The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-11-25
FIRST EDITION
lhe Stockholders After the Usurpers
Gould, Fisk, Lane, and Their
Confederates Suspended
A Grand Conspiracy
Unmasked.

Tne litigation that has been going on for the last
year two against the unscrupulous usurpers who,
by means OF q conspiracy which for boldness and
niquity has no parallel on record, have gained pos
eliminate in thorough exposure and, 1t is to be
hot ed, merited punishment OF the guilty parties:
I'M 1osS %sC Saye aHa %taeSses With
silent amazement the operations OF those
bold and daring men who, by sort Of legerdemal1
which they could scarcely comprehend, usurped
control Of their property and squandered 1t by mil
lions in reckless extravaganza and riotous living,
have at Iast aroused themselves and are determined
60 know whether there is any such thing as law and
justice in the land or whether laws are framed and
courts established in the State of New York to pro-
tect conspirators and uphold apparent wholesale
robbery. , -, ,, =,
Ramsey q we-known and highly esteemed citizen
of Albany on behalf OF the stockholders amt bond
James Fisk, Jr., Frederick A. Lane, and other lead
mo conspirators in the present management Of that
corporation, which is designed TO o AFFORD fna soln-
holders may hereafter know what protection they
have in this community against the schemes of un-
scrupulous adventurers and knaves.
Mr.. Ramsey holds some OF the Buffalo
Branch bonds some of the sterling bonds,
some fifth mortgage bonds, some of the pre-
ferred stock and some Of the common stock OF the
Erie Railroad and on behalf OF all stock aud bond
this suit He briefly recites the history Of the Erie
Railway Company, that on the ruins OF the old Erie
Railroad Company under law OF 1850, new COM
Ing preferred stock for the oating debt Of the old
company, the preferred stock amounting to 1885,
the earnings, postponed only to the interest the
mortgages that at this time, after various conver
common stock and s5 100000 OF convertible bonds OF
the company; that in 1862 the Erie Railway took a
INIT nndeT Of S the B@S branch Of the
Fisk, and Lane, in Octobers last, default was
made in the -, payment 1Ie C Of the rent rent to the
the road issued $1,000 600 OF sterling bonds; that
down to 1867 the directors OF the company men
OF high character not engaged in stock speculatons
except Mr.. Drew, and except Mr.. Lane, who, IL Is
alleged forced himself into the board by purchase
Of proxies, but was poweress for mischief till 1865
Down to January, 1865. it is alleged the Company
regularly earned dividends on its preferred stock,
and had paid dividends on its common stock, and
had developed the road without getting into serious
litigation. That in January, 1865, the character of
the new management not being developed its first
at 102 its third at 97, its fourth at 9% its fifth at
s9 its preferred stock at a. and its common stock
Guiding sterling bouds) of 81, ,655 S459O Beside
these bonds, however, the Erie Road was liable on
this time was about 81 engines, 24s passenger and
GO40 freight cars. 1t employed about 900 men, Its
man road 459 miles, its leased roads 1862 miles,
That the project of aiding the construction of the
Boston, Hartford and Erie Road of which Mr.. Ed
ridge was President had been previously much
old directors thought proper to do and he and Lane
casting about for reinforcements, found zone Jay
Gould, who had had some small railroad experience
on a little road near Lake Champlain, and one James
Fisk, Jr., then lately from Boston, where he had
been carrying on some sort OF dry goods business"
and then took them into their secrets being
qualified for the attempt in hand; that the four
conspired together to obtain, and did obtain, by
proxies for their own interests ana those of the
Boston, Hartford and Erie road, control of the
election OF directors and elected themselves Mr.
