New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-06-20
THE COURTS.
ERIE RISES TO EXPLAIN.
$780, .vsr I'M THE HEATH CAsE-THB BOGUS
i"H ,p'DrTI0N-rHE NARRAGANsBTT STEAMSHIP
EH-e.. or AND OTHER MATTERS.

III" ,ppcTION-THE NARRAGANsETT STEAMSHIP
rnsTRACT AND OTHER MATTERS.
IN the case of John Benjamin Heath and
thar. AFT James Fisk, jr +. A. Lane, Jay Gould. and
tbe Erie Railway Company, the defendants have each
oed separate answers the United States Circuit Court
so the important points are concerned they are
Jane: IT, the defendants time procured
persons Directors or officers Of the Erie railway Company BY
ss. % we're he 5 for s% ss that SSsS Directors
1851 purchase pO1e, for voting and BY PURCHASING or nduc'
Which were registered in ne Of VI, defendant o. ri.
sa Ssi s III ss1a *
a G1a ds sSs p' and ne s & and Lane T sc
was n pa tgstS Spss1S y s e. ssG s
moi with BY such until long tms after the election nd
persons r y sense S 4! a 0. ..so, and holders oilers
S Be- f ss stock there 70 'S ssr. SS rival p ss % I'd
rector, voted for, and The PassI Of proxies G ,p osf
and who Immediately parted with the certificates Issued to them
plant IT. to %. SsS Sesn ssio to sS desns
Tor the purpose Of controlling the said election were eso 70
upon az iva. ssls. been ca.ai; .SJ
Of the Erie Railway COMPANY other large corporations without
Ss s s R al .sS any I oped we're taken n
allowed under the .d ADD upon Se OCCASION q tP.,
Company opinion IN writing TO the effect that the charter
q os on 1"S9 oS TS s days
election Directors such election notwithstanding sncA
persons parted with the certificates Of stock before
southmayd on the question whether persons in whose
the stock registered ut the time OF closing the
withdrawing subsequent sale Of and unregistered
transfer After claiming that the question has been de-
cded by the Supreme Court In the case OF Tue People
agt Tbbets COwen, $685. the opinion closes as follows
The right Of voting stock situated stated the question is 10
of couIss the Pincon sPeco Of evidence he IA, .o t.
Of viii give them no authority reject vote
After denying sPesa several allegations tanned
the defendant AYERS that the "ony arrangement or
bargain between the Erie Railway CoPah S ai , taS
Company derived any advantage, was an agreement Dy
S m,S issned by the Naragansett Steamship Com.
pany to the amount Of $4,000, In consideration OF
We're agreed to be conferred on the Erie Railway Com
pany" The includes opinion OF Mr. EVarts on
the Legality OF the e R ,S CompanV to
guarantee the principal and interest OF certain BONDS OF
the Narraganset Steamship Company Inc opihohcOSoS
cannot doubt that contract these two corporations
contract being lawful puons intended or induce such
their nuuai Il prohibited by positive in.
svctons Of law valid 50 far as the qpo1 Of competence , o. s
eng sr1nents may be to complaint open to to
managers Of ccrporaioa to the atras them
but this does net torch The Question ys ed sS % s
It's engagements guaranty Of the oeSons OF 1s
oney and nav be beneficial to the corporation receiving
,ls gTn ;h ~ Ts e dissection the paeasf spulaons
contract Of the under examination falls within me aamnss
competency Of the corporation am Of opinion therefore a
the engagement Of guaranty proposed by the Er KaS company
one Of the Of proposed through connection
with Steamship Company within the competency
the Erie Railway Company and that the proposed contract ' i
also OF uBioubed validity
Alter specially DENYING several other allegations In the
hill the defendant further answers by way OF plea In
bar TO the further prosecution OF this suit Tnat on
Anrj g. 1871 meeting the Board of Directors OF tho
Erie Railway Company held at the Office OF the sid
Company, and that Committee was appointed 10 ihVes
tgate all the charges contained In the bill OF Indictment
In this case and that report signed aequittng the
defendants of the charges made against them concern
tl.nsr nf no
The answer closes with the following averment:
And that the Erie Railway Company and its Board
Of Committee appointed BY such Bo sd
Ia wu power all the bonds mentioned In the bill OF complaint
nd convertible into stock and had power to utrle
abe conversion bonds into stock Of The Re Railway Company
statues the State Il
e all the mentioned the bill Of complaint and that all such
stock valid and Law fully issued.