New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-08-03
ERIE AND TIE ENGLISH SHAREHOLDERS
The following is a summary of Mr.. Burt''

The following is a summary OF MIR. Bnltt
report TO the Erie Shareholders Protection Committee;
represent them and their constituents, the Engllh sldre
holders in the Erie Company to ascertain te actdai an
legal position of the Company ana the nights OF w,
shareholders with respect % the various STOCKS lucu
to see 10 the transfer Of tho stock az sen
and II 80 advised, To take ega proccuibS, "a .D a.
states Federal Court against the Directors 70 cOhpi a.
accounting for the enormous sums received ~ them OF
tbe issues Of stock and convertible bonds ana 70 ODta
improved and faithful mana cement Tor the l.VtI'
reached New York the 18th OF February ana on tht
eme dav learned that the batch Of 1000 shares sen
over by the Committee Tor registration IN tne lnro ~
~ ,,,lenttd nj the Ere Company Office for transfer
and iat tie transfer had been cIused Dy order Vi t
Directors The next day the transfer Once We 4USs
without nOtlce or ~ f to ran sfer the shares
Mr J. Gould wrote on the 7th 0fFehrlaFy, tIat VIZ IS
fer Office had closed Tor The purpose OF "HS VI
)" o no 10Th Of March obtained copy Of bin filed
fine 2sth Of February in the supreme lState) Court "
one John Nyce against the company ~ - % -
I erred shares; that the act 81 , obtained by tht
directors The Newiork Legislature ana ny "biIt
they had classified themselves, 30 mat one III UH}
We're TO 20 out Of oce each year, was uncousiutlonat
that Heath and Raphael were unaWiiy eonieuei.tLns
with others i'm London to procure the STAMPING ahe
registration Of shares ia their names 10 geC Je7eite
W.hes or the bona idc stockholders and by means Of
the classification keep themselves IA power ans
Transfers 70 Heath and Raphael were per
mitted, they not being the real owners or inc
shares, the hi prayed injunction against sueA lIahs
fer, and that. until Judgment should De gwen IN tne
suit the Company should De reStrg,aed rom obeg t
transfer books tor any tGnsr '1hats ee "A nauo n ,i
daYit the plaintiff IN support VI the 9 having peer
sworn an eL p0re application was made on thc ISL Oh
March 10 Judge Barnard, VINO lnhedlap ~ III .ne
Injunction prayed, and II was served on the Ere Com
lPcn y IN ed Y ~ with The Efe DectGrs and t tie
view not only stop the transfers but to Prev Mt inc
shareholders from having their legal remedy against the
Company for refusing to make the transfers , -
Notce was given Gt an apPealon on tG c Par5 .,
lt March, and aldayits filed in support ana the motion
was appointed 10 come on before Judge Bray on lh stn
delaying the hearing, and ultimately TIE case WIS Poa
poned until the I'd May on W,n o5y 1SC Xc
cordingy Judge Carlozo, on the ~ and 81 h'y heno
the motion and the atlays and ;he arguments or conn
sell and reserved his Judgment and has reserved u up to
this day although several times uIg 10y our cousei 1
ove Ls Ic,ision similar motion IN the Court Of Chan
COW i'm Engand would have been heard AID decided IN
Two hours Tie shares presented for transfer TO Heath
SG n6t liner rom Other shares Of tie Company
NEGOTIATIONS WITH THE DIRECTORS.
A few DAYS after landing was informed through one
of the counsel OF the Erie Company, with whom lad
slight acquaintance, that MI Jay Gould would IKE "a
meet me and ntimatiOns were made that might obtain
an Arrangement by which the English shareholders
should have the appointment OF certain number Oh ihe
Directors and an Examination OF the accounts, &C. at
first declined the meeting until as pledge Qf bona MICS
the transfer of shares To Heath anu lel were reSs
was assured that it would lead 20 the transfer heing
made. l. therefore, met Mr. Gould, and discussed the
state of the COMPANY WIN nun IVr soo .e NJ
his invitation told him that the shares were ius eitd
forthwith and the English shareholders were permitted
TO appoint such proportion Of the Directors as would
secure substantial share OF the management, ana II
bv Mr. Could there had been no mproperaVpio lldlOns
OF the Companys funds by the present drec orr should
recommend the Committee not to examine TOO eosey te
past transactions and expenditures, and avoid al pro
ceedings If possible. Mr. Gould expressed general ac
0ulescence In these suggestions told me the Company
was financially III satisfactory condition. ana th.t uiSy
had securities in hand for 50JOO0) and zen me SAP ho
would consult his colleagues and appointed tO meet hlo
again the next day Mr.. Gould, however dd mol att ia
the appointment but sent one OF TIE COMPANY counsel
in his place, with "a frivolous excuse TOT nor
continuing the discussion Several nnetuIss tooh peo
between this gentleman and myself ana terms were
pa, med hpf
cepable 10 the Directors; reported the htEotiaoh ~
the Committee in London they agreed 70 tie terms SUP.
