New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-25
TIE ERIE CASES.


A QUESTION OF PROFESSIONAL PRoPRIETY'
The Sun publishes a long correspondence
between Mr. s. L u Barlow for the Erie Railway
-omponv and Mr. Thos o. shearman Of the firm OF Field
& sherman respecting the propriety Of Mr. shearmans
appearing as counsel for Gould in the suits which the
company purpOsed bringing against its ex-Presldent
Nir Barlow IN letter dated Sept 10, 1872 objects TO r
Ehearmans acting against the company in matters OF
which he has special knowledge, obtained while under
the oonpany's retainer. Mr Sherman replies Sept.
40 that De considers himself at liberty to defend trans
netons u the COMPANY entered into While he was us
counsel, but which the company may now be disposed
b attack For instance, he considers himself at per-
feet liberty to undertake the defense OF actions brought
v the Erie Railway Company, any OF its officers,
ainst auv former officers of the Company which the
gadty OF the acts Of such officers should be brought in
question" Nj. Barlow answers. sept %; i-'.s--
cannot assent 20 the rule for which yOu contend In
this oltcr understand that 40 any proper sense
retance ainst il. and IN opposition 70 lts WISH ana ~
terest seek defeat its present views. whether they are
or not iu accordance with its supposed interests or
wishes 40 the tine OF your r ialner. - -
The Company ue-ehus quo maintains OF oplostSs anu
peeks 10 aside sIcn transactions IA IT'S discretion
COMPANY FOR ucn purp Is nor 70 De aSloga mo s
tions or Directors. The Company, your client
unchanged and unaffsoedi Jet the course you
suceesf would permit counsel employed by corpora
tiOn, whose peculiar knowledge was obtained through
- ~, No bad been ,uDpIauted OF expelled and
4hus ID defeat or impede legal proceedings which the
COmpauv may choose 70 institute OF continue.
Nor dO admit that you can defend the former olceTs
of the company ia actions brought by the company
erowiu out OF Gusa ltiOus III which the same special
sn6 me-, mar 1oWIegsqs OF tne conpany's affairs
have obtained vue under It's retainer surely Lle
eject OF amer bg corporation is MOI SO nhlteu
cases ught arise n shilD the stringent application OF
tie rule Tor winch contend would seem 70 Oe uAheces-
sary.
proposal 70 refer the question to arbitration was de
clined. On the lG.b Of October III shearman wrote;
Tho Erie Railway Company retained me with other
gentlemen more than two years for the express pug-
pose of defending SUIT BROUGHT by Meshrs HeaIn
H. ofirr Which were TINT sult made the subject ot
eompainr. AZ the same line, win the Illl consent aAa
pv the wish OF TIE corporation was Ie ined D Alssss
Fisk Gould. ana Lane. That suit Is st pennlng; ana
RithOuun you substituted as counsel ior the
Erie Railway Company still remain one or he counsel
S0r Me- Could ana Lane, ana for the widow on Ut
fransae ions which we're there attacked duty from
winch change Oh policy, Oh the part o. Jhe EIle ha-
taken place ia the administration Of the company the
new aamns rraton n eject taxes up the su vi Messs'
@ ic..od In mat euir Ir would be IA. sing an alb
Eurd distinct on to claim has might use al ny power
10 defend Tie prefer t0ln The Heath ana
Raphae ut, and yet might 40, Lft single nueer 70 de-
lend thau In sui Tor the object brought by the
lew ao,nnIs tratiOn OF the Eli5. Company.
In reply 20 statement by llr shearmau that at the
time OF tie sckes coup d. tQt last March tull release
for all past transact onswas pledged TO Nj. could as
condition Tor MS resignation, 5ir. Barlow says;
In the first place the change the Erie management
On the part Of majority C te Board was effected with
ll 4 il
After bir Gonld BAD been replaced by Gen. Dix az
F1resldcut cd the Company met Mr. Gould ut hts ID
Ierms to reeigu President, and 10 abandon all at
fenpte 10 interfere with tne management OF the Com
pariner Lad advised linn lie could maintain for many
years icy eHnoy ~ 4s-i.iJ a i, ia
CERTAIN stocks TIE nominal value OF $jJ100 which ne
assure me we're then worth ash s35oOJ0 de-
cned ris Uner. and thereupOn told hm that as was
director the Company, as wei as lss counsel pre-
Serred be should state la terms through some Ol1er
person. md ll@gea lei Gen. Eickles
ate ward slid 20 you That any arrangement mado
with Gen. efohles would be the II made with
NE and WOuld undoubtedly meet With the sanction OF
tie Board Beyond .Gis made no arrangement or had
any agreement WIN you ol any AiIu- ,. 49,,
Gen slckles chen met Mr. Could oud Yourself ana
partner Alter short interile" ne returned 10 me
board Room, ana announced tlaJ Mi. 6nud W0uId re-
sign. a5kec nm, IN tns lie1gIce Of sen. Di1 a1a
fiOnallg % but qualified THIS by stating that Mr Gould
gissred % save point OF honor by rcaigmu5, rather
sired or INC same reason, that the action OF Board
of III previous day by winch yOu Lad been dismissed
The g on suggested Dy Gen. sickles in your presence
and In that Of M Gould was then taken 80 iar as
then knew OF believed other agree
snent had been made with MI Could ana am confident
shat ts the belief OF every member on tne Ire
Board present. pOrlOn OF the alrlA cement
made by Gen. sickIes was not then acted upon u vas
your dsty then 70 have explained the iact anu asAsu of
NO further acon havag been suggested the Board Of
Directors had TIE ri ght 10 assume That their whole duty
Through The commitment VI Gen. slck4es Ma DeeA per
afterward learned first from Mr. Gould, and suDse-
GueBty from Cen sckes, that further understanding
70 certain past matters, ana % a release OF MI
Could hld been asfelted w ~ In partially on TIE I@A
OF March ana partially the 18th 18TH OF the same
month, Wncn M Gould resigned as a director VI the
Ere Company. But did not understand RON Cen
blckles tlaJ nc Lad made had undertaken 10 make
my agreement ~ Whicn blr Gould would De abs0Fed
IRON aeeOntd1ly IOI he moneys or property OF the
Erie Railway az any such there Were which had imprOp
eTly ana without the knowledge OF the company been
transferred nom the company treasury into Mr GOulds
possession. ana which had not been in any manner
counted for
Gen. sickles intended this rs own course i'm
Enedlateiy thereafter, n ASSISTING compelling the rectl
0caUOn OF item OF the old account the repay
ment Mr.. could 10 the $4,000 with
cut 0u lection mat tns his understanding
vel M SIR Goulde lie understood his duty the Erie
COMPANY the public, and 10 himself well 10 per
fnt any sucn arrangement ~ De made under his
ron IN such an ARRANGEMENT had been proposed the
BOard o. Directors tie Tine @hen Ar. Could appeared
and resigned President on 90 any other llei 10 would
Det nave az eived single aud if you propose 10
claim on iffhall Vi Could that