New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-11-23
EHT ERIE RAILWAY WAR.

Ia, Gould James Fisk IT,. FREDERICK A. LAM NJ
dor 9 Diyen. j. c. Bancroft DAVIS uo,,or
rrveed Peter b. Sweeny, Daniel D. Ml0i' -, Con.
I2amsdeu John Hilton, George M Oio'e0' IIorrv
son Charles G. Ssson y. W. NI I%I.,;n N Otis
'Tbompson. George NJ. Diyen anu -. ofsdovits
defendants Oh which-wlth aecOnp"''' ~ work
81 Augustus c. Brown, Daniel Drew ram -
o CIoo,o--I ustiee Sutherland issued an orue'
-, corso to-day at 70 o'clock. at Chambers wy
: paoo;vor sbonld not be appointed OF the PIopoi"
- 60 ~ the Erie Railway Company; anu III WV
-, t;ns enioined the defendants from hcIe"'s
a. canital OF from removing the DOCKS OF aS'o.' "
,ba compauy beyond the jurisdiction OF the Coul' -
IsnosinO of its funds except IL payment Oh current
pvnenses OF from obstTucting the eAan'il"'iOn
khe books of the :Ompany-sets iol'n 'i''
facts as the basis OF the aeloh' p-,4eCo
That the plaintiffs form the firm OF behiohV ~ w.
I'D own 900 shares of common capital STOCK OF tre
- o,;red as follows: 1000 shares March y Iooe'
-, Of az 90 per share; 1000 shares bought May
On - a. 50. 900 shares bought Aug. !. at 80 anu
Kan sbares bought Aug 81. at $40 25-an purchaser
L. oman market in transferable certlhcaIeS, On
Julv II 1000 shares thereof, ana on OcI' 20 tho
manning 1000 shares thereof, were suIIehuereu vi"
new certificates obtained therefor Inc pi"n''"'
-, hab,lf of Themselves and all who may JON
kIoratio n OTIS is Secretary, and all the O'hei uo
f,ndants Directors of the Erie Railway COMPANY
created 10y acts OF the Legislature OF Ne"-lo OH 10
run railroad through New-lork. Pennsylvania anu
Kew-Jersey That the Erie Railway Company owns
propertv and franchises on which $jOOOOW nave
been expended. which value is now represented ny
capital stock, common and preferred ana oy u0O''
including funded debt of S}20OOOJO.
That the road was previously owned by the New
York and Erie Railroad Company, Incorporated IN
New-York by act Of April p, 1882; that said act
authorized said Company to construct single
doubl, or treble road from New-York to Lake Lrie
and 60 carry persons and property by steam OF otel
wise for 50 years that subsequent acts nave aulho
led various branches but none of them have EN-
powered the Company 10 construct any road Wesl ol
the westerly boundary of NewlOrk, or east OF the
Hudson River and the Company has no such power.
That IN 1850 fifth mortgage on the property Oh
the New York and Eric Railroad Company was lore
closed and under a special act Of April L. 1900 SAID
propert, was purchased by Dudley ,. Gregory ana
j q Bancroft Davis. ms trustees, and behalf OF
tho Eric Railway Company. II being provided tha'
said Erie Railway Company succeeded to the rights
of the York and Erie Railroad Company, and
that the amount of stock of the latter should not
exceed that of the former pS its unsecured debt at
she time of SALE that the unsecured creditors OF the
New-York and Erie Railroad Company should be en-
titled 70 preferred stock in the Erie Railway Com
Yany which should he entitled 10 preferred dividends
mot exceeding per out of the net earnings or
she road. after paying mortgage interest and de
1ayed coupons in FULL that the common stock OF the
Erie Railway Company was 1l5,5OO shares OF 500
Iar each being equal TO the capital stock OF the New
York aud Erie Railroad Company.
That the unsecured and Judgment debt OF said last
named Company so authorized TO be converted into
preferred stock did not exceed ss55OOOO SO that the
total stock. common and preferred. which the Erie
Railway Company was authorized to create did not
exceed 2O 900 shares Of 500 each That by the act
of MAY t. 1854 the Erie Railway Company EN-
powered to increase its capital stock $5OOOOO for
The purpose of constructing depots docks double
tracks aud other improvements, and $3,OOOOOO more
for canoeing certain bonds of the Controller OF the
City Of New-YOrk. That the payment Of these bonds
has since been extended to 1897, and the stock
authorized be issued has not been issued and can
not now lawfully be issued.
That on Dec 81 1865 the total capital stock Of the
Erie was 2ji O5S shares amounting to S2j1O5SOO and
Chat no authority has ever been conferred on the
company 10 increase the capital stock above this
amount except as above mentioned, and except IN
der section Of the general railroad law by the con-
cent of twothrds Of the stockholders which has not
nj any time been attempted That In May, 1866. the
Jrie Company issued 5000 shares to Daniel Drew,
then director Of which $3,0O00OO were IN exchange
for the convertible bonds Of the company, the COM
many claiming that under subdivision 10. of section
. Of the general railroad law they had power to issue
an unlimited amount of convertible bonds and to
ISSUE the additional stock into which these bonds
might be converted.
That in February. 1868. the Board OF Directors
were defendants Gould Fisk Lane. Thompson, Di
ven, Davis. RamsdeD, and Groves, together with
Messrs Drew. Eldridge Gregory Work, BaTdwell
l,vans. Jordan, SkidmOTe, and Whitney.
That on Feb. II, 1868. Frank Work, director sued
80 cancel the 900 shares issued TO Drew ile-
cal that then Gould, Fisk and Drew were specula-
ting in and depressing prices Of Erie and TO that end
issued 5000 new shares greatly bearing the price,
that Drew as Treasurer pretended to issue convert
ible bonds 70 his agent Groesbeck for value and
Immediately thereupOn issued the $50O0OOO of stock
20 take up the bonds; Groesbeck sold the stock at
~, and accounted for proceeds TO Drew.
That on March 3, 1865. in like manner, 100000
more of convertible bonds were issued TO Drew for
NO value but before they were converted into stock
by Injunction Fisk Gould, and Drew restrained
from continuing their conversion and sale but not
vithstanding such injunctons they issued on March
1OOOO shares Of 800 EACH o 900 shares in the name
Of Smith Could Martin & Co., and 1900 shares to
Flax. Belden & Co, firm Of which Director James
Fisk. IT, is member, which were issued and sold in
tho market as common stock. That the $5,OOO,oO
were 80 sold at $50 per share while only 81 80 per
share were paid to Drew Treasurer the residue be-
ing appropriated by Drew, Fisk and Gould Oh private
account.
That while this $5,OOOOOO of stock were selling
Richard Schell brought action in tins Court 10
yestrain illegal issues Of stock and obtained and
served on all the officers Of the Company an injunc
ton against the same on March9 But in violation
thereof said Fisk. Gould. and Drew, continued TO
issue the 5000 shares as above set forth That there
ham