New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-04-06

MIR shearmap-J did NOT write It. Mr.. Gould Is ono or
that argument Mr.. Gould is q man abundanty able to
take Of hmsef and he only desired lnnt ora
appear here to-day because he Thought IL wouiu W @
fair to that what he had to say as LAWYER
should DO answered by lawyer ana hat ne snoulu %
GUS position OF appearing as tho stockholders
and az the same time claiming to be re@rst IT for
his own sake regret Il for the sake OF he nrodncea
credentials from the holders Of the 100000 shares OF stock
which he says he representa- ,..x
produced evidence OF that and, the contrary am
instructed claim that my clients own and represent
majority OF the whole stock OF the Company nm,
In speaking OF the litigation against the Directors ana
Company. he said there had not been one OF them
conducted In fair straightforward manner and that no
sockhoder had made an honest demand to see tne
accounts of the Company am not aware ware Saa u PIT
NEW .YOKK TRIBUNE and Nen York Times have IN de-
msndng that the accounts Of the Erie Railway COMPANY
shall be made public. I do not know what right Tue
editors Of The World have to know what contracts have
been made by that Company or to know al apo9 o mi,
knowledge loudly though they controlled majority
Of the stock although believe not one OF them Owls
Mr. Littiejohn-You state. Mr.. shearman, tina: stock
holders have never applied information about the az
fairs OF the Company DO understand you TO state tnat
fact your personal knowledge, or as counseI lor
MT Shearman-I state it as counsel that is the repre-
sentaon Mr. Gould and OF the other Directors nave
MT Llttieohn-Then understand this to be their
statement, made through you ,,-,,., >. ,,or,d
Mr. Shearman replied that as an Individual nc wouid
that lie had had excellent opportunities within sas
last year OF knowing whether any ssh 9Sn has
clients to the principles or theory on which the aGt o.
1869 was passed. He referred TO the Pittsburgh Fcrt
Wayne and Chicago act as similar act passed to pre-
vent the diversion OF majority OF The STOCK from f
protect the railroads OF New.York state from being
grasped by the Vanderbilt Influence, an influence when
provide soe permanence aud safety railroads OF
this State and that they should be managed by men WHO
York" He did not approve bill being made aPplca
Bile to bit that had been remedled ny
hold al
regular gwen that the meeting would be held
Mr. Burt-Wil you kindly tell me what holice tnat
Mr. shearman-It was a notice in the newspapers.
You will find that it published regularly for 80 days
before the election. Now Mr. Burt says that at that
| meeting Messrs. Smith, Gould * Martin held l6OVo
shares Well gentlemen II they did hold 100000 shares
| had not they right to vote upon themi 49,. ,,o,
MIR Burt-Those shares did not belong to them Ihey
were shares already sold, and belonging partly to my
| clients. NH, l., 80 o,,ouooo y, ,ha. ,oro o,d
Mr. Burt cannot produce any evidence OF II but there
were $4,000 other shares represented at that meeting
Messrs Gould and Fisk.
II they owned majority OF the stock they had right
stockholders are bound by the resolutions thus passed
denied that 900 shares held by Gould and fsks
agents. and among those who voted for the resolution
there appeared the names OF H. Raphael sons, some Of
Mr. Burt explained that it was stated on Mr.. Goulds
paper that Raphael Sons did not vote MI Shearnan
contended that they had notice and knew the time cleo
and could inquire by telegraph whether any other
business was to be transacted at the meeting beside the
| ordinary election.
The Directors had only OF the shares under
| their control before the meeting.
Mr. Burt said there were 10000 shares. OF which Mr.
Mr. shearman replied that proxies revokabe. and
that not of them was paid for or any peouhiaJ con-
| Mr.. Burt-Do you say that lawyeri
Mr. Shearman-l say II az what has been represented
to by my clients and because 1t was told me IN pri-
in such way that am quite willing TO risk my
reputation upon ITS truth as am upon any statement
made to me by gentleman OF the truth OF which nave
Mr. shearman then referred to the resolutions passed
at the meeting, and said that Messrs Gould and FISK
me other Directors lie said that as counsel for the
Company he had never been asked by the managers 10
had been asked to do things which he Thought were
not for the interests OF the road but he had only TO s9
gest this in order have such things abandoned He
had always drawn the Companys contracts stringent
possible H. said Mr. shearman, were to speak
the road should say that never been able to find
where these fraudulent acts charged were commtted.
have never able find where the vialny comes IN
have looking for it very anxlosy Ihaye thought
iS , they ws' must know ali about it. and
that when entered upon the service Of the Com
apd they WSo On edsd such
fear s"s sD but s"f an
! sion for fear or trembling" ,
Mr. shearlnan-No. siroas a man aud now as a law
yer say think 1t is no slight tribute to the char:
acter gentlemen who III the management or
the Erie Company that knowing as they ala how par
ticular in regard to the MANAGEMENT of tie officers
careful that no injustice should be done TO the
Company, and how strongly determined was that It's
should not suffer they soPhded their affairs TO
OF superior and OF very high character gentleman
never done dishonorabie action gentleman whom
other side would have been glad TO engage for them
selves IL they could have done so-Mr David Dudley
Field Mr. Field has been chosen by the Erie Railway
Company their adviser, and. trained with Mr. Field
sonal honor aud when retire from the service Of this
Company. am perfectly willing TO do whenever Mr.
Burt prepared to take place hope 10 leave such
a record as that Mr. Burt himself will say have
done the best that could be done for the interests Of the
Mr. Burt thought Mr.. Lane the counsel
MI shearman-Mr. Lane is the senior counsel, but he
engaged special matters OF great magnitude. which
entirely occupy his time that the details OF the office
business the direction OF contracts the general conduct
OF the lawsuits and such minor matters have been lett
Referring then to the principle OF the bill apart from
its retrospective operation Mr. Sherman contended that
as state New York had the Company 100000
II had right to say that the Erie Road should not be
made an instrument of extoron, and that for the
benefit Of the public and the state Itself the
of dividends showed that 1.-THE Erie Road had been
the great opponent Of monopoly and had kept the rates
Board the only fault found With the chief Directors was
that the rates had been kept too low II new Board
H. representing no interest but the stockholders
they would double the rates OF freight which would
duce the amount of business only onethrd and save
great expenses WORKING so that dividends could be de
cared Immediately. Low rates brosght large business
but Uccasoned large expenditure The Legislature
regulate rates OF freight by legislation They can be
regulated best by directors having an interest with the
and the Legislature might very properly interfere
10 prevent roads from passing, from one year to
who would use 1t simply as an instrument for making
money without regard to the interests OF the state
without This act there would be 1uctuatiDg policy
which could not be relied He instanced the Harlem
Railroad proving the necessity FOR such law. The
above "a certain point Many cottages built the
faith OF this but the stockholders dissatisfied at
the total absence OF dividends. Board elected,
who doubled the OF communication and the villages
along the road did not recover the blow for ten
had provided railroad and steamboats, for their
accommodation Railroads have no rights superior to
fhna fhns llir ara al an Va