New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-05-29
RAILROAD INTERESTS.
ERIE L1rIaAr1oN AT cINcINNATL
CONTRACTS MADE BY Mr.. JEwETr DECLARED
ILLEGAL-ESJoINED FROM GIVING PROXY.
CINCINNATI Nav 2S-Tbe facts about the

CONTRACTS MADE BY Mr.. JEwETr DECLARED
ILLEGAL-ENJoINED FROM GIVING PROXY.
CINCINNATI, May 2S.-The facts about the
Erie gation here briefly follows: In 1852 Mr.
Jewet as president OF the New-York, Lake Erie ana
Western Railroad Company, entered into agreements
with certain persons at Cincinnati repres enting ma
iorlty Of the stock Of the Cincinnati Hamilton aud Day
Railroad Company, whereby It agreed that the
Erie Company should guarantee dividends OF per cent
annually upon 10000 shares Of stock OF the Dayton
Company, something than majority In
consideration OF this guarantee 1t was further
arranged that the certificates for that OF stock
should be issued In the name of H. j. Jawet ana should
be placed In the possession OF Hooper, Hannah
work ~ trustees NJ CINCINNATI ana that tne stock ~
placed IN their possession should be represented by trust
certificates issued by the trustees TO the several owners
Of the stock At the time Mr. Jewett purchased for
the Etir COMPANY 3ODo shares OF Cnrlnhal, lamlton
and Dayton stock, ceric ties OF which were likewise
placed In the name OF r Je yett and deposited with the
which were between Nr. Jewett and the NewYork Lake
hdh Work. further provided that Mr. Jewett
should execute from time to time q
should he designated by the Board of Directors Of
the Ncw.York, Lake Erie and estern Railroad
Upon Mr Jewetts retirement from the presidency OF
oncsting INN 10 give proxv 10 Mr. King the new presi-
dent The request was several times presented to Mr.
weeks AGO Mr. lever wis nm Cincinnati and while there
suit brought by George Hotter minority
Dnvton Company against Mr. Jewett the trustees
and the New York. Like Erie aud western
Railroad Company. Ia which he asked thai Mr. Jewett be
cujoined from giving to representing the Erie
Company proxy to vote the stock. the alleged
grounds tia the contracts Illegal under the laws
Of Onto. The Erie Company filed answer setting ont
the contracts fully they had been made by Mr. Jewctt
when president OF the Erie Company and asking that
Mr. Jrwett DE compelled Ia deliver the proxy, or ~ an
alternative prayer. II the court for any reason shout
1oi the contracts Illegal that Mr.. Jewett be enoined
from voting upon the stock and that the contracts be
cancelled the Erie Company released from is guarantee
and the stock restored ~ It's true owners This PRAYER
~ the Eric Company resisted by counsel at Cncn-
natl
Upon fun hearing the declared the contracts
Illegal and wholly void for two reasons viz: ~ that
Ut the stock ~ . corporation In Ohio uuier such con-
tracts aud - that the arrangement by which the
Of the stock bad sold their voting power WIS un
lawful The cour alsO decided that Mr.. JeWett was u
uakr Trustee hdy interest or duty In the matter
other than faithful performance Of mis- trust II en-
Joined Mr.. Jrwcit from = wing proxy TO tho Eric
| Company from voting unnn the stock h'ri-cI
hy proxy. The court delivered long opinion from
which % o clear that upon final hearing the cnlre
transaction viii be set Hsile Illegal and void ana the
Erie Company released from liz guarantee and the STOCK
restored 10 ITS owners.
In the meantime there "a nothing prevent the Erie
Clupany frym cirrying ON traffic with the Cincinnati
Hamilton aut Dayton Company IA has been done mere
tOfprc. with any other company leading into Chth-
n rs said Ia other company l. seeking 10
make traffic arrangement with the Ere Company upon
favorable thlu heretofore existed with tue
Cincinnati. Hamilton and Dayton Company ana IL i
understood shat The statement that the pennsylvania
Company Is 10 leas' the tucuutti. Hamilton aud ~
TON Company positively denied by The officers ot the
Pennsylvania Company "a having 40 foundation "h"0-