The New York herald., 1870-04-12
THE ANGL0-ERIE WAR.


Iub GHSlSh DUnuHUlutTS EnttT tHo htCAu
Against Gould, Fisk and Lane.
How the Erie Triumvirate Got Control Of the
Company-Anticipated Utter Wreck of the
Whole Concern - Petition Of the
Stockholders VS.. the Directors.
A suit was Yesterday commenced in the United
States Circuit Courtby the English shareholders OF
the Erie Railway against Gould, FISK and Lane, OF
the Erie direction.
THE COMPLAINT.
The complaint recites that defendants, with
Others Illegally obtained the control OF the Erie
Railway Company, ana committed the company
10 engagements OF o hazardous and specua-
tive nature. and resolved to bind the company TO
guarantee or bonds OF the Boston, Hartford and Erie
Railway Company to the amount of 100000
which bonds were issued and put In circulation.
That the Boston, Hartford and Erie Railroad Com
pany has fallen into great pecuniary dlscredit.
That defendants were enabled to Obtain their elec-
tion and that Of Others directors OF the Erie Rail-
way Company by means of money furnished by the
Boston, Hartford and Erie Railroad Company. The
complaint then goes on to recite In substance all
the main charges heretofore made against the Erie
suits against its present Board OF Directors,
and specially rectes that the substantial results OF
one years. absolute and unchecked control OF the
said company by the said Gould, Fisk and Lane are
SHOWN by me report made BY the said LAY Could as
Company, bearing date January II, 1870, and from
the report ofthe Erie Railway Company TO the State
Engineer ana Surv eyor OF the State or New York,
made pursuant to the General Railroad act, for the
year ending September 30, 1869, shows the follow.
Ing results for the year ending September 80 1869,
W.
During such year the income account OF said com.
pany is shown to be as tOllOws:-
Gross earnings SIG 72l 500
Deduct
lure Surfent At exnenses.. e 7ls,os6
- 1852 105
Net earnings. ..................... 81, 2,l7o 1894
Paid Tor interest on mortgage debt. 1,703773
showing an apparent surplus applicable TO divi.
dends OF $47562l. which sum- upon the showing OF
,ne said managers ought to have been applied to
ana would be sufficient for such dividend the rate
OF about tve per cent; nevertheless, the said man
ayers OF tne c0npanys affairs have not paid such
dividend or any cash dividend whatever upon the
preferred stock, but have withheld the same upon
the allegation that the surplus earnings had been
applied 10 expenditures for permanent improve.
ments.
A NET RESULT OF TWO YEARS. MANAGEMENT.
That thus 1t appears, from the statements of the
said Gould, Fisk and Lane themselves, that as the
net result OF their two years. management OF the
Erie Railway Company, from the time when said
FISK and Gould first acquired power ana control
therein, they have succeeded in reducing the net
earnings OF the said company to 1.-THE extent OF
more than $50OOOO year. while they have increased
the amount OF It's share capital and funded and float
ing debt from $5l O65 943 to sIOl 935 10 or to an
extent Of more than $50 0OO 600. and that OF this
$5O0OO,O OC0 OF additional capital obtained from
tne pubic as Tor investment IN said enterprise
tney DO not pretend TO show more than between
Six and seven millions actually expended In i'm
provements OF and additions to the property. and
shareholders except the single dividend on the pre-
ierred stock In January 1865 which appears to have
% neen substantially paid out Of surplus earnings ac
came into the MANAGEMENT.
ASSETS VS.. LABILTIEs-THE TRIUMvIRATE WORTH
LESS THAN NOTHING.
Inat all the property possessed by Fisk, Gould and
Lane IS vastly less than their legal liabilities to the
Erie Railway Company and It's bona dde sharehold-
ers. That TO project the rights of the bona nae
shareholders the defendants and others having the
power power should be enJoned from Issuing any
1urtner convertible bonds OF the company or any
stock otnerw Use than upon surrender and cancela,
tion Of certticates OF existing valid stock OF said
company upon transfer OF such stock In the usual
manner. That defendants are unnt to control the
affairs OF the company and should at once be ousted
company. That on account OF the great power and
influence as defendants the affairs OF the COM
cation OF Its affairs until they are ousted That until
they are Oused, the rights of the bona fde sOckhOd.
ers , W De constantly IA peril, and that no other
wreck and ruin or the whole interest OF the holders
Of OF the econ common stock: and that the interest of
by be put IN great jeopardy. That the interest
Of the company will not be safe even after the
,har "nsng Srect o the on accouat Of the
receiver should be appointed to manage ana
carry on the an affairs rao, Of the company under the
he compelled to render a just full and trde
account Of the affairs of the company dur
That, pending the issue of THIS suit, defend.
ants De temporarily enJolned from issuing any
sonyeTne eo16s or giving to any
ceiauon Of genuine certificates OF stock, ana after
transfer of such stock in the usual manner. That
the officers OF the company be eniolned from remOv-
ing or conceallng books, papers, securities or funds
belonging to the company, and that planti1fs have
such iurtner relief as the Court may deem neces.
sary.
The defendants have until the first Monday In May
u file their answer. ~
THE ERIE STOCKHOLDERS AGAINST THE DIRECTORS
The following petition has been laid before the
Legislature:-
TO OF THE T.. LEeIsIATURE OF THE STATE OF NEW YORK:
Erie railway Company respectfully we are dis
e Many
S & ene p M acs act 70 IN az We Of the laws
Central, Hudson Rverlnd Harlem Railroad Companies"
classify themselves so that one nth only
M sna Se ses s5en be ID BE sa @
ton of directors of the said company elect
We therefore pray that the bill before the Legislature
Maan Pheps aT o @ Exchange place New
York; E. Payenstedt h Co., No. 81 Exchange place
New York; + H. Gillian. by II. E. Gihlan, at
ivSrney, No; 81 !, Exchange place, New York; v. r.
wiys,o BY W. R. vermilye; J. 3. Alexander 4 Co..
street; Charles Franckyn. executor of Z. Cunard, No
Bowling Green VIM: Cunard. per Charles Franckyn
Agnew Sons O4 West street. John A. Parker, president
4s Wall street. Geo D. Phelps, East street
n Phelps No 46 Wall street; Mary Tsston, by r. NJ
BY r M gryson. No. u West Thirtysxth street
executor Of Rufus L. Lord, 85 Exchange place; Reuben
Maney Co., "a Broadway; B. r. Wheelwright, II West
NJ smiih, by James R. Smith attorney q William street.
trustees Nassau street; John r. Moore 24 Madison ave
nue.; T. r. Livermore, ll9 Broad street john David Wolfe
l3 Madison avenue. =. '''N'
Dated MARCH 81, 1870.
THE PAPERS SERVED ON THE ERIE OFFICIALS
Contrary to eXpeCtation. no difficulty WAS OK nar-