The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-24
THE ERIE LITIGATION.
STILL RESISTING THE SALE OF THE ROAD
UNDER TEE FORECLOSURE DEcREE-PRo-

STILL RESISTING TIE SALE OF THE ROAD
UNDER TEE FORECLOSURE DEcREE-PRo-
cEFDINGs BEFORE JUDGE POTTER.
Until late hour yesterday afternoon counsel were
occupied in Supreme Court. Chambers, before judge
Potter in listening 10 tho further reading OF papers
and argument on the motion made behalf OF John
II. Brown and +. w. lsaAcson, claiming to be owners
Of preferred stock OF the Eric Railway Company, to
postpone the sale OF the road under the decree of
foreclosure The counsel both sides presented the
usual formidable array, and, the day previous
the court room was crowded.
Judge Greene continued the reading OF the petition
OF Brown and Isaacson, which an order stay the
sale asked for The petition very volumi-
nous, and although only portions oft were road ana
large part merely stated, tho reading lasted until af
ter recess.
Juoge 'Coms,ock then. in opposition 10 the pro-
posed stay OF sale, road AFFIDAVIT OF Mr.
Hugh J. Jewett, the receiver Of the road
denying. the fullest manner, the charges OF
the petitioner. Hc states in Tho outset that he
1t to be any part OF his duty as re-
to join controversies as 10 who should DO
parties to this action, and he would have declined to
make any AFFIDAVIT relation to the petitions ii he
had not found upon referring 10 thcm that tho al
legged need Of their being made defendants basod
largely upon representations IN nearly every
particular untrue, as to the character Of
his management OF the road II has,
in view OF such facts, seemed to HIM,
and he is advised ~ his counsel that he ought
rect such misrcpresen tatoEs before the Court, pas
much claimed the truth or tasity Of the charges
referred material matters to be passed upoo by
Court. He therefore declares that each and every
allegation in either said petition to the elect or
charged his duty or exercised his authority In his
receiver, or otherwise than in good
faith and 10 the best Of his discretion and abiiiiy,
with paramount and constant purpose 40 that
which best tor the property III his charge ana most
and proper IN the legal and 1T usc oil his power
as receiver IS without foundation IN tact. He freely
admits that some questions OF policy arising
ana capacity In railroad affairs differ the best
policy but, without qualihcation he AYERS that every
charge OF wrong motive or wisiul misconduct is Ut
terly baseess and untrue; that be Is ready on any
point whatever TO have his management and Judg
meut submitted, under the order Of Court, TO the
opnon any JUSTIN ndcd railroad men OF experience
and capacity, and to stand or fall by the Judgment
that may be rendered, and he challenges
faith which the Court may sanction. He
declares the charges that his management has
been was.eial ana improvdent Or dishonest. or
management has wronafuily or unnecessarily created
a large amount of Indebtedness, which ought not
to have been created, 10 be untrue. he
further declares that II IL not true that ne aided IN
conrivlng the plan OF RECONSTRUCTION referred 70 Tor
any purpose Whatever or that II IS or was ~ his ln-
Lercs but that under the sanction OF the orders Of
tlis Court he has properly facilitated the carrying
OF such plan and has contributed suggestions
which he thought improved the same. ne
says that the he has maze OF the moneys 10 hs
hands Tar not authorized by original 0ruer
Of his appointment has been authorized by SPECIAL
orders OF this Court, made from time TO time; that
details OF his use OF 1t and his vouchers uliy
pear in MS accounts and papers; and that regular
Examinations OF the same appear, as he IS IN
formed and believes. III The REPORTS Of The ne
and open TO really inspection. Referring
10 the cntire operating expenses OF the roaa in his
charge he says they moro than SAT- 600 less IN
1876 than they in 1875, aud that in 1877 they
more than 1888 900 than they were u 1885,
and he further says that the payrolis THAT is pay
for abo md N " m
than 1898 600 than they we're IN 1872 and that they
were less ~ more than 1000 70 1917 than they
covers seventeen printed pages, IS a complete and
full denial OF the accusations made against HIM.
THE PETTIoNISG STOCKHOLDERS.
Mr. A. J. VanGerpoe opened the argument on be.
halt Of the petitioning stockholders, ana spoke an
who opened IN opposition, saying that since the dove
elL the ark there had never been strong effort
devil as TINS attempt In the interests OF James
McHenry. his man, he SAID, does not conceal his
purpose ike ordinary marardcrs. He publishes his
intentions. HIS circulare proclaim what he ~ trying
TO 90. He wants to take the property IRON its
owners, ana says 50. The Monroe county suit
brought nominally 10 iorecloEe the FIRST
consolidated mortgage. That suit fraud
upon the Court Tor ne procalms openly that there
shall be no foreclosure. Then he appears by his
aliases, De Bez Borchard and Levita, who examine
ton found to be bankrupt Next he brings q SUIT
in the name OF stock but the highly rcspecta-
BILE gentlemen In England whose names wero used as
painrns promptly repudia- any authorization, and,
together with thosc IN this country whose names
used, direct discontinuance OF the SUIT.
Now, at tho last moment, no appears la
the name OF Brown aud always the same
counsel appearing whatever name the proceed
log is taken He also referred 10 several authorities
OF the United States supreme Court and other courts
showing that stakeholder exercise the greatest
diligence 10 make sucn motion, ana also that IL
could only be done alter proving most cOncusiveiy
want of good faitn the part Of the directors Mr.
mcfarland then gave an account OF the connection
OF Mr.. Jewett and Mr. McHenry TO the Erie Company,
stating that the latter owed the company between
two and three Millions
The Judge here adjourned the further hearing in
the matter until half-past nine O'Clock TINS morning