New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-07-01
THE COURTS.
THE ERIE PRESIDENT PLAYS A DESPERATE
GAME


THE COURT.
In the United States Circuit Court, yestcr-
day. after the reading by Mr. southmayd of adavts in
80 those presented in behalf Of Fisk Gould Co.,
Mr. Evarts resumed his argument the motion for
order requiring JAY Gould to replace $1,000 shares of
Eric STOCK substantially distracted by him, and forbid
ding the enlargement Of share capital with the Farmers
Loan and Trust Company, by the addition thereto of 80
600 spurious shares. In the Of his long argument
Mr. Evarts spoke substantially as follows:
Propcrty in the possession OF Receiver Of Court of
Equity ia in legal effect in the possession Of the Court
without its express permission, TO interfere with such
Receiver, or by doing any act. impairing its value
whether such interference be in virtue of legal process OF
some other court or otcer or under Tor amount right OF
title of any kind, or he iutrinscaly merely wrongful
the hands the Comrt i'm contcmnt of iis am
hOrity, is answerble therefor upon summary
qured by the Court restore the thing distracted
10 make good the injury he has caused and, If he fail
ished by attachment for his disobedience. NOe agt.
Gibson Paige, 5l3 Wisw9n agt. sampson, IA Howard,
Of the Court thus 10 compel the making good OF an
sractOns of injuries to property under its guardian
ship The power is general and the form OF procedure
is summary, either upon the relation or petition OF
the property which has been wrOngfuly dealt
WITH or by order to show cause or other
its own notion And upon any such summary
proceedings the Court make whatever orders may be
necessary to accomplish the complete resoTaoh OF '9e
property, or complete restitution for the injury done TO
H. There limitation the IeucI 10 DO
Afforded short OF this, that II may De WhteNeF tne
nature OF the may require The occasion OF the
Courts thus interfering summary Tor making g0od an
stracton Of or injury to property under its guardianship
may arise either peHdent lie while it is yet uncertain
Court, it be after that question is adudcated
only remedy, the Court acting therein as quasi plaintiff
for account OF whom II may eventually be found TO con
cern and on a summary proceeding thus instituted no
seriously question that the power OF the Court
I'm respect Of the form and extent OF relief or redress is
at the least ample would be its power to AFFORD re-
lief by decree upon bill filed by individual plaintiff
who had sustained like injury. II such were not the
case, there would be mere failure of justice in case
where wful tori odSOr had added TO his wrong the
circumstances OF SIOss eo5elpJ Oh C9t ie TT ,"y
the wrOngdoer who is made responsible In the summary
proceedings, Is not party 10 the original suit wherein
tne res mas DeeH oro1ShI lnG seteS that
who chooses to interfere with property IN the
subject himself completely the summary Jurisdiction
Of the Court in respect of the subject natter ana the
reported which redress has been summary en-
forced against persons wrongfuy interfering VITA prop
ery in court are more fTegueny cases Gi strangers
tice and public policy require that Court in performing
der its eGardaIship against abstraction, injury,
wrongful interference OF any kind, III contempt OF
its authority, shall compel redress from the wrong
dOer in the most complete and ample man
ner and with the utmost promptness. These ends
can only be attained by the adoption Oh summary pro
ceedings the mode of redress, To allow the wrong
doer to delay his accountability ana amends 10y coinIf
ling resort TO the slow machinery OF an oiGnaIy suit
would lead TO lamentabe consequences and no just re-
sented is clear one Of substantial abstraction by Jay
Gould of the $1,000 shares of stock in question, or at
extracted from it its marketable or salable quality
and, by means Of the false pIete T,. E made
any, and the misuse OF the original certificates belonging
to the receyershP that ap5 Ran6ae
to his spurious and until them yalueess ana Wholly
