New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-07-01

Company from tho bonds STOCK not kept separate
to be applied to any particular purposes for which the
went into the general OF the Companys funds 10
meet the maturing liabilities, including interest and
Even II the $4,000 had been advanced upon or paid
for the bonds, upon real transaction OF borrowing,
Of Issuing stock upon such conversion would prospect
i've Of other objections be limited TO the 1000 due ana
owing upon the bonds. II ia admitted by Gould MN
self that the making out Of the bonds was merely form
gone through with for the purpose of issuing stock ana
ton for Issuing stock was expressly limited by law aud
had been exhausted. II could not lawfully issue tho
stock directly IL could not do 80 by the indirect process
turned into stock The statute authorizes the Directors
privilege Of conyernS if into stock but there is no pre-
tense Of any such action by the directors whatever was
done was by the E1ecutipe Committee The Directors
could not have delegated this power TO the Executive
Committee and they did not attempt it, The resolution
OF the Board Directors in February 1868. under the
authority which It is claimed that these bonds
were issued not general continuing power, and II
former Board Of Directors 10 former EIocuUe Com
pittee and is upon its face plainly limited TO bonds
erred TO in the resolution Under all the circumstances,
then, the 1legai and fraud of the issue OF the new
10000 shares is too plain for dispute.
This closed the argument the motion for the order
and time given for the counsel OF Fisk, Gould Co.
TO prepare and submit printed briefs.
As Mr.. Evarts leaving the courtroom, Mr.. Swami
informed him that Gould had given notice TO the Stock
Exchange that in 30 days he should increase the capital
bOck OF lne Erie KallWay Company 10 inc extent OF
10000 shares Upon being informed of such notice by
Mr.. Evarts, Judge Blatchford, evidently greatly
prised said "Why, such increase Of stock is, under
stand, forbidden by injunction already issued by
Mr. Evarts, you will put this information in the form Of
affidavit and file it with the clerk OF the Court, and
furnish me with copy of the notice given by Mr.. Gould
TO the Stock Exchange" The Court then adjourned.
As Goulds notice to the Stock Exchange is not in
itself violation Of Judge Blachfords injunction, no
legal steps will be taken in the matter unless the
posed issue Of 10000 shares OF Erie stock is carried into
effect if it is the general impression to be that
Judge Blatchford WILL in very summary manner, sus-
tam the dignity Of his Court
The notice forwarded to the Stock Exchange announc
ing the purpose to increase the capital OF the Erie
Railroad to the extent Of 10000 shares did not create
the slightest excitement in Wallst. The fact is that
Wall-st. has been continuously sprnked with Erie
shower baths that the process longer produces
a shock. II generally understood that this action
by the looming up In the courts OF the necessity OF
making provision for refundng the $1,000 shares
which they stole last year from the English
Mr. ROlstOn President of the Farmers Loan and Trust
Company declined last evening, % express any opinion
the matter further than that he regarded IL as very
important step on the part of Erie