New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-26
THE ERIE WAR.
TIE ERIE RAILWAY Observation-Disclosures
BEFORE THE SENATE COMMITTEE.

Erie Railroad bill was concluded this afternoon before
the Assembly Committee Railroads. Mr.. Fairchild
closed his remarks In opposition to the measure and was
followed by Mr. Chancey NJ. Depew the side.
Mr.. Depew made the most earnest and eloquent plea
against the bill that has yet been offered In to
Mr.. GaTsOn's assertion that the bill is intended
TO quiet the fears OF purchasers who supposed
themselves cheated in buying this extra stock.
Mr. Depew claimed that he represents the injured par
ties and that they do not for the passage of this
All they desire is that the Legislature allow
them to deal with the Erie Directors before court Of
justice They do not fear to try tie there because
they know that they prove all that they assert The
Erie Directors afraid to let the issue go before
the same tribunal because If they do their
rascality will become patent to the world Mr. Sanford
T. Church followed the SIDE taking the testimony
of VicePresdent Diver Of the Erie Railroad the basis
of his argument. He very severe upon Drew and
his associates whom he accused of participating in the
greatest swinde ever developed in the State. The argu
was closed by Mr.. John Carson on behalf OF the
bill, but his argument was merely repetition Of that
delivered on the opening of the The Committee
will hold executive session on the bill tomorrow.
THE TESTIMONY BEFORE COMMITTEE
The Senate Special Committee the Erie investigation
the taking Of testimony to-day and the follow
ing important facts were elected:
David Groesbeck sworn-I live in New York and am
stock broker have done business for Daniel Drew the
last 20 years have sold stock for him; sold 1t shor
should say not over SOOOOoO that was at various
prior 10 that time Mr. Drew was short on my
books mn million or million hnSa thSk, Mr. Drew might
have been from 5000 to 10000 shs T1 %lsnn Rogers
G SS5Sn We Bed meStR Ts GO CO.. business for
Mr. only know G sd o 0fa Macb Of aSoS Pb
purchase from Mr. Drew 100000 of convertible bonds
cent r s boDGa 8c creSSr the Eo
railroad Company my books and paid them from time
to f d s shares on smith mi Gould Martin
co. 5000 shares Robinson. Cox Co.. 5000 shares; when
purchased those bonds OF the company; Air: Dfew
he ordered to deliver that stock at 0hce prices at
about per cent delivered according 10 Mr DrewS
orders aud charged him with the loss that is the whole
story Mr. Drew always has margin IN our house but
DO business with him just the same as with any one
else.
o Was not this purchase of stock for the benefit OF Mr.
Drewl A. / purchased those bonds Of Mr.. Drew as
Treasurer OF the Railroad Company, and Mr. Drew
gave Inc his individual written guaranty against any
loss.
question repeated. a. There is but one answer 10
that it be guaranteed me against losses OF course
answer: presume the stock put ON the market as
they got 1t from me think the market went up
do not remember what the 9TH there was decline.
O. DO you know the cause of A. If you were Gus
toner Of mine should tell you no; the answer To was
there has been lot OF new stock on the market do not
think had single transaction with any OF the
pany only know by hearsay how the proxies were OBJ
taned in the last election Of the Erie Railroad Company
had nothing do with any s5OoO0OO issued but that
have mentioned; Mr. Drew is not member OF our firm
Alexander S Diyensw9rn-l reside IN New 9rk ana am
so little over three years the duty Of the Pres
dent Se Vice PRESIDENT the Secretary or the Transfer
Clerk to sign certificates or the Auditor or any director
the Company may designate when Mr. Burdeu was PIes
,Sept stoned most of fhe common stock and Mr. Burdcl
the preferred stock have charge Of the Transportation
about the 9Th March signed some ceruncaes OF
Ibe once stepped into the Presidents Office and he
was signing, had just finished signing book he
said these transfers Of stocks were so much in the
street that il kept him signing most Of the time; he was
unwen, and he wished me 10 sign Tor MN, nm
would take them home and sign any quantity he might
want aud be directed the clerk to give me some books
containing blank certificates, which TOOK 10 my mousse
signed part Of then, there that evening and sunday
home three books that the transfer clerk sent up
Sunday morning. when he gave the DOCKS ne sa1 ne was
crowded, and he might want one the next DAY, ana
wished would sign the one d lend m Ter HAT auate
book am inclined 10 think, from some examination
have since made have had hve books $50 cetihcaes IN
each was not aware that these cernc4es were 10 ne
used for the issue OF new stock on the contrary the
President said il for transfers; should not have
junction which should have paid regard TO.
A have reason to believe they were I knew OF the
Injunction wasseryed with one on the sd at my house,
not; didn't look up do not think had signed
any certificates for weeks before the bonds that were o9
were sold for 72l per cent? told the money received
is III the possession of the Company cannot tell whether
the Stockholders were gamers or Ces er ~ m conc 10
yerted into stock al T2t, and because the Company
ING stock short on or about 18th 9th have asked
him he TO me that ne sofa shot
have knowledge OF his stock operations l know
nothing the other directors dealing IN stocks about
that time did not know that Smith Belden Co were
short dealers or bond dealers only know from report
where Mr. Drew Isl have seen him since the transaction
at Jersey City have seen him two or three times since
the transaction; saw also Mr. Edrdge' Nr uouid ana
@ Why do they remain therci A. could only give
YOU INV opinion about IL, and what they say about IT.
they profess to be afraid OF judicial process OF; l
nil TO 5sTs Of The e RAILROAD Co. that they
had made applies TO the NewJersey Legislature for
the passage OF an act am o @ wn s OF 6e
road to have extension of their line OF travel the
most thing being co ng with 81 the canada
roads connecting with the North shore me 10y this
breaking bulk; / do not rememberi Of any question
being raised in the Board OF Directors as 10 the
was not present at the Executive Committee; am not
member; supposed the money vas TO be r5lsed uhuer
the section the statue the proxies OF the last election
were obtained in this way there party advertised
for proxies In the papers called the Vanderbilt party ana
Mr. Drew and working for proxies together on tle
other side and understood the agent Of the Drew party
sold himself the Vanderbilt party the agent was
on both sides; do not know Of my knowledge where
the money obtained from the sale Of the bonds Is -
fed that he knew nothing of a negotiation
by his firm the Erie stock but would have been CON
snIted had IL been made In a regular way.
The Committee also examined Henry r Pier'cn OF
Brooklyn, W. j. Edwards and James NJ Cross OF New,
WORK 6ut no new facts elected The committee
nbpenaed Mr. Heath of Drew's brokers, but he has
refused to attend AS bis testimony Would De
whether they shall apply 10 the senate 10 nave an d
ment issued against the delinquent compelling his attend
ance This refusal Of Mr. Heath aud other witnesses to
attend is considered here strong point against the Erie
| side OF the question.
THE sERGEANT-AT-ARMs IN PURSUIT OF THE
ERIE OFFICERS.
! ALBANY, March 25.-The Sergeant at Arms
OF the senate has gone New York to bring to Albany
the officers Of those corporations that have refused TO
answer the Controllers questions under Senator ODon-
nels resolution with reference to taxing corporations
| THE LATEST DEVELOPMENTS IN THIS CITY.
The trains over the Erie Railroad yesterday
were unusually crowded with passengers Owing TO the
resumption Of river competition and the attempt TO divert
business from this line the managers have determined 70
- ~ .,.oa ~. tara Until further notice special