The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-27
TEE ERIE RAILWAY WAR.
Jay Gould Called Upon To Make Good the Eng
lish Stock-Argument Of Counsel

| Mr. Southmayd resumed mis- argument yesterday
| In the United States Circuit Court, before Judge
| Blatchf0rd, on the motion to compel Jay Gould to
deliver up 80 600 shares OF Erie stock which, IL is
claimed by Heath and Raphael, he has Illegally alb
stracted from the recevershp OF Mr. James ii.
Coleman, and also to enjon the Erie Company from
charging the registration OF their stock at the
| Farmers Loan and Trust Company, by registering
| upon the books OF that COMPANY 10000 shares Of
stock, which, II is alleged, was taken rom the Heath
and Raphael stock. He resumed his argument at
the point where he left Of on Saturday, and went
on to state that the registration OF Erie
stock at the Farmers Loan and Trust
Company was positive proof OF its au-
thenticity. 1t was an establishment instituted
by the Erie Railroad Company for having, mdepen-
IDENTITY or its own office some recognized authority
which would put the mark OF authenticity and gen.
uineness upon Its stock. Following the action OF
MIR. Gould, he would not say thar the Farmers Loan
Company did an injustice IN refusing register this
stock.
Judge Blatchford inquired whether it was In EVIL
dence that the 10000 shares Of certificates which
Mr., Hilton brought down to the Farmers Loan and
Trust Company were upon the books placed there
by the Erie Railroad Company PRIOR to the time
wnen Mr.. Won Hoffman left these very certificates at
the office of the company and which were put into
the hands OF Harris.
MI. Southmayd said both sides admitted that such
was the fact. Much importance seemed to be laid
upon the supposed fact that this regulation at the
Farmers Loan ana Trust Company was merely
local circumstance affecting only the sales OF stock
In New York market without nluring the STABILITY
In Europe. II that were really so it would be no
answer 10 this notion because it Is In this country
Violent hands were laid upon this stock because an
intention was exhibited Of putting it the market
haro yhnh Ind fha
wrong ana made the stock entirely unmarketable
where the corporation was established that they
could dispose OF IT In Europe. No establishment
like the Farmers Loan and Trust Company existed
In Europe; but unlike the stock or other
shareholders, they could not introduce their stock
into New York and realize dollar upon II. lie con-
tendea tnat Mr.. GOuld's conduct was calcu.
tae idea Of nus e anao ana and
In placing before Heath and Raphael those
cancelled certificates alter all their value had
been extracted from them. The great lmpudence
and daring reckiessness vi Gould, sustained, as he
was by very able counsel, could not shut out the
truth that ne had carried of the genuine certificates
replacing hem with skfuy executed forgeries. AS
to whether this new stock issued by the Erie Com
pany was genuine and regular, and could have been
| properly registered on the books of the Far
m ,asp Loan oaI and Trust Company , he con;
entirely fraudulent, and that upon no principle Of
justice could they be placed on The Farmers Loan
and Trust Company They were produced by fraud
ana nothing that afterwards took place, no plan,
however skilfu could do away with the force OF
that circumstance. If convertible bonds for
this new stock then 1t was spurious He maintained
that the over Issue OF these 10000 shares was
pany, FOR which Gould himself was personally
| responsible Having read the evidence or Gould
a a Se IN the M he na
so completely 3lled with arrogance and pride had
these men become nat Fisk boosted ne could
| openly defed the authority OF these courts They
! drew MS clients INTO litigation they would gladly
| have avoided ~ robbing them OF their stock. and
he was satisfied II the Court admitted the wrong 1t
| would not be slow TO remedy 1t. Mr.. Houghton had
referred the possible incarceration OF Gould a
most extraordinary proceeding, but he did not
think that the community in general would shed
which originally prompted FISK and Gould to this
course OF action TO lear that the influence OF the
English shareholders should be directed TO drive
them from Office in the company, and 70 avoid such
possibility they get the stock certificates out OF
their hands ana put them in the possession of James
h. Coleman, the Receiver. The wreck which these
men had brought upon the Erie Railroad ought to
have prevented any honest stockhoidsr from sup
theme determined their conduct. These men, in
their determination to permit nothing TO debar their
| purpose, sought to thNart the administration OF
justice, their ravorite system or operation, the pur
chase or the Legislature being in TINS instance I'M
conclusion that this motion should be granted the
question came up, what time should be allowed to
should be adopted to compel he restoration OF these
5000 shares In their pristine condition. and that
| there snail De no registration or false STOCK
| on the basis Of these cancelled certificates
! In this connection he referred to the compromise
sought to be arrived at alluded 10 IN the anldavit Of
Mr.. Gould as worse than useless for Mr. Thompson,
who was represented as the agent OF Heath 4
Raphael, was as much interested IN the success or
! the Erie Railroad as Frederick A. Lane Gould
himself. Gould was entitled to justice nntempered
with mercy. II he wanted grace In replying to this
order he should throw himself on The mercy OF the
Court exhibit pentence, restore this distracted
| stock and discontinue certain purposes now going
, on under the eyes Of the Court In regard TO his
clients which was considered wrongful in the high
est degree: repeal this fraudulent bylaw and stop
his piratical raids. II he Will not do these things
then, when ne asks grace, let the answer be, "You
will not have itn
The argument was then adjourned 10 Thursday
next.