The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-27

company al such excessive rates that profits nave
been twenty times as great as the wnoie anouns oi
Its capital stock Ii Is further stated that the airec
tors OF the Erie Company are also In combination
with other parties Tor The supply OF ''coa wood OIL
and other things" In what particular companies
the compliments have no particular knowledge, but
demand the defendants be ordered to fully SHOW IN
ser mot only a. 10 as extent S nu ao In
the Rolling Mill and all other companies OF
corporations In winch they are IN any va, way
Interested All OF these actions o. the direc-
tors Tend TO the utter insolvency Of the ERIE
Railway Company and IN very short time VIII re-
duce Ii 10 insolvency. il IL Is not IN that condition
already The compliments also pray that the Erie
directors IN their answer to this bill, be compelled
to show up all the assets debts and liabilities OF the
Erie Railway Company. in what they consist 3c III
order that IL may be known with certainty whetner
not the company Is ane to pay ts debts ana ma
pilites, and OF how many shares It's capital STOCK
now consists, how much has been subscribed ana
paid in, in cash or Otherwise, and how, wnen ana
by whom.
on May 20, 1869, the Erie directors procured the
passage OF an act by the Legislature OF New York,
entitled IAN act to amend chapter 26S, emitted an
act relative TO the Erie, New YORK Central, Hudson
River and Harlem Railroad Companies ny when
act IL declared that stOckholder OF either OF
these roads should be director or ocer OF either Of
the roads. The Board OF Directors in each OF these
companies might so classify the members OF such
board by lot or otherwise, that one.h1th OF their
number should so out CT ONCE at each annual eee,
non, and that at the next election directors should
be voted for only IN place OF those whose terms
should expire. IL is alleged that no sucn classl-
ication has been made by the Erie directors lit
was, 1t was such a classification as would put out
such OF the directors as sre not willing 10 JOIN Win
the majority IN their combinations ana bargains.
AT the time Of the passage OF the act referred 10
may 20, 1862 the directors did not own majority
of the stock Of the Erie Railway, but they now do.
IL is alleged this act was passed not to promote the
mterestso the company, but to enable the Board OF
Directors consisting OF seventeen Tor majority OF
tbem, TO control the actions and operations OF tne
company for period OF years in defiance or the
majority Tin value) Of It's stockholders for the pur.
toned, and 10 perpetuate their power directors
IN defiance OF the wish and wisdom OF lhe
stockholders The directors OF the Erie Company
are also directly charged with combining with the
Union Locomotive Express companies and 0tler
corporations for the purpose OF extorng rom those
who came under their power, and to deraud the
stockholders OF what would Otherwise add to their
dividends. IL Is IN ITS whole scope and object and
In It's details contrary to law. The Erie managers,
1t Is further alleged pretend that the trucks OF the
locomotive manufacturers were taken away by mis-
take that the they do not take the loco
motive freight any other way than by the Union
Express because they have not the proper trucks
The bill OF complaint on this score says II that Is SO
It Is because Jay Gould, James Fisk s JI,
directors, for the purpose OF avoiding their
responsibility as common carriers and eXtoftng
higher freightage, have purposely made away with
them, for the company had them up to three months
ago. In conclusion the complainants pray the Erie
managers De compelled to show UP the whole details
OF the management in order to prove the legality OF
the many questionable transactions and that they
DO compelled to return to Paterson the stolen trucks
and carry freight according TO the provisions OF the
charter under which it exists and Is carried on.
This is synopsis SIMPLY OF this extraordinary Dill
OF complaint, which eiicts some facts the bill IS
substantiated by aidavits) which do not appear In
previous reports OF Erie matters. II all these aega-
tons are true holders OF Erie stock may well feel
dubious about Its retention; for the speedy insol-
yency Of the whole concern would be inevitable.
The defendants are cited to answer before Chan
cellor Zabrlskle and show cause why the prayer o.
the compliments should not be granted. the bill
was ned on the 2lst OF August and the rigid watch
funess with which the original has been guarded
and tue singular retcence OF all concerned probably
account for its allegations having before been
made public. The Passaic county Grand Jury have
also indicted James FISK, j., and Jay Gould, and
upon their being caught upon Jersey soil they Will
be arrested ana arraigned forthwith. They are
charged by the Indictment with fraud and cOnsplr-
acy. A Paterson constable Is waiting and watching
for them on the other side OF the river but II Is
probable they will go secretly to evade arrest
and present themselves for arrangement and give
security Tor their appearance-to appear as crlmi-
nals-to answer the charge before the next Passaic
oyer and Ierminer at Paterson.