The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-20
THE ERIE RAILWAY WAR.
CONTINUED FROM EIGHTH PAGE.

grown tired OF listening TO the use of expressions
sucn as nave peen mduiged IN by counsei-calling
men tricky, dishonest and audacious. A line OF ar
gument OF this character consumes much OF the
time OF the Court unnecessarily and unproftably
Mr.. SoUrHMAYD.-I have tried may 1t please Your
Honor, 90 contne myself to the legal points In the
Case, and think have succeeded.
ARGUMENT or MR. BEACH.
Mr.. BEACH, OF counsel for the Erie Railway Com
pany, argued the case on their behalf He said
seems ~ @ ~ " n y n
quite unprecedented He has chosen to repeat his
entire argument previously presented TO the Court
Oh the merits Of this and 10 renew the epithets
and caumnies which have been heretofore fully
answered and refuted. / will not pursue him
through that line OF argument nor Will attempt TO
disabuse the public mind, which counsel seems so
desirous Of impressing, by making any ex-
tions. Tney have formed the staple OF the
gentleman's argument In TINS and other cases from
the very commencement OF the Erie litigation. lie
allow the possibility OF an idea tnat his adversarles
may be occasionally animated by upright ana Just
motives. The condemnation which he mas SO Dit
terry expressed on many occasions against the Erie
company necessarily reflects upon their counsel
il their has been characterized by tricks ana
devices and by plan to avoid the jurisdiction ana
orders OF the Court their counsel must necessarily
ance with this Court. ana / ieel sure that The
Court viii not adopt SO unjust ana 30 unde'
ss nens Of II Mr.. soutnmayd that Mr. Gould
by this act In relation to TINS English stock has put
In his pockets s650000. assert TO the Court, upon
The alidavlis and proofs now before 1t, that there
never was u more baseless and unfouuded caluinny
uttered to the public ear. IL stands undisputed
upon the record that whatever proceeds were de-
rived from the stock which pronounced fraudu-
lent and void from the bonds upon which that stock
was issued every dollar of il went into the Erie Rail-
way Company and 1t was further in proof that every
dollar OF it had been expended for purposes for
which convertible bonds under the laws or the State
oI New York could be issued. The only contested
point arises from the unwarranted ana repeated eX-
ulently ana improperly abstracied the money from
some person. Every dollar OF this $650,O00 received
from tue stock has been converted by the Ere Eoad
a o.
lish stockholders, do not think there VIII be any
necessity to send commission to England. Coun-
gel concluded by stating that that, however, was
matter within the discretion Of the Court; yet at
the same time the STOCK should not be at once
handed over to Engishmen while there were Amer.
lean claimants to tue same STOCK who had right
20 hearing in reference to II. Those gentlemen
give them. They had a right to put in their claim,
Pnd this was privilege which the Court would at
ARGUMENT OF MR.. HoAR
Mr.. HoAR. In reply 10 Mr. Beacn, observed that
MS argument would be very brief, ana tnat ne
temperate language by the circumstances which 80
much excited his associate Mr. Southmayd. In his
opinion. so lar as Mr.. Gould was concerned, II was
undoubted that that gentleman would walk IN the
path OF rectitude only so long as the Court held him
would cndeavor to evade and. If possible, defy its
authority. The conduct OF Mr. Gould In relation to
thus transaction OF the thirty thousand shares OF
stock was somewhat similar to the conduct Of
the man who found another had gone into a
bath who took mis- clothes and walked or Leaving
violation OF decency. HIS possession or TINS stock
was obtained by false pretcnce. lie was charged
with illegal interference with property In the pos
session OF the Court through the hands OF It's re-
celver, and the evidence IN that regard clearly
established the allegations made against HIM.
Counsel adverted to the circumstances relating to
the over issue OF $1,000 shares OF Erie STOCK and
sheir registration with the Farmers Loan and Trust
Company on the basis OF the cancellation OF the
stock OF Heath and Raphael, and cOntended that
che ONLY pretext for that Overissue was the two
convertible bonds for $3,O0O.000 and which bonds 1t
was the intention OF the Erie Company and Gould to
standing as bonds. He maintained that the restltu-
rOn OF the 3d. 900 shares OF stock TO Heath and Ra
phael, under the order OF the Court, was not sum-
Gent for the purpose OF JUSTICE and the further is.
plshed was unjust, IN comforting upon him proper
~ TO which he had no legitimate right, and which
deprecated, to u certain extent the value OF the
property OF the shareholders. All they demanded
was that the exact relations so Iar as this property
OF Heath and Raphael was concerned, should be
restored to its pristine condition without having 1t
deprecated by an over issue OF stock.
ARGUMENT ON THE INJUNCTION.
Mr.. SoUTHMAYD opened the argument for the III
Junction by reading large number OF papers, the
contents OF which have been heretofore published
during the progress Of this litigation.
Mr.. SHERMAN, for Erie, replied and read alfidavits
of Mir. Gould and Mr.. Morrssini, the auditor OF the
Erie Railway Company. The affidavit or the latter
stated that all the moneys the proceeds OF the TWO
convertible bonds for 49, 900 600, had been used
the purposes OF the Erie road.
Mr.. ID. ID. FIELD summed up the argument for
Erie and strongly commended that IL was well settled
that railway company, having exhausted its CAPT.
tai stock, was entitled to issue convertible bonds
He read authorities TO the Court this point.
Al tue rising OF the Court at quarter mast seven
= O'Clock. the learned gentleman had not concluded
bis argument, which Will be resumed this morning.