New-York tribune., 1868-03-25
THE ERIE RAILE0AD r5R.

STARTLING REVELATIONS AT ALBANY -- Only
FIVE MILLIONS IN BONDS REALLY cos
VERTED, AND TIE RESIDUE or TnE TIN NIL
LIONS IN SOMEBODY'S POCKETS
ALBANY, March 24.--ln their defense the Erie
Railroad Directors affirm that they acted in legal
manner so far a. the common Construction OF the Ia "
gives them the power that ia converting lDOO0OOO Of
bonds into stock putting that stock into the market
fhey acting within the scope Oi the railroad law ~
$3.50; now the starting fact comes out, through the
Benate Investigating Committee that they never con.
xerted 1OOO0OOO Of bonds. They went through the
Tormality OF converting E,cOomO INTO stock, but
the other 10000 Of stock Which they forced np0n the
market was issued without the bonds. may seen
that in doing what they presumed they had the legal
power TO DO they did in an Illegal manner More than
tins Not one cent Of the money realized from this stock
yet found its way into the treasury Of th tie Com
pany. This is eOrFobOTaed by the Testimony Of the Wee.
President and Secretary of the Erie Road 10th ihes
gentlemen AlbaDy to-day and IL is said that they
haye become alarmed. Their signatures were ou the
stock bnt II is said that tey ignorant OF the effect
81 their acts. aud not knowingly guilty Of crime These
facts have come only since the senate Invest eating
Committee have opened their Investigations 10 the pub
lie Thoy were disclosed publicly 70 the Railroad Com
Inittee OF the Assembly this afternoon.
The latter Committee heard the continuation II the
argument Oh tbis Erie case. The opponents of ihoI bun
put the witness stand MI Edwards, cashier OF lie
firm Of John Bloodgood & Co., Wast brokers. His
testimony was principally 20 show with whom Nj Drew
bad transactions IN Wall 81. the prce :" the Ere stock
previous and subsequent the issuing II tbe s0CoGU
worth OF new stock and to make apparent That this
AoOO0OOO was sold moi 10 realize money be spent o
she road but 20 depres the market and make money on
the transaction, which uoDey togo into tl1 directors
Swn pockets.
After the examination Oi Mr. Edwards. NJ Charles
O'Conof took he floor in deuurcati0n Of the bin SIT
OCOn0r held 1t To- be toe duty Of be advocates of to
Dill toPoduoe tangible evidence other Than ibe sJeecls
Or counsel To show why i,is l, should pass 1be5 claim
that they have been doing what tey Thought legal ar
but their iyng 10 other states; their silence when ~
many Of them cOuid come forward aud clear TIC nists
away are proof pTesumpuye hai they have done ~ lle
ka sef and this presumption l. al tie stronger Whon
they ask TOR legislative actuu They do not even plead
NOT gnaty. The hrst section Of the ld legal.
Shes What they haze J"ne ratiGes what tLoy arc doug
Sew, aud authorizes tliem 10 do r. they please
hereafter 20 an nnlunted extent Mr. oCon6t dcnied
that any innocent people fearing that lbey had been
cheated had asked fOr The p1ssareof OF tis bin. Bercps
sented most ~ tie ttOgkhodo. aud fbcy Ind nstask
that this bill sh0nld become iaw. Mr.. Of0npr Dien
read long statement Of the management of the EHe
directors IN tlIs matter, bringing ont prominently tie
facts mentioned ~ the FIRST part Of is Dispatch TIE
Committee then took q recess
When the Committee had tcasselbed this evening. NJ.
oCOn0r concluded his speech lie took tho gfOund that
tss compaDy hsa no rgbi 70 3u, stoet ~ bees l ~,