The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-07
ANOTHER CAUSE CELEBRE.
More Trouble for the Erie Ring-Action Brought
Against Jay Gould & 20. by the
Attorney General-Will They
Have to Disgorgei

In few weeks another great trial Will be
added to the throng OF causes ceebres that
at present are occupying the time OF the
Courts, enrichlag the lawyers and interest
ing the public Jay Gould and mis- associate
directors are to be regularly proceeded against by
legal process, and, II possible compelled to dis
gorge the plumber they acquired during their term
OF Office The prospects Of successful least within
any reasonable time, however-are not generally
looked upon as very promising. Tho parties now
sued were som ewhat smarter than their friends In
Tammany, and, like shrewd business men, con-
cealed their schemes OF illegal fraud Dy skill
fully draw contracts with the road and
SUCH ike specious DISCUSSES. They were too smart
to dip their hands directly into the treasury OF the
corporation and bring out rolls or greenbacks, ana
with prudent regard for the possible future
secured themselves. 1t IS believed, from the arm OF
the law by never directly volallng 1t. IL WILL there
fore, be very difllcut ana tedious struggle to re-
cover anything from them-a struggle extending
probably over many years OF time and involving
very heavy legal expenses Their assaiants how.
ever, represented by GeneraI francis @. Barlow,
speak hopefully of the ultimate result and express
fixed resolve to press the suit forward as earnestly
and speedily as possible.
The suit has peen brought In the Supreme Court at
Albany and the following summons has been served
on the defendants and acce pied by them
Supreme Court, County of Aibany:-The People of the
State OF New York plaintiffs, The erie Railway Compa
Relief. TO the defendants Of them
a I Ds s 10 s "o. e Of
Clerk OF Albany at the city of Albany and
sn
the day Of il you answer the said
compliant within the time aforesaid he panfs 10 this
COZ. Compliant np's FRANCIS G B%KIow.
Plaintiffs Attorney Attorney General tor the People.
The case has, therefore, been definitely begun but
fore the answer OF the Defendants is put in aud the
suit placed ialriy cat issue" AS IN most suits Tor
the recovery OF moneys the grand object of the de-
fence Will doubtless be TO Rain time and postpone
trial as long as possible III the nope or urng out the
compialnants or of some favorable event interven-
ing that Will either force the abandonment oil the
suit or the acceptance OF a compromise. me suit
having been necessarily brought against the Ere
Railroad General Dix has also been served with
the papers, but OF course tnat Is mere legal for-
malty, as ne was only co-director OF the defend.
ants seriously aimed at Tor lew days, and had no
connection in any way with the transactions ina!
WI form the basis 81 the complaint n All U 1n aa U
ages may be awarded W the Court. ,S.
The law under which the SUIT mas peen Drought
reads ~ folOws:-
over directors ayers other trustees and officers of
10 compel them to for their onca conduct in
the disposition OF the funis ana property
r. and compel them to the
money and the value Of all property which they have
io, or wasted by any violation of their duties as such
any such trustee or officer from ererc,s
n bis ouce shall appear that he abused
.-...--
upon proof or convection OF gross misconduct
direct elections be held body board
duly for that purpose supply created
by such removal.
g. In be such body board, al the mem
pera OF such be removed then report the
the Governor shall authorized, tie OF
the Senate, TO fill such Vacancies
T. 10 aside all aenatons Of property made by the
other officers OF corporaton contrary the
law, Tor apy purposes foreign TO the lawful
business OF suoh corporation, in cases where the
person receiving alienation knew the purpose which
the made; and,
s. To restrain and prevent any such alienation In
may threatened or there may be good to
apprehenG Il may be made.
4S lsec s5L The jurisdiction conferred BY the pre-
ccdng section shall to exercised ordinary
bill petition the require the
direct at the Instance Of the Attorney den
era prosecuting behalf OF the people OF State
instance OF any such having general
superinteudence OF its concerns.
There Is also another law passed Ia 1870 at the
instance OF the thcn dominant Tammany Rirg,
which throws upon the Attorney Genera, the duty
OF conducting such an action Zoe expenses OF the
suit however la this case. will nave 10 be borne by
| the dissatisfied stockholders who have applied Va
| General Barrow 70 ,psutule IL