The New York herald., 1878-01-13
THE ERIE WAR.
Further Argument by the Counsel
on Both Sides.
ARRAlGNlNG THE MANAGEMENT.
Lieutenant Governor Dorsheimer
and General Sickles Heard.

TO be made parties to the action Of The Farmers Loan
aud Trust Company vs. the Erie Railway Company
and others wore made before Judge Daniels, In Su
premc Court, Chambers yesterday. The principal
portion OF the day was occupied by the
lawyers for tho petitioners, VINO bent all their
energies the task OF reluiing The incsive charges
contained tho answer OF tho defendant, and In elu
cdating law points favorable TO their visws Of the
cause ut issue. Among the eminent counsel who ad-
dressed the Court opposing sides were Lieutenant
Governor Dorshemer anu General Daniel L. Sickles
ex-Minster to the Court Of Madrid.
Liouteuant Governor Dorsheimer, in his argument
for the Erie Railway Company, called the attention Of
The Court 10 the benehcent plan OF reorganization
which mad been ,natured under the auspices OF the
present management, and to which the owrers OF
stocks and bonds to the value OF $4,000 0oO living
Europe aud elsewhere, have already given
their essent. Under the laws OF this State
this plan, he said, had been devised
for the purpose Of possible, saving this vast amount
OF properly to Its II this plan Is carried
1t will affect the petitioner, McAenry, only to the
lont OF postponing the interest OF his Tor
years, sum not exceeding $4,000 1t is on this
account he asks the Court to set aside plan for
The saving OF $40,O00,O0o He cares little for the
trilling amount OF interest mentioned; the
real purpose Of the petitioners to prevent
the plan OF reorganizing the company IRON being
carried out II that is their purpose what
is tner object? II Is to compel the immediate fore
closure of the first mortgage Is there any better plan
suggested than that which the of $l6 900
OF these bonds have agreed upon There is pro-
posed; but it is tho Intention Of the petitioners
orve these Dondholders into the market and
pei their property to be sold undor the hammer and
thus make 1t impossible that tho owners of the
hrst mortgage bonds should realize anything
like fair value on them. Many OF these bondholders
rely ON tho Court for protection. Tor that justice
which the peace OF nations reposes, aud In conclu-
sion, counsel said he felt confident that tho Law gov
erning the case would be administered justly, and in
the interest OF the stranger who looked the courts
In this country to protect him in his rights.
THE BErz PETITIONERS.
Mr. Ashbe Green. OF counsel for tho petitioners
De Bez and others, argued IN substance folows:-
This litigation, which has occupied the enttou Of
one or moro judges Of this court for many days past
has been raught with many surprises, some of them
unpeasant while others have been of agree
aile nature. The exgoncies OF the case OF
the defendant have invoked the attendance
of gentleman holding the exalted position
Of Secretary Of State, in order to the other
ride Of the Atlantic the belief that the federal gov
ernment itself was espousng the cause OF the Erie
management And this morning the present learned
gentleman who occupies the second place In the great
siae oi New York. comes here using the name OF tho
high Office he bears IN aid Of their nefarous and un
holy scneme Thoy nave endeavorcd turn this trial
uto legislative body, not only Tor making laws tho
case, but tor making contracts tor the ltigants. The
counsel on the other side have said great deal about
They II is equitable adjustment
oil conendns interests but they hesitate to give
true name and call II legislative arrangement shall
endetvor ~ show Your Honor that II you sanction II
1t can only be done by lcaping The bounds OF judi
ciai JUNCTION. haray know how to characterize
the unintelligbie defamation which counsel the
/
tnis IN regard To II, caumny and hard words may do
well adroty cd in moderate doses 10
twelve sitting jury; but 10 the cain serenity
al tue Judicial mind, well trained to hold the scales
OF justice AT an equlpoIse, all these 30 by
hind Them. Tho lakes may be stirred
by storm, but the unialhomabe depths OF judi
cial wisdom all Is quiet and serene. ''GOh and
DALI 'woif In snecp's ciothing," ''lsnmaelitc''-
these were the words that sounded IN Your Honor's
ears yesterday. Wncn the learned counsel spoke OF
iiedodn ARABS" he reminded me OF HE story ol the in
quistve camel which inserted It's under tho tent
und tnen crawled ana crawled until he got MS whole
bo1y into tho tent to tho discomfort oil occupants
aud there remained until some "up and be dolng'''
Arab kicked the camel out would tell the learned
B uticman tnat such expressions as he
upen 10 criticisn u; least Tor want OF good taste, If
bot ior lack OF good management. He exhausted the
Vocabulary vItuperatlUn una as last sort when
he .as IN he plight oi O'Connol with the lsnwoman,
expected him TO rise up ana call US all "isoscees
ansIes.'
