Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-11-24
THE ERIE WAR.
Statement by the New York
Commercial Bulletin,

The action of the E-ie Railroad Com.
pany, which has for some time been the
subject of strong comment in Wall street,
has at last been brought into the courts.
Yesterday complaint was made by Au
gust Belmont and Ernest B. Lucke, be-
fore Judge Sutherland OF the Supreme
Court, respecting certain matters in the
management OF the corporation, upon
the sffidavit5 Of Daniel Drew, Christian
5. Sloan, Augustus Q. Brown, Frank
Work and others. The charges are pre-
ferred against the whole direction, and
specifically against Jay Gould, James
Fisk, Jr., and Fred. a. Lane, as MEM
bers of the executive committee. It is
affirmed that these parties have engaged
exclusively ia private speculatione, de-
ranging the money, stock and gold mar
keJs, and for that purpose have used the
FUNDS of the Etie Company TO the extent
OF several millions of dollars; that they
obtained their control of the affairs of
the company by corrupt measures; that
in order to induce E!Gridge tthe late
PresidenD to resign, they agreed to pur-
chase of the Boston, Hartford and Erie
Railway, S5,000,000 of bonds at so per
cant; that Mr.. Drew, the former Treas
urer, when he resigned, handed over to
Mr.. Gould total of upward Of IS, 600 900
moneys OF the company, and then, by
the pretended authority Of the executive
committee, 81 Cox, 900 OF sterling bonds
Of the company were sold at 103 per
cent; that Gould paid Eidridge on ac-
engut Of the bsfGTenentiGned purchase,
. GOO 600, snd gave him aoceptances and
bonds Of the company for the balance;
and also paid out OF the funds Of the
II -
company, which it was necessary to pur-
chase TO carry out his schemes to obtain
control OF the company that they
ca used the Committee on Accounts to be
abolished, and made Fisk Comptroller to
audi and siiCw accounts against the
company; that they changed the by
laws so as to prevent voting on the stock
eXceBt- in person, go as to cut off the
holders in Europe; that the three direc-
tors have so far abused the powers of the
company rs TO render it liable to forfeit
ure OF It's charter: that after the COM
promise with esciJeli they issued three
millions Of stock, making the amount of
the common stock at the time OF the
election over S37, 900, coo; that since that
election they have made further uniaw-
fui issues Of stock, to the extent Of about
SO, 600 600 making an aggregate of up
ward Of sixty millions of stock in addi-
ton TO the preferred stock and the S2,-
600 coo issued for the purposes of the
election; that these issues are in viola
ton OF law, and will lead to the utter
ruin &nG Gsstru5tiop Of the company /;
that the directors have now accumulated
in their hands come SI6, 600 GOO belonging
to the company, not, however, in the
OF the company, but under the
control Of Fisk & Gould as individuals; F.;
that these gentlemen have secreted some
portions Of this, and sent some So 600, COO
to Canada.
Upon these charges an injunction is
prayed for; restraining the direction
from continuing these proceedings, and
praying for the appointment OF q re-
ceiyeT ss the only means Of avertiDg the
ruin Of the company. The injunction
has been granted, and an order has
been issued FOR the defendants to show
cause Why a receiver should not be ap-
pointed.
What may be the result of the pro-
it ia impossible to forecast.
There is sGale talk Of cross suits having
been instituted and ii is very confident-
ly stated that, in anticipation of these
proceedings, an order had been previ-
ously issued by Judge Barnard, appoint
ing Mr. Jay GoulG as receiver Of. the
1t is high time that an end
were made TO th9 cisgraceful proceed
ipgs we have lately Witnessed in eonnec-
ticn with these huge speculations; but,
after eli We hsye seen of the ven atty of
the courts In former litigation, it is al
most too much to expect justice. II is q
commentary upon these pro-
ceedings for redress, just So they are in
their nature, that one OF the afiidarits is
made by party who has been in collu-
sion with the defendants, until within a
few days ago, and has employed several
niiioes az his oWn money in furthering
their schemes,