New-York tribune., 1871-06-30
THE COURTS.
ERIES VAIL FOR JUSTICE.

NEUTRALITY-SUSPICIOUS. OF hh' ENhhio'
In the United States Circuit Court, yester-
day. in the matter OF the motion for an order requiring
law ou 70 turn over to the English stockholders $4,000
shares Of Erie stock Mr. Beach opened his argument In
replv 70 Mr.. southmsyd by reading supplementary
AFFIDAVIT OF Jay Gould, in which he says
that be made no statement or representation 10 tho
Farmers Loan and Trust Company ut any tine nor To
any OF its officers the effect that the ceruncaeS OF
stock ON the three million convertible bonds were Issued
in lieu OF the certificates presented to the Farmers Loan
and ust Company as basis for the registration OF the
certificates; that 1t not necessary to OBTAIN sch
registration that any such statement should De made or
t tho fact rcpreseuted by such statements should In
any manner be made to appear that the presentation
OF the new certificates for registration In connection Win
those offered az basis therefor was not In any sense
that either substitute or representa-
tive OF the other the reason that 1t truly appears
M - 'astmonv Of the President OF said Trust Com
many that any surrendered certificates OF genuine STOCK
competent basis Iof 'aS Sat be nreseo value of
Erie stock in the New-York market is about ~ per
that for long time nc .. Pcr nSr cent go M and at
aid stock did reach s3 the hundred remained at
that value only & e% UaSed upon the market and com
manded that price that the oner Tor Sae o, @ .nt q
tity or of onethrd Of it, would nave ht once ueprecl
td The nrice and produced in the market an injurious
Of the stock and that the notice OF the issue OF
new stock nv the Erie Railway company, uhue the rue
nf the New.york stock Exchange, was not Withdrawn
under terror Of application for an INDUCTION to restrain
'I MI MoTSan read the afdavits OF Geo. W. Hooker.
Lane W. LapsIey, A. H. DeForest ~ Qcy ~, anu the me-
Erie RAILWAY Company by issue OF $4,000 shares OF
new stock by converting SOoooo Oh DO Dons unt and
the canIta stock of that Company TO that amount anu
th there "a nothing "to prevent the $4,000 shares of new
stock of the Erie Railway Company, 80 ss; Ts; foyn
beinc reotstered AZ the Farmers Loaa ana Irust Con
pany and certified registered according W tno 0
tom In that respect" - -. ,o. 1ask ir r A
Lane and jay Gould. to the effect that the hegotCom nv
for the settlement Of the Erie litigation were NJ nnd
on account of Mr. S0uthmayds anlnoSy W % Dli' ing
Mr. Reach Continued and, in the course OF very long
argument spoke substantially as Ollows II a a., ~~r,
bers has committed crimes charged against Il by the @
opposing COUNSEL and no remedy can DO @ ICuu md9ment
high time that the community resort 10 ts olI5i,a ta
natural protective energies II the law Is ~ iI
Drotect Individuals aud society from such wrongs WIN
be very proper 10 consider whether the action Oh
ance Committee is not the appropriate reeoy yhorSs
Gould, Fisk, and Lane are accused ol usuiPiii5 Pi
control OF one of the most ssa,o impGr'aiis said
that they have pundered it's treasury rnea S bnf
bribod the Legislature and Dongnt 'no nd rnned
American credit throughout the World ana taao uo S %
pOweress against them. lt Is remarkable that suc
state OF things can exist against the interest and 10 ne
ruin OF Erie stockholders representing s'OVO,oD wUn
OF stock These stockholders have investigated theso
charges together with the specific charge against Mr.
