New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-03-01
ALBANY.
ERIE GOING UNDER.

IAN fHB REGULAR CORRESPONDENT OF THB TRlBUNEl
I,p.NY. Feb, 29-Yesterday the Senate Jul
49, committee and the Assembly Railroad Commit
~id their last public meetings the bill to repeal
Erie Directors Classification act and provide for
election by the stockholders. 1t looks now rs II the
- ~ the Erie Ring will be directed to stop legsa-
- with the simple repeal OF the Classification act
-, thew cannot prevent, but they will be satisfied II
O. can secure the defeat OF tho stringent bill
49, by Gen Barlow to provide for election by
80 Genuine owners Of the stock. AS the majority OF
a. stock though not owned by them, still remains regis
..d IN the names Of those who compose the ring IL Is
-, that some additional legislation ia necessary 10
ppeuent the mere repeal OF the Classification act
D., sone weeks persistent efforts have been mace py
bcs Of the Legislature and others TO str up prej-
oe against Gen. Barlow. His bills are denounced by
men who have read them, and systematic plan
a carried ont TO befOg public opinion. As an instance
Ireser 10 A four-cOlumn article from The Eimra Dd''y
IHc,rtser which has been forwarded to every member
=, ,he LEGISLATURE. You will observe that not single
,0pAs objection is made TO the bill. the arguments be-
INC in the main those used by MT emlth III MS "PPe"i
Asforo the Committee yesterday.
Tho Erie managers sought and obtained legislative
.a and is not unfair that the power should be
Invoked to aid the right, especially as the courts have
been used to nufy the intention of the Legislature
In view Of the claims OF the Erie Ring and Its friends
The testimony before the Committee should be laid be-
fare the public Continuing the proceeding yesterday
now GOULD MANAGED THE STOCK.
Mr. Hale said they elected new Board Of Directors
beore they classified; they found themselves able by
issue OF stock TO control the election anu
they did it.
MI Ramsey said the large amount Of stock thus Issued
vas standing in their Jay Gould has test
ned that he sold the bonds himself and his firm and
other brokers' and they converted 1t into STOCK WINCH
was registered in their 1t was therefore,
the greatest folly the world for the stockholders 10
sppea and try 70 vote because they could be outvoted
huIlyns
net less than nine months previous the election OF CO.
It utterly that up TO that time there had been
any refusal TO transfer It, The transfer books were
closed thirty days before the election and the usual
notice given, and application was made to trapser
prior TO election That election Of 1869 therefore
perfectly legal.
Mr. Ramsey-In ices they issued 100000 convertible
bonds which were legalized after the election Of Jay
Gould they issued sll,99lOOO, and then SS20oOOoO,
making nearly $A,OOOOOO issued between the
Arst election Of Gould and the second, and
de most Of that stock was standing in the Of
his friends The total amount subscribed IN 1867
sOOOOc adding the 100000 it would be s95OCOOOO
before his second election had issued more
this Oyerbalancng the 0OO The sale of these bonds
was authorized by the Executive Committee of which
6oud and Tweed were members Before the owners OF
the stock could get condition to vote upon it, they
got Up this Classification BILL putting them in five years
longer instead of using the raised for the use
OF road they used for stock gambling operations
WHO LOOKS FOR JUSTICE IN NETWORK coURTsf
The Committee-If these people did Illegal act, why
ard MT the stockholders apply to the courtsi
Mr. southmayd-If youhad the experience in the New
York courts which some others have had you would not
have thought of applying to them for justice The OBJ
icct bill is 70 the actual owners the
night have the stock transferred TO their own Dames
Heath and Raphael the agents 20 whom the English
steckhOldeFs ntrused their certificates II II stood IN
their nsmes, they could vote upon It; the sub
stance Of is very simPlei IL Is that
these managers have intruded themselves into
session OF our property for four years, and
have wrought most extraordinary results TO the meu
dice Of the actual owners. They have adjed so3SO0O
reports do not pretend 20 show more than SlNOOo
expended on the road Ihsy nave Iu ' ne I and
the income We cannot afford TO have TINS property
managed any longer by these The provisions Of
this iii may seem dscOureous TO the managers Of the
road surprising they would DO Things they ought noI
70 do, hut they have already done them.
"P.GHT Us WITH oURsOwS MONEY FOR YEARS" -
Why have Mt we gone 20 the courtsf Well, IL would
se good thing for the other side to remain in possession
Of what they In the courts we should be reached
N about eight years. they would fight with
money and have advantages which am sorry to say
some OF our courts affords them. We all know that
the power Of the Supreme Court il In the Gen
eIsl Term. which Is the appellate tribunal
The City NewYok and that two OF the Judges Of that
court are the very men whose SSS now uHIe
q the Hudson River OF Harlem becoming director OF
this altered. private Dill Tue
Atty unaffected The dscrcdit brought the Amer
name by misconduct Of the Eric managers has
caused much loss OF foreign capital.
GOOD MAN IN A BAD CAUSE.
Judge selden said: / know nothing about Judge
BAInards action, but do know that you cannot make
any laws which corrupt judges will not disregard.
think no one will doubt the wisdom Of classification. II
measure unlikely TO meet the views Of any wish
Ing to gamble stocks to get control Of companies
They shCud have tried the question OF the legality O.
tA- election in the courts Tie conduct OF the men has
nothing 70 do with the act itself. The principle OF
just Law is enduring This Company has wen served the
fble TO either patrons owners. 1 object 60 this
bill because Of the provision that the term OF ONCE OF
pairs obligation OF the contract made with them.
Any interference with contract winch changes them IN
directors hold their Office by contract by accepting the
ONCE They engaged to perform certain duties RnQ that
obligation could be enforced against them The Pres
Dent Is serving under express contract with the
company at salary The directors are serving at per
4eps The Constitution provides that no person shall
b deprived OF life liberty OF property except by due
process Of law.
There probably at the present time not less than
including member s Gem James S
Wood the Chairman OF the Judiciary Committee,
the Investigating Committees report 70 have borrowed
money OF Jay Gould, which money he still owes.
seneor Madden Of the Senate Railroad Committee
and II is suspected that Mr.. wOodin, the Chairman
Pro km. who appointed both Of them 10 these impor
nt positions IS also Eries man, Although the majority
both the Senate Judiciary Committee and the House
ksitosd Committee are in favor Of repeal, this by no
.lssm settles the question The Democrats Will have
plausible for voting against BaIOw's bills, be-
essst they his bills Let Republicans. however con
S ost we oe,ts which are aimed at and not disgrace
themselves by hairspltHng and verbal criticisms, for
Ut VIII Lot deceive the public
RED POSTAGE STAMPS.
ZEE STAMP NvEsTIGATION-THE MEN THAT