New-York tribune., 1868-12-18

the Company was iusolyent and had authorized tls
coyer 10 run the stages long enough 10 wind mn ae -
Mr.. Rapallo said In that the Court aclt6 ,-o.
Renefal equity jurisdiction and not from any siat"l
power. AT present they were engaged IN dlren.s'a@t
proposition that tile Court having no iurIsIjcf hk
ts 0rdor u must DC set aside here. lie thoueit e
question would be more properly argued on reis has
peal but he was now arguing before His Honor .. sp-
supreme Court had ms Jurisdiction. and that this os ~:
that Judge Sutherland had overlooked some ,re.snei
points matter for which be would have IN o Geat
SutEcrlands mind. There some maiters in luess
Themselves the control OF this vast Coo " Toled Tor
issued twenty-five millions OF stock uuagfuy H. had
used the property so controlled for their own -.i
gains producing public distress and lEsto
rsnng the property OF its Company, and The inter'as
suit was directed N was aSerred bv Nr peh Nneh tAi
h0 denied that his purchase Of stock n rood f,a
aud the suit itself. There had been clareo t.t
suit was brought In tho Interest az soIno ot,el el iris
ile ga not wonder at the yludctiyencss at Ar Dr@
He n&d been friend aud had gone 20 tie orro,
Dut tnat Is was Ilend Of That opponent was fspi
matter II Mr. Drew bad aided Mr Belmont with sdc,s
lar, 1t was tie most foolish investment ne Lad eyera,S
He conld gain nothing from this suit Tie (slr Psrastss
had not received dollar Of his money As 10
gentlemen named 1t was not proper necessary fer h
that n proper receiver were appointed ihCy vts Sss
called to an accounting OF matters which tIey diS ~,
desire. AcuOns had been commenced sgansf' s1rt "'s
those named, which would 10 doubt le answere1 =,
Afr Eapao then went into the discussion ~ tb ia,
Of the Company 10 issue convertible bonds us, sL
Sanuay the same arguments as were usel in tbe cssS,
last slHng IN May 1896, they had exceeded he autTn
last Spring there was further issue OF ten millions ~
stock ma another Of two millions, which was Tic basSt
since theh II 10 claimed they had issued twenty six nil
Mr. R3pallo argued that the whole framework ot ~.
law WIN us provisions as 10 how the stock should Dc a
creased was IN direct conflict with the claim of tie 10
lCHdahs Ihcle was 10 provision in the act that the D,
rectors might create stock, ia conversion OF liz
bonds. Counsel claimed that tic decision Of Judes
sutherland IN last Springs was directly on tis
question vi the power Of the Directors 10 so Increase ihs
stock That was tho only point raised 10 tho of Tie
! LHI ia DfttHa
fraudulent Issues hut to all issues and ncce sary vera
based ON the decision that there power 10 maze
mace last Spnng claiming that tie issue az 'C0Ol0 Of
bonds produced TO the Company but t, while Mr FiSk
got for the stock 20, tns making $4,000 which dld rot
come into the Treasury. Who got that poit may be ia.
fcrrcd from an agreement made wien III hands ', -
sued, between Drew, Fisk, and GOn.d ~ divide tas
prOnt5 of unnamed transactions. kS~s C0ls not Geny
that he claimed from Drew a shST'l these profits Ks
could be witnesses 10 It, Tie ynd.Cgcuess with which
they pursued Drew explained nom tho fact that Tut
quauecd, counsel would have failed IN his dgjy to hs
| clients not TO have used the Information tlrs
OF Mr. Drew with tins case. that Of an &C.
cOmphce Who was willing 10 turu states ov.Gegce.
Then they cd and later came tie compromise with lT.
schcli scheil was no DAectcl-DlcW, Ik. AID Goud
were. Could sTears he Withdrew his opposition Iegc-
family. What Overcame bis relUctarco9 Was 70 prurn-
se that he should he treasurer ald Ftealdenti Wy
did they, II this was such foul ua;sacton leu, aay
cOuseuti Could they plead they were bybabcai fbS
and Gould we're not famous Tor allowing guytlg tote
done they dSiked. JuCausWttS fnCy made Wtr0 fact
admissions facts and denial of motives. They pre-
seutcd remarkable series or c"lh'dehS resulting n
placing them IN control % the company and Az seast
their wishes Ihey say thcy oDheu u, control wiz
out any design and have not used ID IN an improper maj
ucr But they have used the power, ana baFe done Va
rous acts When they came INTO power thf STOCK wasat
s34.0mO00 mmedihtciy alter lhis they received om af
Drew sOO00oO and upward. IthaYeired That they ke2s
tie Directors IN ignorance of thclc acts. They say
rot rge i'm Tie sense In which the charge Is made; they
don't .ay what that sense s Mr. DoNeHs ''dANt shows
that Lee kept ignorance ~ the Issue 1t c0yertts
bonds II was charged thar after this settlement $.
was issued previous 20 October, since Tie election,
lie bad not issued stock 10 that extent.
issued s25gJo0o II amounted substantially 10 an ta,
mission. There was d,lldl or thc issue oI .-@Vto
never got beyond the form 0f convertible bonds ~ tie
hands OF a confederate. But the other $2|2O0 VS.
not denied excerpt the extent. Thcv bed ilghtt,
infer from Mr. GOuds petition m the Mcintosh SUIT mai
Sl0G0OCO Of Illegal stock had been Issued IL coupled
with statement That thelc was Just t5So aos ~ Am. s
stock IN the market - Was not pl31A9e l"at % Hs
terpsted an officer Mr. Could could have intended 70
bonds Issued before election bat they on say nov
long before, that they were issued before he vas
President he denies that ihe stock was lsueu tecte
bat 10 does not deny That u was kept rom lne sOe
l,dtrS the parties who had tie u-lr 20 Know H. y
was not denied HAT the market price ~ ne s0.E hsa
reduced by these issues Tho stock sofa leloN cshs
when Mr. Gould sought the aid Of ,hc Court g
permit 70 10 DO bought back NJ PR. su.h Aill .,
Things il was that alarmed stockhodcrs, sua
made tiern desire TO have their property taken taken
from such hands. Was thctc any I9et uLatN'' WIKI
snnnrd n notIye for these act.Ousl Mr. Bapno read
tnaf p,r of the complaint which that Ley LaTe
sousht TO obtain control Of large sums OF iDn! 70 i9ck
II M aud thus break down Tie markets. This Mr. ka-
uallo cnnteuded was denied. They Gd hot deny bs
sale of the stock. tie schemes. ot the ochrg upSN
they deny that the stock issUcd for mat purpose
Mr. yanderpoe-Aud he denies tho allegations IL thst
r Rapao-Thaf then is the denia. joining several
things counuctycly 80 that it is good denial ~
any one Of them. Mr. Rapalo cOntcnded that the snss
answer was eyasye in denying the connection u faets
IuIge Crozo here directed the to stand 10
FI.day at II q. M