The New York herald., 1878-01-13

NAL their side II the rule they contend for Is to
be applied where Is the evidence that this recon
structon COMMITTEES ever cxistedf Where Is the
evidence that they hold asin2le bondf Whore Is the
evidence that they have given TO this schemef
Some mon, Your Honor, must learn common law as
well as common sense. Let the rule be as counsel
lays u down; put the poisoned chaico 10 his lips.
u such IS to De the rule We can give proof ample aud
petitioners are bondholdera Jewe,t comes into
court ana asks " be can pay the coupons or those
whose have Assented 70 the scheme Of reorganizaon
on the ground that other assents will be hastened
by thai means There is OF course, no prefer
euco etnu here , on tho par. Of the rscesiver, who
this Court asked assist In the incubation OF this
scheme and TO give II the sanction Of its Judicial
blessing. When Jewett is asked why he did pot p'y
these coupons falling Cue September, 1875 he says he
was prevented by the peoples suit He Is only to pay
coupons those who assens to the rsorgau lzaveon
scheme. In order 10 curry out this preferential
plan tho receiver is allowed to obtain loan Tor this
purpose. and In granting this most extraordinary
without duly considering what he doing,
because the money borrowed TO pay these coupons
to constitute len upon the mortgaged property
prior 10 the first and second mortgage bondhoIders
who have rel used their assent Is this mockery OF
justice! Where Is this faithful trustee this watch.
dog OF the interests OF the credors3 Is he asleep or
Is he dead that these things are allowed by him 10
pass unnoucedf Are we not TO inquire INTO the man
agcment o! this receiverY When bondhoders ask
Tor pay ment OF their coupons they met with tho
reply that two years ago the Attorney General signed
an order for the discontinuanco OF the peoples suit
They call US adyen,urers ana beggars. Wo ask for
bread and they give US stone.
M'HHxRY's INTEREST,
The learned counsel who preceded me argued that
Mchepry's interest was a yery small ouc--only
So ooo dou't remember ever hearing anything ike
that Argument In a court OF justice before IL re-
minds INC OF the case OF young woman who, being
on trial for infan.icde. offered defence Tho plea
OF Justice to DO one thing for the many
and another for the few; that tho interests
they be represented by knights, squires and members
OF Parliament? The Court has right TO look into
the validity OF the receivcr's indeptedness and his
transactions. BY the light OF eminent legal authori-
ties the decree OF foreclosure Is invalld The object
OF the directors OF the company is to hnuer and delay
the creditors and asserting bondhoder Of the
poraon, in opposition 10 the trustee, such or bond
holders creditors. Their purpose is TO bid In and
divide the property among themselves, excluding
those who have not assented to the scheme OF reor-
ganization Now with even the old OF the Legislature
tLey could not pc crpetrate such ira nd as this When
the receiver acts the Court Will hesitate bcioro CIV
ing Its approval 10 any such scheme. Counsel, in
concluding, expressed himself as being confident that
the prayer OF the petitioners would receive just and
equitable consideration cy the Court
ACCOUNT MONEY
General Sickes, in the COURSE OF his argument,
SAID :-''The Erie Railway Company Tor nearly three
years been IN the hands OF tnis Court II sur.
yived Gould and escaped from the incompetency Of
Watson, but after nine months OF Jcwett could not
stand, SO that II was nominay turned over TO tho
protection OF this Court Ii 1t had received the
care which the bondnolders expected II should
have received this case would not DO here
to-day. the surplus Of receipts the
operating expenses OF the road to DO accounted Tor
reaches $14 0O0 900, and these petitioners here
asking that this and other vast be accounted Tor
according TO law. This Is reasonable request AMI
entitled to assume that the investigation
ask tor Is the Same as Tho receiver has asked
for o. the hands OF M the Court: We take
only that, which no says be has been
most anxious to accord, except no comes
retary ana another thing through his counsel We
here only asking Tor that which the people OF the
State have said, through their Attorney General.
must take place, and bad he done less II would have
paced that high minded ard honorable Official by the
side OF hts predecessor-that predecessor through
whom all this mischief was done. / undertake
here 10 Affirm and am prepared to prove that the
organization scheme has never been secn by this
Court and therefore, has been approved. l ai.
firm that the scheme US ii stands to-day. never
ceved the assent OF a single Dondholder or share
holder although II is asserted by them, because Of
ers have assented 10 1t. / deny absolutely
these premises IL mas not been sanctioned
by any bondholder or shareholder cxcept-
Ing tho reorganization committee themselves,
II they are holders of bonds or shares. Suppose II
could be established that within month plan was
consummated to excluae any competitive bidding AT
the foreclosure sale. III opportunity is given will
prove that such is tho fact Produce tho receiver
that witness stand and will establish what
assert Let the facts come out and then Will bo
seen the conspracies that have been formed.
II has been said that thcro arc no
specific charges preferred aganst the rccevor There
is the comparative statement OF the cost running
the Erie, and that Of other trunk lines. showing
waste Of more than SO 000, 900 per year. II opporu-
rity Afforded US We VIII 80 further and show that
not only those S. GOO, but other millions which
into It's treasury. The foreclosure scheme WAS
planned TO throw the control OF the corporation into
tho hands OF ono man, and That the man by whom it
was wrecked. nave always understood that 1t is
not the practice OF the courts to appoint recover
man who had been managing railroad whom IL
became bankrupt. Tho trustee Is assumed to know,
as are also It's counsel that tho courts forbid such
practice, but they assented to IT."
EXPLAINED.
Counsel here entered INTO an explanation OF certain
extracts from the letters Of James McHonry as ap-
pearing in the Erie answer, and, having read the orig.
inals commended that they garbled those letters and
distorted their meaning order TO cast aspersion
upon the petitioner he also into the charge of
conspiracy made tho answer against himself,
explaining his connection with the Eric bondholdors
and asserted that the charge, far
he Is concerned, is absolutely false Counsel
vindicated the reputation OF McHenry, whom lie said
had been called adventurer Oy counsel on the
other size. He road copies OF kilograms sent in 1873
ana 1874 by the Erie Railway direction TO McHenry, in
London, each asking him TO borrow, the bost
he could, sums of money ranging from f400, 900
man wnom they now stismatze; the
god but now, when they can longer him. they
turn ana call Ann an adventurer, rolugea This vast
property Is i0 the hands of TINS Court, altogether,
although they hold majority oil the bonds. Millions
majestic IN Wall street, but IN this hall they lose their
charms and their power Here the very right is to
prevail; here the widows mite will have the same
coI sderatIon and respect as 1t once had from tho
Founder OF cur religion
IL agreed that both sides should hand In their
briefs TO Judge Daniels on Monday.