New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-12
THE COURTS.
THE ERIE LITIGATION.
CRIMINAL PROCEEDINGS TO BE TAKEN

CRIMINAL PROCEEDINGS TO BE TAKEN.
II is reported that the charge made in the
last suit that Beden against Vanderbilt, that Judge
Barnard was q cOnspirator with Mr.. Vanderbilt ana
others 10 speculate in the stock Of the Erie Railway
and TO use the process OF tho courts for the purpose OF
aiding these spcculatioas" has led criminal proceed
ing 1t rumOred that the matter is or shortly VIII Pc
nder the consideration OF the Grand Jury Of this county
The motions in the Drew cases were yesterday before
Judge Barnard by adJournm0nt, put were ny MN u
iourned Saturday next. Mr.. Drew's answer To tho
petition for ms removal is as follows:
Daniel Drew for answer TO the petition herein Dens
duly sworn. says: That he has had large experience IN
the affairs OF the Erie Railway Company, aud he denies
that any want OF honesty prOprety OF management
has prevented the stockholders from realizing profits ana
he denies that had Il not been for matters alleged ny Ie
peon the business OF the Company would be profitable
and yield large dividends 10 the Stockholders nnd rely
inc on the advice ofcOunse he denies all the allegations
of the petition as to the legal effect and contents OI
statutes reports and certificates therein referred To- save
"a said accord with the language Of said stat
utes reports and certificates; ana he says tha nc Is d
vised by counsel and he verify believes that the esa-
ons i'm the petition on the OF the amount OF stock
which the said Erie Railway Company are entlticu "
issue not true. and he therefore denies the same &
denies all the allegations Of the petition 10 the eeot
that he exerted an undue OF confronting ihhu ~
ence in the Executive Committee or Board OI
Directors OF the Erie Railway and denies that
nc caused any portion Of the policy to be adopted OF any
one OF the measures any part OF the action 10 10
proposed or taken which is imputed TO him, or made
the subject of complaint in the petition. so far as he
sad measures. he did so in good faith and in the
else his best Judgment for the interests OF the Ere
Railway Company and in so far as his support or CO.
franchise by the Enc Railway Company he acted on me
advice Of one or legal advisers whom he had Iea-
son to believe and did believe, to pe competent " give
such advice and IN such support ana cooperation nc pc
neved he was only dong what part Of his right
and duty as an officer of the Erie Railway Company. In
regard To the allegation relative TO Specializing III stock
he SAYS they not true any other sense as to The Ire
Railway Company stock than TO the stocks OF other
companies it being the fact that he has III the course OF
his business, bought and sold stocks OF various com
panes, and sometimes he was Interested IN the rise anu
sometimes in the fall OF their stocks and IN these anu
other particulars he exercised his calling In like manner
as other persons in the City OF New York engaged III he
general business Of buying and selling stocks Ana
far said allegations are intended 10 remain OF Py
than the above, they are not true In regau 70
Otheralegauons deponen says It Is not true hat ne ge
any pecuniaIy nducement 10 DIT. beIuSI OF t.a. 'l'
Berdc interested In any way win deponeht ~ re,
gard 10 any stock bonds received by depohenI 0i
the Erie Railway Company NJ the time referred 70 ia e
petition, or In the year 1866 lhat WINE upoeh - ios
able speak accurately rs to the sale Oh STOCK 'ue iG
some months prior 10 May looe ne lo'he peat "a ~,
belief and opinion denies the allegations except 10 le
best of his recollection he had sold Erie stock to con
siderable extent during tho period referred to. And de
poncnt denies that made sales 0 Erie stock as alleged
in acquiring 2s00 shares OF STOCK or the
100000 OF bonds That he ala not desire TO haae OF
take said stock bonds, and II was not on MS IO0a
or request that issued or delivered to h;
take the by the solicitation OF members OF the Board
OF Directors OF the Enc Railway Company, ana because
they ureed and believed that 10 the best thing That
