The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-21
THE ERIE WAR.
THE BOOKS NOT YET PRODUCED.
Jay Gould Shelters Himself Under Ar
ticles Of Association.

The most important proceedings in the reference
before Mr. Kenneth G. White. the Master. were those
which took place yesterday regard to the $1,000
shares or Erie stock claimed by Heath and Raphael,
the English shareholders to DC their property. Mr.
Jay Gould, the president OF the Erie Company, was
examined at considerable length and it win he seen
rom his testimony, fully reported below, that he
declines to produce the books called for In the Mas
ters Order on the ground that he Is not certain
whether he has or has not a right to 40 70 under
the articles OF association OF the Erie Company. The
Master Will immediately report to the Court the
fact that Mr. Gould declines to produce the books,
and 1t Will then remain for the Court to say whether
he shall be compelled to furnish TO the Master the
books called for under the order.
Mr.. SOuthmayd appeared as counsel for the
English shareholders, Heath and Raphael ana Mr..
Pierrepont and Mr.. Morgan for the Erie Railway
Company.
THE PROCEEDINGS YESTERDAY.
B. Ogden White, sworn, and examined by Mr..
S0uthmayd-I am Secretary OF the New York Stock
Exchange.
Q. That is the institution which, in common par
lance. Is called the Board Of BrokersP A. Yes.
z. Produce the resolution OF the stock Exchange
with regard to registration OF stock OF the Erie Rail
way Company as kept m On Office other than its
OWN A. produce the resolution.
Mr.. Morgan objected TO the resolution.
The Master allowed il to be put In.
Mr.. Southmayd-n Is Rule of the consitu.
ton and bylaws OF the Stock Exchange, and Is as
Iollows:-
The Stock Exchange win not call or deal in any active
i not kept in some responsible bank trust company or
Other So n tory agency and which shall not sye public
Der OF shares entrusted be registered shall give
s Of hs'qs s.s aya
ro % . Of s ssr not &C s
same time sye notice Of The object for which such issue OF
Witncss-I have certified copy OF this rule, which
will leave with the Master (The Master marked
the paper exhibit In the case This rule con-
tinued the witness, was adopted on the 30th or
November $685. to take erect on the 3st Of January
1859.
Cross.examined by Mr.. Plerrepont-Q. DO you
know Of this having been departed from III any
instance9 A. No, sir, do not.
O. DO you remember the case OF the Rock Island
Railroad Company9 A. remember that case; they
departed from the rule, but afterwards came in
under It,
O. Was the stock OF the Rock Island Railroad sold
ut the Board without being registered A. That |
could not tel should think not.
@. Was there an increase Of the registration made
without any notice being gwen to the Boards A. 1t
Is very difficult for me to answer that, as was not
Secretary Of the Stock Exchange at the time
q. What do you know about IT, as matter Of
public notoriety, that it was departed FROM and the
registration increased without any notice being
given to the BOardS A. could not answer that: 1
do not know enough about 1t to answer.
z, DO you know OF 1t In the case Of the Wabash2
A. Not In the case OF the Wabash that recoleCL
@. DO you know whether, with regard to others,
that was so or n0tY A. think not; did not hear
or it to my knowledge being departed from.
Amos d. Williams sworn-Examined by Mr.
Soutbmayd-l am 4 member Of the New York
| Stock Exchange; am member OF the committee or
| the stock Exchange and member of the commit
tee on additions TO the stock list; persons making
applications to come before the committee In regard
| to stocks would come before us; any trouble occur.
ring under the third rule Is referred to our commit
| tee.
Q. Have you possession OF the documents which
were sent by the Erie Railway Company to the Stock
OF their stock In the Farmers Loan and Trust COM
panys, a. Yes, have them here In my possession.
| Mr.. Morgan objected to anything being said about
those papers until they were first produced.
Witness-I have them here, In pursuance of
subpoena that was served on me-
Mr.. S0uthmayd-There are Two OF them from the
farmers Loan and Trust Company and three from
The Witness-I produce five documents upon
| which the registration was originally made. The
| pany are signed by Mr. X. G. RalstoJ, president Of
that company, and those from the Erie Railway
| them by Jay Gould ana ii. N Gus. secretary
Mr.. Southmayd would like to know If the other
side called upon him to prove the signatures TO these
Mr.. Pierepont SAID that was not necessary, as he
| knew the signatures TO those papers.
Mr.. Southmayd-I would like, at this stage OF the
case, to have 1t entered upon the record for whom
Mr.. fierrepont appears. Mr.. Morgan objects to the
| papers and Mr.. Plerrepont does not.
/ Mr.. Morgan-I withdraw the objection.
I Mr.. PerrepOnt-As soon as you are through will
state all about 1t, how came TO be engaged In this
Examination continued-Q. Now, Mr. Williams,
WITH respect to the registration a. Two Of those
bear date the 18th OF September, and those Of that
date were not considered sufficiently strong to jus
4 tfy
lists. and to enable that To be done the SUBSEQUENT
| ones were sent down.
Mr.. Souihmayd put the papers In evidence, and
| read one oil tnen as IOhows:-
OFFICE EsIE RAILROAD coxrAsv,.
@. RALsros, Esq., President Farmers Loan and Trust
DEAR sfn-The following statement stock, and
ssa'ss 70 . yonr q
The amount Of preferred stock, including scrip, ssssso
The amount OF mortgage deDt seven per cent authorzcd
| and issued IL as follows;- -
mortgage, s4ccooo date of issue March 1919;
Third mortgage. ssoooooo of issue, March 1853
Fourth mortgage. oOo date Of issue. October 1857
Filth mortgage ss2ssOo OF June !, 1859; due
BuG Branch mortgage, sss.4o; issue. July L.,
The a%qs ss Of an s.1ss bonds foO0o (s1' sep
Of his state the mersase debt : convert,
have expired all but the sterling loan and AS that
|
u that be converted into the
of this compliance with the rules of the
Stock Exchange by giving thirty days notice. nor Will any
increase be made in FORM except In compliance with the
| Aforesaid rule JAY GOULD, President
! The witness continued TO say am broker Gu
| gagged IN this business; my trm Is that or 4. D.
| Williams & Co., As Wall street; have been men
Der OF the Stock Exchange since 1866 with the ex
cepion OF q single year; am familiar with the sys
ten, It exists IN this city, with respect 10 the
sale and delivery OF stocks and stock cernhcafes.
U. Do you know what has been the practice or
usage M this city since the institution OF the Farm
! ers' Loan aud Trust Company with regard to the
sale and delivery OF STOCK and In respect To the GER
tlfcates being registered In that company or not
| A. To make the certificate pass current II must be
rcgistcrcd otherwise would not pass that Is the
, condition OF things up To the present time.
o. In order 70 sell the stock as marketable stock II
requires the regstration OF the Farmers Loan AMI
100 shares certificates not registered should not