The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-20
TIE ERIE RAILWAY WAH.
Manner Of Fleeing Directors and Officers Of
The Eric Company Explained.
FISK on THE SITUATION.

Il LSA Wy al Il "a 4 u AEG.s.
In the suit or John Benjamin Heath ana others VS..
Jay Gould, James FISK, Jr., ami +. A. Lane, i'm.
pleaded with the Erie Railway Company, each Of
the defendants has aed the United States Circuit
Court separate answer, one answer being substau.
italy the same as the other.
FIsK's ANSWER.
The main points of Flsk's answer are subjo1ned:-
James Fisk, Jr., says that none OF the defendants
at any time effected their election, or the election
director or officer oi the Erie Railway Company by
any aiayo hegtimae or improper means lie &c.
OF the votes which were cast for him AT
the election OF directors in October, 1867,
chasing or inducing his friends to purchase sna res
OF stock in the Erie Railway Company which were
registered In me name Of this defendant or OF his
friends before The closing Of the transfer books pre-
paratory 10 the election, the certificates OF winch
stock were in part sold by HIM shortly afterwards,
and after the transfer books had closed, yet large
part OF the stock. by votes UPON which the defend
ants, Lane and Gould, were elected, was held and
owned continuously by the persons VINO voted III
person or by proxies for the said three Defendants
and the certificates thereof were parted with by
such persons until long time after the election,
and such persons were, in every sense, bona nae
holders and owners OF the stock so voted
upon. At the election in October, 1867 there
We're only two serial tickets for directors voted for
ana the purchase 0. proxies the registering OF stock
~ the names Of parties intending TO vote particu-
with the certificates issued to them, and all the
other acts, proceedings and methods charged In the
BIZ OF complaint TO have been resorted TO by the IN
dvIdual defendants in this action for the purpose OF
controlling tile election were resorted TO In equal
degree by the persons WHO were Candidates for cleo
ton upon The rival ticket and by its supporters
and such methods had been constantly rcsoltei
TO for many years by persons DESTROYS OF securing or
retaining the control or the Eric Railway Com any
ana OF other large corporations, without objection
or complaint on the part OF any person, ana such
proceedings, so lar as the Erie Railway Company
n a In -n1 ttn.,n 81 4.
advice OF counsel and upon the occasion OF former
election or directors or the Erie Railway Company
writing TO the effect that the charter or the corn.
pany authorized and empowered every person IN
transfer books thirty days prior to an eieclon 10
vote for directors at such election, Notwithstanding
such persons might have sold and parted with the
certificates OF stock before the election took place.
The opiuion here alluded to is that OF Messrs.
Evars and Sou,hmayd, aNd Is in the following
terms:-
With reference 70 the coming election Of directors
ton ~nsSe @ o s Soos.
Of ns s se BY h M to
books be hs. sold the stock and delivered u the purchaser
,sc h 70. an sa TO transfer the
IA general Revised Statutes, which i. .pp
cable TO the election OF this Il r. g. 6l3
section 81 in az where the right voting upon any
this shall be questioned shall BE the dug o the in
speeor Of the election g require the transfer book or said
and All such shares standing thereon
e by ee y on BY such
ie TO The IL On Of the &C. Of
power Of attorney 70 transfer confers upon him merely
ne ,ocx remains ,e S1n 'he w SGoss
name !, stands !. may Perhaps be well enough said
law well settled s.! i sdml,.us
that where holds stock in trust for another the
MOHAWK and Hnd R. R Co.. Is wena .n 49,
by he
Court of ibis State IN the case Of The People Tbbet
s at 20. Ss int
ms closing as' had Sssf s. tho 70
and an ansf. ana That sf bylaw VI
' .ss sas had
and In case Of Their appearing to reject the vote Of the
s6oaey void thus DECISION as ae v was
sIsscra.s :ya%sa, question
after careful examination. has been questioned And
inquire aa ini
p bo, @ ss or S tan the
and others Is matter between themselves with which the
70 o1 a1ns Ra
We therefore OF the opinion the right OF voting
stock situated stated in the question: legally vested
course, production the nsoecors Of he evil
Ssss m We hr' q a 4sn,es @
them no authority to reject his vote upon it,
CHARLES +. soUUTfhaAyp.
NEW YORK Sept =, 1855
Tie contract or arrangement between the Nara.
ganset steamship Company ana the Erie Railway
Company is referred to at considerable length That
contract was for through connection with tho
Narragansett Company for passengers ana
freight, and By this agreement Erie guaranteed
certain bonds issued by the Narragansett Company
TO the extent OF $500, o00 In consideration OF the
advantages to be derived by the former from the
through connection named. The answer which Is
very long, goes into q history OF the Erie affairs,
nearlv all Of which has been repeatedly published
In the State court and other litigation.
THE HEATH AND RAPHAEL STOCK.
Inc Iolowing passage In the answer Is In reference
become famous in the annals OF law
And this defendant denies that any amount OF stock
Of the Ere K"w , Company as represented in the bill
rope he denies that the holders Of any large amomn.
70 from the
Robert A. Heath and Henry L. Raphael either Of them
Rshss with two or more Of he other co@panan: hs
@ G e Railway , S
.n so s S OF s oy 's
pany that they desired to obtain the q
and Raphael and their Induced numerous hold
s'sIds, ns
such transfer should such
who when they had obtained Possession thereof sd n
their names In the instrument OF transfer without tho
authority consent of the real such
or OF the persons whose names were signed such nu
mens OF transfer aud then forward large
tihcates 70 the oce OF the Erie Railway Company and de-
msnded the transfer thereof; but the company
having great DOUBT the time whether filling In OF the
names o. the said Heath and Raphael in the said
OF transfer was authorized and legal did decline make
such transfer and the said officers have since received
numerous complant from parties whose certificates of stock
were thus altered and niled alleging thew never
gave any authority for the 1Iing IN Of the names OF
the said Heath and Raphael OF
surng the said officers that all such proceedings were
without the sanction OF the such
and contrary 70 their wishes
THE ERIE REFERENCE BEFORE TIE MASTER
Yesterday the Erie reference IN regard to the
Heath anu Raphael stock, which is progressing be
fore Mr.. kenneth O. White, the Master, was nd
lourned to this day, wnen, II IL understood, Mr.
John swan, the English law agent OF Heath and
Raphael, VIII be examined
COURT Of APPEALS CALsHlaa.
ALBANY, ". Y, June TO- 1871.
Ibc Following is the Court OF Appeals day calendar
lor June 2o:-Nos. 3Os, 323, 327, 32s, 800 s3i 2s5