New-York tribune., 1868-02-20

way Company In and ny the IssnInnto.td VI s,n ~ %
Once Of the secTetsry Of STATE statement S Rrs OF Rs ,he
whole amount II both Tue conop oi and preerred out
standing and issued that day And your petitioners
OF the EewYOrk and Erie Railroad Company did not at
any time exceed 1890 shares Of 500 each and the
said York and Erie Railroad Company with interest
thereon did not the time of the said sale OF the prop
Company the time OF the organization of the Erie
Railway Company, hereinbtore set forth exceed the
both common and preferred, which the Erie Kaliway
Company authorized create and IN pursuance
OF the several aes OF the Legislature herenbefore set
FORTH did not exceed 2O 900 shares OF 500 each Ilat on
pursuant to the provisions q said Of Apr2 1861 filed
In the Office Of the Secretary OF State eehcate stang
that the final report OF the Referee mentioned IN sd ac
had come in aud that the whole amount OF preferred
stock In said Company Issued ana 10 Dc lssueu Dy Su
18Th Of November Iss2 the si COMPANY in pursuance
OF the provisions OF the said act OF March I 1907 neu III
cate which states that the general capital stock OF
said Company outstanding and issed ON the st aay OF
July 1862. was n4SI6 shares OF sl0O each OF oonnot
stock 625 shares OF the common stock Of the New-IrK
and Erie Railroad Company not having been Presenten P
for exchange and that the amount OF the sScS
at the date was $s535,7OG aud that no 1utlher
or other certificate OF the amount OF & tne sacr,aty W
of State. That the fourth of May 1894 iultheT ACT
duly passed by the Legislature Of the State OF New
York. entitled All Act in addition TO an act entitled an
act concerning the Erie Railway Company passed o S
o. 1862" That in and by the said act OF May lo tnS
Erie Railway Company was authorized ana o"sa 81
TO increase its capital stock 0OoVO Tor We ~
Sr IpoI t e f the road Of completing
terminus at Long Dock opposite the CITY OF new, ,Wh
double tracks aud the said Company was in and
by the astmentiOned act further empowered 10 issue no
capital stock amount not exceeding S3OOOOO IN alt
for the purpose Of paying aud cnnceng certain D9n1s
issued by the Controller OF the State of NewfofK Ihas
the said Company has since the passage OF said act OF
May 1864 procured the time or payment OF tbe Donus
therein mentioned 10 be extended by agreement win the
holders thereof until the year 1897, and the s30oooo Of
additional stock, mentioned IN SAID acis - s nos
authorized and that said Company has not therefore
issued the same and has no power W ausnoty syhp W
aege that on the Sist day Of December 1865 the total
amount Of capital stock issued by inc sad ne E'lS % %
way Company rs appears by the stock ooo9s Oh sara
Company, and by the annual report of the CONDITION aI
said Company TO It's stoekholders for te year endhg Oh
TIE Of December, 1853 and published by the SAID Com
R"a' 6e .oSi S capital stock Of said Company SIS
which amOunt Of stock consisted of OF preferred
common g. ck being composed Of si,s5OOOO there,
abouts o common stock, which had been issued
III the sAI9 Work sS ' and "' Erie Railroad cO@pany
" SSeD .sasd m eScsanse Cor I6e fourth mort
gage bonds Of SAID New York and Erie Railroad Com
pS pTope '% les Of said Company and O q common
stock. which had been Issued rs part OK the sO0o
That said Company had not at the time Of making
said report, any lawful power or capacity TO
than that appearing said report except the remain
ing SOOOOO of stock authorized by the act OF May ls54
TO be issued for the purposes OF constructions ana hat he
said Company has not at any time since had ard has not
now any legal power capacity TO Issue any further or
greater amount OF capital stock than that which was SO
created pOr to the 3st day Of December except the
last mentoned S2NOOOC and the SOoO0o OF aaaltionsi
stock which was authorized by the SAID ACT Oh May tth
1864 to issue for the sole purpose Of paying aud eanceg
the bonds therein mentioned, aud which last-menOned
issue OF 5000O has become unnecessary ~ reason OF
the extension Of said bonds as hereinDefore set Orth
and except also "a lilo shares of stock which SAID c0mpa
ny has heen authorized special acts OF the
Legislature Of the State of New-York, passed April II
mortgage bonds to the. amount of .1,sOO,cOO
as hereinbeiore set iorIh, was ia"dHi' dHd' @ one
pany by law authorized 10 have outstanding does
not exceed t27 including the Whole OF me
OF stock authorized by said Act Of May T. 1854 fpH
And your petitioners further aiege that ihe aHiso,
snce it, orssnzSon managed by Board Of Directors
prescribed number Of which Is H. Ihat Dale Drew
has been since the organization OF said Company
with the exception OF short Interval Of one day or
tAeresbOuts. and stil IL. one OF said Drect9rS ana
a member Of the Executive Committee Of said Board.
