The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-01
NEW YORK HERALD TUESDAY DECEMBER

/, quite apparent. II Is to throw sort OF I'm
pu'iton upon hun, 4 it be an imputstion M n
MS snrh counsel. 1t Is no impuaron; bat Il Is intro
dlced here for a sinister purpose II twas direct
i It. would DO . fSr matter Of arguaent
oy and by whether mat had any relevancy or
the matter "a a preliminary motion IN this way. We
wish To nave u waoi.g suppressed for the reason
iavt which Is no under oath, str,ctl speaking ana
n'r verified 80 NJ T. he at all receivable. nave "a
aiaylt Of Nc "a les coatrailcns the whole u IL;
but do not think II ought To DO read.
Mr.. Fierl-LeI me see II.
Mr.. O,Conor-ii am 70 read ".
the Court--lt cannot b, read without the consent
Mr.. Fieii-We WI consent.
Mr.. Stoughton-I shall wish to answer the mo.
Mr. o'conor read the arldavll Of Henry p Davies
that he was employed "a counsel In tie controversy
reierrei to- by the lrm or Joan DlOodgood Co., on
behalf OF said company AMI OF Messrs stewatt,
bankers, and the compensation ne received was
paid by the firm OF John Bloodg0od Co.;
that dcpOnent never received any money on account
o. Sucn serces from any orne wateyer ani that
| deponent never was retained or employed Dy inc
'I Mr.. toaeaton ' rep,edTie suit prosecuted By
| Schell and Frank Work had been compromised Tor
the OF s42s,Ooo distributed by Schell to various
parties. 1t would be interesting 70 learn whethe.
| the compensation received by Judge Dawes was not
the'exact sum OF $4,000 mentioned ~ having been
paid from this $4,000. The aindavit might be
| termed negative pregnant with affirmative
| Thcrc were two aspects To this motion August Bel
complainant here although In fact he to be let
| ia as defendant: because as his petition states
Mr.. O'conor objected that the argument was
The conr.-I rather think 1 will MAKE note Of
the objection aui let stand on that. and take 1t
jugs Noah Dav.s-Your honor ought to UNDER
stand mat Boodgood was In pont OF fact party to
ARGUMENT OF Mr.. R,PALLo RESUMED.
Mr.. Rapa'lo resumed his opening:-At the time my
our friends 10 read their aiillavitsI was about co
give your Honor brief AMI snccinct history OF this
and IT, 9Snns,aio ana OF me sisao as
forth in the papers wliich this motion Is founded
In the course Of that history ] shall have
Necessary to be said with regard to al
tue various anidayits that have been
Which wish to maze a. TN, state OF the argument.
In the nrst place, as to any affidavit which has been
| III nds nj on the other side know that am sensi-
tive such subject, and perhaps they thought II
| to secceed. Your Honor vii DO entirely SATISFIED
that no hing has occurred IN this case which will
render me at all reluctant to have my connection
with t fully in estlgated. In regard to Mr.. Drew's
ah,lavy the other side have enlca9orcd to degrade
this con roversy by giving IL the aspect OF stock
sDeculatlon carrie On in correction With Mf. Drew.
Thought that the answer OF Mr.; Belmont under
oath would have silsnCed them on that sub ect.
| Mr. Stox gion inqu rcd how many counsel would
be allowed on each sde and alter some conference
Court
time but would allow one counsel to open In the
Belmont 'e, aaotaar to oncl In the Davies case,
two counsel to reply AMI Nh. OConor to close the
Sr. liapa 70 res med So far "a there hasbecn any
!ntiinatou, here or elsewhere that Mr Drey is IN
any manner conceracd III this litigation be, leave
to lisayow it in tn most positive msnasr. The fact
that We ha,e obtained this anaavit Is bai an ll,latra
ton oil tie o,d aiage that when cert.in class Of
persons fa ont honest mon stand Chance TO get
sher rigs. |! was under these circnm,
| nti1a Belmont
had ben in preparation for weeks before THIS
"corner" w.ncn brought Mr. Drew out OF his corner
| to make this aidavit-tnis 'c1rnar,o got up by
Fisk Il Gould. as al esel with tn, money oi tao
company. and from whca Wall sire was sircriig
pears by his affidavit, in locking mp money u
appears they got mia short. They turned Oh Que OF
tn,ir own nu,uuer and tried to extort money fro a
ha. mat brought up quarrel, IN which. ~ ne
threate.ed to do, lie went over TO the ny, be-
sas ea a. II s aaa l always viii So far
regards the frauds develops In the coure OF M.
