New-York tribune., 1874-07-02

xL That the capital stock Of the Company mas been,
saH aTs o. s and
herenafter set forth, to the extent OF at least x ~
which deficiency has not been made up or supplied I'D
any way; - :, 49,. 49,. 1.,.,A,,t.
other than the Erie Railway Company constituting tne
Board of Directors of .he Erie Railway Company, az
that time qnlswfally knowingly sSd s Som uo
pany that there then in the possession OF tne L
Railway Company certain SUM OF money. oeing ' mu'
earniugs income, and profits Of the Erie Railway Com'
pany, sufficient to enable them therefrom 20 d,vlde
the Stockholders the sum Of ~ as soa
afterward caused that sum 10 be appropriated irom
With the Intent to distribute
the stockholders as dividend and stotwau oaasha sh
ferred stock amounting s2ss7sl S5 and Z per cent
that afterward and in the month Of september 1873
the fact OF such appropriation aud distrouon came 70
came the duty defendants TO refrain from paying
out sny further money under fraudulent s
and immediately to recover back suen moneys ~ Ia"
been frauduienty paid out. .,,..,.,,,
Kill That the defendants knowingly and franduenty
neglected duty In that regard and sunered tne
balance Of the appropriation TO 20 paid OUT ana
and resed to make any effort to recover the money
unawfully paid out and msappropriaed.
pad to each Of the defendants otner than the Company
and large portion thereof was paid 70 persons aWcn
bsyond the irisdction of tie United States which last
mentioned payments cannot be Traced 10 or d
individual recipients except at great loss anu
xV That in January 1873 the defendants other than
SSeetSrs Of the Erie Railway Company constituting
the Board OF Directors OF the Company. drecoed sne
% Ss fx ne and Erie Railway
and caused be appropriated and paid Tor suon sok
less than that price and that the actually was
purchased by some one OF more OF the persons WHY
directors Of the said the Eric Railway Company az tnaI
time but whose names unknown to the plaintiff, for
less than sl5o all of which facts were known 10 some
diligence have been learned by the other de
PENDANTS That by the transaction s3oooO OF tne InndS
OF the Company wasted, misapped and converted;
XVI. That before July, 1873, the defendants lssueu
certain convertible boods in pursuance OF inc power
conferred by the general railroad law OF TINS otate .ue
proceeds which bonds by law only be used or tne
purpose OF equipng finishing, and operating the sala
Companys railroad, and out OF the proceeds oi sucn
bonds the defendants unlawfuly aud fraudnlenty ap
proprated the sum OF slOOeOOO and upward 70 10 tns
purchase of certain lands III not ior any pi
purposes mentioned In the statutes out or tue Pu
pose OF mining coal supposed 10 exist IN anu upon sad
within OF the statute authorizing the Issue OF
convertible bonds as aforesau Inat 'he ue 10 al oi
said lands taken ana now Is IN the name OF e de-
endaut Peter II. Watson. individually aud that he has
made recorded any declaration OF trust WIN re-
spect to the lands favor of the said company.
