The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-05
THE ERIE RAILROAD WAR.
Gould Surrenders with All His
Books and Papers.
THE CONVERTIBLE BONDS In COURT.


The reference before Mr.. Kenneth A. White the
Master In regard the 600 shares OF Erie stock
claimed by Heath and Raphael, the English share.
holders, to be their property, was resumed yester-
day. 1t VIII be seen thar Mr.. Gould surrendered to
the authority Of the court and produced the books
and papers specified In the order OF the Master. He
went into Marshal Sharpe's Office yesterday, stating
that he surrendered himself and, after appearing
before the Master and answering some questions
regarding the books, this fact was communicated 10
Judge Blatchford, who therefore ordered Mr.. Gould
to be released in $1o,o 600 bail, which he gave.
The examination was then resumed.
Messrs. Lane and Morgan appeared for the Erie
Railway Company and Messrs. Southmayd and
Tweed for Heath and Raphael, the English share
holders.
GOULD AGAIN ON THE STAND.
MIR. Jay Gould then took the witness chair and
said, in reply TO Mr.. SOutnmayd, that he now pro-
duced the books and papers which had been hereto
fore called for and which directed by the Court
to be produced.
MIR. southmayd-I now call for the stock ledger
or ledgers from September 4, 1870, to the 14th OF
April, 1871.
Mr.. GOuld-I produce them. There are three
ledsers-two of common stock and one of preferred
stock.
The next books produced were the stock transfer
books Of September, 1870; December, 1870, and jan
nary, ISL. OF these there were six books-1ve OF
common stock and one OF preferred. The witness
also produced the induces to the stock ledgers.
There were next produced registers OF daily bal
ances. or registers OF stock, kept by the transfer
clerk, for December, 1870, and January, 1871. OF
these books there were three-two OF common stock
and one OF preferred.
The stock certificate books from which were cut
the certificates issued by the Erie Railway Company,
from the 2Sh OF December, 1870 to the 10th OF Janu
ary 1871 both inclusive, were next presented to the
Master by the witness. Of these books there were
three--two OF common stock and one oil preferred.
The Commlssioner-The next are the convertible
bonds
The witness produced two convertible bonds, one
for 1000 oeo and The other for $loooooO. The 1o
lowing Is q copy OF the latter
ERIE RAILWAY COMPANY
Company acknowledges itself indebted Mortimer Smith,
the bearer in the sum OF $looo lawful money of tho
81:
per cent per annum from the LIST day of January ISL psy
able on the LIST days OF February and August
com any New York and the endorsement S
This ocna amounting sn issued BY the Erie
Railway Company for the Of completing. finishing
. Sona len o ne Erie TIVE se
In whereof the said company have caased this
ar and Its corporate seal to be hereunto affixed this h
day of January, 1871. JAY GOULD, President.
JAMES FISK, Jr., Secretary. pro. tenn.
The bond for ST. co., 900 is in the terms as the
above except that is dated 18th OF december 1870
and IL signed Jay Gould, President and Mortimer
Smith, Assistant secretary.
q. These the original bonds issued ut the time
by the Erie Railway Company A. Yes.
q. DO you produce the books OF the company
having the cash account kept from the 2Sth OF De-
aIpf : tn tho 4. IA
In response to THIS question cash book was pro
duced.
the one now produced, the cash book kept by MIR.
White, which shows the receipt by the Erie Railway
Copa 81 ANY I'M money as Inc r sS OF those
OF the stock on which those bonds were granteds
A. NO otner book.
O. Is there no other general cash book OF the com.
pany than this 7 A. No, Sir.
q. TINS is he book which contains an account OF
all the receipts OF the company IRON day W day as
they occurred A. Yes sir.
z. such book as relates to the issue OF the con-
vertibe bonds. IL appears that the company did
issue two convertible Donds-one Tor one million
and one for Two nillions-purporting to be their
obligation TO pay those amounts. is there any book
OF The company IN which they enter the creation
obligation OF those 3ondSY A. les, SIR; the minute
book OF the Executive Committee which have
brought here, and the minute book OF the Board,
when Is not written up, but have brought copy
OF 1t here, aud those are at your disposal.
q. Then ! want to know whether there is any
book III which. when those obligations are created,
they are entered. 1t is customary when person
gives out the obligation OF any firm to enter 1t
book, Is 1t not2 A. Yes, SIR.
q. want TO know whether there was any book OF
your concern In which those bonds were entered as
Outstanding or existing Liabilities OF this company?
A. they were entered III the stock ledger when CON
verted; they were never entered as bonds or bills
payable; there is no other book.
AN ADMISSION.
Mr.. Southmayd admitted tnat oil tue books and
papers called Tor IN the order OF the Master had
The Master then. on the back OF the attachment.
certified this fact to Judge Blatcnford The paper,
IN the course oil few minutes, was placed by the
Master IN the hands the Judge, who wrote upon it
that Mr.. Gould might he admitted to bali In the
usual form In the sum OF $4,000.
MR.. GOULD GIVES BAIL
Mr.. Gould, who had before the examination sur
rendered himself to the Marshal LEFT the court room
and appeared before Commissioner Shields. who
took MI. Gould's bail in the sum or 000 his sure.
tes-Mr. Henry n Smith and Mr.. Edward K. VIII
lard-Justifyin2 In double the amount Of the bond.
ter, was notified that his attendance would not be
required for the day. He then lett and the examina.
OTHER WITNESSES ON THE STAND
Justice ID. White testifed:-I am Assistant Treasu-
rer of the Erie Railway and have been 30 FOR about
three years. Mr.. Gould Is Treasurer. but he practl-
cal working OF the details OF the department falls to
my hands; my suborllnates are Mr.. b. w. Spencer,
the cashier, and SIX or eight clerks; we keep
no books In the ONCE except the trans
Ter books and the ordinary transportation books;
think ! am one o. the plaintiffs In the action
snares OF stock but my memory Is not clear on the
POINT, as never gave the matter any particular
tention; am one OF the directors OF the company:
cannot positively say in whose handwriting is me
bond for two millions. l know Frederick A. Lane
since his connection with the company, and am
familiar with his handwriting; this looks like his
handwriting but he writes many different hands
would not swear positively that this Is his. can
not recognize II as the handwriting OF any otner
man In the Office. The signatures attached are
those OF Jay Gould, president, aud Mortimer Smith,
Assistant Secretary; / nrst saw that Donu to-day
but cannot say when first heard of 1T; the second
bona appears TO be In the handwriting OF Mr.. Nor
timer Smith the signatures attached to il are those
of Jay Gould and James Fisk, Jr, secretary pro
teH.
@. Did you know, In the matters OF December and
January last, tue TACT that the two convertible
bonds OF the company for $3000,000 had been
issuedy A. No, sir, did not.
u. Did any money Whatever come to your know