Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-13
THE COMMODORE CORNERED+
How Jim Fisk Loaded Him Down
with. Erie.

How Jim Fisk Loaded Him Down
with. Erie.
New York Sun, July 10.
The Erie Railway COmpany's suit
against Commodore Vanderbilt to re-
cSver nearly S5.OOO,000, claimed to
have been fraudulently obtained by him
from the company, was decided yester-
dav on appeal. The action was
tried in May, 1871, before Judge Bar
nard, who dismissed the complaint.
The case was then practically abandon
ed until Jay Gould's election from the
Presidency of the Erie Company and
the change of management, when an
appeal from the decision was pressed
by the present counsel for the company.
The case was argued in the General
Term of the Supreme Court IN OctoUer
last before Judges Donohue, Daniels
and Lawrence. The controlling facts IN
the case, which are in the main undis-
puted. are that in February and
| March. 1868, four actions were instituted
in the Supreme Court against the Erie
| Company, one of them in the name Of
the people Of the State, the others be-
ing severally in the name of Frank Work,
| Richard Schell and Jno. Bloodgood, each
being prosecuted ostensibly to protect
the treasury Of the company against
alleged fraudulent conduct Of Its Off
GERS. At that time John S. Eldridge
was President of the Erie Company,
Daniel Drew Treasurer, and Jay Gould
and James Fisk, Jr., we're among the
directors. On the 11th of July an ar
rangement was made for the settlement
of their suits, whereby the officers of
the Erie Company fraudulently and
without consideration, as alleged, paid
S429, 900 to Richard Schel and 81 ,OOO,-
900 to Mr.. Vanderbilt, and bought of
him $4,000 shares of Erie stock for
50. 500. 900 cash and 81, $50, 900 In guar
anteed bonds of the Boston, Hartford
and Erie Railway Company. 1t ap'
peared by the evidence that Vanderbilt
and those acting with him were buying
Erie stock late in 1867 and
early in 1868, during which period he
purchased it to the extent Of SlO,OOO,-
600, per value. The effect Of the pur'
chases as they advanced was to enhance
the market price of the stocks, and duc
ing their progress the Erie officials is
sued Sl0,0OO,000 of what they called
convertible bonds" which were con.
vertible into the stock Of the company
by being surrendered and the stock
created for that purpose taken in then
place. When it was understood BY
Drew, Fisk, and Gould that Wander
bilt had given an unlimited order fol-
the purchase Of Erie stock, S5,OOO,OOC
of this new stock was placed by Fisk
on the stock market for sale, and Van.
derbilt, without being aware Of the new
issue, purchased $4,000 shares Of 1t
These four actions were thereupor
commenced.
On the argument, conducted by ex
Judge Shipman and W. w. Mcfarland
for the company, and ex-Judge Porter
, and VIM. a. Beach for Mr.. Vanderbilt
it was contended that the four suits
were really in aid of stock speculations
and that Vanderbilt extorted THU
money by means of the use he anC
those acting with him made of the pro
cesses of the Supreme Court, and thai
Drew, Fish, Gould, and others, con
trolling Erie funds, having been driver
into exile thereby, paid the money t.
enable them to return to enter upoI
an unparalleled career Of rascality II
connection with Erie affairs; that The
transaction was a fraudulent misapprO
priation of funds, and known by Van
Z derbilt to be so.
The General Term rendered their de
cision yesterday, Judge DonOhue de
livering the opinion, to the effect tina
the findings of the court below wer
/ erroneous and ordering new trial.