New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-06
ALBANY.

chs
len the oyer-issue Of stock by the great raiVa
hecteu VIZ "a ma nroyed TO be the most intelligent ana
vi VIZ nosted witness the Committee have hau DO
.se,, ne did not refuse to answer Single qu
,ion His replies quick, comprehensive "n t.t
ut His lawyer, Hamilton Harris OF Albany was 80
Tim Int Mr. Gould did not in single instance aoA
.r,oa The examination was not coDfneu 10 'no o."
Scr, ~ the oyerissue The Committee ASKED MN III"
nerable questions about Railroad and Oaha n"N ss
-, Generally his ideas about monopoly, ana tno u"
or. Arising therefrom THE only safety OF the Eric t
@ras in his opinion. the general ralroau ID" WI 7,
lowed the conversion Of convertible DohuS lnO - d,
81 had not been for this provision, there was ~ ~
The land which could have prevented Eanuei "a h
V A., o.sossior ~ the Erie Road, and II he had ne
,ia ave had the greatest monopoly this country N"9
.yer seen In fact II would have been III MS ~ "
sov avery day whether -four should DC ono VI -, -
A barrel IN New.YOrk The Pennsylvania i. a.,
-. vi, central have made common cause against Iho
Erie Road The Pennsylvania Centrai hAIo"u :.
'" ., +bat state; and that body does as IL
s,,,os The avowed object Of the Central ROAD Is 70
1,,d an philadelphia and try and ipjure the uauo VI
nawyorE. but so long as they have IN Tue Li'o Nv
competitor they could not do that As an Instance '.
,,over Of the Central over the Pennsylvania L@sSa''
he ueDtioped the fact that the Central hau iou 60
No fGoulN and others had obtained enough s'o'A =, %
,,,,hrh Fort WAYNE and Chicago Road 10 cohlroI 'he
o,t election for the Board OF Directors "hc wouiu
,ske Mace In few days. The new boaru "ouiu nave
entered into contract with the Erie Road by when the
latter would have had connection with Chicago Inc
central could not stop this scheme except by bill pro-
bbtng the election Of new Board OF Directors or sew
oro, Years The Legislature was asked TO pass such
nj, which they did and Gov. Geary as promptly signed
st Al present the Erie Road hasno direct intercourse
with Chicago There are 27o miles OF road to be OBJ
sained and Mr.. Gould frightened up when he said
h, tba Erie people we're determined TO obtain IT. He
said with good deal OF PRIDE that no had succeeded IN
Obtaining broad gauge connections with Cleveland; Gin,
Them but it would be reached. Mr. Gould made the
statement that the canals were gradually ceasng to Pe
formidable competitors Of railroads He avowed that IN
years they would not even be able to compete with
the iron tracks II he had his road fully equipped MS
he liked and as he Will have IT. II allowed TO do So he
would carry grain IN bulk from the West to NeW-lOIk
much cheaper than the Erie Canal could afford to.
Mr.. Gould took possession of the Presidency OF
the Erie Read he in doubt about his ability TO save
At from bankruptcy. The Board of Directors at the
meeting which elected him President authorized the
purchase S. 100000 OF the bonds OF the Boston Hart
purchased s. 100000 Of stock OF Mr. Vanderbilt costing
Ss5OoOOO, and added to this, they gave M Vanderbilt
subsidy Of about SOOOOO0 There were other large ex'
penses which made total OF about S9oOG9o. FOR TWO
days Mr. Gould in doubt about his ability TO carry
the road over these obstacles H. SAID ne any one
had known the condition Of the Company at that time 1t
would have failed Immediately, but, by keeping my
own counsel. succeeded IN carrying II through We
could only use the money raised upon conNertlDe
i Ho9' cpersnF and eSuippEg the road and was
Obliged these s9OOOoOO OF obligations from month
pose, and by being myself very heavy borrower on my
3ndlvldua credit Then Vanderbilt. who had agreed to
withhold $OO0O OF stock in his possession, threw on
the market and tlmbled stock way down. but failed
to swamp the road We obtained for these $50 OF
believe about 49, so that we realized about 100000
and save MS from bankruptcy n it had gone into bank
ruptcy the bonded debts would have swallowed up the
road and the stockholders would received nothing
The bonds quietly negotiated by Mr. Smith Of the
firm of Smith, Gould Martin.
