The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-19
THE ERIE WAR.

ADDITIONAL PLAINTIFFS cLAMoRING FOB AL
| LEGED RIGHTs--ANoTHER PETITION AR
| RArGNIxG THE MANAGEMENT. u4
The apparently nterminabie litigation growing out
Of the diverse interests in the Erie Railway and the
claims OF its mutifarious creditors assumed new
phase In the courts yesterday. large attendance OF
counsel representing the numerous htigauts in the
suits now pend.n against the corporation appeared
in the Supreme Court. before Judge Brady, IN
regard to the sale OF the road in the foreclosure
action Of tho second consolidated mortgage. II
appears that some time since the Farmers
Loan and Trust Company, trustee Of the above
mentioned mortgage Of tho Erie Railway, OBJ
tanned order OF foreclosure, and George Tcknor
Curtis was appointed referee nd advertised tho sale
Tor the 21st inst After full Interchange Of opinions
between opposing COUNSEL and with their approval,
Judge Brady consented TO postpone the sale for sixty
days
Having amicably sattied the matter to the sale
OF the road the several counsel went before Judge
Barrett, sitting in Supreme Court, Chambers, where
another chapter in ltgious "Ere literature" was
commenced. There present, representing the
interests of the Eries Railway Company, Messrs
Mcfarland and Realeld: Tor the Farmers Loan and
Trust Company, ex-Judge Comstock and H. B. Turner;
Dorman B. Eaton appeared for Receiver Jowctt
Peter B. Olney for tho Attorney General. while
General Sickos Ashbel Green, A. j. Wander
poel, Eihu Root and Henry Arden repre-
scented the judgment creditors, stockholders and
bondholders OF the company. III tho suit of Charles
Potter and Others stockholders of the Eric Rail
way Company, against Hugh j. Jewett, The railroad
company and others. Mr.. Root presented petition in
which the following, among other allegations, are
set forth:-
SUIT on CHARLES POTTER OTHERS
That tho total amount OF the FUNDED debt including
tho said second consolidated mortgage was, on
the funded debt excluding the second consoli-
dated mortgage, amounted TO the sum OF $4,000 100
That LIST day OF June 1875. by the terms OF the
bonds secured by the nth and supplemental mort
cages oil the New York aud Eric Railway, thore be-
due the sem-annual Interest coupons thereon
Tor $24 $50 90 and by the terms OF the second con-
sOlidatod bonds there became due tue sein-anhuai
interest coupons thereon Tor soo4 ooo rnat shory
Jewett caused public announcement 10 be
made in the city Of London, England, where
pors maturing on sad obligations would be met on
that day and on May IL, 1875 prepared and published
over MS signature, and widely circulated an Official
statement prepared under order OF the board oil d.
rectors, wherein he solicited proxies IRON Erie stock
holders the annual meeting iE september thereaf
ter for tho purpose of giving to tho corporation "a
stable and permanent management"
That about September "a, 1874, Hugh j. Jewett
entered into an unlawful agreement with moro
codirecors for the purpose al securing TO him.
cell the payment OF salary OF $40 600 year pres,-
dent OF the railroad company Tor ten years, knowing
the directors had no auth0rityto constitute Nun
such president tor any longer time than the period OF
one year; that this agreement and the consummation
thereof were at the time Kept secret from tho ma
jorty the board OF directors and were never con-
sentcd 10 bythem, and were In violation oil the duty
oil tho said Jewett and the directors consenting
thereto trustees charged with the care and proper
| manag cement of the funds Of the company, ana
| IN fraud OF the rights OF the plaintiffs
| and all. the stockholders OF the company.
That during all the period OF his administration
ceiver tho said Jewetl has managed the said railway
extravagantly, wasteiuy and corrupiy, forohe lur-
OF his original corrupt purposes aud designs
aforesaid, and 10 conduce 10 his personal gain and
| profit, and to perpeluaie as long Us possible
| his control over the said road, It's prop
| erty and revenues and means thereof to
promote the so called reconstruction scheme heren-
att set Iorth, anu 10 injure and involve the sad
property, and TO depresS It's real ana apparent valuc
destroy and hopeless tho Interests OF It's
stockholders therein. That tho SAID Jcwett wrong
in his hands such receiver, the sum OF $4,000 Tor
remaining unpaid OF the $lo0, 900 OF notes
| illegally and fraudulently obtained ny him Us Tor
salary IN advance.
| closure oil tho second consolidated mortgage, to re-
strain j. G. Bancroft Davis from orccl0sing tho NTH
mortgage, TO epioa the reconstruction scheme, To
vacate Mr. Jewetts appointment as recover under
| the first and second consolidated mortgages, and TO
cancel his certificates US such recevor Judge Bar
| rett granted leave 10 sue the receiver.
| motion was made BY MIR. Redneld for leave to
order the decree Of the stipulation OF ex-
Attorney General Fairchild for tho dscontlnuancc OF
| tho peoples suit This was opposed by Mr.. Oney,
for an adjournment that lie might consult with the
Attorney Gcnor In the premises. The Court accord
ingy adjourned the case 70 next Wednesday.
| AND ANOTHER STILL
A suit also menced yesterday by United
States District Attorney Woodford against the Erie
Railway Company for unpaid taxes amounting to
S674 05 &C. Papers IN the case were served upon Re-
| ceiver Jewctt yesterday