New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-10-09

ton was made to the Attorney of the State
to institute proceedings against the Erie Railway
Compan for o violation of their charter. and that
after hi airing arguments for and against the Com
pany, he decided to bring a suit in the name of the
People, bat believing that the interest of the people
and stockholders safe in the hands Of the newly
elected Board of Directors declined to apply for the
appointment of Receiver, pending the trial of the
issue; therefore, it has caused some surprise
to learn that in the papers served he does apply
for the immediate appointment of q Receiver.
change of purpose on his part entirely
unexpected. The suit is brought for a dissolviDg
and liquidation of the corporation on the grounds
that it has violated its charter in having purchased
of John A. c. GRAY. director of the Erie Railway,
5000 shares of the capital stock of the Buffalo, New
York and Erie Railroad Company, for the sum of
$750000, said sum being $500, 900 excess Of
its true market value Second in the purchase OF
certain wild lands" in the State of Pennsylvania
for upward of $l0O00OO, which were afterward con-
veyed to certain coal companies. the Erie Railway
receiving therefor portion Of the capital stock
of said coal companies and the said stocks having
no market value and believed to be nearly worthless
Third in having leased the Atlantic and Great
Western Railroad Fourth and fifth, in the pay
ment of a certain sum of money as dividends in
1872 and 1873, none having been earned and sixth,
in the language of the complaint: THAT the said
defendants directors of the said the Erie Railway
Company have. since their election to Office to wit.
the 14th day of July, 1874 ratified and confirmed,
and continued in force the above mentioned several
illegal acts and omissions of duty. agreements, pay
ments and alterations of the property Of said Com
pany; and they have IN so doing claimed and exer-
cised corporate right not granted them, and abused
their trust as directors of said Company, within the
meaning of the statute and are liable to suspension
and removal from Office"
That the capital stock of said corporation " has
been and is now impaired by losses and by imprOv-
ident and unlawful appropriations and alterations
OF its moneys and property to the extent of upward
of 600, which deficiency has not been made
up or supplied in any way"
1t more than likely that to this last charge in the
complaint is due the application for the immediate
appointment of receiver and the displacing OF the
directors The suit has assumed proportions of vast
Importance and appears to be brought in perfect
good faith in the interest of the people of the State
of New-York
Holders of the bonds of the Chesapeake and Ohio
Railroad Company are invited to read the advertise
ment of Messrs. Fisk e. Hatch in another colnmn.
The larger portion of the bOndhoders have already
funded their coupons and those who from any cause
have not already done so, will do well to put them
selves in communication with Fisk d Hatch at once
Since they have given their attention to the settle
ment of the affairs of the Company, great |progress
has been made, and it now requires the attention OF
the minority who have not funded, to put the Com
pany on its feet again and permit the property TO be
put paying basis.
The Financial Chronicle furnishes the following
statement of railroad earnings for the month OF
September and since the beginning of the year: