The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-03-10
SUPREME COURT.
Tho Erie Railway Observation-Disclosures Suit
Instituted-An Meetings Of the Board Of DE
rectors Prohibited and Enjoined.

Tho Erie Railway Observation-Disclosures Suit
Instituted-An Meetings Of the Board Of DE
rectors Prohibited and Enjoined.
Before Judge George G. Barnard.
Richard Schel Us. The Erie Ratl,cav Company
Daniel Dreo ct d-This is an action instituted as
counter suit to the one recently commenced by Fisk
Jr., and the Erie Railway Company against the At
torney General, Frank Work and others, and in
which Frank Work, one Of the directors of the CON-
pany was enjoined from participating in the meet
ings Of the board and stay Of proceedings granted
as to all the suits previously commenced against the
Erie Railway Company.
The complaint in the present suit sets forth all the
former proceedings, and alleges that Daniel Drew
and the other directors OF the company, who were
acting In combination with him, have for long time
been concerned In making "short' sales Of Erie
stock and that II had thus become their interest to
depress the market value OF the stock and 80 mis-.
manage the affairs OF the company as to depreciae
Its property; that Frank Work. who is not interested
In these fraudulent schemes commenced an action
TIE dealings and operations Of Daniel Drew with the
company and its stock; that since the commence
ment Of that action Drew and his confederates In
furtherance OF their schemes have secretly and with
out the sanction OF or notice to the stockholders,
In excess OF that authorized by law, and were pro-
ceoding to issue larger quantities Of such stock when
they were restrained from SO doing by the injunction
granted In the suit brought by the people OF tile
State of New York; that they are still engaged in
devising illegal plans and schemes by which, not
issuing still greater quantities of stock, and entering
into other operations to depreciate the value OF the
Seeed Il essena to o prevent Frank WoS FROM
being present at the meetings OF the board OF direct
ore or participating in the management OF the compa-
n.y. lest he should keep the stockholders advised or the
proceedings; that with these objects and frauduenty
and dishonesty using the name Of the Erie Railway
Company, they commenced an action IN the Supreme
Court In the name OF the Company and James Fisk,
Jr., against the Attorney General, the People, &C.,
Frank Work and the other directors OF said Com
n0u
deny the allegations In the complaint Of Frank Work
in his complaint or Of the petition on behalf OF the
the part OF Drew and his conederates but that an
order OF Injunction was granted by Mr.. Justice Bal
The complaint further alleges that Fisk is stock
broker, employed by Daniel Drew to transact some
Of his Erie stock business and plaintiff believes and
charges that that action Is commenced by collision
with Drew and the other directors conederaed with
him for the purpose OF shielding Drew from an In
yestgation Of the charges made against him on be-
half Of the people, and to embarrass the proceedings
instituted on the part Of the people to restrain fur
Their Illegal issues Of stock and TO enable Drew and
his confederates to carry out their fraudulent schemes
and deprive tile stockholders OF any protection they
might have by being represented by Work at the
which Work is so excluded will be void, and that
plaintiff believes that while Work IL excluded they
win attempt TO commit further depredations and
wrongs on the company's property by making con.
tracts with other railroad companies, converting
bonds into stock, exchanging capital stock of the
Eric Company for the stock OF other companies,
making contracts with, releasing or borrowing from
other companies, and mourning heavy expenses In
prosecuting the action commenced In the name OF
The company against the Attorney General &c The
complaint then prays for relief substantially as
granted In
THE INJUNCTION,
which provides that so long as Frank Work Is pro-
hbited and restrained, in the action brought by the
Erie Railway Company and Fisk, from attending the
meetings OF the board OF directors, acting d.
rector Of the company the board Of directors and its
executive committee be enoined and restrained from
holding any meeting or from holding meeting or
which Frank Work shall not have received
due and sufficient notice to attend and have
an opportunity Of taking part in. To
this extent Judge Barnard yesterday, upon
application Of Messrs. Brown Hall and Nanderpocl,
counsel for the plaintiff, granted writ OF temporary
Injunction and with an order to show cause return
able on the 21st OF March, why It should not be made
perpetual. The Injunction further enoins and pro-
his the Board OF Directors and the Executive Cont
mittee from doing or permitting any act whereby
any or the capital stock OF the company not already
duly Issued and In the hands OF bona Hte holders,
shall be Issued or created; whereby the number Of
shares or capital stock shall be increased; or by
which any bonds heretofore Issued shall be converted
into capital stock OF the company; or whereby any
convertible bonds or any bonds OF the company may
be iBsued also from making any contract with any
other railroad company, or leasing any road stock
or property from any other company and from pay
ing or contracting to pay any legal expenses costs
counsel fees in the action brought by the Erie
Railway Company and Fisk against the Attorney
General, Frank Work, &c.
This Injunction order was served upon Mr. Drew
and the other directors last evening.