The New York herald., 1874-12-31
ERIE STOCK PURCHASES.

ERIE STOCK PURCHASES.
An adjourned herring was mad yesterday alter
noon before John s. Lawrence, as referee, in the
case OF Angel Va. The Erie Railway Company ct
al, on motion for injunction. The charge is that
tae company Improperly purchased 5000 shares OF
the Buffalo, New YORK and Erie Railway, as
already announced in the HERALD.
Augustus r. McDonough, the Secretary Of the
Erie Railway Company, was sworn and examined
relative hts duties and the nature OF the ONCE.
He testified that he has been secretary or the
pany since April 1878; all minutes OF the direc-
tors meetings and those OF the Executive com nit.
tee are kept In books the treasurer mas charge OF
all stock certificates, and they are finally deposited
with the auditor; witness presumed he had the
stock purchased from tile Buffalo, New York and
Ere Railway Company; there are four or five
minutes in the directors book mentioning trans
actions OF the company with BischofYsheim Gold
schmidt but cannot give any OF the dates; there
are possibly minutes OF contracts entered into
with Bisohorsheim B Goldschmidt; cannot recall
entries relative to contracts with Morgan Co.;
co not recouect any such entry in the books either
before alter taking once; there are. entries
relative to the purchase OF coal lands IN Pennsyi-
vania probably IN two or Three Instances in the
Board OF Directors book but cannot recall dates
they must Fave been made about tue return OF
Mr.. Watson from Europe, in the spring OF this
year, but the witness could not be certain ;
these minutes 90 not 60 into detail, giving
and abstracts OF titles are IN tho keeping OF the
Secretary. Witness has deeds relating TO the pur.
chase Of the Pennsyyanla coal lands having having re re-
year through Butler & Daring, OF Scranton or
Carhondaie, the uxents VINO sold tIe lands tne
Erie Company have numerous contracts relative
to the purchase OF these lands. about The same
number as the deeds on nand but the witness has
possession OF abstracts OF titles, though II Is
understood that they are in course OF preparation
by Butler Darling. witness mas not examined
their contents, and does not know the
locality oil the lands, not even the towns or
name recoiiected was only tnat OF DR.. Early. one
OF the grantors but do not remember MS name
occurring as grantee no osner , name occurrea
name occurs; do not recall the names OF the hill-
side Goa Company or that OF tne southwestern
| Coal Company as occurring as grantors; the Erie
Company has received, as witness thinks, con-
| tracts nom one or both OF these companies.
| One OF the counsel for the defence remarked that
counsel ior tne plaintiff was pursuing an tgnts
Jdt,lls but he would just state that the Erie Rail
way Company mad never purchased an inch OF
/ coal lands In Pennsylvania except those In Its
| possession ior some years past.
Witness has private memoranda or these coal
/ lands the Hillside and Northwestern companies)
bat cannot give detail unless required 70 furnish
IL has the impression hs tns ssoes socr
companies on or about July or August, 1878 there
are entries in the minutes relative to the last Two
dividends declared by the Erie Company, probably
7 one Tor each dividend.
! Counsel for defendant being here requested to
4 furnish certain documents and memoranda he
declined to comply there With, the suesti be.
ing referred TO the Court. The counsel for plaintln
asked witness 70 produce the minutes OF the
Il Board OF Directors and those OF the Executive
Committee relative to the deeds, contracts or alb
siracts OF title OF the Pennsylvania coal lands or 10
the Hillside and Northwestern Coal companies
but, under advice OF MS counsel, ne declined 70
comply.
Counsel then explained that no papers would be
produced unless the Court 40 ordered.
Witness does not know whether any moneys
have been dlsbursed by the Erie Company In pay
ment for these Pennsylvania coal lands; vouchers
/ Tor these expenditures would be found with the
! treasurer and auditor; witness remembered a
sight discussion IN the Board OF Directors regard
ing the purchase or the lands; there was only one
discussion, which occurred in the early part OF
1878; remembers that there were present. among
I others, Messrs. watson Barlow, Robinson and
others; alter the purchase OF the 5000 shares Of
the Buffalo, New York and Erie Railway witness
cannot recall any iurther action towards purchas-
ing more nor was there any mention In the min
utes OF the Board; II there was any such transac-
tion il was before witness became connected with
/ tue company.
| Each department controlled It's own books.
| question asking II the bonds were guarantee
! By the Erie company was answered ia the aflrma.
J tive: but the question was objected to and
! stricken out, as we're several others OF similar
The case was then adjourned to January az
/ three O'Clock r N.