unavoidable and unstable stock and he has by means
Of thus investing his spurious certificates WIN lne
indieid Of genulneness WlthdraNh sucI t,ton Of
Heath and Raphaes stock TO the utter ae racon 0l
its salabeness sold his spurious certStes as se
ne to bona de holders; ANA b TeTv peculiar and
somewhat circuitOus process, he has IN substance anu
effect converted the stock OF Heath ana tipnael 10 s
own use The legal effect of his act and the measure OF
his accountability for II, are to be detereu ~ @
euce TO the results thereby produced 10 hhiSei
and TO Heath and Raphael and he cannot escape Such
accountability by any peculiar neshes OF 10TH III WHICH
Gouds and receipt Of the proceeds OF the sP9rld
Gus 80 COO shares which he had registered ana cefneu
by the Farmers Loan and Trust Company, by apPrO-
pIating 10 that purpose by cancellation, Heath ana Rap
haes original certificates for the genuine 5000 shares
and falsely representing to the Farmers Loan and Trust
Company that s really oa aDS RapSaei certcates
thus Cancelled is shown by Goulds own evidence. tnI
H5 h1a and RaphS cFacaes for $1,000 shares
basis for registering GOuds spurious 5000 shares te
ttcate in the of James H. Coleman receiver can
not DO registered with the Farmers Loan ana lIust
company but If presented for registration and certt
cation they would appear upon the register OF that
Company mere over ISSUE Is shown oS L. w.
The suggestion of the registration of stock with and
ts certidcaon by the Farmers Loan and Trust Com
nany as condition precedent of marketableness or sal
ableness is merely local regulation OF the New nork
therefore, Heath and Raphaes stock though unstable
NeW-NOTk retains It's Ndlle Dy ItaeOh VI tS
beness In Europe has no application A., 800.
FIRST. Because NewYOTk is the place where t1e cor
iSe se Of lis stock The stock was here when
taken from and Raphael and placed the hands OF
moment When Heath and Raphael were giving evil
dence OF their intention Ne to maze nv having SGi
paced on il the certificate Of the Farmers Loan and
Trust Company, II already standing on theLr [1Rl5tI
been left by and Raphae agent at the once OF he
Frie Railway Company, TO be there checked as step
preliminary to such registration. When Could mere
doeT has prevented the certificates from being
sver made salabe the home market, and completely
which they the certificates 10 the Ere Once II nes
DOT his mouth TO say that they may sen9 theT
etes TO foreign market for sale, ana that therefore,
they are not damnihed by his cutting them OH from
the home market
second. Because il is wholly untrue that the circum-
stance of the certificates having been made unregsIa
blc with the Farmers Loan aud Trust Company, ana
Therefore unstable in the NewYork market, does not
bar their sale in the European market Snt
stock IA sold in the European markets without bearing
Ut Company hut all stock sold stands the regis
ter Of that Company and II Is entitled 10 DC
and n Is essential TO the saabeness OF the STOCK
I'm Europe or anywhere else that II should stanH ~ ths
position aud possess this quaty No STOCK Is sou ia we
fre;gn market which III the position to winch TINS
Heath and Raphael stock has been reduced ny Gouu,
hat OF entire unsalabeness in the home market; ana
mo- stock can be so sold unless by Fraudulent cOhcea
Inent from the Vendee of ts true position Wmch wOu
leave the vendor liable 10 reIu ING Pi0o ioA ~ "l'
the discovery of the fraud -, -, ,,,io s.oob %
The suggestion that purchaser S OF Eo s.oG Gat 70
would have no legal means OF forcing the farineTs L
and Trust Company to register OF GSrS ,s s orde1
,id ref1sp TO do So has force. Inc value auOrueu
t Erie stock by registration with ana ~
the Farmers Loan and Trust company ~ nt von f
kS stock "a a boon Of grace which the Ene company
viii give or withhold discriminating between
er at 9 for 10000 of Ere stock
od never he made salabie until II was regsteIeu ana
eOuii - fr it, egistratiOn was the surrender and
cancelation at Farmers Loan ana trust Soihpang
The req