, 1873-08-06
THE ERIE.
Important Suits to Be Brought
Against the Company.
An Effort to Do Made to TlIrow Tho Com
pany Into Bankruptcy.

Special Dts1mtch to The Chicago Tribune.
New YonK, Aug. 5.-Throo suits are about to
be brought ngainBt tho Eric Railway Company.
It Is impossible aa yot to toll whether tile move
nents are simply to doprosa stock, doposo tic
presont administration, or to throw tho road into
bankruptcy. Jay Gould, who ia bearing stocks,
among them Erie, in which ho is heavily i'll
yolycd, donics uny connection with them but 1t
ia worry certnin TINT within few days Ills couu-
sol, Dayid Dudley Field and ex-Judgo Fullerton,
hayo bocn asHociatod with othors in tho
caso. Some wocks ago Gould and Fuller
ton Jointly attempted to dcprcss Pacino
endeavorod, to got tho Tribune Of this city to
publish tho facts as furnished to ono of tho ro-
rortors. Tho Tribune, Oh Investigating tho
Btatomont, found it untr1o in QUO important
It,. Tho noxt day tho Times waa induced to
publish the story, and Pacific Mail foil for day
or two, but finally recovered. The connection
Of Fullerton and Fold with the p1esont suits giyes
tempt Of Gould to dorress stocks. Tho rumors
OF theao imponding suits havo agtated certain
circles in Wall stroet for days, and generally
boen accepted Iii M indication that tito road was
about to enter On another cru of bittor ind pro-
longod litigation. The opinion that tho suits
aro loyoled at tho present administration is
based OIL the character Of tho first two Buits.
Ono Of tloso il III tho nanlo Of largo holder Of
Proferroa stock, who allogcB that ho was injured
by tho violation Of oi1lcial trust Of tho Company
III issuing. bonds, the procoeds Of, which had
boon applied to tho payment Of a dividend Oh
common stock. Tho preferred stockholl-
Or declares TINT this was illegal. inasmuch aH
tho preferred stock was entitled to nn annual
dividend Of por cont, to DO paid boforo any
dividend On tle common stock could bo raid.
The holder OF common stock, who sues, ia asso-
eiatoa with tho bondholdcr Of a railroad, q por-
tion Of whoao securities are guaranteed by tho
Eric. lnI lima thu faHfrn hf fTnrfnrinfp lin
acts Of tho present Directors illegal. Tho Third
suit, and most important, is intonded to throw
thc Eric Company into bankruptcy, it III beloved.
1t is asserted by como that this ia roally insti-
gated in tho interest Of James McIIonry aud tho
Atlantic Il Great Wostorn. NlcHenry s on llis
way horo aud duo In q short timo. The suit is to
DO q formal demand to DECLARE tho Company
bankrupt for non-paymont Of interest on tho
Boston, Hartford & Eric Rallroad bonds. which
Eric guaranteed. Tho Boston, Hartford l. Eric
was organized for tho purpose of oponing
through rairoad from Boston to tho Hudson
the proprietora 81 tho Doston, T Hartford s Eris
determined to build tho road, ind mako tho Eric
pay AZ much aB possible for its construction.
With this object in Wow, John s. Eldrilgo, then
Hartford 1 Eric, with tic aid Of confodoratos5
in tho Board Of Directors OF tho Eric, So
cured stock and proxies enough to
control the annual election OF the latter
Eric; Alexander s. Diyon, Vico-prcHidont and
Daniel Drow, Treasurer. sfho first act Of this D-
roctory waB to ratify tho contract botwoon tho
Eric and Boston, Hartford T. Eric, whereby tho
former was to guarantee st, 600 of por cont
first mortgage bonds to tho Inter corporation.
Tho interest OIL these bonds was paid for short
timo by tho Eric, but the payments we're hnnlly
stopped, mud lavo mover boon resumed The
financial affairs Of tho Boston, Hartford t. Eric
grow rapidly bad. until tho stock is now
selling ut 3 to 1 conta on tho
dollar. Frederick A. Lano finally became
President, and at last gaye 1t up in disgust, and,
aB d last blow at tho road, had his oilico-ma1,,
ono John Rooney, oleotod it's prosidont. This
pseudo President, on being intorrogatod to-day,
said that the suit to throw Erio into bankruptcy
was to DO brought in good faith, but it is not
geuorally supposed that lo knows anything Of
wllat Is going on in tho matter. a lawyer named
A. y. Vanderpool has boon returned. lIo Ia tho
law-partner Of A. Oaley Hall.
A Tribune reporter who called OIL Fandorpool
waB told by him eyasively that ho Aal loard Of
Huoh suits, but ho doclinod to giye nny infor1na-
tion about thom, but addod tliat whom brought
thoy would be for his clients, aud in gond faith.
8. L. NJ. Barlow, counsel for tho Eric Com
pany, snil that ho knew nothing of the proposed
suits with the exception Of tho proforred suit
| which Ind been agitated for six months past,
and WAS simply absurd. 1fo charncterizod the
projected suits Oh stock jobbing movements, for
the purpose Of depressing the stock. Efforts to
ascertain tho nMnlea of the principals in tho
several suits llavo failed.