The New York herald., 1871-12-20
THE ERIE RAILWAY war.
JaY GOuld's Claim Of Ownership OF I,7s4
Shares Of the English Stock De.
MED by the Court.
TARDY BUT SURE JUSTICE.
Important Decision by Judge
BlatchfOrd

Yesterday, in the United states Circuit Court,
Judge Batchford rendered an importan: decision
upon the petition Of Jay Gould, who claimed an
ownership OF an interest In H. 733 shares OF Erie
STOCK. Heath and Raphael, the English sharehod-
ers. who have been long itigating their title to
these shares In the federal courts OF TINS city, op-
posed the demand OF Gould, setting forth that he
had no right Whatever TO the snares and that the
ownership was vested In them. the petition prayed
that the Master should take evidence touching tine
title OF Gould to the shares In question, but the
Judge denies the prayer Of that petition and vacates
the order for the suspension Of the delivery OF the
12734 shares to heath and Raphael This Is another
triumph for The Engl lsh shareholders tta
SupJoined we give the principal and essential nor
tions OF Judge Blatcnlord's decision IN. 4 above
important question. The Judge says c6
The Of the allegations OF the petition OF
Jay Could now presented TO tne Court Is that there
ana Raphael. by inc owners thereof, certlncates
for ana representing shares OF stock IN the firle
dred tnousand shares; tnat SUCH ceruhcates, wnen
SO put into their hands, were eacn OF tlem accom-
G ~ 69 q sa Ssr % oa ns eacS
OF the certificate, with PERMISSION TO sucn
Defendants 10 stamp tnelr names na, 10 ogtsrl gaca
ring upon them power to cause the shares
represented by eacn certificate to oe transferred on
the books OF the corporation TO the name o. them,
thus giving them full power ana authority over the
stock to The exIelJ as though they were actual
holders anu bona Ude owners thereof That there
upon the defendants caused their names to De
stamped on the blank powers OF attorney SO exc
cuted, authorizing them to cause the stock to he
tran erred on transfer books OF the COMPANY to
the names OF them or their nominees; that ior the
stock SO received the defendants caused to De de-
livered to the shareholders, IN exchange OF each
certificate OF stock received, ceruncate In SUB
stance as fOll0ws:-
the Ere Raway Company. 70 BE- i0rxaTssi 70 America
for registration in the names OF Messra Robert Amadeus
Heath Lewis Raphael.
That oil OF the stock so received was stamped
with the names OF the said Heath and Raphae! IN
power Of attorney so signed IN blank, thereby EN-
towering them to cause SAID stock to Oe trans
ferred upon the BOOKS OF tne corporation to tneir
own names; hat such receipts do not REPRESENT and
were not intended 70 represent any particular GER
tncates OF STOCK or class Oi sucn certificates, and
the holders Of suc certificates ase entitled, but,
the contrary. entite the holders thereof TO demand
any pOrtlOn OF fne certificates held Dy the defend-
ants wlhOut discrimination; that the petitioner Is
OWNER OF 1875 SHARES
OF the stock OF the company the certificates or evi
dence thereof issued Dy the company nave been so
10 sne Win sa Dann n Rowir cr u
tnere0i, with the names OF the SAID Heath and ia.
pnael stamped thereon; tnat the only evidence the
! Is quantity OF sucn receipts In said form, the
number Of each receipt and the quantity O shares
| LA IN number; that 10000 shares, over, OF the
stock OF the company. with SAID blank powers OF
| Heath and Raphael stamped thereon, have been
presented at the Office OF the company, with the re-
! the SAID Heath aud Raphael and the company,
under the orders OF this Court, has TO great eX-
tent caused such shares to De pu, In condition
70 be transferred TO the names OF Heath
| aud Raphael, aud Is diligently engaged IN COM
, sentnx tns shares OF the stock Of the company
4 owned by the petitioner and represented by sucn
SO S eah ana
with such blank powers OF attorney endorsed lnere-
oil Heath and Raphael IN the blank power 0t attOr.
ney and are eatner part q sucn 90 SSo shares or
toner has 40 means OF ideIfying such certificates,
EVIDENCE OF OWNERSHIP THEREOF
being the receipts he holds for the same in the form
before mentloned; that the petitioner Is unwilling
representing the same should be held by IN the
names Of Heath and Raphael or any OF their nom-
or interest in sao STOCK by vlrtue Of sad receipts
any right to hold the same, aud that trust was
created Tor any purpose by when said stock can be
held by Heath and Kaphae against the owners
thereof, nor were sucn receipts intended by such
owners to create In Heath and Raphael any right,
title or interest, either In trust or otherwise.
THE PRAYER OF THE PETITION
the title OF the petitioner TO the said shares stock
certificates, and that the to the extent OF
and that In the meaatme the dellv.ry OF such
shares and certificates TO Heath and Raphael or any
other person, to the extent above claimed by ihe
pelitioner, may be suspended until the title OF the
petitioner thereto shall be adJudged bv this Court.
is shown by aidavit thai the receipts referred to
In the petition are not specially or parts OF the
tions OF much larger quantity Of stock delivered
over to Heath and Raphael for registration in their
names the sooS shares SIC forming part Of the enIire
Raphael, or regfstr lon Ia their names OF said
stock, other than the said 60o56 shares. mas been
hitherto prevented by the refusal OF the company
permit such transfers. tnat at present any attempt or
Heath ana Raphael to effect such transfer Is practi
cally enjOined by an order OF recevershlp granted
by the Supreme Court OF New York. by the terms
OF which any such STOCK upon being presented for
fron nr ia IN I'm ~
the ARRANGEMENT by which the stock was delivered
by Its owners TO Heath and Raphael for registration,
1 and such receipts were issued therefor, the de-
livery OF the new stock certificates 10 the owners
| the names OF Heath and Raphael was 10 be made,
not IN this country, but in London; that Information
has been received from the person who signed the
receipts that there Is reason to believe tnat
| SPURIOUS AND FORCED DOCUMENTS,
ior Registration, have been put in crculatlon and
are outstanding; that this Court should undertake
s 70 a asa IN nger q the Seg
ana TO compel delivery OF the stock called for by
the receipts 10 be made In this country TO the hold
OF the receipts instead OF requiring II to be done
In London, according 10 the arrangement under
which the stock was received for registration,
there Is not believed TO be any safe basis here upon
when the agents attorneys OF Heath and napheel
can know or decide as 10 whether receipts which
may be presented here are genuine or not, nor as
to the genuineness validity oftne te. by endorse
ment or otherwise, under which the parties
holding such receipts may claim to have become
assignees OF the rights OF the persons to whom the
receipts were originally given. That the SAID stock
other than 60 056 shares, the transfer nf which TO
the names OF Heath and Raphael has been and ls
thus prevented. Is very large IN amount embracing
many thousands oil shares large amount OF such
STOCK having been sent back TO England
AFTER tue SEIZURE OF THE 6J,05s SHARES,
and That the practical negoab,lity OF the stock
tncates therefor has been destroyed because Of the
fact that when such stock was sent TO the United
States for transfer and registration the names or
Heath ana Raphael were inserted as transereeS In
the powers OF attorney endorsed on the certincates,
80 that delivery OF such stock can no longer be
made TO purchaser by giving to him the certificate
with blank power OF attorney for transfer.
THE DECISION.
After advertng to former decision OF his In ref.
erence 10 this heightened litigation Judge Blatch.
ford says
II is quite apparent that the claim OF the petitioner
to have delivered TO him certificates OF stock to the
extent OF H. 1876 shares out OF the entire 60, 066
shares cannot be allowed BY the tran saction OF
t0rafa shoroo otufn