New-York tribune., 1871-07-28
THE COURTS.
A VICTORY FOR ERIE.

nrCIsIoN AND AN ORDER FROM JUDGE
BLATCHFORD-wuAT GOULD MUST DO WITH
THE $4,000 SHARES IN DISPUTE.
In the United States Circuit Court yesterday,
I'm the case Of Heath and Raphael and others agt Inc
Erie Railway Company, Jay Gould. and the Farmers
Loan and Trust Company, Judge BlatchfOrd gave she
following decision denying the motion for an injunction
restraining the Erie Railway Company from registering
at the Farmers Loan and Trust Company $4,000 alleged
spurious shares Of Erie stock
This Court must in determining what powers are con-
law the state Of NowYor follow the decisions made on
the subject by the courts Of that state IL was audged
hy the Supreme Court Of NewYork in Belmont agt. the
Eric Railway Company (52 Barbour GSD, ana IN jerks
a. nS f tbS cae that such power OF Issuing con-
vertible bonds was exercised by the Erie kali-
herein was conferred upon by the statute law OF New
York That decision hes not been Syerrued and no de-
ton. Therefore there Is no question OF d ries In TINS
case. All questions of regularity are disposed OF by the
fynC with full knowledge the transactions OF issuing
bonds and converting them into stock The o Is founded
bonds the conversion Of them into stock were Illegal
ff have failed TO satisfy me that there was anything
either Illegal irregular in the issuing of the bonds or
I'm the conversion of them into stock, which would
rant me enionng the registration OF the stock issued
on the conversion of the bonds The motion for an u-
junction is therefore denied
In the case Of the Erie Railway Company, James Fisk,
r., and Justin d. White agt Robert A. Heath and Henry
L. Raphael, mpeaded &C. the following order was also
directed to be entered:
Upon reading and fling the notice Of motion dated
June 10, 1871, the petition Of Robert A. Heath and
Henry L. Raphael and the PapsTS thereto annexed
ana n9 1GqS hngst OF Peand5v ID "6 Jo6n eC Hunter
Theodore Ames, Robert Waller, Strong Yards Wards,
MST Mon9 aSd M Charles f' sSSTS on the bart Of the
above-named Robert A. Heath and Henry I. Raphael,
the defendants who made the motion noticed by the
aforementioned notice of motion; aud three adaytso OF
JAY Gould, adayits Of James Fisk jr the aidavits
Of Justin B. White and Frederick Lane, the testimony
taken before Kenneth c. White the Master appontedby
this Court mp TO the hearing OF the motion, ana
A. H. De Forrest, c. E. Quincy, T. W, Vanderhoof A. H.
Dwyett Howard Lapsey, Moses Mitchell. and A. c.
Wood, on the part OF the palus ana jay Gold III oi
position to said motions; and upon reading the notice
Of motion to open the default taken In this action March
IL, ISL, and the atidavits OF William IT, Morgan ana
James Fisk, Jr., thereto annexed, ana upon Wiich
such motion was made by the pain,ns ,tS TiSe iSe
above described motion of the said deendants; and az
ter hearing william EvaTts pGd Charles sGnthmayd
for the SAID motion OF Heath and Raphael ana IN 0po
ston to the said motion to open me @ said ] E6anI gi
March II, 1871, and william A. Beach ana kdWln ";
StOughton for the plaintiffs ana In support OF te sao
motion TO open such default and for Jay Gould, the
First Tho shares of stock which the subject OF
controversy in this suit are In the possession of this
Court by the hands of James H. Coleman, its Receiver
and they have been in such possession, and the said
James H. Coleman, such Receiver has been the officer
0 S & oI eyer oG hfe ne into & 81 CONT
Second This Court has the power to compel by sum
property which he has abstraced from the custody OF
this Court whether he be, be not party to the suit
Third As respects such oOos shares Of stock the GER
tihcates representing them which were issued TO James
came the officer OF this Court the privilege
appurtena1t to them Of being eeLtiied by IT,. tie
! tering agent of the Erie Railway Company as rep,
Tesenting shares duly registered with said Formers
part of the property IN the shares and was val,
shares of stock still remained under said Ieccversp
| after they bad leen delivered 10y saG receiver
to the Erie Railway Company, and con
|
said recoveTshp as the proper basis Tor the
Trust Company of the said shares in the name OF SAID
receiver At the time when the said Jay Gould used
portion Of the 10 obtain the registration ana cer
hcaton of the certificates for $4,000 shares held by him.
the said shares belonging to the said .ot oy
1gh PaaG oeF by the Loan and
Trust Company and deprived ~ & SgcH % SUO o. snnTfS c
ieSea hut has converted such privileges TO his
by procuring be conferred the certificates for other
! certificates were held by him as his property.
Fourth; Having thus abstraeted property from the
custody of this Court, the said Jay Gould must restore
the same by making or causing 10 he made, PROVISION
issued to the Receiver which have been thus deprived
the privilege above referred to- shall have such PRIV
ege restored to them and In default & Thereof lie must
| Fffhi such provision IS proposed TO pe mace @ py
Erie Railway Company 10000 shares which have been
created by the Company ana certhcates tor whc nav
been issued by the Company but which have not hitherto
been upon such registry list and no objection Is per-
| oeved to this course
i
ioin the Eric Railway Company from placing on the
registry list the $1,000 shares which 1t Is proposed 10
| place there. 3,
SerenM: The motion Of the plaintiffs to o9en the de-
fault taken on the llth OF March last is denied. -
Thereupon it ordered adudged and decreed that the
said Jay Gould, within co days after the service upon
him, OF his solicitors, OF copy or this order, DO
make. or cause to be made. provisions that $1,000
shares Of the stock OF the Erie Railway Company,
represented by so many Of the certificates o, Is
| sued TO James II. Coleman, the Receiver herein,
eing other than those now capable OF being al
tted 10 such privlege he admitted to the privilege or
| being certified by the registering agent OF the
Erie Railway Company as required by the
rule and custom of the NewYork Stock Exchange;
and that the said James III. Coleman, Receiver,
from time 10 time procure tho certlncates lor
the COO56 shares Of the stock or SAID Com
pany standing his name, TO be certified by the regis
terne agent OF the said Company, whenever ana as
RAPIDLY as the opportunity TO do shall be rendered 70
him And I'm case the said Gould shall tai In whole OF IN
mart 20 make provision for such registration or the s
10000 shares above required then any other parties
10 tbIs suit may apply to this Court for instructions ana
relief In the premises on the part of this decree -
And II is further ordered adjudged and decreed that
the motion of the defendants herein TO restrain the
nIaintf the Erie Railway Company, from registering
0 900 shares of stock with its registering agent De-
II s further ordered adiudged, and decreed that
tho Dsintis motion open the default herelD taken
on March II, 1871, be, and it is hereby denied.
PROTECTING THE MAILS.