The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-01
TUE ERIE RAILWAY LITIGATION
An Injunction Granted Restraining the Issue
Of Convertible Bonds.
The Receivership Of the Eng
lish Stock.

In the United States Circuit Court yesterday be-
fore Judge Blatchf0rd, the case OF Heath and
Raphael the English shareholders, against James
Fisk, Jr., the Erie Railway Company and others,
the defendants filed stipulation which, after de-
clar.ng that they had no intention Of issuing any
more convertible bonis OF the company they con-
sen. TO the issuing OF injunction restraining them
from issuing any such stock. The terms or the sp-
uatlon are substantially embraced In the order
made by Judge Blatchford. which we print In full
below.
The motion for the Injunction was based upon the
affidavit Of Mr.. John Swan, OF London, the English
agent OF Heath and Raphael. In this affidavit Mr..
Swan states that lie believes that Fisk Gould and the
Erie Railway Company are about to issue more con.
verble bonds anu sell the same at q low price IN
the market TO the great injury and dctrmen. OF the
company and the stockholders. Mr.. Swan says
that he Is informed and believes that persons
well known as the accustomed.broa Of said Could
and Fisk. and whose operations understood to be
IN their account are, and Tor some time past have
been sellers in market OF so-called "cals" for fl-
ture delivery Of the railway stock NJ o very low
price, which calls entitle the hold.r thereof to de-
maDd such delivery from the maker or issuer OF such
calls and from this circumstance and the past course
OF SAID Gould ana FISK and heir cOnicderates In
respect of issuing stock OF the Erie Railway Com.
pany, he hal good reason for believing, and docs
believe. that Gould and Fisk and their coniederates,
unless restrained by injunction, Will, within short
time, make further issue OF new stock OF the Ere
Railway. without the assent OF the existing stock
holders. and not only will there be waste and loss
consequent upon the low price ut which they must
be issued but there is every reason TO believe That
the money actually received will be wasted ana
Iraudulently disposed OF in the manner In which
they have frauduleny disposed OF the proceeds Of
other issues by them OF large amounts OF the STOCK
Of said company set forth in the bill Of compliant
Upon the stipulation and affidavit referred to, ami
also upon the motion OF S0uthmayd, Evarts and
Cnoate, counsel for plantlirs, Judge Blalchtord
issued an order Tor an injunction, which Is in the
THE ORDER.
Upon reading the bin Of complaint In this suit
anG the veTincation thereof heretofore filed IN the
Court and also upon reading the aildavit OF John
Swan and the notice o. motion for issuing an IN unc
non to tae eject hereinafter ordered, toUether with
due notice OF the service OF said notice and copy OF
said affidavit the deIeudants' solicitors. and the
said defendants now appearing IN open court by
counsel aud iIing stipulation in this suit where
by, though nJt admitting any, but, on the contrary,
conrOverng ali the allegations contained IN the Dli
OF Complaint or a1idavlis herein 1iled but. never
theiess, dIsclalmin5 any Intention OF issuing con-
All InjunctOl issue IN his cause III accordance with
the terms OF the compartments notice Of motion
therefor ana with certain reservations and provis
ions In respect 10 future motion Tor tie continu-
ance Of said Injunction ana the rights OF said de-
feniants upon and IN respect to said motion for
now, on motion OF Evarts Souihmayd and
Choac, solicitors for the plaintiffs 1t Is ordered that
an injunction issue on This cause, restraining the
sad Gould ana Fisk aud the Erie Railway CON-
pany, and oil Its officers, directors, managers ana
agents. from making issuing, negotiating or
delivering any bonds or obligations the
SAID Elle Railway Company. puIporting
10 confer upon the holder OF such
bond or obligation any right or privilege OF convert
ING the same into stock OF said company, or vi
celving any such stock in exchange therefor, ana
likewise rom issuing. putting In circulation, de-
livering or In any way aiding In giving currency TO
any stock or ccrlIcates purporting 10 be Tor stock
OF tie sald the Lire Railway Company, otherwise
than upon tile surrender and cancellation OF geuuine
certificates o. now existing SHARES or STOCK OF said
company, which, upon the 22d DAY OF March, uf.,
we're Standing registered upon Its books. upon
transfer oil such SOCK In tue usual manner, without
prejudice, however, 10 any or the rights the
OF said defendants, or either OF them In respect TO
sad III JUNCTION, or Its continuance redeemed pro-
vided Tor SAID stpu alton, LIED ne.en aiore
SAID.
THE INJUNCTION.
The Injunction has been issued and q copy OF II
served upon the defendants.
The RE1EIyERSHiP or THE ENGLISH STOCK.
The reference before Mr.. Kenneth q. Wnite the
MASTER to the 10000 shares OF Erie stock claimed
TO he the property Of Heath and Raphael the Eng
llsh Shareholders and which shares are alleged
be The custody under the control OF Nj. James
H. Coleman, the Receiver appointed 10y the State
Court. had pe n nxed for an adOuSnel hearing
yesterday morning; but II went over TIL Monday By
agreement "a counsel, who had 0Lner elgayeulent5.