XVII That the fact o the anu pnrenae as,
unlawful character OF the transaction became ana was
known all the defendants before the month or Dece-
Immediately procure the of the moneys so mis-
appropriated from the said Watson and the persons Wlo
were directors Of the said Company at that tme ana 10
take such other measures In that behalf against the
lands andproperty in Wason's possession as would Sc
count, but that the SAID defendants have unlawfuy
ana raudulenty neglected and refused 10 perform their
neglected and still aud refuse to make any effort
in that behalf That the lands as the paintiH is informed
aud verify believes unprOductlYe ana tue company
defendant has suffered great loss on account OF the au
nappropration and purchase and Is IN danger OF SUI
terng greater aud rreparabe loss on that account
XVIII. That for upward OF twelve months past the
defendants have suffered s1,4)O,OoO TO remain in the
hands Of Blschofsheim d Goldschmdt OF London, Ep-
gland the same being the proceeds OF Donus Issued 1y
the Company defendant, and placed 10 their hands
as agents for sale in the money markets OF Europe,
without requiring any account OF or concerning the
same and this, Notwithstanding the fact that
the said BIscholfsheim & Goldschmdt did not In
tend to return part OF the said sum to the said Cor
pOraon but claimed TO retain the whole amount theIeof
as compensation I0r various services petebdeu 10 nave
been rendered TO the said Company by them, but winch
the said rn and the defendants refused 10 submit 10
the Inspection 0l sOcklQQers OF general Oncer5 OF the
Company. That about $4,000 OF tue said SUN has been
retained by the said hrm or Bischofsheim d Gold
schmidt upon the preteXt of applying the same TO tho
repayment Of advances made Dy theln for procuring
vote for change IN its management IN March, 1872, by
the payment 10 them OF various suDs ranging from
$50 $4,000 each, and TO the repayment Of various
other suuls ranging from s25O each OF which
had been paid by BschOfohem G0ldschmdt TO yari-
persons who assisted in negotiating the details OF
such bribery and securing the votes OF different
bers the Board OF Directors of the Company for the
bursemens BIscho1sheim GOldschndt claimed to re-
tam the principal portion of the amount in their hands,
last sum retained by BschOhsheim d. Goldschmidt as
their own compensation for making such
ceedincs, and the remainder of said sum
is retained by the firm for divers unlawful purposes,
recorded upon books OF the Corporation and par
cuars concerning the disposition OF the large sum of
money aforesaid been entered upon books
of the said Corporation, unless such entry has been
made since March J. 1874, as 70 which plaintiff has no
XIX Tha at the time OF the declaration and payment
defendants had reasonable to believe and knew,
and had full aud perfect opportunity TO demonstrate,
tha lad WI IN v
Of the hye Ssd years pe M peeedhg sad
earnings income profits OF any kind and that they
had not then any fund or property out OF which any
dividend could reasonably or lawfully be declared
paid. That notwithstanding the facts, knowledge and
particulars aforesaid, the defendants other than the
| said Company at the City OF NewYOrk about the
| - day Of September. 1873 being themselves stock
holders the said the Erie Railway Company and
ing as its directors and Board Of Directors unlawfuly
wrougfully, and frauduently declared published and
other stockholders OF the said Company to be-
eye that the said Company had earned. and then had
net earnings income aud profits more than sufficient
! to pay the sum of 81 per cent upon the said pre-
stock as dividend, ard thereupon they, at the time
and place aforesaid, by their resolution Board
OF Directors, wr0ngfuIiy and unaWfuliy and fraudu-
| ently directed the officers OF the said Erie Railway
Company to take from tho funds OF the Company then
the sum OF so7S79l 49, and to divide among
and pay 1t cut TO the stockholders Of said Company,
themselves among the Others. at the rate of per cent
upon the said common stock amounting to the sum OF
$7S00O and 81 per cent on the said preferred stock
amounting the of s9s79i IS, and thereupon the
officers of the said railway company proceeded to
and did execute the said resolution and order Of
the said defendants and dld wroDgfully, unlawfuly
and frauduenty pay from the moneys OF the said Com
pany greater part OF the percentage Aforesaid to
many the stockholders were willing to receive the
same and who applied therefor. The plaintir has
knowledge Of the precise sum which has been paid out
under the said order but alleges upon information and
belief that only few thousand dollars OF the thus
wrongully appropriated remains yet undisributed; but
that the officers OF the Erie Railway Company threat
ened complete the payment OF the SAID dividend
far 1t yet unpaid, and unless eDoned by this Court
Will proceed and complete the distribution thereof
Wherefore the plaintiff prays the laid and interference
Of this honorable Court and that the defendants be
compelled account for their official aetsi the
agement and disposition Of the funds and property OF
Erie Railway Company hereinbefOre referred and
that the said Watson President aud director aud
i . . A. - lA H. =.