which Committee has the charge aud management OF the
financial affairs Of said Compapy that said COMMITTEES Is
The powers Of Board of Directors during the intervals
nreetoTs are irnsted and delegated to said Committee
and said Daniel Drew has at all umee whlie director o
said Company exerted controlling influence over % said
Exeent,ye Committee and the Board OF Directors Or said
COMPANY That said Daniel DTew Is posse sed Of great
time he has been Director largely engaged Ia speen
latOns in the stock OF the sad Erie kaWay N m
said stock the pnrpose OF selling the same al an
ftnrs deyery OF stock of said Company, when he
neither the owner holder thereof or to much greater
amount than he held or owned III the expectation o al
terward purchasing acquiring stock wheIe"lth 10
make his deliveries IN % dd ol s1Sn o & al
the same; such contracts being known ana desgnaIed IN
the New York stock market rs short sales That "hen
ever the said Daniel Drew made short sales OF sueh
stock and before he had obtained the stock wheeWih
70 depress the market OF said stock that he
might be enabled to purchase or acquire the Same as
cheapy possible and for the purpose OF so doing he
from time time reAOred to various e1pedientS That
Of the most erc ual modes OF the market
value OF said stock 10 proe2lie large quantities
thereof be thrown upon the market ut one ne theieDy
making the supply larger than the demand ana causing
NJ he IDck
hyp0hecatiOns Of their stock aud maDy persons Who had
s nS stock Tor the payment Of the loans
or advances made thereon That prior to May 10 1856 the
said PANEL Drew had been months engaged n
making short sales Of the stock Of the said Erie Rail
way Company 10 very large amount hU prices rdhg'Dg
from S per share the bulk OF HI sales being at an
average of about 600 per share and required large
amount namely several thousand shares OF said STOCK TOT
delivery 70 meet said contracts Ihat II the said Dae
Drew been compelled to 10 into the public market 70
purchase the stock hch he 80 d e acS & Sl m as
making purchases 10 so lFge hl eAent moulu hato 30
raised market price OF the stock that he would have
oTred without paving therefor prices which would have
materially diminished the profits OF his operations That
ISs had on hand the hereinbeore shares
OF stock part Of the 100000 OF stock which said Com
isst authorized 10 Issue for purposes Of construction
22OOO shares Of said sOO0 having been previously dis
Shares of stock the said Company had sold in
England than 81 10000 OF convertible bonds OF
ment the part Of the said Company that the hold
into common stock of said Company and had been un
and agreed between said Company ana the pur
chasers OF said that the proceeds realized by said
Company from the sale OF said bonds should be applied
TO relieving said twenyght Thousand shares ron pre-.
VOus thereof to said Daniel Drew ana said
shares had been accordingly relieved from such hypothe
cation constituted only stock then held by the said
Company with which could fulfill ts agreement with the
purchasers Of said bonds 70 convert the same INTO stock
and said Company bound 10 keep 2SO0O shares OF
stock In reserve meet the demands OF the holders OF
said bonds should they exercise their option OF CONVERT
ing the same all Of which well known 70 the said
Daniel Drew. Szth Your petitioners further alege that
in about the sad month OF May 1885, the SAD Daniel
| Drew, by Of his influence and power as q
| member Of said Board OF Directors aud OF said