New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-04-06
THE ERIE WAR.
ARGUMENTS OF MEssRs. BURT AND sHEARMAN
BEFORE THE ASSEMBLY COMMITTEE


BEFORE THE ASSEMBLY COMMITTEE
On Wednesday, Mr.. Burt, the English STOCK
holders agent attended before the Assembly Committee
on Railroads TO urge the passing Of the bill repeating inc
Directors Classification act Tho Hon. f. L. fatrck Oh
Chemung presided. There a full attendance Oh 'ho
members. and many Senators and others were p'''eH
ARGUMENT Mr.. BURT.
Mr. Burt commenced by reading the Classincatoh ACT
of 1862 now sought to repealed and IN effect repeated
bs argument before the Committee, and as TINS
WAS free country claimed to refer to what occurred III
that "other place" He characterized mr.
jay Goud's arguments in support vi inc
passing OF the act as "oonsplcuous ny 'ho'i
absence" and called on Mr.. shearman' VINO was
now in attendance on behalf Of the Directors 10 JUSTIFY
the taking away Of the stockholders chartered s"S
hind their backs without their consent or notice gwen 10
Them He referred to the evidence Of Mr. Edrdge as to
the payment of $4,000 OF Boston. Hartford and Erie
money TO Jay Gould to buy proxies to secure the Ene
election OF 1867 and explained the devices by which
Gould FIX and Lane got a ., or rae eo COO shares
in the names OF Smith. Gould. Martin * CO., most OF
ransferred. and many thousand other shares in the
names OF people doing business with Gould ana FISK ana
Ne btery COMPLAINED of the conduct Of the Directors
In applying for the Classification act as preach OF Tue
trust reposed in them by me Il bcy
all combined for the purpose appointing any otheI man
ayers OF eT HAP % act iV was EXCEPTIONAL IN
nearly every other railroad the country having the
power to elect whole Board yearly and showed tha
The English law which required only part Of the Board
to go OF Office yearly, enabled the stockloners 10
able Directors at any time besides having the right to
appoint nspectors &c NO act OF farllaneht couu op
o OF the stoekholders in general meeting No
mortgage or bond stock could be Issued wiihout
the e da NOT but
that as they did exist here the only practical power
the Erie stockholders had was the rght OF appointing Tue
WIN BOARD yearly. He reiterated tDe cnHTPe VI
provident and wasrefu MANAGEMENT by Gould ana aisx
those who had caused them. The issue OF tmIty.two
millions OF new stock In one year was Iraua upon
who did not consent to the new issue, and upon
the purchasers OF tho new stock thls chentsl. as
t tosl capital Of instead Of suppose
said Mr.. Burt. you bought barrel OF whisky marked
with high class brand, first quality and found It good
you bought a second marked the first and found 1t
onehird water; and buying yet another 9ranaed ea
that one-half water, this would be like my clients,
who bought these shares ana did not know the real
quantity Issued until January 1870 when the report was
published Only 81 100000 could be accounted for In the
published statements aud Mr. Gould did not attempt to
explain where the rest had gone The adoption OF the
passed only device Of the Directors to get another year
Mr. Burt defended the combination In England as alb
soutey necessary for the protection OF the
held the Companys purse. He ridcued the idea that
this national question. as Gouiu sougnt 10 MAKE ~
He doubted Goulds statement that he had been obliged
To- nav a shilling share on 2OOOO shares said to be car
ried by his party in England but II u were true ~ was
expeced that AT The next Executive Committee which
Gould, Fisk and Lane present. the President would
The Company and the Controller Mr. Fisk would
Inc the account and find it correct the Treasurer tsr
Could would he ordered 10 draw check for The amount
he would instantly do. so that the Brshers would
after all pay three.fifths OF IT,
Mr.. Burt then turned upon Mt Cronch, whose addess
10 the senate Committee behalf Of himself as holding
5000 Ere shares and las alleged OF English shareholders
Was published at the time III The TRIBUNE Mr. Crouch,