Ine affidavit OF alleged conspiracy built up by
EcDonoush also mpugned the characters of reputable
members OF the Bar, said counsel IL what II con-
1t himself? But thIs huge monument OF con-
tpiracy as soop AS touched by the magician's
OF truth tumbles TO dust, and swept
nith other rubbish out Of the court inlo
tue garbage box OF the common scavenscr Tho
course adopted ty me other side rs Ike tue od cry OF
"tup tncil" Jcwett at last finds himself cornercd
his books are 10 pe examined ana his management
scrutnlz ID. Consequently, dust Is raised 50 that
the traveller IS unable to by whom he Is
beng robbed, and inca the cry is raised of "stop
the.V' IL is an illustration OF the advice, "Whcn
you have no case abuse tho other sdeu and |
I n "A
scrupu,ous advcnturer." IL is very hard sometimes
Va tne discussion oi question before court tor
get that tbs judicial mind assumed TO be, for
purpose oi argument. as an unwritten sheet who
paper. The sui commenced III October, 1874, IN
corporation itself OF ,hls We have abun-
annt proof. In tho month OF May, 1915,
Jewctt sent tho information and caused |
IL to be announced IN the Stock Exchange at London |
that arrangements had been perfected whereby tho |
Interest," falling duo on July OF that year would be
promptly pad, and yet Two days thereafter II was
flashed across the Atlantic cable that Jcwett been
appointed receiver, and that he had boon
joined by the Attorney General from paying
that interest Yho surprise Of the English DondIoldcrs
turned INTO indi wnen they iouId that MS
was procured by the Board OF Directors
after conference with the Attorney Gen
era. Inty say nave used couson. Now, | do
say that wscn the Attorney General aud the president
together that any court OF justice would consider
sucn proceeding to DO colIasvc In the true OF
the word.
THE QUESTION or soLvExcY
IL is plainly dcnionstrubie from the exhibits, docu-
menls aud from the statement OF Jcwett himself as
lae a. February, 1877, that this corporation
Tor ut that time tho President ted that
tie property OF the company was iuy abo 10 pay all
us obligations. The statement he presented oatu
Ia pettion ~ this Court which he also estimated
Ihe value OF the company's property at $40 0U0,OOu
Aud SO IN July, lS75 when necessary to put tho
corporation into the hands Of receiver the
company Is iusoIvent. But II Is necessary
To obtain the sanction OF the Court to this
cent plaster, as the properly must be Rescued from
Mctlehry SO he say there Is enough TO pay all debts
and when they come TO Tx his salary iha, Is arranged
On basis OF $4,000 OOO$20 OO0 QUO than sui-
cienL TO pay tue uepts Of the corporation. Notwn-
SANDING tue ingenious distinction drawn by counsel
between the Farmcrs Loan ana Trust Company, as a
corpot alton ana us trustee, submit TO tho Court
that that company Is IN this Case, because 1t, as
painful obtained tho decree OF OF tue rst
mortgage bonds The lien against these
bonas mover gwen with our con sont and wo pro.
test against the Judgment They say that tho
Farmers Loan and Trust Company IL also trustee tor
The second mortgage bonds. Is this q m0ckery Of
jusliceg suppose they had sought to forecose the
frst mortgage, VINO would have been The protector
tie second mortgage bondhoIdcrsY We not |
bound the UrsL m