New-York tribune., 1868-12-21
TIE ERIE VAR.
,,o.,-,,r,,,, ~, ,rR MAcrARLANp.

ARGUMENT or MIR. MCFARLAND.
Tn the Supreme Court, Chambers on Saturday,
Judge Carozo heard argument u the case OF August Be
mont and Others against the Erie Railway Company ana
Others Mr. MacForand who closes the esgu1en' l & iP
he plaintiff conmouced the sixth days argument IT. Ihs
case He alluded 70 the magnitude OIL me Quessi1, un'
discussi0h claiming Chat they involved not oy l"' gt
rte as 1orf of the whole system OF our railroads lie
said those who interested n the result Heio % %e
limited IN The direct actors lD cNg IN ~ id.J me merits
ocean. The defendants haQ carciuy aI 9iusu % e i
of this. action. He had been surprised WRfn conlsl
closed Yesterday without entering on the'l lie au SUI
posed he nau Oiny e9hlt'ed Hi5 - - i.. ~ nre,y
Whole speech consisted u It's exoldiuh oI unuse on
%otarord read Mr. Dpliuous affidavit 10 show That
was a fl and complete denial ~ te thGIRe yl Vu
EtrD bt1shf 10 defend DrcW's or Jay Goulds infamy
Sr belmont was too Honest 10 mite with sneh men,
Igbts and those or otner stockholders, and they might
riy that 70 would he prosecuted with unilagciHg egisy
,s e E5Sc eHG a e ~ asS ics They we're charged with
oHc CRIME; thry doued another ~ Was ah
lands tn inject charges fully and clearly ana ala not 90
co. tEcy were gsiliy. The detcndant' Could sH, gAI
directors though made parties 10 thi. "So4 ,S nH n "
m , % Li M, b'd I,ru cIa--cd with neglect OF their
G, IN uriaitiing these men 20 use the Company for
tbor own purrosc and IT, comt gr33a lF'nnS OH 49, ~,
afui.ion o neglect Of duty on their part 10 defeat
nr. LcnoJe suit these 1,e lcn g1' ul ~ sun ~ r ID
Tsk an c1ludng with each ottnr. Something had beeh
si airut t Nffouty General, sult. lie would give
ttlo chapter 1ch he wished 1r. Hammond were pres
ruued by collision WITH the Assistant Attorney Gegerll
IefSs5 to bring in TIC name Of the People
M honest sut which wouh be IF1ss5ld 5 ,dd i,
punished i0T oss moust,ouo frauds. Io,hais WouIa
turn out that hG WAS mnl io anew school o, n"ahce
FaIaud Lerc ssotcicd the history OF The irc Railway
COMPANY aud read rom the o,, t ,Ie ,be
pfh} an4 e.Ilta l.al tiesr "' rpe,ln,.J i,l. s s
capital OF d.. Company: Tie c-d ATTENTION i. ine l,'
mat ln i9ol, NA'. 'ny, N'"' "H & i' & Igstiui
leave Co ssue specific amount. The total stock thrh
stood at &5I'oc 70 Slce tHcn ao ~ 3 5L @ l ',i iJ
u.s.. Tie General Railroad act had provided way ny
and ''" tbo sane act coifrrrcd in .s next section
tho power on ine directors 90 borrow money Hud 10
ssfeucyto to uforIro tlc act it all DE guards thrown
nround nc Lccae' ~ ne s.o. ID Que section sa9u DO
provided that tc Increase Ok fo stock under tho 9TH
lion sLouid DO registered Ne record was provided for
stock 70 6o issued Gader the 10Th secon But admitting
ua the direetoro ha& ns po"er 10 was The dilectqfs,
directors wore u DO nnmner NOT inroc Iut the bonds
They lad not come forward even Win an ahdafit 20
show any purpose ior tls issue. j. Nas confessed ny
10 D.ew. 10 followed BY last 3yrnEs Issue " $780,
that Drew, Isk, auu Gould have he pro's @" DE undo
out of t Counsel skcchcd the proceedings lat spring
asr19o0 N" Tj, boz. e r3rl sixty dsys before The
not own tle tock, and then they ta ~ unanimous
lane got on tlc oaid OF ID rocO md n the Executive
Committee. The Committee Accounts o. abolished.
FISK. described O.. thc bceear Of few days back. thc
owner Of Pikr' Opera uoue to-day, Uas made the con
uolcr Of tho uflar u tlc Cgmpuy The. Company was
tlru bound l.ud au0 luof N..Iu ono month tfo0oo0o
of stock, were issued That Waa tne charge. lA,{ know
he extent oi tI. ao }ti tlr.r del.1 we 4n9 5u,n %
would hc itl. % ter hli i..l.l ono ,ns. 10 I ,s
WY hnH i,i 'S M , ~ W mo stots Why All tey
r,lu.e Md to.. to Withdraw tho aprai taken IN ihe
maior.fy of Tie d.rcC'or Dad issued MS immense
apouut q. fraudleDt -icck stood pioy'a nag .i.eh
W9N @ r lo,, Midi va rc3ei rom tic siock
| own operations Whore vas iti They say ia the
Vllt I'm say Gonll', WBIst. oUcal lie presumed 10
Ya- on iu e lalbs controlled hy him. jay Goud's af
ndayt opeas with statement a. the chargos are made
on Information aul belief. lt goc, 10 abrso Drcw
work and SrhcL 10 ha- an eloquent "i.,e' tatiOI on
tLcy were parties. I. denied nothing. Lauo pat IN
pea h abatement. II proved that tcse men were
stock famhier. th.i n Jei ta. st2eA nag & Des mn i
/ were using hc money derived iinm lhsln thct own
cf m such state Of nfir. Tho ordinary weapons OF
q court Of equity were an itjuncion hld the appoint
! proper here Tie decision % Judge Nelson not In
point That went on the ground that Mr. Whepley was
Il creditor seeking remedy against solvent corpora
tOu different po.uon from that OF an owner 0f prop
which was Sir Bclmonts position. By tho common law,
! the Court of Chnnccry had ihe power they lnyoked
Counsel quoted cases 20 sustain Ais position Corpora
lions in fact but partnerships ~ apecal form. and
tho law of both analogous, ana AS The Court of
Chaucery would n EmlllrClto between partners direct
n Ieceiytrslp. 60 they should here Ho was not claiming
any ysato a power for the Court nor was he contend
ing that tho order for Receiver was not too broad.
That not the Tchc M 80 pressing here lie did not
understand that the other tdo cOntendcd That the Rc-
might not Dee appointed ~ portion OF the funds
Some stress had been laid on the phrase special fund He
did not suppose there any necessity 20 follow any
particular money. II could easily be ascertaned what
the amount OF CHAT fund Tho injunction would oi
course hc preserved % aouG the Beceivcrshp He would
echo the clIm0r Of the prcss and pulpit agains,
! tho. bench, llt tho suffering public who nae
been cheated by these gamblers might well wonder that
justice had Wlp with which 20 lash them The plead
ngs VI Tho nature Of these transactions
THIS suit Was brought purged and clear OF all connection
with the gamblers OF the street by man who had not
few shares but large amount Of the stock IL was time
that this AuGeau stable should be cleansed that should
be asccTtard the spell that made the other IL
directors leave the management OF ths Company III hoso
| hands and stand aside from this suit.
Judge Cardozo adjourned the further hearing until Sat