The New York herald., 1868-04-02
NEW YORK LEGISLATURE.
SENATE.
ALBANY, April l, 1868.

ALBANY, Aprn l, 1868.
THE RAILROAD WAR.
Mr.. PIERCE from the majority OF the committee
appointed TO investigate the alairs OF the Eric Rat.
road Company presented the following report
The conclusions of the majority are that the evil
dence must satisfy any fair minded man that the
issue OF the ten million bonds, subsequently con-
verted into stock, procured by Drew 10 be used
by him self for private speculation, and utterly re-
gardless of the Interests Of those whom he was bound
to respect. IL is believed that Eldridge, the
president, and Fisk and Could directors, were
concerned and probably interested with Drew in
their corrupt proceedings. These men, 10 escape
process OF our courts, whose mandates they have
violated, have sought shelter In New Jersey. Your
Committee caused these men TO be personally mott.
fed for exam nation; but they refused to trust them
selves within the jurisdiction OF the state. Your
committee IL informed that they have applied to the
Legislature OF New Jersey for protection but cannot
believe the authorities OF that state will inter-
fere with the chartered powers Of corporation
from the merited responsibilities OF their conduct.
There other transactions Involving the deal
tasS or highly eTSi reprenensiSe % cSarac,eT G hs
particulars OF which VIII be found In the
evidence submitted. The company has guar
contemplated railroad from Boston to the Hudson
river, OF which company the said Eldridgc Is presi'
tons to build railroad from Akron 10 Toledo Ohio.
These acts have been done without consulting the
stoekholders and without authority OF law. Your
committee infer from the evidence that the persons
named have very little, II any, Interest In the stock
or securities OF the company and are quite satisfied
that they have taken advantage or their position
and influence for purpt OF private gain and enou
ment The committee believe that within the
principles established by the Coart OF Appeals 10 the
Schuyler case the stock Improperly created and
fraudulenty put In circulation is nevertheless valid
and binding against the company IN the hands or
bona nae holders; hut a. bet Ncen those who have
been injured by the above mentioned wrongful acts
and the persons who Committed them, the former
have legal remedies In the courts. The committee
have considered what, " any, legislation should be
adopted In the premises. Although the franchises
and privileges granted by the state baye been used
for corrupt purposes, yet 1t must be re-
rnembered that this has been done by
faithful agents and not by meritorous agents.
Justice demands that these agents should be re-
moved ebut as the courts have ample power over
them the committee have not deemed II necessary to
infroauce bill for that purpose. The committee.
however, recommend the adoption VI the following
reaOlutiOn:-
Resolved That the frauds and abuses developed
by the investigation OF the management of the pre-
sent directors aud officers OF the New York and Erie
Railroad Company demand thai increased penalties
Tor snch Onences shall be imposed for the protection
or the stOckhoiders and the community;
and that the special committee conducting such
tnyesigailon be, and they hereby are, Instructed
10 report a bll making It feioniors Of
fence for any director or o1ccr to fraudulenty
issue tie stock Of The cOmpany In which he holds
such trust or 70 convert to his own purposes the pro-
cee1s u any stock bonds or % ftanduenty take or
carry aUay 70 another Stale Or with like intent