Could and, appears by tho record they nave eAon
Grated Them extraordinary spectacle Is presented Oh
counsel, and a community and press reeratlng these
charges while persons most interested and most
injured, il any injury has been done, have again
and again sustained the culprits In their possession OF
shness Of time that these I1en ShGR @
where is the evidence upon which these charges are
madel There Is not anywhere particle OF evidence 10
fnabe in this respect which admitted by the other
side. They admit the existence OF the Protection COn
these men the authority with which they had been n
vested by the Stockholders Of the corporation am
brbed Board OF Directors but where Is the evidence
OF such brberyi The stockhOldersthe only Interested
tha -hein
tion OF these gentlemen continued them III power But
this has nothing to do win the M 80 ha
his anmosities and denunoations against Mr Gould VIII
influence the Judgment OF tue court anu o src S m s
Justice, and nothing more and whatever order
this Court may make in this matter he VIII mol Deg It's
The first Inquiry upon the merits Of this motion relates
necessarily to the Position occupied by Mr. Gould in this
matter lie is not pary>to suit neither is he sub
ect the jurisdiction OF this Court except IN cOhse-
the mower and snbyersve OF the order Of the Court
deny that if Mr.. Gould interfered with property
gt % apcB o What Z a.t as sesa so
during Mr. Gould TO deliver up $4,000 shares OF Erie
stock for the benefit Of eatn m and pTent for seh
motion By it he is denied the right OF tria granteea
TO every citizen by the Fundamental laws under when
we ve will be subversive of those laws to grant
this motion. , -- ii, /. a., CA.
The counsel charges that the proceedings in the state
courts were conusve Mr.. Gould had no funds In the
possession OF the State courts The $4,000 shares OF Enc
stock in the hands of the Receiver are the only shares
that have ever been under Mr. GOulds CONTROL and can
ii be said that the surrender OF this stock as the basis
for the issue OF stock, was an interference WIN
uroperty under control OF the cours slch stock dd
not decrease in value, and it was entitled 10 Young
mower. Its value for gambling operations IN Wall7St
might be impaired, but Its real, legitimate value was
not injured. 49, ~. . a.. --..- "a
II there is any legality attached to the system OF
registration with the Farmers Loan and Trust Com
pany that Company is bound by law TO register tae ere n
notice has been given 10 that enect III the court con-
egdes that there has So Sssa Of 5s co IS the
particular ofiense committed, ana what injury
has been dO1el All th9t Mr. Gould Ysnt has done, me
registry of this stock because it cannot De sad
shares as they retain all the rights incidental to yaidy
issued shares The Erie Railroad Company afterward
moi agree TO that the counsel said that the Company
must into the market ana BUY OOo shares LOT regis
try To buy 81 100000 worth OF Erie stock is not an easy
thing do and cannot under the creumstances Pe
legally required to do 1t, nor can Mr. Gond be legally
required to turn TO Heath and Raphael property
owned by him when he owes them nothing:
In regard to the convertible bonds and Mr Gould,s
sacrifices for the Erie Railway Company, Mr. Beach SAID,
substantially as follows: The Executive Committee OF
that Company decided that under the statutes they had
issued them one for 81 and for 100000 At
this tune the Erie Railway Company was pressed Tor
money, and 10 obtain II Mr. Gould was ready To saernce
his fortune In fact such an example OF self sacrifice as
Mr. Gould afforded upon that occasion was never heard
converted them into stock and put upon the market
and in few days the entire value Of these bonds was
paid into the treasury OF the Company Mr. Gould PAID
higher price for these bonds than they would have
SSpst tine %HGe yet in b buying II them % he S
Judge Blatchford-l would like to hear that statute
discussed.
Mr.. Beach-It provides that the Erie Railway Com
pa9y can borrow money for the purpose OF completing
and running Its road &c, and that for the purpose Of
borrowing money 1t can issue bonds.
Mr.. southmayd,It provides that the Company can
borrow money bonds but II does not provide that
Company convert the bonds into stock.
Mr.. Beaeh-it Is understood that these bonds were
issued 20 Mr. Gould partly previous loan; would,
therefore, like TO know what the counsel claims in regard
to them.
Mr. southmayd read his CLAIMS, previously published,
concerning these bonds Mr. Beach continued The great
need OF the Company for money justified Mr.. Gould's
action those bonds and such action did not violate
the spirit the In the issue Of those bonds
and In the issue Of 10000 shares OF stock there is
wrong TO be righed, because this stock has become