The Committee asked Mr. Gould about the purchases
he had made for the road and he stated that when he
took possession Of the road he found coal company con
trolling certain mines and charging the Ere Company for
coal whatever they thought fit He picked out the
best coal mines along the road them ana thus
whereas before this purchase they paid W, making
tie result OF breaking up coal combination that has
been charging exorbtant prices 10 the West Inc mines
thinks they are the most valuable piece OF property
the road The also purchased valuable water
IoOU to unload freight The price paid was 100000 The
purchase Of Pixies Opera House was private
OF an individual, with which the Erie Railroad has
In explanation Of the large increased receipts Of the
Central over the Road. Mr. Gould SAID that the Erie
Company capable OF making more money, put Ihey
more liberal pOllcys
and build up the country through winch 1t passed
Centrsi viii show mat Erie lad stood still
while Pennsylvania Central had increased. -Four years
ago the Erie koad earned sosOO anu Is Snd IN
creased 81 900 year. while Ere has gone down
THIS was in consequence OF the Pennsylvania Road hav
ing formed combinations with the west while the Erie
did not. But lately since the Enc mas MADE connections
than the Pennsylvania and Eew-York Central Roads
Mr. Gould thought the law authorizing the issue Of
convertible bonds into stock was good and so long
as 1t unepeaed he will act as he has done hereto
fore II the law repealed Vanderbilt would get
troll Of the road and have his monopoly lie was asked II
amendment requiring the consent OF the stockholders
would make difference, u Vanderbilt owns the
stock The it stands keeps Vanderbilt from carry
ing ont his design.
Mr. Gould stated that the only way the HewYork Cen
Company begin pay dividends the large in
crease Of had made TO control the Erie. They
pay dividend fer years to come, while there is
competing road If they had control OF the Erie, they
would have control through 70 the Pacific Ocean They
could regulate the price OF freight to suit themselves In
consequence Of the Erie competition they obliged TO
pro rata. and the Erie has the best dopos IN New
York gets more Of the freight than its rival The New
York Central Company issued two millions on road
aud now they issue 20 per cent on that stock
and their whole stock, making the whole amount Of
their stock actsay abOst 100000 There only about
80 miles OF the Ere Road 20 be doublettacked. The
Company laying down nothing but steel Ia and they
There has broken steel rail- this Winter The
whole main line has got u be steel Al Jersey City, they
the other They have worn out Elk iron rails
while the steel ones are just worn bright.
their investigation into the contract between EXCom
InissaryGen. Palmer and the Roberts Breechloadng
Arms Company. Gen. Palmer and Col. Burt have been
examined IL appears that the breechlOading patent
adopted by board OF officers, and the Remington
aud Roberts companies competed for the contract 10
change the muSke ~ was awarded 10 the latter com
pany because their bid 81 less each uusket than
were required to pay for transportation OF tie mus
kss each way clean them, and pay the salaries Of the
particle OF evidence TO show that there any cOrrup
t9n whatever In the awarding this contract.
There nothing OF any special interest lone in either
House to-day. The members seemed anxions 10 Lnr-v
M their work and adjourn until MondHy W h1r
majority OF the Senate Judiciary COMMITTEES have ro
ported fayOrably Senator Folgers bill to submit the
new CONSTITUTION, as u was printed IN THE TRIBUNE's
member Of the Committee, has made minority report
There was slight fire, oceasoDed by an oyef-heated
afternoon Besides destroying part OF the floor there
was not much damage done
Tha Alma al xraa