saiJ MIR Burt is believe a contributor TO PunohneIo
and The Sun. lie wrote pamphlet last December called
COPY i'm the Senate Chamber Mr. Fisk took him into his
entire confidence, showed him where the money had
gone, took him over the line and treated him IKE
prince. He says in his book. Fisk had been written up
repeatedly IN his character OF speeuator operator man
ager and admiral but not as q railway inanager; 80, 30
Mr. Crouch rushed ill., obtained the vacant place ana e
result Is before us. lie begins with frank statement
that "all matters pertaining 10 charges OF watering
stock gold cornering. unlawful appropriation OF 1uhds
&c. preferred against Messrs Fisk and Could must be
ruled Of this chapter as altogether irrelevant
Mr. Crouch claims TO hold 1000 shares bat 1t was sug
gested this was mistake for 5000 IL was clear tha he
held shares when the book was written. ne speaks
with contempt of the comparatively uninportahd qles
stockhclders" Mr. Fisk informed Mr.. Crouch that
good road tOday aud can do an enormous amount
Sept 49, 1909 against s4s7ss7a Tor The year
sgdIg p b. ls HSws a ,s sass s sns vs
mil h lS dosls no wonder Messrs vanderbilt Ramsey
n Co. we n s
Now, SAID Mr. Burt. II you turn To Mr.. Goulds
ending 3O sept 1862 you VIII find that they more
than 81 900 less than the FiskC statement and
upon this MIR. Crouch bases all his atery of the
management Says Mr.. Crouch. again The present
managers are OF the period little In advance.
anything" do not believe the first part Of this, said
Mr. Burt and if the public sentiment aud the public
journals speak truly land, says Mr. Fisk through nir
ably fair aud impartial" the present managers OF the
Erie Railroad great deal in advance. II nythng
IL reserved for Fisk and Could says their Literary
Laureate Crouch, ITO rescue the Atlantic and Great
western from bankruptcy aud impend1 ir ruin as
tlene, that should be rescued after that manner Mr.
Crouch says 1.-THE impression generally prevails that
ever in charge of Erie" lie condescends refresh
nent tables and ntimates that all the railroads In the
country would do well to learn from Fisk and Gould how
supply press correspondents with refreshments when
travelling the line He dwells again upon the $3.50
600 increase ia earnings 6sooOCo more than the real
increase). and then gives Mr. Fisks explanations OF
sl4.5OOooO expended in new works, &C. but that Is q
bogus amount. for Of the moneys entered as paid
are still owing by the Erie Company. ,
MI shearman- is that an official statement Of the Com
Mr. Burt--well, Sir, it is Official in this sense. Mr.
Gould aud Mr.. Crouch here representatives OF
Mr. shearman- No. Sir not at all.
Mr. Crouch-No, Sir; came representing distinct In
terest as stated To the Senate Committee.
Dir. Shearman-Mr. Crouch had no authority whatever
MI BurI-In the Senate Committee Mr.. Crouch said :
allowed 10 inspect the books so far as wanted
and examine the road itself IN fact had every
portnnity 10 obtain the Information desired. That IN
formation was published here very extensively ana no
point has been denied. And on the papers reaching
England the parties represent concluded to hold
their stock long as there Was any prospect OF the pres
sent management remaining "A WOius OF
Mr.. Cfpuchs address 10 the Senate Committee will,
think apty follow my quotations from this pam
phet. mo better illustration Of the sublime impudcnce
With which the English stockholders have been imposed
upon from time to time by their American friends Is
needed"
Mr. Crouch-No better illustration than WHAT
Mr. Burt-Than what ! have quoted from your book
Mr. Crouch-Will the Chairman allow me To finish the
sentence which Mr. Burt breaks OFF SOL abruptly lie
destroys the sense Of IT.
The Chairmanwill Mr. Burt give way for Mr.. Crouch
Mr. Burt think it will be better to go on with my
remarks Sir. Mr.. Crouch explain apologize after
ward. He the condition OF the road thus The
men engaged the line make only one serious
plant against the and that Is the excessive
seyerY OF the discipline enforced, aud the rgor Of