New-York tribune., 1872-07-02
LRTE AGAINST sJAY GOULD.
"A AsuITlNvoLvNG-TEN MILLIONS.

FlSK BOARD or DT3ECT0RS-ERIE IN
nEBTEDNFSs-BoNpR ILLEGALLY Issued
CHARGES OF EMRtzzLEMENr AND oIhER
PROFIrABJE IRREGuLASITIES-THE GRAND
OPERA INUSE JCR
In accordarce With tho statements recently
mace IN TuE TRIBUNE. lCselt administration a the
Erie Railway Company has bs gun legal proceedings
u tho Court % Common Sess against Jay Gonld Sor
alleged TO ave been oOrDlEi ted by him while fres-
dent OF the Conpany the damage being laid at$ieoeQSo
The complaint has heen the attorneys OF MI
Gosid che for wing been served on ihe
defendant the time Of publication OF the article
on the subicc5 in TIE TRIsVNE. The complaint is
brought in the same OF The Erie Railway Company ey
s suoncys, Messrs. Barlow. Larocque. and Mcfarland
and-etes alleged breashes OF trust and viola
tioue of law from the Of the election Of Mr.. Gould
IN October 1851 the date Of the change Of manage
nenS Appended is a COPY Of t.se complaint;
THE COMPLAINT.
Cot-t Of 0cspmon Pleas fors-he city and county q
Netc ork The rc Railway Company. plaintiff, against
Jay Gould, defer dant.
The glanta complains Of the defendant and alleges:
Thstthe paiptG a. the Erie Ral way Company, Is, and.
Of the ecveIal t cs renafc cntioned was, rail-
road corporation and ssnized by and under
the provisions of tertaD he Legislature of the
state OF Hew-Ycrk owning and operating railroad
extending from DUnkirk, Lake Erie, in the state OF
Ncw.York 10 Permont and toHsS burgh on the Hudson
River, IN the said state, and between such
points running through the State of New
York except fer about as miles OF said
route where nc OF said through the State
of Penney lvania and likewise controlling by means of
leases otherwise and possessing and operating line
Of railroad extending from its main line, aforesaid TO
Jersey City In the State Of NewJerey opposite to the
City OF Nev-York, with ferry connection TO the last
named city and also line Of railroad from Hornells-
vile on ifs main lire tOBufalo, andlus practically pos
sefsng and operating continuous line of railroad from
the City Of NeWYork to Dunkirk and Buffalo, on Lake
Eric.
That before the organization Of the said Eric Railway
Companv the said continuous line Of railroad last men
toned excepting tie branch connecting Buffalo with
the line running from Dunkrk, was owned, pos
sessnd and operated aforesaid by the NewYOrk and
act le l. cisare 0f the state OF NewYork, entitled
An Act incorporate the NevYork and Erie Railroad
Company" passed Aprll a. lS32
NEW TTs' ISSUES ssTiEsH oP e. sfF669oSS
r1. tho whole amount Of the capital stock OF the |
W. work and Erie Railroad Company did not at any
e cxceea 500 shares OF 500 esch and the amount
I the total unsecured and judgment debt OF the sald
New-York and Erie Railroad Company, with interest |
thereon did at the time of the said sale OF the
property and franchises Of the NewYork and Erie Raj
road Company. at the time OF The oi ne
Erie Railway Company exceed the sum oi s9ooo nn nin
snd referred which the Erie Railway Com |
paHy Tss beTeRbefore set forth did not
shares OF S0O each that on OF aDOnt tne iJ S
VISIONS Of ihe Act Of April 1861 fled in the Office of
Secretary Of state Seres.e 81 Sg sa5 act S had come in
and that the whole amount OF the pfeeIISd stOGk III
eaid Company issued and 10 be issued by sara company
was SS423675 90; and about the 18th day OF NO
1862, the said Company IN PnrsuheSS S % U th @
pfice of the secretary of state further eeTthcate
which states oDod9 9S6 {Re ogsandpg and issued
on the lst DAY Of July, 1862, was ui,5,0 shaIfs
Rairoad Company having been presented Tor ex-
change; and that the amount OF the preeIied soCf az
certificate the amount Of the stock OF sara company
has been filed the Office OF said Secretary OF state
he da Of
was duly passed by the Legislature OF the state OF NS"
York entitled A Se dS Erie ~ RaWay COMPANY passed
March 2s :" that in and by the said aet oi NAY a.
