New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-28


became evident that radical reforms could
not be carried out in the one unless they
wero at least attempted in the other For
instance: one of the first acts of the COmmo-
dore's administration was to cut off the dead
heads Under the old Corning Richmond
regime, every man who knew a cousin or the
niece of a director or conductor on the Central,
got free pass. These passes the Commodore
stopped. On the very next day, the rejected
dead-headsr of the Central were rendered
free passes over the Erie. Certain favored
| parties had enjoyed privileges as to trans
| portation of freight When these were taken
away and everybody placed on the same foot
| ing the Erie fastened to tender its offices to
the disappointed ex- favorites 1t was so through
out. Every reform attempted by the Commo-
dore was neutralized by antagOnistic action OF
| the Erie At length, conference was sought
and had with the Erie managers. The Com
mod0re had right to expect that Mr.. Drew
would cooperate with him. For, at the Octo-
| Der election, Drew had been almost unanimously
| expelled from the Erie direction, and had only
| been restored, on his fearful entreates ana
promises of faithful administration, at the in
stance of Commodore Vanderbilt. Yet the very
first conference showed that the Erie managers
meant mischief and the inference was forced
upon Commodore yanderbilt's friends that
| Daniel Drew and the other controlling minds
| in the Erie direction were interested adversely
to their own stockholders, and could not be
relied upon to carry out any reforms which
would improve the value of the Erie stock, or
enhance its market price.
This was early in February. The Erie cleo
ton did not come off till October. In the in
term, board of INSCRIPTIONS managers, bent
on running the property intrusted to their
charge, might do much. The Commodore be-
came satisfied that, in order to make the Cen
trail what it ought to bc-the best property in
| the Countrywide must own the Erie also. lie
began to buy the stock. And, meanwhile, APP
| neal was taken to the courts. The Erie was
peculiarly vulnerable. Two successive reports,
on OATH had been made to the Legislature, III
which the actual issue of stock had been under
stated by over five million dollars. The stock
! thus over-issued, and of which the existence
was denied in the sworn statements OF MIR.
| President Berdell, had been issued at GO cents
on the dollar to Mr.. Daniel Drew, who was
VIGOROUSLY "short," and-as he testites
himself (see his afidavit)-interested in
| the fall of the stock There was more
| over, dark transaction about lease OF the
Bradford rOad-a road which led to some coal
| mines that were excellent in every way except
| that they contained no coal-a road built by
mistake, and which the owners (nO connections,
| cf course of any directors of the Erie) leased
| 10 the Erie Company for seven per cent on its
| cost. Now this lease, as a lease, was liable to
be Cancelled any day by a new direction OF the
| Erie. il il could be shown that it was fraud on
| the Company. Well it was somehow convert
ed into stock, and thus 10000 more shares were
| thrown on the market. There was another
dark transaction concerning guarantee of
certain bonds issued by a corporation in New
England; and yet another, involving the Erie
in responsibility for the liabilities of new
| corporation in Ohio. SO, OH the whole, there
was ground enough for an appeal by the stock
holders of the Erie to the Courts for protection
against the acts of their trustees, the Direc-
| tors
How the appeal met how injunction
| crossed injunction-one Judge enjoining another,
and one stepping in to impede the action
| of another COURTS painfully remembered by
| all who are concerned for the faithful admin
! istration Of Justice in this State. Under cover
of an Injunction issued on false grounds by
a "sick judge 1--WE quote from the record,
! Mr.. Drew and his co-drectors contrived to issue
ten millions more stock They had, of course,
no more light to issue this new stock than Mr..
! McCuloch would have to print and circulate
surreptitiousy hundred millions of new
greenbacks. But, as Mr.. Director Fisk said
to John Bloodgood (see the affidavit Of
the latteO "You almost broke us when
/ r.. lut ha
with YOU YETI so anxious were they TO
abe even with" their poor stockholders who
had the hardihood to put up the price of their
own stock, that they actually purloined the last
five of the ten millions of spurious stock from
the Secretary, and issued it without his knowl-
edge, and without providing the Company with
any vouchers therefor. (See evidence of Secre-
| tary II. n. Otis before the Senate Commttee).
| They were not men to stick at tries. Rather
ethan not carry his point said the same Direc-
! tor Fisk to n reporter, Mr.. Drew will issue
fifty millions more stock" Mr.. Vanderbilts
| friends were not far wrong, seemingly, when
they concluded that the Erie direction did mt
want their stockholders to grow rich too fast.
We have said that, as between Drew and
Vanderbilt, few people have any choice. But
they do compare oddly, just now Mr.. Van
derbilt sits in his office in Fourth-st., buying
Erie about as fast as his opponents print it,
and he can get the money to pay for it, and
preparing for the day-it may be as late as
next October-when he shall try, fairly and
squarely, to make it good property, instead of
being the opprobum of the railway interest.
Mr. Drew is a fugitive from justice in hiding
in New-Jersey seeking to arouse public sym
pathy by the connection of Munchausenish
tales of attempts TO kidnap him; sending to