The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-25
SUPREME cOulT or DELAWARE COUNTY.
Before Judge William Murray. Jr.


Joseph H. Ramsey us. Jtty Goud, James FisE, Jr.
Frederick A. Lane, Ao,um could, NJ r. yimons,
George o. Han. Henry ". Smith, Charles G. SiSson,
Henry H. Martin, James b. Buch ana the Erie RutI
acay Conapdnu-The great Erie Railway " ar, which
has for 80 long time ragged In New York, was, on
Tuesday, transferred before the Special Term OF the
Supreme Court OF Delaware county, whore the par
ties who deeply interested in the result Of the
contest were In arms and at least side. eager
for the fray. The village OF Delhi the Of this
great forensic struggle and the good people OF that
quiet little pastoral spot had not probably since our
late war more cause tor dire alarm than when "a
s70ooO,00O bombshell was thrown into COURT al
most knocking the seat from ben cath the presiding
the numerous audience.
The case came up on two motions-one for the
suspension severaly ana collectively OF Jay Could
james Fisk, Jr., Frederick A. Lane, Abram Could,
NJ. II. Simons George O. Hall, Henry N.
smith and Charles G.. Sisson, as directors Of
the Erie Railway Company. by reason
Of gross misconduct and abuse OF their respective
trusts; and also for an Injunction to RESTRAIN the
company, until the present pending litigation IS dts
posed Of from all acts pr ejudlcal to the plantn's
claim, &c.
THE CAUSE OF ACTION
Is set forth In the complaint at considerable length
and with great minuteness of detail. The plaintiff
claims that he is creditor OF tho Erie Railway Com
pany and owner and holder Of part due claim
against them that he is the owner Of several 900
bonds known as "Bu6aio Branch OF the Erie Rail-
way Company Bonds" and also of a large number
OF bonds known as "Sterling Bends" oil issued by
the company; that there are about TO- 600 OF these
bonds outstanding OF the par value Of S. 600 600;
that said sterling bonds arc especially imperilled
and the payment OF interest on the same Is made
hv NJ fha fttl m fho 40
PENDANTS; that said Gould, Fisk and Lane. the de-
PENDANTS herein and their confederates have jointly
and severaly In their official position and in respect
Of their action and influence as such directors and
trustees grossly abused their trust and have been
guilty OF gross misconduct whereby property Of said
company has been lost, wasted and wrongfully
transferred its credit has been lowered, Its has
been dsgraced, its business has been injured,
its bondholders, stockholders and creditors made
to suffer damages, Its employees have been democrat
tied, Its prospective earnings have been imperiled,
illegal authority ana franchises have been eXer-
csed, and It's stock has been over issued and said
three persons always by said three persons meaning
those last aoresaldI and other persons have
wrongiuy acquired, by their assent property Of
winch they now Illegally retan and in respect or all
the dOngs OF said three persons each OF them
and defends the other two, and conceal and cause
the employees Of said road to conceal, the lacts
and refuse to demand the rights OF the COM
pany as against the other defendants; by
compel said three persons to account
for their official conduct (and each OF the other
trustees ana officers oil said company, and to
pend and remove them, and to hold them to the
pecunlary responsibility contemplated ~ law and
In that behalf the paintlff sets forth, in addition
to the foregoing, the following facts beirg by rea-
son OF the conceaments of said three persons, and
the terror they inspire among the agents and em-
poyes OF the said company unable to procure fuller
reliable Information to tnelr wrongful acts to
the court Will disclose the iactsl, viz.-rhat the
Aforesaid issues OF STOCK caused 10 be made by said
three persons have increased the whole amount OF
the Outstanding common stock OF the company from
S34 600, the amount outstanding In August 1868
(and which includes said $1O,0oO,ooo Of stock),
when their power became absolute. to the enormous
am22ont Of s7o2Qo, qoo which they sd9m,t p Their
Said registry to DO at this time issued and odtstand
and their confederates have, since October 1868, in
creased the issue OF sterling bonds by large amount
$500, 900. This, more than doubling Of the common
stock Of the Erie Railway Company. III single
year, has not been attended with any material
addition TO its earnings, With considerable exten-
sions OF Its line or equipment. with me payment OF
dollar as dividend to any Of Its stockholders,
with any advance OF Its credit or good name,
or with any advantage to any class OF creditors,
with any gain OF cneapness safety or comfort in
transportation on its road; but the contrary. and
as The result Of the abuses OF the defendants trans
portatlon on said road has been visited with
calamites OF unusual horror, damage and death;
the credit OF said company has been impaired and
Its good repute has been injured; It's most expe.
rlenced and valuable servants have been forced.
where; its creditors nave sufTered loss, delay
and vexation; Its employees are become de-
moralized and less servlceable; Its stock and
bonds have greatly fallen IN all the markets OF
the world. and Its net earnings have diminished
While ali Its rival roads have made increase In such
earnings and have had their stock greatly advanced
In all such markets; and the Erie Railway ana its
managers In such period have become IN the
highest degree unpopular and disreputable, to the
great loss OF patronage. confidence credit and earn
ngs; and during all SAID period, with occasional
fluctuations the market value OF Its stock ana bonds
have steadily fallen with It's good repute and In the
present month Of November these prices and aggre-
gate value are as t0llOws:-
DEPRECIATION IN BONDS AND STOCK OF ERIE RAIL-
WAY COMPANY BETWEEN JANUARY /, 1868, AND
NOVEMBER l, 1859.
Motqoge J'a1 TotIi roLl yop To.rl raj. Dcpre
Bnds. Amounts. 1858 Jan 6s 30 Nor1 J.l cIton.
------I - --l---l- I-----l-------
Frst,.....i 100000 10l 5000 000lg6 2,s3D,N0l
Second. 4,0Co,ou0l02 ,1,UsV,00ia 81 36t1,9e0i
Third. 6O0DttO g9sl J,s6 C0Oltil6I b,675,ouoI
Fnnr = /