The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-20
Thu Erie RAILWAY War.
Motion for an Injunction to Restrain Eric
from Issuing Shares.
A Field Day i'm the United States
Circuit Court.
DISCHARGE OF HEAVY ARTILLERY.

ing until seven in the evening to hear motion to
settle an order under HIS Honor's recent decision.
calling upon Jay Gould to make good $4,000 shares
of Erie stock which, 1t is alleged he has distracted
from the custody Of the Court while these shares
were In the hands OF its receiver; and also motion
on the part of Heath and Raphael. the Englsn
sharehoders for an Injunction restraining the Erie
Railway Company and Jay Gould from Issuing
$4,000 shares OF Erie stock, and the Farmers Loan
and Trust Company from registering the same II
they should be issued.
Mr.. Southmayd and ex-Attorney General Hoar
appeared counsel for Heath and Raphael, ana
Mr.. D. D. Field, Mr.. Sherman and Mr. Beach for Jay
Gould. the Erie Railway aud the Farmers Loan and
Trust Company.
ARGUMENT OF Mr.. SOUTHWARK.
After having read the order proposed to be made
on either side, and commented he went along,
Mr.. Southmayd observed that It was part OF this
case to compel the Master to inquire as to the
ownership Of the 10000 shares of stock claimed
by Heath and Raphael. Such demand as
that made by the Erie Company was put
in for the purpose OF continuing this htl-
cation and rendering 1t almost interminable The
Erie Company and Mr.. Gould proposed to pay Heath
and Raphael $15 0OO In place Of $6500OO the former
being the amount they considered them entitled to
according to the difference between registered and
unregistered stock That was the amount Mr.. Gould
proposed give them for the $3.50 900 he had put In
his POCKET. The first important feature OF difference
between the order proposed by his mr. SOuthmayds)
side and the other side was specific and unmlsta-
kable az to what Mr.. Gould would be obliged to do
in replacing this stock, or making compensation
for 1t. The Court had decided that Mr..
Gould must do that Inasmuch as this
order might be founded upon pro-
ceeding for contempt, it was desirable that the
order should be specifc 1t was desirable in view OF
the rights OF his client that the controversy In
respect to the misdongs Of Mr. Gould should be
brought to an end and not be Kept before His Honor
not only all the summer but all the winter. This
was summary proceeding. The thing which Mr..
Gould took was not an abstraction; IL was not an
intangible thing. He took away from the possession
OF the Court physical tling-certifcates of $4,000
ehares OF stock That was what he had taken away
and in substance turned into money 1t
was true he only took away papers; but .
they were titled documents in cont9mpla'
ton OF law; they were representative lnings,
s old a wsrs d
the debt. In the eye Of the law the bond was the
debt. Stock certificates were valuable dOcumentsS
who held them the value OF the money they repre-:
sented. These certificates were worth $660000 and
not $4,000; not some imaginary thing with nc.
titous value put IT. not with value put upon IL
They were not 70 ascertain value OF the stock by
such means as that The value OF the stock was the
ss pocket CO money Sy reason eaat his taxing
the certificates from the custody OF the
have touched II he had not distracted the certin-
Gates By this audacious ROBBERY by TINS man
% and he could have eeted
berry he had not distracted the certificates II was
then proposed that when he made the restoration Of
&c. 900 shares 10 the recelvership Mr. Gould should
have transferred to HIM 900 shares
It was true. The demand Of Heath and Raphael
was that the $4,000 shares which had the living
| quality extracted from them and communicated to
| GOulds dead ana void paper should have life given
| to them, ana that when tue stock as made living
stock az 1t was when Gould interfered with IL, the
and the old cancelled Now instead Of putting those
two things together, to make 80 600 shares. Gould
| demands that he shall have 10000 skeleton shares
turned over to him. The Importance OF that was
very striking His Honor had already decided that
documents from this Court. and that he should an
| swer to the Court for the wrong that ne had done
zance Of this matter that Whatever was TO lie done
to Mr.: Could In respect 70 II was 70 DC done now
deal as suited his pleasure with property taken by
MIN from this Court; ne had got through with nis
put sssS. 1903 in his pocket Now was the time Of
the Court TO deal with him for interfering
he lMr. southmayd) thought he JUSTIFIED in as
sumlng that when the Court had got through with
sats6ed as he was now with Ills status IN the matter
He lMr. SOuthmayu) believed no was correct IN as
sSoy Of the Court and protect tue rights Of these
| suit0rs; he would MAINTAIN the administration OF
ought to %G be- made in THIS matter a. and His Honor
| would not leave in Mr.. Goulds pocket any money
&c, to- the es c se would e @
man eXult IN this audacous act; he would
administration OF and OF justice into contempt,
Mr. Southnayd then went on to show what was the
% M S9 when ne Ers s sXd
Company. which, he SAID Ills Honor had just de.
OF the Sas ns @ 1
and If lie could have sold them he would not have
extracted this property from the Court; and he
| mt pl he Of
life into them by extracting THIS property from the
Court. The certificates were utterly VOID IN Law
were not OF any use, because conessedy they had the
mark upon them That substantially established their
was either OF intrinsic or apparent value, and what
he gave to anybody rs the basis OF the property he
held was what he had directed two Of his clerks TO
make out after holding consultation with FISK and
Lane. They 20 through the motion OF making out
those two convertible bonds wnen not u dollar OF
money had passed TO anybody at the time Gould
took the stock and attached that OF Heath and
Gou,d to two Of his underngs, ana they 20 through
the OF making out those two foolish papers As
MS power his subordlnatcs; he obliged
them to make out those certificates when
there was authority Tor him to do so.
Mr.. southmayd went on TO say that Mr.. Gould was
man quite fertile In tricks and devices, ana he nad
shown himself IN The course OF this litigation 10 pc
wholly INSCRIPTIONS. Counsel anticipated rs the
result Of such order as the Court might make large
he might avoid compliance with the order. There
not the slightest chance OF getting through with
this business until the last trlck wntcn human lnRe-
nuity could plan ON the part OF Mr. Gould TO avoid
the substantial restitution OF the properly an
stractcd was completely exhausted Gould must De
compelled to bring back to the Court the properly ne
had distracted IRON 1t or he made to suffer penalty
| for contempt. With reference to the proposed
change OF tie registering agent Mr. southmayd 90.
| served that when man unscrupuous, oudacIous
ana tricky as Gould was asked the -; Court n,,rs
instead Of providing that sae v pSint ihs
old agent inat IL should be regis tered with any
agent might 1T 70 employ the p,,Oa
was that IL was done for the purpose OF cnapiilg
him in case this good old fashioned company ltho
Farmers Loan and Trust Companyl would not , os
face enough to serve his purposes nc ,meh w0uu
mt in their place some other concern tnat Wouds
flo Ask SUCH an oruer was All indication of q desire
on the part OF Gould to exercise one n Oh MS
of Gould by the petitioners but there was not one
punitive feature In the peltion IL was mercy