New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-06-26
THE COURTS.
THE HEATH-GOULD LITIGATION.
ERIE's MOTION FOR DELAY DEsIED-MR. SOUTH
NAYD OPENS THE CASE.

ERIE's MOTION FOR DELAY DENIED-MR. SOUTH
MAYD OPENS THE CASE.
In the United States Circuit Court, on Sat
urday the case Of Heath Raphael agt Jay Gould.
implicated with james Fisk jr f. A. Lord, and the Erie
Railway Company, up motion for an 0rder re-
quing Jay Gould TO show cause why he should not make
good English stockholders the loss arising from
the alleged illegal abstraction Of 10000 shares Of stock
from the receiyershp and also. motion for an order
restraining the Erie Railway Company from enarging
the registration Of Its stock at the Farmers Loan ana
Trust Company by placing upon Its books certain stock
which was as is claimed, "frauduently issued In con
necon with the abstraction OF the Heath and Rapnae
stock" In asking for postponement of the argument
Mr. Beach said, substantially:
The original order OF the Court for the transfer to the
Master the certificates OF the stock In question was so
modified that the Master instructed to ascertain ana
have been issued by the Erie Railway Company "and
registered upon the basis OF the $1,000 shares IN e Gus
tOdy Of the Receiver" The hearing before the Maser
Is unhnished but on Tuesday last the inDesuG Gn
appcation to prove that Heath and Raphael had no
beneficiary interest in this stock was then refused Inc
present motion Is on papers which tne aSUn All me
merits OF the litigation are lnyoVed ~ tne oyn
property that is his own.
In reply, Mr. southmayd said:
The purport Of the motion has not been correctly
stated II Is not motion to compel MI Gould 70 us'tTl
sP COO shares Of Erie stock Which he distracted
without the color OF excuse There Is nohng IN 'e 6
papers with which Mr.. Gould Is unfamiliar, anu
there is no question before the, Court but
the naked outrage Of the abstraction OF this this
realize any oense has committed until he Is brought
into court for punishment Mr. sonthmayd then argued
that the papers referred by Mr.. Beach simply re-
viewed the evidence taken before the Master and sad
"When Mr. Gould finds himself In tight lace he tTies
20 postpone the issue but those who have been robbed
have some rights, and the Court whose dignity s OUT
ragged bound 70 take speedy OF as hadre
Master TO that Gould had ever MIN
the Receiver Gould merely used $1,000 shares OF tne
stock-the property OF the Erie Railway Company@ as
The basis OF the registration for new certificate ana
claimed that the only object OF the Company IN THESE
proceedings To restore the shares 10 their true
owners and to keep Heath and Raphael from taxing then
10 England ain defiance OF the rights OF resident
American owners. Fisk and Gould are large owners OF
their title to It, vet for asserting their rights they de-
nounced as robbers and thieves We ask for an adjourn
arrive TRUTH and at the bottom OF this investga-
ton" .,.,., A.. 49, motion ,,vo,vod the
liberty of Mr. Could and that it had no parallel In the
Courts Of the civilized world.
men on the part of Heath and Raphael and to give Mr.
Beach until next Thursday to reply to it.
and Mr. Beach presented afdayts Of Fisk Could and
Justin ID. White, to the effect that an agent OF Heath ana
utgation and that after negotiations had taken
place, the proposed settlement was broken on.
referred to wasi . ,
Mr. Beach-The name Of the gentleman was omitted
Judge Blatc6ord-f the name is not stated in the a
dayit the Court will pay no attention to
Mr.. Beach, am now informed that the name OF the
gentleman is Mr. Thompson. -
Judge BlatchfordThe Court can take no notice OF IL
unless IL il mentioned in the affidavit.
Mr.. sOuhmayd began his argument, in the course OF
which he said: What Is the status Of funds placed III
the hands of receiver appointed by the Court And
what is to be done with person who frauduenty or
injuriousy deals with funds paced1" After citing
opinions Chancellor Walworth TO the effect that, when
property I'm possession OF the Court through its Off
GERS it Is a contempt of Court to remove II, he con-
faudpI
which should now be in the hands OF the
receiver taken by Mr. Gould TO the Farmers Loan
and Trust Company, and there certified TO "upOn the
false that the new stock issued on its
basis; ana that lie then put it upon the market ana
got the proceeds. He also claimed that this stock
thus redealt with" by Gould, belonged to
the receiyershp, and was, therefore, under the
protection of the Court; that this transaction
took away, in effect the market value" OF the stock
and invested in his (Goud's) own false ISSUE" and
that he was personally responsible Counsel closed
by attacking the theory advanced by the Erie Railway
Company that, the registration Of its stock at the
Farmers Loan and Trust Company is local 1t cannot af
its market value in Europe. The investigation
adjourned TIL to-day at IL a. III.