could be done for the Company under the circumstances
And depOnent denies the allegation 70 the eet hat tHe
proceeds Of the sale OF the bonds made IN suD
be applied 10 relieving said 5000 shares OF STOCK Ito
been hypothetical to depOnen that WINE portions OF
the contract relative to said stock are SGT forth correctly
neous as SAID contract and he says that he received only
$4,000 said shares and not 5000 shares and deponent
that he did loan to the said company sum e4u 80
Gu per cent on $1,000 shares OF their stock ana s3O0
Of their bonds and that he received as collateral thereto
thereof; that dcpOueut authorized To sell ana as
pose OF the same was necessary to enable MN 70 com
gaSv 1n' DoP f,yrI tbcv desired security TO The
amount of 81 100000 which he gave them. aud lie also
agreed the security and demand lis money
until they could pay Tie same out Oh thelr surplus earn
audit m Ia "A
nnt ~ icb SURPLUS canngs that in regard TO the allie
gallons To supprcsiBg report OF stock, deponent
Ing report OF the stock dcponent has been advised
and believes that. there being u right claimed by the
Company to have said stock returned TO the Company
was not proper TO report the stock US part OF pefn
nent stock OF tie Company ana ne admits nat ne aus
posed Of said stock ia the usual manner aud denies mat
under any circumstances ne can DC ac'ount5oo 10 ctuh
to the Company more stock than he receyed-wbleh was
5000 shares aud dcponcnt denies mat however largely
short OF the Erie Railway stock as chhrSed III the coi
paint though De under contract To deliver c0nfd
ethe amount 81 stock h. deuce me otIer alie cations
contract De- entered into. lie did not propose or sug
Tut il having been proposed by Others he acted In regard
the m coed faith. and Is he believed the interests
tain other ellie cations except that the resolution referred
90. passed Dec 4, Hl though general was explained to
t0n referred to- and drponent believes that such facts
were known 10 every member OF the Board that Frank
passed aud heard said explanation. aud the resolution
PISSED unanimously, and doponent mover intended to
charged stock being issued alleged And deponent,
in respect the transactions with the said Buffalo,
bradford and Pittsburgh Railroad Company, further says
that said road connects with the Eric road ut about 90
miles west " Duukirk that leads into most valuable
bitumuOus hcas n Pennsylvania having the right 10
several short branch roads into different coal sections
that the company several thousand acres OF these
very valuable coal lIuds that ws OF great Importance
10 the Erie road control this road a. To be free from
the exactous Of other Western roads over which they
must otherwise obtain supply OF coal Tor the
use Of their road its Western portion; that
n was deemed best 10y the directors, aud de-
ponent believes 10 for the best interests OF the
Eric road To make the several contracts wth ana utl
maely lease this road as was done that besides the
needs OF tie Erie Company for coal there was the add
toual onsderatou. that the demand Tor the coal Tor
common use In this state rapidly Increasing, ana
must soon be- OF great prot 10 the Erie Company
Aud deponcut says that several contracts were made AT
iereut times hrtwecn the two cOmpanye but the lease
of Inc Rufnlo Bradford and Pittsburgh road was made
ON and not after s6C that by said lease the Erie
Company agreed 10 pay the bonds O The Bradford foa
which had been used Ia the construction OF their road
These bonds bore an interest OF per cent and were
convertible into stock The statute authorized the cN
change Erie stock for the stock OF the said bradford
road, and 10 was thcrcupOn agreed between the Com
NAMES that the holders Of the said cent bonds
IN which Tie Eric road LIABLE might be converted
INTO stock then exchanged tho bonds 10 50 per cent
for the stock Of the Erie Company ~ par ana IL was done
The effect OF this transaction that the Euc Company
relieved themselves from the payment OF seven per cent
interest on aud ultimately the principal OF bonds,
nav dividend on an Of stock only 20 per cent
greater when they should earn and declare II.
h' d. DREW.
Sworn hefore mo tins 9th day OF March 1863