New-York tribune., 1871-03-30
THE COURTS.
ERIE IN THE FEDERAL COURTS.
,vN NJ EVARTS ARRAIGNS FISK, GOULD, AZ
rANr-A STRONG INDICTMENT

ERIE IN THE FEDERAL COURTS
,vv NJ. EyARTs ARRAIGNS FISK, GOULD, AND
LANE--A STRONG INDICTMENT.
In thc United States Circuit Court, yester-
dav Mr. Eyarts continued the argument the demur
rfr ncd 10y James Fisk, jr, TO the bill Of complaint Of
Heath aud Raphael against the Erie Railroad Company
Aner dcnouncinC the frauds OF Erie actual personal
flauds-ialo amino throughout-he called the attention
of the Court 10 the following important allegations in the
I'M complaint which omitted by Mr.. Field IN his
summary of it.
snnua elect October 1861 Gou Fsi and Lane pro
ct1 H nse, 70 y esiee Directors lbs vas ns sui H CIT Ut
dg h Peieat Of hc Boston Hartford and E Ralrcad Co. the
co.. @ ses he SoS Of hat compsSy SS' The Boston Hart
fo sri Ere Railroad Co urns Ell the the election by
ag from ~ uds $4,000 Gould buy proxies, and otherwise
SsSrg s, e1d Fss and Lame Soua bs'rsy ,hci trust and
a directors by ,o3s ior md procuring The susot 'nd the en-
Pr cTcvon almost Immediately aner the election The Boston,
IN N.ch S9 iIre similar Transaction Of the same parties in
sc ~ $500 moe bond, were s.5ei and a. once e9nGTeS into
o injunction Of the Supreme Court Of NewYok The por
Ao,. this stock IN JosOn Of the
@ N-Yort 10 Jersey Ctv carving with them several millions
Compaa ad which had cea thus obtained ni here remained er.
o rsc portions Of this money IN the modes set ont including the % %
% sSa sS IN Soss son 70 '5Ss1 pss an 1ci sng them
icy s eSs S sTSS GoinHs 9 n DS Sns A in at tie prO
Of furnishing and ol le
ing ai and r no oher purpose but saving rights involved
Gaai sal Lane couve causing oa' e@ssyes and
% i ' s i % oaG no r rss so ,os u. I d including the
o. as Goael to n9' b I t,o5 tier names s the
,n ap q se tsr book sa 50 ae9&s Gun & nd chosen "a Director.
IaTeI ging themselves to support 60'd' Pohy
cyga
During this year. from Sept 80. 1868, to sept 20, 1869,
they increased the share capital by the addition of t32
ea7o on S29l7 shares Of capital stock. raising
the capital fom SO SO22O the amount Sept 30 1865 to
sS $50 9lO the amount Sept 1859. All this was done
ny machinery OF issuing convertible bonds and con
vision General Railroad law, authorizing them 10
Issue convertible honds. in order TO borrow such sums
finishing. or operating their railrooad."
Enormous. waseful and Illegal discounts were allowed
these bonds 10 the business firms OF Gould FISK
and Others, their confederates. The whole amount
which by their official report 10 the State Engineer and
surveyor is alleged 10 have been expended IN ornament
additions 10 and improvements OF the road during the
fcs scdy for such purpose only ss32 45l &C. From
Juiy 1863 to the time OF fling the bill Fisk Gould ana
company and have made of the same for their pr
waite ends II the funds belonged TO themselves.
on MAY 20. the Lcgisature passed act author
% ftot only one-fttb shall 20 ont of office at each
annual election. The passage of this act Is alleged to
have been procured by the use Of corrupt means 10 IN
] fS Ssp ScS purpose S O FISK Gould and Lame we're
cuahcI 90 and did control the election in October.
10y the like means as had been used by them in the
preceding years, aided by the further fact that 2oO0,
Cl arw stock had been issued during the year large
par which still stood the books in the names OF
il,l hrB and other confedarates, IN whose names
lI III
before sold by such parties, and delivered TO the pur
ci~rrs liy handing the certificates with blank
Tr @ - frSpc and beng there held by certificate and
power without having been transferred on the books 20
ON he day oi the election the new Board classified
thcmSelye nakng their terms run H from M oie made @ NV
could L. H. aut Lane. that it is the mere instrument OF
ther ,i aud ia acted and does act in entire subScT
vc-r 10 tEcr personal selfish and fraudulent schemes
.ud they have practically the absolute ana unchecked
control the said Company, funds and property, and
M its affairs OF The IL Directors there are: j. GOud
. Fi-S Lane; Tweed. in flul accord with them;
a. IS. smith G0ulds business partner; G. j. d. White,
Assistant Treasurer; T. John Hilton, clerk OF agent;
3 IL. y. OTIS. The secretary; g g. Hall, the SnPpy
Agent aud 10 Mr. simons. in like relation to Could FISK;
in the Narragausott Company; the last named
hyr being salaried employes' holding their Offices
ina aud triane, if any, interest as shareholders
hey compromised by having signed the peage 70
support GOuds policy or resign ana they are are IN % sue
relations personal otherwise, with the said Gould
Fisk aud Lane as have prevented and Will prevent them
nom exercising the corporate power OF the COhpan! 70
rrug could, Fisk, and Lane to account or TO eompei
Suce October 1859 there has been, under the manage
- gO by the machinery OF convertible bonds,
under kc as thS irenIUu15 ftbnr % e
sues uncss restrained 10y injunction Ii mas beeh asct
uc thas more than 100000 shares OF The stock tor
: a. mn pID are held in Great Britain besides large
amount held upon the continent; and OF the tnghSh
iE ,,rr ieI000 shares are held by certificate, and
rer Standing on the books in the name Of the former
sstried Owners The bill also contains statement ol
5 ,ine of these three men and their confederates
during the first year OF their control from september
So September, loGo, shOwlns an hIIease "a ol VIZ lao
share capital the extent OF S29loOO, all by the ma
1er Of convertible bonds M a. GeiCTe s Ps
rriS Ly their own showing in the official report to
' ,c tbcs, men attained power in this corporation
, have os the bin shows. under the power to MORROW
,nr ne their railroad" and under no other rgnt or
,,ny,,r whatsoever issued more than s5aOOO Oh con
Vertiac bonds OF which thefe WtIV iSsuo" '' 00f''
~ l66:, and sept 80 lse9, as ioio"S'
1',esn >si ~ ~ iiSsss1I' s2li9l,e"