The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-26

Tho Erie Railroad C.ss-Curieus Develop
| moats. s#
The greatest sensation In Wall street and
among the stock jobbsrs generally since the
famous gold cornering operation of Fisk, Gould,
Corbin and others is that now caused by the
action Of Judge Murray, Of the Supreme Court
in Delaware county, suspending the Great
Moguls Of the Erie Railroad as directors, and
depriving them of any power over the road
and company till its affairs can be investi-
gated. The action Of the court was the
result of complaint made by creditor and
stakeholder of the Erie Railroad, to the effect
that its affairs had been grossly mismanaged by
these same directors to the great damage Of the
complainant and others. The complaint is set
forth at great length, and Is very curious
document. 1t goes into the operatic perform
ances and ballet girl amusements and enjoy
ments of some Of the directors, with particular
reference to Fisk, as well as into the more
grave operations of wa.,ring stock and appro-
priating it, and kite-aying transactions gene
rally. The parties against whom the injunction
was obtained, and who are by the action Of
Judge Murray restrained from executing their
functions as directors of the railroad and It's
affairs, are Jay Gould, James Fisk, Jr,
Frederick A. Lane, Abram Gould, M. R.
Simons, George g. Hall, Henry N. Smith and
Charles G. Sisson. But, as everybody knows,
Jay Gould and James Fisk, Admiral of the
red or blue, opera and ballet manager, and
generalissimo of theatres and all the theatrical
nymphs of the city, are the head Of the heap.
The others have been only subordinates to
these magnates. But they are cunning fell
lows, with forty or fifty millions Of inflated
Erie stock behind them, and are not to be
suppressed easily. Hence we see they have
got hold Of another country Judge, more
pliable and yielding than Judge Murray, and
obtained from him, upon q notice of motion to
vacate the order Of Judge Murray, an order
staying all proceedings, even to the service
of papers. Immediately following this Judge
Barnard, Of this county, also granted another
injunction, tying up everything hitherto effected
in the judicial way. This latter order was
issued in countersuit brought by Fisk d Co.
against Ramsay and all others interested in
the suit brought in his name.
The complainant in the suit before Judge
Murray wants to know what the defendants
did with forty-one millions of dollars belonging
to the company. This is a nice round sum of
money, and in the hands of the plaintiffs would
do great deal in gold cornering and stock
h. <r;o
ness. The mention of such sum would have
frightened people here few years ago, and it
| only shows the stupendous magnitude to which
financial and stockjobbing affairs have arrived
and are coming in New York.
This suit and the complications into which
these Erie Railroad managers are being plunged
is but the supplement of their late gold cor
nering scheme. That scheme was got up,
probably, to save them from pending compli-
| cations and difficulties, or, at all events, to
enable them to withdraw from Erie after they
had squeezed it like lemon and got all they
could out of it, leaving nothing but the dry
rind or husk behind. It is possible they may
now stave off for time the catastrophe by the
laws delay or the uncertainty of the law, and
| by the ingenious bubbles and subterfuges of
lawyers; but right will prevail in the end Public
! opinion and the interests of the stockholders
and community will not permit such magnf-
cent work-such a needful and splendid line
of communication-as that of the Erie Railroad
| to be long the shuttlecock Of stockjobbing char
latans. Recklessly as principal operations are
carried on here, and much as great success,
even when Of questionable character, is often
honored, it is not likely that such men can
flourish forever. They are now, perhaps, al
the end OF their rope, and these efforts to defeat
the law and the stockholders are probably their
last and desperate ones to save themselves
| All the affairs Of this Erie Railroad concern,
with the Opera House and theatrical specula-
tions, ballet girl entertainments, Long Dock
bond job, gold-cornerinH operation and all the
rest Of the doings Of the Erie managers should
be ventilated, in spite Of the lawyers and po-
litical rings. 1t is to be hoped the present suit
will throw flood of light upon the whole Sc
that the public may know all about them.
Il