James S. Whitney, interested in the Boston road !;
William Evans, resident in England, and others,
directors, six OF the old directors being left out ;
that thereupon Drew took UnderwoOd's place as
Treasurer, the bonds of the Boston road, to the
Eldridge and Gould were got into the Executive
Committee. The plaintiff, after general charge of
malfeasance against Gould, Fisk, and Lane, recitcs
the provisions OF the Erie Railway Association, re-
quring, l. quarterly meeting Of the directors 9
standipg cGiSee noeC ol 1pe & o. ne aSthg OF re-
Vce-Presdents presidency during the absence of the
President. 5. The existence OF Treasurer, Secre-
tary, and Auditor. g. transfer OF stock ten days
before election or dividend. I. No floating debt to
be contracted except for ordinary supplies, unless
authorized by the Board OF Directors.
He also recites the bylaws OF the company, pro-
yiding for an Executive Committee of five mem
bers, who should keep minutes of their proceed
ings and not act in the absence OF the President
except four members were present 1t charges that
these and other bylaws have been Systematically
On this complaint and supporting atlidavts, Judge
Murray, on motion of Eaton and Taller, plaintiffs
attorneys, granted the following orders:-
At special term OF the Supreme Court OF the
State of New York. held at Delhi, in the county of
Delaware, the 23d day OF November, 1869 - Pre-
sent: Hon. - Murray, Justice OF Supreme Court,
Coanty OF Deaware.-Joseph II. Ramsey, plaintn,
agt. Jay Gould, James Fisk, Jr, Frederick A. Lane
Abram Gould, NJ. r. Simons, aeOrge C. Hall, Henry
N. Smith, Charles 9. Ssson, Henry NJ. Martin,
James Is. Bacn ana tile Erie halfway Company, de.
PENDANTS motion having been made on the com
paint herein and on the atidavits of Joseph H.
Ramsay, Charles W. Douglas, Jackson s. Schultz
and Osslan d. Ashley, for the suspension severalIy
Of Jay Gould, James Fisk, j., Frederick A.
Lane, Abram Gould, NJ. II. Simons, George g. Hall
Henry N Smith, and Charles G. Ssson, as Directors
of the Erie Railway Company and for the suspension
OF each OF said persons as officers of said company
by reason of gross misconduct and abuse OF their re
spectiye trusts and onices; and good cause having
been shown to the court for so doing and on motion
of Mr.. Smith of counsel for the plaintiff IL is ordered
that said several last named persons, viz. =
Jay Gould James Fisk, Jr, Frederick A. Lane
Abram Gould, NJ. r. Simons, George q. Hail. Henry
n Smith, and Charles c. SissOn be, and they are
and each OF them is hereby suspended, both as
directors and as officers OF the Erie Railway Com
pany, and that each and all the last named persons
directors and officers, have and exercise no right
privilege, or authority In respect Of said company
its franchises rights or property IN any capacity
whatever, till the further order OF this court in this
case
Secondly And it further appearing to the Cour
that before the further final exercise OF its authO
rty in respect TO the suspension aud removal of the
directors and ofncers OF the Erie Railway Company
this day suspended, 1t will be necessary for the
court to have before 1t the facts and proof thai
either party may desire TO present upon the ques
tons OF fact that are raised by the adayits hereiI
referred TO, ana In reference 10 such suspension o.
removal; 1t is ordered that Phio I. Ruggles, coun
selIor-atlaw, OF the city OF New York, be and he Il
hereby appointed referee, with authority anC
direction 20 take the evidence upon said questions
a ana the proofs that the respective parties may one
relative thereto, and to the further exercise of tn
powers OF this court in reference to any such sus
pension or removal, and report the same with al
convenient despatch TO this court
And 1t is further ordered, that such evidence an
proofs be taken at such times and places, from tim
10 time as SAID referee may direct, and that on hi
Eummons, or as may be required by supnna, the re
spectiye parties defendants ana other persons nc
parties hereto 10 whom any such subpoena or sun
mons may be directed, do, pursuant thereto, al
tend before such referee and submit to an examlna
ton before him touching all the matters 10 which th
reference relates, ana as such referee shall direct