New-York tribune., 1871-06-27
MR.. soUTHMAYD'S OPINION OF THE ERIE
MANAGERS.


MR.. soUTHMAYD's OPINION OF THE ERIE
MANAGERS.
ARGUMENT BEFORE JUDGE BLATCHFoRD-THE
HEATH AND RAPHAEL SHARES-GOULDs
| CUNNING SHOWN UP.
| The English holders of Erie stock, being de-
prved of their rights by Judge Barnard's injunction
sent their certificates OF such stock to the Farmers Loan
and Trust Company to have the certificate of that Com
pany put upon hem to the effect that they represented
Erie stock which had been registered in compliance with
resolution of the Stock Exchange. The Farmers Loan
and Trust Company refused thus to certify these GER
tihcates unless received in the usual through
the Erie Railway Company and 1t is alleged by Fisk,
Gould Co. that the Farmers Loan and Trust Company
| acted untustly.
In the United States Circuit Court yesterday, at tire
resumption of his argument the motion for an order
requiring Jay Gould make good to Heath and Raphael
the loss arising from his alleged fraudulent abstraction
Of $1,000 shares of Erie stock from the receiver Mr..
| SOuthmayd commented somewhat severely upon this
allegation against the Farmers Loan and Trust Company
whereupOn Judge Blatchford said:
O. Does it appear evidence that the certificates for
the 10000 shares Erie stock which Hilton took the
Farmers Loan ana Trust Company, and had registered
there registered prior to the time when Mr. Won
Hoffman left at the office OF the Erie IA Railway company
Heath and Raphael which were put into the hands OF
Harris3
Mr.. southmayd-It appears, believe, that they were
so registered at the very opening OF the registration OF
with the Farmers Loan and Trust Company
Judge Blachford-were these particular certificates Of
shares among the stock then registeredf
upon Gonds affidavit that the registration Of Erie stock
at the Farmers Loan and Trust Company is merely 10
that stock in Europe where it is not required to be regis
tered If this is true is no answer in the mouth OF
Germany and in London without the certificate |
of the Farmers Loan and Trust Company; but the |
purchaser in those places understands that when he
chooses send such stock to this country he do
and have 1t placed on the market but he cannot have
Loan and Trust Company; and the stolen stock Of the
English stockholders sent here for the purpose of
being thus certified In his affidavit, Mr. Gould has
tried TO confound and hopeessy confuse the realities OF
give You the use certificates in the hands of
the Receiver" a compensation for the loss we have
abstracted the meat All of Goud's reckessness and
up the fact that these 10000 shares Of Erie
stock have been 80 dealt with by Gould that he has
us for them certificates which utterly worth |
less. The truth is that lie has abstracted the |
cieverly executed forgeries In this transaction"
says Gould, eve did not want TO intme you" but we
only desired TO Jump awkward period OF 80 days
and obtain the money we much needed This brings
us directly to the question Of the ssue of the new stock
was il genuine II the convertible bonds for 0OOOO0
do form basis for the issue Of this new stock then
these convertible bonds do form valid basis for the
Of stock because that law or the part 1t re-
ferred TO- only authorizes the borrowing OF money but
instead OF borrowing money these bonds, Mr. Gould
converted them into stock few hours after they were
Mr. southmayd then asserted that the over issue OF
10000 shares Of Erie stock gross fraud committed
by Mr. Could aided by his cOnfedefates Lane anu FISK
and that ne Gould personally responsible Tor IT,
Counsel next reviewed the evidence taken during the IN
vestigatOn before the Master III Equity, ana sald
This evidence develops one OF the most gigantic frauds
brought TO the notice of court Of Justice Fisk and
Gould and their associates have 50 completely taken pos
session Of everything apperaining to the Erie Railway
and hys nueSse 6Slusy ad ter
nefarOus schemes OF reckless punder and whole |
sale that their @ S no Longer S
could without much trouble change the name or New
York 10 that OF Flskye Inc e4perences Gl Is @ uSa-
ton show now openly these men nave lhsueu ana ue-
tied the administration or justice, ana such measures
sustain the dignity Of the Federal Courts Should in
deed, lament an ssue which VIII convince the Enghsh
public that in the courts Of the United states, Their IN
terests when invested IN American capital are DIS
continued, substantially, follows: MI. Gould asserts
that he has equitable rights in shares OF Erie stock
does not show such rights THESE shares are not all
of the stock we want registered at the Farmers Loan
snGe order issued by Judge Barnard they might get
into the hands of Could into the possession OF Cole
receiver. AS to these two convertible bonds one
for 100000 and one for s20Oo0OO, 1t is immaeral
or whether Mr. Gould persuaded Mr. Lane or whether
them were issued $1,000 shares of spurious stock.
which took the place on the registry OF the genuine
80 900 shares The new bylaws OF the Erie Railway |
Company very ingenously gotten up In fact they
are 50 arranged that Heath and Raphael cannot have the
balance OF their stock TO theI names Under
these bylaws the Directors of the Erie Railway Com
pany exercise the law-maldng power or the state
and this is a "new departure y from their old |
plan OF buying the Legisature II will be less expen-
ye but may be quite successful II the Court
grants the order asked for what time shOnld Mr. Gould
be allowed in which to make good the loss arising from
his abstraction the $1,000 shares OF stock And In
what manner should he make good this loss "if Mr. |
Gould 6egs for mercy, lot him SHOW works an meet Tor
not disposed 20 do this, - want him TO have |
justice untempered by mercy" and think That |
i've days is that should be allowed him to eithor pay
into Court the of the shares OF stock absraeted
TO register 5000 genuine shares at the Farmers Loan
Tu tyanV
this transaction, regard MI Gould as the one tO DC
held personally responsible.
Further hearing OF argument this motion was then
adjourned th next Thursday, when Mr. Beach Will pre-
sent his views upon II.
MISSOURI SWBDLER SENTENCED.
rI,1- 1.EE LIZ. IL IL |