New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-09
THE COURTS.
THB ERIE INJUNCTION MODIFIED.
11psE DAVIS DECIDES THAT THE INTEREST ON BONDS


JUDGE DAVIS DECIDES THAT THE INTEREST oN boNDS
ALREADY EXCHANGED MAY BE PAID.
Another move has been made in the suits
against Erie by modification by Judge Davis OF the
Injunction granted several days ago In the suit Drought
nv stepben T. Arnot, Matthias II. Arnot, and John
Arpo IT, as executors OF John Arno deceased against
the Buffalo NewYork and Erie Railroad Company. the
Erie Railway Company, Charles F. Hunter and Wm
Butler Duncan The plaintiffs represent $50 shares OF
Buffalo New-York and Erie the value of which they
claim Will be jeOpardzed by the contamination OF the
arrangements which have been made by the Erie Kali
way Company. The complaint in this case recites pac
tcaly the circumstances which were reierreu W
In the Angel suit against Ere reported very iuiy
week ago in THE TRIBUNE
The hearing upon the motion TO continue inc inJu"e
ton in the of the Arnots was afforded yesterday
before Judge Davis, William c. Barrett and John H.
Hi appearing for the plaintiffs aad Judge Shipman TOT
the Company. As neither side was ready to argue the
merits OF the motion, Judge Shipman asked the Court
TO modify the injunction against the Buffalo New York
Erie. far to permit an exchange of the new
bonds under the 100000 mortgage for the balance OF
second mortgage debt OF the road-tha is to say
t256OO0-and also permit the Company to 80 on max
ing exchanges to the full amount of the old bonded
dcb-s2 $4,000 The arguments OF the cOunse covered
the ground previously traversed In the Angel case
Judge Shpman. in aid of his motion, read the
afhdavts of II. E. Alexander and Richard
Hancock, a clerk in the employ Of Duncan,
sherman TO-, 10 SHOW lnat INC NOHpdny
dd not propose 10 issue or any Of the ten million
bonds except so far they had already exchanged
them for the old bonded debt Of the Company In other
words they had exchanged rs of the bonds for
equal number of the first mortgage bonds of the Buffalo,
NewYOrk and Erie and those rs were in the hands OF
Innocent holders. They had exchanged l2i Of the new
bonds fOr an equal number OF the second mortgage
bonds Judge Suipman thought that any interference
win the OF these bonds or the payment OF
the portion of those bonds that have been
exchanged would De an unprecedented ana unwdr
ra1;aDe exercise OF Judicial power Which could not
under any circumstances iuure to the beneht OF the
paLtih.
The counsel were personal in their remarks and hence
entertulnk Mr. il resisted The attempt TO have the
INJUNCTION modified with great force ana III long argu
nent At point he commented on the cOuuSeIs
saving That shOuid be calico double tracking and
stedhnG." when at once drew from Judge Shpman the
lAqu.gA, And who are your clients, pray Z! Mr.. Hll
referred him 10 their respectable Offices IN Elmira n
know tncm. They attend Otiite diligently as
yours. IulS AruOt comes round us threatening
~ We dOl't pay 10 make us play, rs lie calls II.
;HLgutcrl Judge Shipman subsequently directed
-irA.d 4 s,ockholder any body else from getting
Junction l)Ining director OF the COMPANY or the
Company Itself from CscharGnC Its ordinary duties
Nh HiI replied that II IL the ordinary duty OF
director of the EVE Railway Company. or the Buffalo,
NcwlOrk aud E.r, OF the companies themselves 10
MAKE fraudulent mortgages and misuse and abuse their
pC"er. and, III fact swlndic people, then the statute
AINAtj.
1BS tdt the junction should oe mOdl1ed-nOt TO the
t.Gt tht counsel asked, but 10 permit the
B.iO, N York ana Erie Company 10 pay the interest
o. ID ponds, wnlc1 h"d been exchanged for
E. 30 mort bonds. The main argument, Oh the
he 10 dissolve the nlGIctOu Is mean
SLjte 10 sand over until Tuesday next