New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-07
ERIE AND THE LAWYERS.
COMMENTS ON THE PROJECTED RAID.

COMMENTS ON The PROJEClED hhiD'
THE SUITS DENOUNCED AS sToCK-JoBBiN6 CON
sPIRACY-CoUETER CLAIMS THAT THE ACTIONS
WILL BE BROUGHT IN GOOD PAITH-sIGNiPicANr
HINTS THAT OTHER SUITS WILL BE BROUGHT
AGAINST THE ROAD.
TIE TRIBUNE's exclusive revelation OF the
contemplated suits against the Erie Railway Company
as tho subiect Of general discussion Walst yeser
day where the ntigatons intended to be telt'
Opinions as to the merits Of the projected suits vareu
with the interests Of individuals in the stock market
II they were "long" Of Erie they denounced the SUITS
as stock obbng frauds, but If they were short they
upheld the projected litigation as righteous attempt W
compel the present Erie administration to respect s
alleged legal obligations.
With view to obtaining further information on 'ne
subject of the SUITS TRIBUNE reporter waited upon
several persons connected with the road aud the pro-
iected litigation against IL.
ST. NJ Barlow OF counsel for the Eric Railway Com
papy said that he had additional statements to make
or information TO furnish concerning the matter 1t
WAS very apparent however, that 1t was scheme Or
eanized for the purpose OF obtaining an order
from Federal OF State judge that would
enbarrass Erie, whereupon the news would DC
telegraphed to London and canse decline OF
five or per cent In the prlce OF the stoch
in that city or course II such order were obtained
il wouid simply result in litigation. and would be
moved in week; but the object of the consprators
would be accomplished.
Aaron j. Yanderpoel was also applied TO for nforma-
ton but he did not feel that he in position to fur
nish any as yet.
One of the persons most interested in the forthcoming
suits acknowledged that the story as 1t appeared in THE
TRIBUNE was truthful except in declaring 1t to be
stock iobbng operation. This, he said incorrect
The suits are brought in good faith by the holders
OF Erie preferred stock and the Boston, Hartford and
first mortgage bonds guaranteed by the Erie Rail-
way Company The holders of the Eric preferred stock
claim that they have the ceares proof that the dy-
dend on the common stock declared and paid several
months ago was not earned by the road, but was paid
from loan which was negotiated by the English agents
and for which mortgage bonds OF tho road have been
| given. Nor has any dividend been earned for
! the past six months, although 1t is
understood that another dividend on the common stock
soon to be declared The amount required TO pay the
dividend on the common stock about S2OO00OO, and
this be added to the obligations of the road and on
this amount interest will have to be paid Instead OF
improving in its financial condition, the road Is steadily
declining When the holders OF the preferred stock re-
ceved it 1t with the guaranty that seven per cent
annually would be paid on it If earned by the road
| before any dividend should be paid on the common
stock IT, as is claimed, the dividend paid on the COM
mon stock was from borrowed funds and not from the
earnings of the road, this plainly infringement
Of the spirit the contract with the holders OF the
preferred stock, and the latter had good ground for
applying TO courts for an injunction TO restrain the
declaration and payment OF dividend on lne
| common stock. Ii is claimed that the guarantee
ing of the bonds of the Boston, Hartford
and Erie Railroad fraudulent transaction on the
part of the officers OF both roads This might be but
the bonds are held by innocent holders and the officers
OF the Erie Railroad cannot repudiate the contract
decision Of the Supreme Court OF the United States IN
| a similar case had settled this There other ques
tions involved The Suspension Bridge and Erie juno
ton Railroad is branch road extending from Buffalo
10 the Suspension Bridge 1t has obligations consisting
The per cent interest, payment guaranteed
| by the Erie Railway Company. and, in addition, pei
cent dividend the stock the rental OF the road This
agreement cOnsummated under the VIGOROUSLY cor
| rupt management OF Fisk and Gould There is now a
considerable amount OF arrearages OF payment suit
will be brought this also to compel payment The
| Union Car Company placed large amount OF rolling
stock on the Erie road when the road IN such con
dition that 1t could not purchase any. stipulated
amount was paid for each mile travelled by this rolling
stock The arrearages Of payment amount TO about
s2OOOJO The rolling stock is used although the contract
has been repudated by the present Erie officials This
seemed strange, it generally understood that the
reputation Of a contract carried with 1t the whole and
not single part The Atlantic and Great Western Rail
road Company has recently recovered 100000 from the
| Erie Railway Company in the Ohio courts This was
understood be only portion Of large claim which
certain persons who interested both in the Erie and
| the Great Western are anxious to have paid