1894 the Railway Company was a1tnoTzed ca ana h
empowered to its capital stock sOOGO ior the
purpose Of constructing deP9t e, he ROAD d
TO complete It's terminus at Long Dock opposite tne ey
laylng double tracks and the said company was IN ana
by the aforementioned act further empowered 10
increase ITS capital stock by amount not eXceeulDg
tSVoy ~, az id t 70 tba Controller OF the state Of
Srtap oSnu iS h tb 70 siS 1ccnments and certfcates
heretofore referred reference thereuno BENG Aaa
viii more fully appear but that since the passage o
said act of Nav 1864. the said Company, by an agree
with the holders thereof procured the tune Oh pay
until the year 1897, and therefore the SSOOOO OF add
rona stock mentioned in said act not being required or
the purpose for winch IL was auth9rneu 3le sau @ r
pauy has issued the same and has 10 longer power
That on the Slst day OF December 1868, the total
U OIn1 VI ~ aanpeared by the siockbooks OF said Com
Tspy and by the annual report of the condition and
pfations OF said Company made by the Directors OF
sd Company its stockholders for the year ending
the slst OF December, 1866, and published by sad Com
pany was CO5s shares of SlOO each making the Iola
capital OF said Company t5lo5oOC which amounts
0f stock consisted OF Ss53.IO OF preferred STOCK ana
Si6 7OlOO of common stock, said amount OF common
stock being composed OF Sll55O0O OF thereaOOuts O
Tor that amount Of the stock the NewYOrk aud Erie
Railroad Company and S5,OO0OO0 or thereabouts, OF
common stock which had been issued subsequently to
the passage OF said act of May A. 1864.
GoULD's FRAUDULENT BOARD OF DIRECTORS
And plaintiff further alleges that AT an election Of
directors Of the said Erie Railway Company, held in the
month Of October 1867, the following named persons
were elected to be such directors for the term OF one
gear then next following, that is say John s. e.
bridge jay Gould james Fisk, jr Frederick A. Lane,
Henry Thompson Levi W. UnderwoOd, JOSIAH BaTeWell
Aisxander 5 Owen, j. c. Bancroft Davis, Homer Rams
dsn dudley $ Gregory, VIM b. skidmore Frank Work,
and Geo NJ Groves And plaintiff further alleges that
of persons the first named nne being majority OF
said Lane had first come INTO the Board one year
The election Of the said directors last above men
toned was procured through the fraudulent devices ana
Uontvance Of the said defendant win he iHteht ana
for the purpose OF carrying out the fraudulent schemes
hereinafter particularly mentioned and such electlo1
w %ss sd4rowi2S and purchasing large amounts
that might be registered IN the name Oh the
said defendant and Of other parhes III league WIN n'
for such fraudulent purposes ~ ,,
Third That pursuance OF the fraudulent pargaln'
ant procured himself 10 be elected one Of the SAID Board
Of directors and the said defendant Immediately there
after and violation OF his duty as such director 10
wit sth day OF October 1851 procured or asSsea
70 rocure the passage resolution of the said Board
of Directors for the guaranty by the said Erie Railway
Company of 100000 Of bonds Of bankrupt railroad
road Company which guaranty subsequently execut
ed hereinafter stated to the great loss ana Damage
OF the plaintiff who received no consideration thereIof
whatever. . ,, .o.o 49,
plaintiffs Indebtedness was substantially as iOlOWs:
Firs, mortgage boRds 80
mortgage bonds toSS%
s,h rhls Iol % ~ =. % s,SS, ............ $4,000
sstSRHs SSsd SSiSs y @oss;
sboOt ssSoOJc Of which there been negotiated