The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-21
THE ERIE RAILWAY WAR.
Jay Gould Called Upon to rd,imbursc the Enc.
hSn S..ockhOlderS.
lhI hEi 1eRNCE DRAWING TO A CLOSE

me reference before Mr. Kenneth G. White the
Master IN regard 70 the $4,000 shares OF Erie stock
claimed by Heath and Raphael, the English share
holders, to be their property, was resumed yester
day. This reference has been now going on fol
exactly three months; but the last OF It mas no,
been heard yet. 1t may 90 on for some little while
longer II Erie desires to stir up the history OF those
certificates"
Same counsel have appeared on either side during
the reference.
Mr.. John Swan, an attorney, whose residence is IN
London, has been IN constant attendance at the
reference all through, watching the proceedings in
the interest OF Heath and Raphael.
At the commencement of the proceedings yester-
day Mr. Beach stated to The Master that at about SIX
O'Clock last evening Mr.. Gould was served with the
large bundle OF papers on the table and notice OF
motion TO be made on Saturday before the Court
for an order requiring him to show cause why he
should not either return thirty thousand shares IS
sued the credit of three millions OF convertible
bonds or make good the default. His Honor would
that 1t impossible for counsel to attend to
those two matters at once. and such motion would
invadate the action of the Master and set aside the
purpose he sought to obtain under the order of
reference granted by the Court. The notice was
premature, but he would ask an adjournment, 50 as
to be able to look through the papers.
Mr. SOuthmayd, IN reply said the last motion day
would be Saturday next and If the Court could not
hear 1t then, 1t could not be heard till fall. Mr.
Could no doubt, would like the matter to go over
till the TALL.
The master declined to adjourn, stating that Mr..
Beach had better examine the witnesses he had
summoned.
Counsel for Erie then offered in evidence the min.
utes OF the Board Of Directors of Erie. OF the 10Th
day OF April, 1870
Mr.. Soutnmayd objected to this as irrelevant and
MIR. Beach said the object of introducing this EVIL
dence was to enable the master TO determine upon
the validity OF the stock IN question.
Counsel then said Judge BlatcnfOrd had made an
order on the nth OF March, 1871, directing that
e00jO shares Of Erie stock should be delivered to
Heath and Raphael. Counsel now contended that an
Color Of a bylaw made by nine gentlemen connected
with Erie to avoid this order b. Introducing bylaw
never before published, but which had reference to
| The Master, In some brief but pointed remarks
recalled tine attention OF counsel to The matters
stated in the order of the Court to which the refer
ence was to be confned-namey, to anything which
bore In any way upon the history and possession Of
STOCK question: mtro he r t Uun e h oer m
| evidence, and also copy OF one OF the bylaws OF
Erie lving reference to the transfer OF stock in
connection with OF the certificates In litlgatlon
for The purpose OF showing That the certificates were
issued In conformity with that law. Exceptions
| were taken 10 these rulings.
| TESTIMONY RESUMED.
Mr.. John Swan, solicitor, residing at London,
| England, was examiner by Mr.. Lane on behalf OF
| Erie. He was questioned as TO whether he knew II
K. L. Heath and Henry L. Raphael were ever at
any time. owners Of any Of the stock in question.
Counsel for Heath and Raphael objected, and the
Maste ruled out this question: also Others bear
ing on the same subject. Counsel for Ene excepted
| to these Rulings.
Mr.. Louis A. Won Holman deposed that a clerk
| OF his delivered these 10000 certificates OF shares
| OF Erie stock at the Erie once; ne mad list Of
| these shares, which he gave TO Mr. SOuthmayd.
Counsel said he had this list locked up In q safe in
| his office, and would have 1t here.
| Witness-I have not searched to see II I have
press copy OF That s: 1t would not be according to
| my course OF business to keep copy.
| Mr.. Beach, want you TO give me any memoranda
| from which you can show me the numbers of the
certifcates-the original memoranda Of the numbers
| OF those certificates.
| MIR. Won Hoffman-H they are In my Office Will
produce them tomorrow
| The Master then dlrected the witness to produce
| them If he had them, and the reference was adj
| jOurned till this day, at one O'Clock.
JAY GOULD SUMMONED TO PAY Up.
notice has been served upon Jay Gould to the
effect that in the United states Circuit Court on Sat-
| urday next, before Judge Blatchiord a motion will
| be made calling upon Gould to show Cause why lie
should not restore the stock inquired Vi before the
Master to the English shareholders or make good
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