The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-01
TIE ERIE RAILWAY WAR.
Proposed New Issue OF Thirty
Thousand Erie Shares.
MORE TROUBLE AHEAD.


MORE UBLE AHEAD.
The Erie controversy has been at last taken nom
the books 10 the other struggle Inevitable in the
case as to who can, perhaps talk longest and best
ARGUMENT RESUMED YESTERDAY.
Mr.. Evarts at ten O'Clock. resumed his argument
In the United States Circuit Cour, before Judge
Batchf I'd, on behalf Of Heath and Raphael
He commended that property in the possession Of a
receiver OF Court OF Equity was In legal effect in
the possession of the Court itself. 1t was contempt
OF the Court for any person. without the express
permission OF the Court, to interfere with such
properly either by taking 1t out OF the possession
Of the receiver or By doing any act impalring its
value. whether such interference be In virtue OF
legal process OF some other Court or 0ficer, or
under paramount rignt or title of any
kind, or be ntrinsicaliy merely wrongful.
ANY person thus interfering with property
in the hands OF Court in contempt Of Its authority
is answerable therefor upon summary proceedings,
and Win be thereupon summary required by the
Court to restore the thing distracted make good
the injury he has caused; ana II he fail in c0mpN.
ance with such requirement will be punished by at
tachment for his disoDedisnce There are no tech.
meal restrictions upon the power OF the Court thus
to compel the making good OF distractions OF or In.
that the wrongdoer. who Is made responsible
in the summary proceedings is not Q party
In the original suit wherein the res
has been brought into Court, is wholly
immaterial. 1t beng established that the Court has
jurisdiction over this respondent upon summary
proceedings In respect or the subject matters In
voved and he being regularly brought before 1t
upon such proceedings, the Court Will make such
e as to be- OF GIVEN to e
parties aggrieved by this wrongful act by MIN
TSs s w mSw Of qna nsls
abstraction py The respondent OF the thirty thousand
shares OF stock In question: or at least OF sucd DEAL
ing with II by HIN as has completely abstracted
from 1t Its marketable or salabe quality,
and by means OF the false pretence made by
the misuse OF the original certificates belonging to
the receivership. transferred that marketable and
salabe quality from the genuine stock or Heath and
Raphael to his own spurious and. till them value
less and wholly unmarketable aud unsaabie stock;
spurious certificates with the indicla Of penuneness,
HEATH AND RApHAEL's STOCK,
to the utter destruction OF its saableness sold his
own certificates as genuine to bona ide holders and
appropriated to his own use the proceeds. Thus,
though by very peculiar and somewhat clrcuitonS
process, ne has In all subsianc and eject converted
the stock OF Heath and Raphael to hts own use. The
conntablty for It are to be determined by refer
ence to the results he has thereby produced to him
sell and TO Heath and Raphael, and he cannot es-
cape such accountability by any peculiar meshes OF
form IN which ne has envelOped hts abstraction.
with the Farmers loan an Trust Company, is I'M
marketable. does not make good delivery under
contract and VIII not pTasnoay sell IN the me New
dence Of r. G. ROlsJon and OF A. d. Williams.
GOud's sale and receipt OF the proceeds Of the
spurious 80 900 shares which ne procured to be regis
tered with and certified by the Farmers Loan and
Trust Company BY aPproprlai,ng TO- mat purpose by
for their genuine 5000 snares and falsely repre-
senting to the Farmers Loan and trust Company.
that his really spurious stock had been Issued IN
place OF the Heath 4 Raphael certificates thus
ceiled shown by Gould's evidence The
"a the Original He RSphae ceacaes or
10000 shares as the basis Tor registering GOuld's
spurious 10000 shares, the $4,000 shares Tor which
name OF James II. Coleman Receiver, cam be
registered with the Farmers Loan and Trust Com
pany; but II presented FOR registration and certld-
cation. there would appear upon the Farmers Loan
and Trust Companies register. as mere over issue
sion. When Could. tne presumed wrong door, has
prevented the certificates from ever being maze
r marSet and comuietey ys' frustrated Heath &
Rapnael's purpose, with reference TO which
not IN his mouth to say that they may send their
certificates to foreign market for saie and there
tore are not dsmnilsa by ms cutting Them on rom
circumstance OF the certificates having been made
nnregisterahe with the Farmers Loan and Tr,ist
York market. does not bar Their sale IN the
European market Counsel dealt at con-
terlng stock in the Farmers Loan aud Trust
COMPANY contending that the value afforded to
Erie Railway stock by Its registration wltn and
ceriifcatlon by, the Farmers Loan and Trust Com
pany was not benefit granted to the shareholder
extra the intrinsic value OF his stock, a5 coon or
free grace, which the Erie Company could give or
withhold, discriminating between shareholders nc
its pleasure. This registration system was cstaD-
lshed bv the Erie Company for afIOrdlng TO dealers
in stock the voucher test OF the genunenesS and
regularity OF the stock CERTIFICATES and II was nev
liable that 1t should become as the evidence shows
IL In TACT has become, che sole voucher and test
recognized by the dealers so that stock thus regis
tered and certified be freely sold, and stock not
so registered and certified cannot be sold
After submitting various other points for the con-
made very powerful aud logical ADDRESS, brought
his argument 10 a close.
DECISION REsERvED-A NEW B0MBsBELL.
Just as Mr.. Evarts had concluded counsel for the
English company stated that the Erie Railway Conf
pany had given notice to the Stock Exchange that
ia lnirty days from the present time they would in
their capital shares Of STOCK 10y issuing 30 900
shares oil new stock.
THIS statement having been brought to the attcn.
ton OF the Court,
Judge blatchford said he would require an anida-
yIt made to that effect.
IL IL understood that any such issue OF new shares
wound be direct violation Of an order injunction
OF this Court already In existence, ana render the
party making such issue liable 10 atiacmenI for
contempt.
the United States Courts and Eric are stn left OF
loggctheads, under the late order. IL will depend
upon Judge Biatchlord which comes out nrst
second best
ESSEX MARKET COURT.