New-York tribune., 1868-03-21
NEW YORK DAILY TRIBUNE SATURDAY. MARCH 81. 1868.

proceeds OF the three roads for ---ing passengers
from this city equally between the three companies The
Erie Directors refused TO consider sucn proposition
without showing-up OF figures Afe. some hesitation
100000 PASSENGERS from this city dung the year past
sylvania Central 100000 The Erie Company then
refused TO listen 70 the proposition unless
ceeds from Its New England passengers and the Penns
vania Central would in the net proceeds from Phla
delphia Passengers This was refused and the confer
ence broke mp without any agreement In the mean time
the Erie Directors took new steps for the extension OF m
broad gauge TO Chicago An examination OF the Atlantic
and Great Western Railroad made and IL found
that the road could be tapped at Akron and new road
constructed between that point and Toledo distance OF
miles AT Toledo an extra rail could be ia,d and
Northern Indiana Road and thus carried out the broad
gauge scheme would be success The Erie party de-
with the consent OF the Michigan Southern directors 10
lay the extra rail from Toledo 10 Chicago steel ras
way The Erie treasury was eInptv and the road al
ready owed Mr. Daniel Drew <0Oo00O During the Winter
while. during the Summer there is more travel,
and it pays "a dividend. II was Winter. and the
Directors determined to issue some $sOOOoOO worth o
stock, and throw the market this money 70 De ~
to pay off the pressing Indebtedness OF the CouaS,
build the road from Akron to Toledo, ana 10 ia! ~ ~
ReoricJ~Was not this watering OF the original STOCK
for the benefit Of certain parties - .,,o ,,,,,,oso
Mr. Fiske-NO, Sir it was to be used TOT '' Pu'Po''
ReporisIs the road from Akron to Chicago now being
Wr Tiske-Itis Steel rails alone are to be used The
real cause Of All the trouble Is that certain gentle
,an nod ecTe purcbased 100000 OF Erie stock for
he nnTpos of getting control Of the road and this extra
issue OF s. stock worried him, and lie Is the man
tbat caused ali the present trouble.
Rcporier-why did your party leave New-fork City ana
NJ FisEs-Because we were satisfied that justice
would rendered Us in that judicial district The opP
They wanted the proceeds OF the sale OF that stock aud
get 1t instituted criminal proccedugs We were sa1
stood show for justice. Mr.. Drew's opponent
would have taken him Ivy the neck aud said Fork oNr
ftuN q nFg gl1G 70 toll In uf
been down knees at once and the Ere foad
would have passed into the hands Of a monopoly .,o
RcpOrteWhat Will he the effect of the passage OF the
bill now before the legislature at Albany provided tue
III Fiske-It viii bo a wet cloud over the heads OF
our opponents They will De compelled TO sell that
lse So more e. stock sit if they Wish
Reporter-What Is this bill passed yesterday by the
NJ Fisfs-Bcsidc other facilities it gives us power to
Pep1r,cy-Then II the Albany bill fails you viii fan
back on .Jerseyl
NJ. FiSlc-Certanly. Build offices at Pavona, and DO
Se%YoTE S RgT Business N'"''s''ey "1'H We ' 81 ''
MT. FiSte-Then we shall stay here uhul we ROT lhs
ia battle between right and wrong, and we nave no
such was the puiport Of Mr. Fiske's statement. and
such Is the position from the Drew STANDPOINT.
IHL yfEw IRON NANDLiiiiLL siANplO,,SI' 'oorG.
dent No reporters are allowed 70 see him or the mem
beGs Of his staff All referred 10 his lawyers Inc
grounds which the Vanderbilt party base t4er action
will be found IN the abstract Of the speech OF iiofaoe
printed elsewhere In the time the great hght IS
the allabsorbng topic OF conversation on rallToad-
ment o the parties IS eagerly watched and heavy bets
are being made as 10 the result OF the hght.
