF Fisk uelieD Co.
az nnaerstood; James Fisk. Jr. was q member OF
this lrm; rhcy were brokers: the certificates in the
other book were, undelStood made out favor
OF smith Could Martin u CO.: JAW Gould was a
member OF that tirn; they were also brokers' Fisk
MIRO ami p,oty nor cent. ssr got tla nrocrejs ~
the 10TH OF March, 1858; he paid over TO in ccrti-
fed checks different sums on account OF these pro-
cecas tiIi he iad maid me up to seyauty-two ana q
haf per cent ana then Wouldn't nav ay more with
ont i settlement: | had cn the 9Th agreed 10 sell
him the s50o0OoO conyer.lble bonds nd eighty.
10 nav me lor me balance due on bond a eighty M
rn,r me inc unccrtlijel cheek OF ms lrm ,ssr
ergen S Co. ior ss7Saoo. az the baance nee ye jH
wonll rcnain due from the bonds alter crcditing
rsid me o9t Of the procecd5 81 the stock: AZ co.
lateral 10 t6is SaT5 100 check Flax oure INC slocy
worth from SEQ oo3 10 $4,000 and upon tie re.
cprr NJ ;hs eai1 ebect and sncL drl,reraa II h,
my the II eau 1ay or conve,tibs bopds whisn ,ad
| sold 90 Aslley; THIS took placc on the ION Of
Marca ls5,: the next day Fisk red emed thc stock
gwen me .s cola eral NJ i,s yalpe ana Eept he
| uncertIlled check. Which look Tor granted under
Tho c,rcns,anees ,ynul ro, ra mid he tne ban ois
dia not nresant II. N tne cor,se Of 4 wee nr fuo
afterwards said Fisk and Jay Gould claiue taa tcy
were entitled to han Of Tie proceeds Of the sale oi
selves end o,hers; said Fisk onc-tIrd or one-hali:
Goaid oue-third OF one.laii. Tney claimed ,hal
up4er certain 3a,cr had sf-nea Dated | think
the lgtD OK February 1868 they we're enuCcd 20 one.
half Of the pgohs / saoud make in certaiu trans
actions. Tfs paper was draWp by Fisk OF Could,
think ana s.,ned 1t and kent no COPY Oh H. III nas
since been satisfied and canceilcd. / still have the
cheek foc $3.50 900 IN lny pOss sss.on, but IL was
settled Us aboge stated. IL Was unccrtlled and it
would nos have been paid, am satisfied, and con-
sented that FsS and Could should retain they di
retain tie said haf OF the proceeds Tor ,aeni-
selves nld Others in the anoye proportions; had
not Iaid Tie Erie Railway Company for the ave nit
hons OF bonds mentioned above ut tins time ihat
Plsk paid Inc therefor IN certified clecka 10 the
amount Or tx pc. cent as before rnen.ioacd; but
was then nicbtel to the company for the purchase
money OF said bonds; Afterwards paid the com.
paay The purchase money, 72l. per cent lrom tire
procesjs O. such certified checks; soon afterwards
ttpc
On 4 charge OF violating Toe tnanct.on: Mr. DiyeH,
one cf car directors, was arrested; james Fisk,
Simeon lay could, Jonn :. Edrldge aud iayeel IN
On Saus NO 6rthcse attachments and tho aDprclle-
sion of the apponfment OF receiver, went over To
New Jersey: we stad over there some weeks; we
uct a law ptg scd by the New Jersey LEGISLATURE to
enable "a 10 transact the business cf the company
over thele 30 that we might no. be intericrcd with
by the courts In Ncw York. stad nt ray,ors Hotel
IN Jerscv Iif,: we remained there several weeks. tba