New-York tribune., 1872-07-22
LOCAL MISCELLANY.
ERIE REFORMs.


A ruANcp or GAuGE-GoULD's DEALINGS WITH
THE JEFFERSON RAILWAY COhFANi-NN'
TiIER HEAVY LAW SUIT.
Among the improvements contempia'eu Wy
The new Directors Of the Erie Railway Company
change from the broad gauge OF SIX feet 10 inc
gauge of four soet inches. This important
win be made gradually, and third rail will be laccu
tween the cid rails New rolling stock Will DC sulpeu
ps fast ~ the old stock ont. Meanwnhe 'ne
broad gauge will he used but all new locomotives anu
cars WI be Of the other pattern. Both gauges VIII pe
used Cor four OF five years The running expenses WI"
he largely reduced by the Of narrow gauge roii
inr stock. The Atlantic and Great Western Rallway
Company is now laying narrow gauge track ara 'nis
penders the change OF the Erie gauge imperative
Another measure OF economy is the proposed removal
Of the Compapys Offices from the Grand Opera House.
where the annual rent is S55COo TO the old anu more
convenient Erie headquarters, az West and DuanesS'
where the rent will be much lower The cancellation
Of Illegal contracts, the discharge Of superhuous EN-
poy6s and the fact that the sale of consolidation oonu
An London enables the Company 70 lquidate its floating
debt pay cash for supplies, will contribute 10 inc
same end-a reduction Of running expenses
judge Pratt, in the supreme Court chambers
on Saturday, granted Injunction RESTRAINING jay
Gould and Justin ID. White from transferring or dspos'
ing OF s2Oo worth OF stock Of the Jefferson Railroad
Conpanv such stock being held in trust for Jay Gould
Ly- Justin D. White but claimed IN reality to be the
stock of the Erie Railway Company The complaint IN
The case which is entitled The Erie Railroad Company
agt jefferson Railroad Company ct al, sets forth sub
stautay that Mr. Could having control OF the Jeher
son Railroad. arrangement was made not unfair IN
its terms which the road to be leased TO the Erie
Railway The contract included the lease of proposed
extension for the building OF which S20O0O OF bonds
were issued the Erie Company TO operate the road
and pay per cent Of the gross earnings, ana II tha
proved Insufficient 70 meet the interest on the mortgage
which 20 he guaranteed, principal ana interest," ht
Erie Railway was 10 make up the detcchcy. Al thl'
time there arrangement between the Erle Com
pauy and the Delaware and Hudson Canal Company
10y which the fOrmeTwaS TO have this branch road bu
the latter give it certain amount OF local bus
ness paying cent per tuu per mile trackage' Al
for the construction OF the road from carbon
dale 10 Susquchanua then entered into between te
roads and the Canal Company. IL IS charged hat l
carrying out these agreements jay Gould secured "a
himself 10000 shares of $50 each Of the Jefferson ROad o
which 1886 are held by Justin ID White IN trus
him. shares have been gwen 20 each OF seven
empower them 70 sit II the Board OF directors
This stock The Erie Railway claims OF right belongs 70
them, and is 20 prevent the transfer OF tis stock unt
the ownership Is settled that the Injunction Is granted
The complaint charges that Mr. Gould wthdre% IRON
The Erie Railway SS4OOO OF the bonds OF the Jefferson
Railway. substituting equal amount OF doubtful bonds
and also S3lCOU the bonds without any return what
ever charges that after Mr. Gould had thus obtained
age amount Of stock OF the Jefferson Road he changed
the agreement for the lease IL is charged that the a
agreement : unfair and should be set aside
ease Will he argued July