icct I'm a SUMMATION that two Of the new Directors should
be appointed on the Executive Committee, and this was
communicated 10 Mr.. Gould. was unable however, 10
bring the matter 10 any definite conclusion, or get any
distinct proposal or agreement by anyone on behalf OF
the Directors, and had from the hfst expected, the
negotiation came 10 nothing. satisfied thlt II was
originated by Mr.. Gould only with view 10 delay my
sions to be subsequently used against me.
Mr.. Gould ana had agreed that our hrst discussion
London Committee and their advisers, but al the heng
before the Senate Committee az ADany Mr; Con. ,l.
this engragemeh ana moreover grossly ilsI u
what had taken place applied Ior an l e,' ~ ,o
only after many applications that obtained a copy or
rRocEEDINGs il TIIE Federal. ooUrr.
Finding that prospect ~ any satisfactory
Arrangement with the Directors | toIA ne utst 81
mayd and Choate, and other lawyers of emi,
nerice, as to proceeding against Gould, FISK and
difficulty and labor the necessary materials Were oh
tained and the complaint prepared and care iuy eled
upon the Company and Gould ana FISK, Mr.. laLe hhng
then in Europe lie has since returned TO NtN lofh'
and has, believe now been segcd) Tie thlV otJc -
of the bill copies of which have been circulated "a BIZ
gland, obtain an accounting, Dl Mts'fs uo1'
Fisk and Lane for the issues OF bonds Hud St \
since they became managers and 1ndlciai inquiry .o
the various breaches OF trust committed ny le WIN
respect those issues, the purchase al the opera
the payments to Mr.. Vanderbilt OF slNUv, ana %" ="
bonuses to other persons To stihe legal proceedings
Sc: and compel the refundng To the COMPANY OF az
moneys improperly appropriated, InisStd, Mar'e, anu
lost by the Directors and To procure thel ieulV'1 "
| office ~. 80, a., ~, ,,,
The Defendants answer TO the bill was due cary ~
June bat the defendants counsel obtain IAN ol.c
Judge Nelson, giving them further time unil tt osi
when the courts VIII resume their "
| tinrs Was advised by the able lawyers Who nave
there ia every reason 10 believe that IL vigorously puS
cuted success will be ultimately obtained IN the NAN
objects of the BILL but that there may bo consl
delay in bringing the case to a conclusion. ihe CON-
plexy and number Of the charges TO lie inNesuSa %
and the INSCRIPTIONS and determined efforts 9l ~, Vs.
duct Will probably occasion than the usual de
| ties in the progress OF such % suit.
PROCEEDINGS IN THE LEGISLATURE - 80.
AT the time OF my arrival in Now-lOrk theit WIS -,
rious split In tho Democratic party In tue Sdtos -
tweed meinber OF the Senate, and one al '' ~ tsS
Old Democracy, and Senator Genet Of the houns
racy Tho latter unasked, bad bronsht my VIC md
BIZ TO repeal the Erie Directors Ce,ssueo" n,.p
II had been referred to the Railroad com".'eo ~ ~
| Mr. Comet Was Chairman Subsequently eiii sim %,
was introduced into the Assembly ny ono W ~ ~,
bers from New-York City, N Mss suniSVu 49,.
| there was ~ probability Of the ohl neihg ems, is \,
AMI hid .aanv oitttiucs with various memp 80.
tue Lclis.aturc On tho subject. atteS~~a vo''''