The New York herald., 1878-01-12

the omission and IN legal sense, tho negligence OF
ns ss.ornsys. They we're properly served, ua os nos
Is given by tho judgment than that prayed Tor, tnere
II 10 submitted. Is IN law IN end OF the matter The
action was brought 70 foreclosc mortgage the judg-
mcns DEGREES foreclosure and sae and does nothing
else The description contained In the mortgage NJ
tho property mortgaged and adjudged to be sold 10
very general IL was important TO the interests OF
the mortgage Its bondhodcrs and TO the mortgagor
ina. 'ns csscspuon should pe smpnsd ana oe maze ,
was done, and. as is or should DO done IN all such
cases, reference ior a still more detailed
description made the inventory OF tho receiver
Tho TACT that no property Ia included IN the descrp
on not covered by tho mortgage. As 70 the tangible
properly the contrary oi this Is hardly pretended.
But It Is said that there stocks bonds and other
chooses In action included that ought not to be- At
the OF the appoint msnt OF the receiver the CON-
pany was possessed OF q large quantity OF stocks.
Donds &C.. OF other companies sustaining collateral
and subsidiary relations TO the Erie Company. aud
through the possession OF which the latter company
exercises needIui control and supervision
other undertakings Such the financial DISTRESS of
The eompany that prior to the appointment OF The re-
eever all these stocks and bonds possessing any value
were pledged tor loans OF money. The receiver was,
with the money OF the mortgages and hold thom sub
ject 10 their rights There is then, not the least
foundation Tor an argument based upon the PROPOSE
lion that the Judgment gives relief not Dsked Tor. II
was tho duty OF the Court TO inquire what property
was included within The general description Of the
mortgage. Tho Court did receive proof on that sub.
ject and acted upon IT, The attorneys tor tho guardian
might have taken part in that inquiry II they had
thought proper They elected not 10 do So and ought
not now 10 DO permitted to open tho Judgment and
throw everything at large tor any such purpose.
HOW THx TRUST WAS uNDERsrooD
Much has been said about combination and coer-
cion, and the word "collukion" seems 10 be a pet
word, used apparently without any sense OF its true
meaning IT. rs true that tho mortgage bondholders
In question have agreed among themselves upon Ger.
tain measures necessary Tor the and
lection oil their rights, and their trustee has heartily
co-oporated with them. Us 1t was his duty do. The
corporation Itself, having no defence, and recognizing
tho justice, equity and strict Legality OF the
Ing OF the bondh0uc.s and their trustees interposed
defence, and Il would have been dishonest to have
without parallel or precedent. rhc spectacle
Is for tho first time presented OF substantially
the entire body OF bond and stock holders OF great
railroad corporation whose united interests represent
q capital Ot $i26 00O, 0OO unanimously concurring IN
judgment as what ought 10 he done aud 10 the
manner Of ooinG it, Wnen IL Is considered that the
parties SO Coucurrng in judgment and action number
thousands scattered over every Continent and separ
est oi tho one class OF bondholders prior mort
gagees Is opposed TO tho other class al junior mort
gagecs and that both were required 10 make conces-
some idea may bo formed OF tho vast labor and
expense, the patience, policy and wisdom involved in
producing this result. The arrangement hnaly per-
fectcd contemplated and sanctioned by tho
statutes OF the State, and Ii Is matter OF history that
statute WAS passed expressly In aid OF This extra
ordinary unannity o all sorts ana conditions Oi men,
and OF oil sorts OF jarrng and conflicting interests IN
support OF the plan foreclosure and reorganization,
Is proof penary conclusive, Of tho necessity OF
the AMI OF the justice and cxpediency oil the
means As TO tho general management Of mis- mpor-
tant trust before and by this Court, 1t may DO very
tered with greater care and prudence. In conclusion
counsel asked that both petitions be dismissed, with
c0sth
Alter further argument In behalf OF the Erie Rail-
journed until to-day. whom the hearing OF tho case
will DO resumed.