New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-02
THE ERIE VAR.

".
print them fully elsewhere. They arose on motion
by the counsel for Belmont & Lucke to set aside the
order of District Judge Blatchford made in this 40
ton appointing Jay Gould receiver of the assets and
property Of the Erie Railway Company. and for thu
appointment of Henry f. Davies Receiver instead.
Mr. Davies has already been appointed Receiver by
order of Justice Sutherland of the n. Y. Supreme
Court, in the action of Belmont & Lucke, plaintiffs.
az ainst the Erie Railway Company. And part of tina
| bases of this motion is that at the very moment
Justice Sutherland was issuing his order appointing
Davies and setting aside Judge Barnards ORDER mads
out of Court, appointing Gould, the counsel forl
Gould attempted to thwart the operation OF Justice
Sutherlands order by prevailing on Judge Blatch.
ford to reappoint Gould by similar parte order
| II Is alleged in this case. behalf Of Belmont and
Lucke that the plaintiff Whelpley, was a recent EN-.
ploye of Could Fisk, Martin a. Co., and that he had
brought the suit really in the interest of the Erie
| Company. strong array of legal talent was pres
ent on both Sides Belmont & Lucke and the motion
for Davies as Receiver being represented by Charles
| O'Conor Edwards Perrepont Henry c. Davies, ID. B.
Eaton, Noah Davis, and Spencer d. Rapallo while
Gould, Fisk. and the Erie Management appeared by
David Dudley Field, Judge Porter, Z. W.
| Stoughton Clarence A. Seward, and Mr.. VanderpoeL
Whclpley makes affidavit that he owns his atock.
and brought his suit in good faith to test the legality
of the issue of portion of the Erie Railway stock
and that if Belmont & Luckes stock be of the sams
kind as Whelpley's the suit is as much in their be.
| half as in his own. An affidavit OF Jay Gould was
read in denial of certain of the charges made in the
complaint of Belmont e. Lucke. heretofore published
| In THE TRIBUNE. He denies that since the present
Board of Directors elected, Oct 10. 1863 they
had issued any new bonds or any stock except what
WAS required for the conversion Of bonds issued pre-
vousy lie says the funds received for the sale of said
| AI.sOt 1,nrf DO. tl.1(N,
He denies that 100000 additional shares were pre-.
pared or issued in order to make votes enough
20 control the election and alleges that the present
Board was unanimously reelected; denies that any
non -rcsdent stockholders were prevented from
voting by proxy; denies that the stock money Of
the Erie Railway has been used TO affect the stock
markets or that Fisk g. Gould have kept the funds
| of the Company in their own names, or otherwise
than TO the Companys credit that they have used
any of the funds of the Company in private specus-
tions Of Fisk or Gould, that they have sold tho
stock short or used means to make 1t scarce or to
depress its price. Mr.. Gould claims to have been IN
trusted with the funds of the Company by the stock
! holders, that no is ready TO give any re-
qured security. and that he is the
proper person to retain them in possession. lie de-
mics that BelmOnts statements relative to hn
responsibility and that of Fisk and Lane, are cor
| them is worth. He does not apparently deny the
successive issues Of stock amounting TO about
s30OOOOOO nor alege that the convertible bonds for
which this stock was issued issued for yane or
in payment of debts previously contracted nor does
he deny that these stocks sold in the markes,
i'm violation of the various injunetons Issued by tho
Courts nor that four of five millions OF dollars
were paid TO Rldrdge for stock Of the Boston, Hart
ford and Erie Railway and to resign the Presidency
of the Erie in favor of Gould nor that portions OK
| the funds of the Erie Railway Company have been
invested in Pixies Opera House. dwellings in Twenty
third-st., real estate at Weohawken, Penn Horn.
and Buffalo in steamers on Lake Enc, not that -
the last election the books were closed withous
previous notice thirty days earlier tran usual, nor
| that Could Fisk & Lane. as the majority OF tbs
Executive Committee. have controlled the finances
of the Company absolutely without consulting theI
| co-members nor that the Board Of Audit wac
abolished and Fisk made perform its functions 90
| Controller Nor are the facts denied to the mode
of organizing the Erie Railway Company resulting
in capital Of s25 l05, 800 nor Is any act alleged or
/ authority shown empowering the Board Of Directors.
without the consent of the Stockholders to increase
this stock to $Go,OOo,oOO. Thus far all these
fundamental points OF the Belmont & Lucks
| complaint do not seem to have been
met or controyerted. and they will form o
body of facts which will 60 far to determine the
public judgment in the master. The affdavits OF
James Fisk jr. and Frederick A. Lane support tho
denial that any convertible bends have been issued
since the election October l. that any stock has
since been issued except in conversion of bonds pre-
viously issued This simmateral. as the gist OF the
question is not when these bonds were issued bua
whether they we're issued for value received or in
payment of debts incurred. 1t is not alleged thae
they were. James Fisk jr denies the statements OF
Belmont relative his responsibility but does noe
state himself what he is worth. Jay Gould makes
an affidavit that he was informed and believed
that SOS 900 was paid as counsel fees to either Henry
f. Davies or Charles A. Rappallo" as counsel
for what is known as the Vanderbilt party in tho
Erie litigatons of July last. Mr.. 0Conor moved to
"expungev this statement as irrelevant and design
ing 10 cast an imputaton without stating any fact.
An affidavit of Henry T.. Davies read that hs
was employed By John Bloodgood g. Co. and by
Stewart g. Co., and paid by them, but not by Rioh-
ard Schel This comprises tho additional light shea
on tho Erie controversy by tho aidavs OF their DE-
rectors on this motion. 1t leaves the public as He
informed as ever where they obtained their author
ity for doubling the stock of the Company, and LOT
the other acts out of which these litigatons have
arisen IL will be interestingbo lawyers and stock
holders to know that the mere counsel fees on the
settlement of the Vanderbb war were tloeu"'
Anothan phase of the Erie litigation is the suns "
the people of the State. represented by the Assoef
| General, ia the Supreme ConDt OF Albany ooanaS'
Upon complaint setting forth the same facts pro
cisely rs the complaint of Belmont a Luakc' pad
lshed on the Esd ult, Judge Peckham has issueo y"
Injunction similar to that issued by Judge sntAer.
land restraining the directors from issuf& inn'nos
stock and from removing or secreting IN" BOOKS os
fnxspa nla nm n