THE ERIE FIGHT AT ALBANY-AEGUMENTS BE-
FORE LEGISLATIVE COMMITTEE -bRIL-
LIANT ARRAY or COUNsEL-TIE Drew
PAITY's DEFENsE-DAMAGING CHARGES Bl
MIR. HORACE I. CLARK.
~ TELEGRAPH TRIBUNE.
ALBANY, March 20.-A very important argu-
ment on the Erie Railroad bl heard by the Assembly
Committee on Railroads this afternoon On behalf Of the
Erie directors and management Messrs Jno Gan'on OF
Buffalo Jno. H. Reynolds. Hamilton Harris, and Peter
Cageer OF Albany and exJudge Porter of the Court OF
Appeals appeared and behalf Of the Lre stockhod
ers. Messrs Charles O'Conor. Horace J. Clark and
Chauncey NJ Dcpew OF NewYOrk, and e1-Goy. Sanford
L. Church.
The argument begun by Mr.. Ganson who admitted
that the Directors OF the Erie Railroad had converted
Of bonds into stock and then put into the mar
ket They did so because the vretchcd condition OF the
road necessated the spending of large sum Of money
and this was the only way which could be raised lie
claimed that in 80 dispong Of these convertible bonds
they had acted within the bounds Of the general railroad
law OF 1880 the general construction Of which gave
them that privilege This bill. on particular, simply
egalized that transaction Mr.. Clark asked, n the d.
rectors were acting IN legal manner why did they ask
for the passage OF this bi Mr GanSon replied tha the
Erie Directors and their counsel satisfied with the
and d persons are holders OF this stock and under
the impression that they have been sw!ndcd the d.
reciors had asked the passage Of this BID to quiet thfr
fears Another provision OF the bill gave them the right
10 make connections with any road as they might see ht
He claimed that the Endorsement OF the bonds Of another
road was made authority given by Law passed in
They asked that they Le allowed To- make connec
tions with certain Western hines 80 that me public could
have thorough broad gauge line from Nev-N 70 the
! West. Mr.. Gausons argument was bnef .. A., .
Mr Horace i. Clark opened the argument hslnst VIC
| hv
capita employed railroads IN this State would not De
yortb cent on cvcr1 dollar II did away with all pro-
, -, cnptal.ts and II passed vohid drive capital
out of the State He appeared lh heha OF th owners 1i
100000 shares majority Of The Shareholders OF ne rudd
He was very severe IA his ricurcs upon ge behavior OF
the present management of the road charging that Drew
had used the stock 10 benefit the stockholders or tho
pubc but TO influence the stock In Wast. aud
enrich his pocket He asserted that the present
cement Is In the hands of party Of whom Jno :.
| road solely IN the interest or a NeN-l-hElaud rodl
| namely the Boston, Hartford and Erie. Eldudge Is
President OF the aternamed road and lac ana his friends
have formed eQpbinatos ana go possession o Ia. Lie
| road 80 that he may ndorsc 100000 worth OF the
bonds Of tLc Hartford and Erie road which Is 10 beAe
m Kew.England solely, and which cannot be built IN any
SheE ESor. wp Ia d q2nf a Enc m ho1S SI Ky; ~ ,S 2
said MT Clark-O an Illegal act ana they would not dare
face the judiciary, but must go ana skuI another
state Nh Clark claimed that under tho 9th section Of
the General Railroad law, no body OF Directors OF rail-
road had right convert ts bonds TO increase its cap
| TAI until twothrds OF the stockholders had voted
| that they should have the power. This Board
oaRScSef ' Under the Of the 6l
consideration the Erie Railroad could indorse the bonds
of any other railroad 10 unlimited extent No resrc
| tons whatever were placed upon them lie denounced
all proceedings now before the Court The Erle dlIec,
tors not face the Courts and let them decide upon
n As Mr Clark Was physically unable to proceed with
his 6enHient ~ the evening session after some dis
cussiOn the COmmlHe defded 70 aG some hc SGs
@'nS Was Counsel % for "ff Frank wcrH in tho original suit
before Judge Barnard was put on m te stand nc m, ne Tgs
in NewYork after which Mr Clark said that the Erie