New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-04-25
THE COURTS.
r,cropy or ERIE STOCK CASES.

xrnsU
NV rrpr sTOLEN-THE COURT PRoCEbpiN"0-
THE NEXT MOVE
The facts concerning the alleged stoieh
,ares Of Erie stock claimed by the Enghsh sVochAoi"
~ a. disclosed thus far by the Investigation oeiore ho
,ser IN Eouity and by the previous proceedings ID TIC
ta,e Court are substantially follows In November
,sss tho Ney-York Stock Exchange passed resolution
t take effect January 81 1862 requiring every corpora
tion having active stock in the market TO estaoSn
rayistry OF such stock at some oice other thah is
own, rs preliminary to Its oemg oaneo
and dealt in by the Stock Exchange IN
order TO avail itself Of the advantages OIL
having its stock put upon list and called at the E
change the Erie Railway Company established IN oeto
Der OF November, 1869. registry OF its STOCK az uo
Farmers Loan and Trust Company by presenting 'o""
Nst Of all outstanding certificates OF Erie STOCK WuonS
which were those now owned by the English stTSs
holers) and pedging its word, as appears ny douuo
letter to the President of that Company that no iCle
Of stock should be made without giving S0 u''
After the establishment of this registry no Eric STOCK
NO. or considered lit to deliver under CON
tract The stock owned by the Engsh sioe q oo
erracates gepresenng over 10000 shares of stock
which originally issued III arg III, Sty and
which stood in the Of these brokers upon so
books the Erie hallway Company InesS SEE arke in
dorsed upon them sgnmens IN blank anu pa from
suSd 10 hand In the same condition until they we're
bought by the English stockholders ne Stock repre-
1tSS NV fbesa cates had not been transieroa On
the books of the Erie Railway C9 sTl vote upon it.
whom it -Aay ssled couia s ctraI interst or
although they had ceased 10 nave an! i bolders ~
9 own MD Tns gs e Seers upon it, endeaOed to
have IL T. ansferrod TO Heath ana hae! on nc fron
a. Erio Raiwa, Coupary, but were restrained from
d any .9 NV an i%9cti6n issued by Judge Barnard N
suit broug lit by john Nyer for The purpose Oh obtaining
Rin inns deposea of their rights the holders OF
these cer fca.es took them to the Farmers Ivan anu
TrnSt Cannaay to have the certificate of that Company
put upon them the effect that they Represented Lio
Sontion passed by the Stock Exchange The Farmers
Loan aud Trust Company declined thus to certify these
ner through the Erie Railway Company and
dncd by rn as @ 1essry to be eutsdSg
They Therefore sent in june 1870 to the once Oh
that of Identification. Tae Company thereupon retained
possession of them and began an action IN the state
This stock mad been sent for transfer in violation of the
injunction obtained in the Nyer suit. ,oo. TT co,o.
I'm this action Judge Barnard appointed James H. Coe
an receiver OF ali the stock of this character sent for
tnsser IL 70 himself as receiver BY subsequent order
dated few days aterward tins same Judge oileeteu
Erie office for registration well as for transfer Cole
man. therefore, In june 1870 took the certificates OF TINS
Safe Deposit Company where they femalaea IRON
June to September About tins me d ea aTe e pa
the State Court TO the United States Circuit Court,
Very soon after the removal of the suit against Heath
and Raphael, in which Coleman had been appointed
receiver, the defendants made motion to yaeate the
receiyershp Tho hearing Of this 9 fTv %as P %T
texts set up in the affdayits Of the plaintiffs. Judge
Batchford 1T last satisfied that these postpone
sSWn the hearing of the motion for saturday March IL
ON ts d sE the Sssrhs the aemed
discontinue the sat by seatlng mo dee
MED the right Of plaintiffs to discontinue the suit in
such manner Judge BateIford pronounced the no
Toctlng the receiver and the plaintiffs to deyer oyer
nde the SUPERVISION Of KSn g. H Sn' aI np
Raphael the Erie stock taken possession OF py
order also vacated Coemans receiyership and provided
for recenyreported proceedings before the Master
II appears from them that in September 1870, little
than days prior to the last election OF directors
took certificates of stock from the Safe Deposit
S"Ves O that compaHy Two new cetcaes equal in
amount to the amount of stock by the cer
oertacaes were left with employees Of the Erie Railway
Company the condition in which they when
defaced in manner and that Company. instead Of
caneeing them as Is IT'S custom WIN 10 suto
remained several months The new certificates issued
to Coleman registered by him at the Farm
ers and Trust Company and without such regis
tratiOn they are unmarketable.
cbaSy msdc an oyerssne Of 5000 Shares Of STOCK
which are stated TO have been issued upon the basis OF
for 100000 This stock was unnaIketable unless regis
that Company would register it except upon the
render of outstanding certificates TO that amount To
procure its registration certificates for SOooO shares of
the Heath and Raphael stock which had into the
hands OF Coleman, receiver. and been left by
him in the safe of the Erie Railway Company,
were sent, direction OF Jay Gould TO the Farmers
and Trust Company, together with the stock CON
tra.on thereof The Farmers Loan and Trust Company
tben Cancelled the 10000 shares OF the English stock
holders thus received from the Erie Railroad Com
pany by punching round holes through the certificates
represeitng IL, and registered and certified the
new stock on the basis of the cancellation Of
shares then became "ead Stock and their place the
registry taken by he overissue made by the Erie
Railway Company. The basis which the new cerlin
Gates held by Coleman should have been registered
was thereby Destroyed and as they could not
be registered, they were and are unnlarketable.
therefore, the round hole produced by the punch OF the
Farmers Loan and Trust Company, and 1t Is testified by
OF Ere's clerks that within the past month, the
ander OF this stock has been punched By clerk in the
Office of the Auditor OF the Erie Railway Company, with
punch similar to that used by the Farmers Loan and
before the Master ali the original certificates therefore
appeared TO have been cancelled by that Company.
Immediately upon the issuing OF Judge BatchfOrd's
order of March H. the agent of English stockholders
Mr.. Swami was served with papers in new suit,
brought by james Fisk jr., and Mortimer Earle, in
Robinson, Poughkeepsie horse Jockey, receiver OF
the same stock held by Coleman receiver Mr. Swami
has appeared In this suit and filed the usual papers Mr.
Soutnayd announces that he cannot with the
vestigatOn before the Master Equity until
the books which he has been four times ordered
States Circuit Court the proceedings had before him. 1t
will then remain to be whether Judge BlatcbfOrd
can bng jay Gould out Of the remarkable OF g
nOIancc in which he has ntrenehed himself and compel
the production of the books.