New-York tribune., 1871-07-13
THE COURTS.
FRIES DEFEAT.

THE HEATH NEUTRALITY-SUSPICIOUS. BLATChfohD
DECIDES THAT JAY GOULD MUST RESTORE
THE SHARES ABsTRACTED FROM THE GUS
TODY OF THE COURT.
Judge Blatchford sent tho following decision,
Yesterday to the Clerk of the United states Circuit Court
upon the motion for order requiring Jay Gould 10 re-
store to the recevershp the 5000 shares of Erie stock
hsraeted by him. and forbiddng the issue of an equal
number of shares OF spurious stock Besides declaring
that Gou,d has committed acts OF "spoliation" In ali
taotng property the custody Of the Court and that
therefore he must restore the property absaced or pay
ts value in money the decision is in favor OF Heath ana
Raphael upon all OF the important points
without discussing at length the various questions de-
on tho hearing on the petition or Heath and Ra
nhae for relief against Jay Could deem sufficient 10
rsf The shares Of stock which the subject OF con
troyersy in suit are In the possession OF % court oy
S Se in snch possesson and Mr.. Coleman, Receiver,
has been the officer Of this Court since the removal
o the s as regards Heath and Raphael into this Court
Ssoond This Court has the power to compel, by sum
mary process the restoration by Mr. Gould OF any prop
v which he has abstracted from the custody OF this
Court whether he s or is not, party to the suit con
cernng such property. ,, A., -.,o
Gates representing them, which were issued to the Re
cever, had when such Receiver became the ohcer OF
seTSd by the regsterng agent Of the Erie Railway
Company as representing shares duly registered with
S S me ass SaT and s%fR pSse Mr.
has by his acts respect to 10000 Of such shares not
DESTROYED
shares while they In the custody OF this Court OF
such privilege but has converted such privilege 10 MS
by procuring 1t TO be conferred on 3oo other
of the stock of the Company while such latter
shares were his property. -,
Fourth Having thus distracted property from the
custOdy of this Court Mr. Gould must restore IL by
making causing TO be made provision that the Soo
represented by the certificates Issued 70 the M
cever which have been thus deprived OF the privilege
referred to- shall have such privilege restored TO them
and in default thereof he must make good the pecunary
value of such spOation
Fifth Such provision is proposed TO be made by
placing the registry list of the registering agent OF
the Company $4,000 shares, which have been created D
the Company and certificates for which have been Issued
by the Company but which have never hitherto Deen
upon such registry list, and thereby providing an ade
quate privilege Of registry for all the shares represented
by the certificates issued to the Receiver see no OD-
lection 10 this If the Company recognizes these
and the registering agent of the Company WILL on the
all the shares held by the Receiver Receiver as as
duly registered shares this Court n Onnl, can,
ton OF the alleged nvadty Of such shares, as having
been issued ultra vires in an irregular manner not
capable of ratification and not ratified by the Company
Such question is wholly collateral to this sut The is
this suit raise such question: and IL can be de
ternned only In plenary SUIT with proper parties, ana
with pleadngs framed TO present it. DO not intend
TO suggest that the stock is valid or tnat II IL invalid
but only that for the purposes of this suit and of TINS
question of registration it must be regarded by TINS
Court as prfD1d tacle valid stock.
SIth This Court Is equally without power IN TINS sun
TO enjoin the Company from placing the registry list
the so Goo shares which is proposed 10 place there The
peadngs in this suit allow such relief and the Com
parry is plaintiff in 1t.
fault March is denied. such course is not
necessary order to allow the real owner OF any stock
represented by Heath and Raphael 70 claim IL AT the
hands OF this Court while is In the custody OF this
Court When stock shall have been placed In proper
condition for its restoration 10 Heath and Raphael,
then any claiming any OF the STOCK through eV
dence OF title issued by Heath and Raphael shall apply
to this Court TO have his rights in the premises awarded
to him of the in Court, the application will be
considered and disposed OF.