invest, atom graf deal has, has bsan .r said
into stock which OUGHT to be explained. lie
EresRailNay Company Is reorgani1a Ion OF the cd
psny b,eoGns IN solvent aud having nortgagei it.
roai the morIgays was 10 &c osei AMI tn: company
lature or Sew YORK. ono OF ins provisions OF thai
act that the purchaser o. the road .niyht asso
ciate WITH him enough =, to.m corporation, Mn
way Company, tho capital stock OF winch coInPany
should exceed in the aggregate the amount OF iht
|
the usbrs OF that company wnica we're not secured
nv mortgage. Various acts were passed n 1882 and
1885, carrying out scheme, and the stock vas to b,
LATED br ceftdcates to be filed 10 the Office Of Ne
secretary OF Stale. The debts which were author
zei to 10 co. .verted ilto stock were authorized
| to bs conYcrtol into preferred stock whe tho old
| stock Of the New York amt Erie Railroad Company
was authorized 10 be converted into common stock.
The deots were ssHertsined to alnount to aJoui
- so 100 for which preferred stock as authorized
to be issued. That was liked amouli, which has
| 1rha uun tOcx ID ont
5O 100, and that was all tho common stock the
new company had power 70 issue But 10 1854 Inc
increase their common stock s00oo,oJ0 or certain
purposes, making e about slG,5eoo,o. ny two sub
shares more But this was all that they were eye
allowed to issue In tho early part o
i hector y, esDs ' and r1 %e III ass s9 s.sl
charged with doing what we now ca. .r1e Jay Goaid
his successor, Win doing made al arfans-
with the company BY which he got possession o
e,.,rnD OF its STOCK on IN advance OF sixty POI
cent: asd here for the rst arose the question
or ths conversion Of bonus. Ne CO., that STOCK aud
mar es price OF Erie stock q, his spccuatons might
dictate in october 1857, tnero Was an election IN
LIE go asr. q scisa Sirsators Mr. Work foaaa ,s
MT Drew was stu Gsn2 lhls stock IN he market aud
no iled q Dni aga Iist NJ. Dre. y compel him g
s ssa no ' power s t. s.Ss AM rs. NJ Drew va
Instrumental M an olncer Of The company Ii
issuing 1t Illegally, and therefore Ought 10 surrender
IL to the company 10 be cancelled. That. was tue
Hrst litigation that took place. Attho same Zine t.s
Attorney General instituted proceedings Tor the sus
| nens4Ol and renewal OF Mr. Drew as director, and
h, orscf Via IL de shspendng him as such director
Tnlt was what wss called the work htigaaon Mr
Wnrk AMI some OF his friends were opposed W Mr.
Drew M could an NJ FISK The c ,nnh mate,
u,ln nn vw Tbnv sr,, 'osing that Mr. work was
oadei up with Ere stocA. Thought psrnats .hncy
could squelch The litigation w ~ IN s,a oi me-
Eric Railway Company. fhej o. It In tnis wise
They got The BoarI OF Direct ,arv who, ss,
| the resolution OF the 10Th OF Fs's~ Via cas-
In set for h Ia tho bin OF plant Iii !, !" oas w
which author Eel the Executive Committee to ia VI,
such mon y ~ they might think necessary for :.
roai and use such means a. should DO Necessary u
opan II. tnGer that resolution the IKE cutive Gam
mlttce resolved T. issue $50 900 of cvnyerttn 9
| bonds oil he company. BY tac tenth subdivision o.
| the twenty-eighth section Of the Generl Railroad