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

urer, and settled the clallus aSa'hSI NM pay WV
TO his successors about $5OO0OOO, and Jay Gould was
appointed Treasurer
That thereupon Gould, Fisk and Lane cOnspired to
control the finances of the Company FOR their private
nrot in fraud of the stockholders and creditors ana
10 use the stock of the Company to aid their opera
tons In the stock market That TO this end Eididgo
was induced TO resign the Presidency of the Ere
Railway Company by the fraudulent promise OF
Gould. Fisk. and Lane that the Company would buy
S5OOOOOO of the stock of the Boston, Hartford ana
Erie Company, of which Eldridge was President and
large owner. That thereupon Gould, already Treas
urer. became also President of the Erie
That the bylaws provide for two standing COM
mittees an Executive Committee and Committee OF
Accounts who in the intervals of the sessions OF the
Board, exercise all the powers of the Board OF d.
rectors Fisk and Lane appointed on the Tx
ecutive Committee in place of Drew and Eidridge;
and Gould, Fisk and Lane, being three of the five
members. exercised all the powers of the Executive
Committee. The Committee Of Accounts abol-
ished, and said Fisk was made Controller of said
Company. That in July. 1868, Gregory, Whitney
Work and other Directors resigned
That said Gould out OF the 600 received from
Drew as Treasurer and the proceeds of one million
Of sterling bonds of the Company, sold at lO3percent
paid said Eldridge $2OOO0OO on account of stock OF
B. IT, and Erie Co.. and acceptances for the remainder
That by closing the books of the Company % days
before the election instead of 30 days as usual ana
bv excluding any stockholders from voting by proxy
and by other fraudulent devices. said Gould. Flsb.
and Lane succeeded at the regular annual election
on Oct H. 1868 in continuing in aud pertectng their
control of the Company, and ere now wasting ana
nisappropriating its funds. exposing the Company to
forfeit its charter.
Said Gould, Fisk and Lane prior to the election III
AZ of odditioual stock
and since then they have issued s23OOO,OOO more.
The common stock of the Company now exceeds
sDO00OOO. and its value has fallen from $50 per
share down 10 $5 per share. Said increase of stock
has all been frauduently issued, and the proceeds
thereof are now controlled 10y Gould and Fisk
anountinr 10 about sixteen millions Of dollars, all OF
which instead of being deposited TO the credit OF the
Company OF standing in its name Is in the individual
names and possession of said Fisk and Goud.
That said Gould & Fisk using all the resources
of sand Company in dangerous and fraudulent Specn-
lations In stocks and in fraudulently buying on
behalf of said Company various properties, incud-
ing Pixies Opera-House charged at $4,000; nine
dwellings in Twenty third ST.; real estate IN Wee
bawken. Mt S85OOOO; tho Penn Horn City property,
at sl5OOOOO: real estate in Buffalo. at SSOOOOOi
line OF steamboats, Lake Erie. at SSOlOOO and are
now contracting for leases and other purchases on
all Of which said Gould, Fisk & Lane have received
private bonuses, in trand of the Company, amount
ing TO s. 10000 TO their own use.
That since the election of said Fisk, Gould
a. Lane in October 1867, the debts Of said Com
pany have increased from s639l1,2lO 20 $1OS25-
90 in addition to the $2OOOOOOO of stock issued
for the October election. 1865. and exclusive Of
acceptances issued for the Boston, Hartford and
Erie stock and various leases and other matters.
That SAID Company has received durng the past
year the following enormous sums OF money, VIZ;
sale Of $40 coo 90 stock in Feb and March, Ca 725ooOo
t1S% Of n5sS 5 Oh saTes u July and oct & over
Sale Of Goo issued since Oct l2oooooo
Total about S'''4'o'VOV
and upward.
That 10 cancel all these fraudulent transactions the
books and records of the Company have been atered
that when plaintiffs purchased their stock they were
not aware of the extent Of these unlawful issues
and were deceived and defranded by them; that
plaintiffs believe that as defendants know of
the commencement Of this action they Will remove
the books papers funds in question. out OF the
jurisdiction of this Court. and the Directors Will
further misappropTiate. issue stock, &c, &c
Wherefore the plaintiffs pray that the Directors DO
removed and Receiver appointed; that the defend
ants De restrained fromncreasng the STOCK OF rom
removing books papers, and funds or impeding thelr
examination or allowing them to remain beyond the
Jurisdiction ef the Court.
The complaint is signed by Rappallo Spencer, at
torneys. and verified by August Belmont and fol
lowed by afidavits corroborating its statements Of
law and Of fact by Augustus G. Brown, Daniel Drew
Frank Work, and c. S. Sloane. On these Nj. Justice
Sutherland grants the injunction, and order to show
cause PRAYED for above described.