New-York tribune., 1872-02-29
ALBANY.
THE CONTEST WITH ERIE.

THE CONTEST WITH ERIE.
,ra.I sPARRNG-THE ATTORNEY GENERAL Ac-
CUSEs MR. sHEARMAN OF MIsREPRESENTA-
TION-THE FRIENDS OF THE PRESENT BOARD
ONE THOUSAND ELMIRA VOTERS DEMAND
JAY GOULD co. RETAlNED-EDIFYING AR
GUMENTs.
IBY TMBGRAPB TO THR TRIBUNBl
lIBANY Feb 2S.-The Assembly Committee
n Railroads met this afternoon 70 hear argument OF
uusel IN regard TO the Erie Railroad legislation Be
soe the proceedings began Attorney Barlow de-
.,red to say few words in personal explanation OF Ger
fsin accusations made against him by Thos. G. Shear
man one Of the counsel for the Erie Road, at the last
meeting Of the Committee, which were lately published
charging him he Attorney General with having sought
intimacy with Judge Barnard and cOrrupty applying 1or
a recelyershp in the suit Of Carpenter agt' Inc
Market savinga Bank Leave being granted, Gen. Bar
low read written statement which he said had Deen
mad by Judge Barrett and also Judge Porter one OF the
ounse that matter, who fully agreed with what was
written The statement denies all the allegations made
Gen Barlow characterized the statements OF Mr. Shear
man as "wully untrue" Mr.. shearman bore the I'M
putatOn upon his veracy with great forttude though
he made an effort Justify himself by asserting that MS
information was derived from the friend OF both Judges
He had made the statement at the request OF Wm. "
Rarret the uncle OF Judge Barrett, who received MS
.tormatiou from that Judge himself, and Judge
Barnard had said he sorry he could not
soue here 10 makeithe statement himself The COmInl
te then prooeededtO business. Judge Smith OF Elmra
.d he was with Lucius Robinson and others
t prent the views of the citizens OF Emira. He ex
Seted MI Robinson would have been here to speak
but in hf absence lie would like TO say something him
se6.
TIE CITIZENS OF EIIirRA N TAvoE OF TIE PRESENT
MANAGEMENT
He then re0d from written paper, IN substance,
as follows: We are here representatives OF loOC
voters Of Lnlra who feel that they have legitimate
h. boav al
and persons having an interest IN its legislation,
particularly that bill relating 10 the Erie Road,
which is intended 70 change its present management
With which they satisfied. The change may
work harm. Under the old management up TO 1867 the
tack and the rolling stock allowed TO get in such
An unsafe condition tnat IL dangerous 10 travel on
the road yet it then paying dividends the object
Of the be made again only pay dividends instead
o. serving the public, may expect that the road will
fall into the dangerous and unsafe condition again.
Since 1867 the road has been lifted from the worst posi-
ee condition 10 the BEST has good road bed and track
~ any the world. It's engines equal to any and
Ne cars excel all others The public along its line has
complaint make and that IS the only public OF which
fhave any knowledge. II has appeared frem suit In
which Nj Fisk concerned that only $540O00o0 out
doveT tSO,OOOOOO owned by foreigners, and the
change sought by foreigners but not by citizens Of
New York other States These men were owners OF
e Atlantic and Great Western, which inefficient
poad II they get control OF the road it will fan into
IKE decay We have In Elnira COO men employed in the
manufacture of rails used this road, and II these for
elgners get cOutrol Of it these rails viii furnished
hom England. Judge Smith then proceeded with some
remarks which looked very much as though he desired
70 impress the Committee with the belief that
be represented only the pure and undefled
country districts, but really succeeded in
showing himself only too well acquainted with municipal
siokery. He concluded by earnestly protesting on be-
half of that multitude Of 1000 Elmira voters"
against any bill aiming at change in the present man
,gement Of Erie which would alter the present policy in
the interest OF the public to policy in the interest OF
Axdends and shareholders. To question OF Mr.. South
xayd as to how many Of the thousand Elmrians men
roDed obtained their livelihood from the Erie Railway
h professed ignorance In answer to one OF the
Committee who asked, III you were stockboldcr
20 the value Of half q million, and wanted TO
net nd Of the officers and directors who were njuring
1ou what would you dOP He said: Il should try TO
make my stock beneficial to self IN tine usual way pro-
yided bylaws Of the corporation; should not come
here IL was defeated stakeholder TO seek to remedy
ny defeat by act of the Legslature Tls bit Of sat
s4sm would have been better appreciated Judge Smith
had pointed out how the bylaws could be made to ala
the defeated stakeholder. letter from Lueius Robin
con OF Elmra was read, ncosng resolutions adopted
by the Council OF that city, opposing the repeal
Of the Classification Act,
Mr.. soUTHMAYDs ANSWER.
The Chairman desired TO know, if the convertible
eat what is the indueement TO turn these bonds into
,,ocki Mr. southnayd said, in The pretense
OF issuing convertible bonds was the merest sham IN the
world; they had q right to borrow money and issue
bonds for it, and the law gave them Incidental priv-
teeee when they borrowed 1900 for the purpose Of con-
b,rucing or operating their road 70 glve the lender
pryilee Of turning 1t into stock at any time, the idea
klnc that sometimes the stock may rise above par and
would DO TO the interest of the lender 10 dispose Of it.
is perfect evasion Of the law they borrowed
money on these bonds but went through the sham of
pretending TO issue bonds, which were Immediately
turned into stock. Mr. Shearnan said 1t makes no diff
ference whether the process was real or sham, the
bonds we're really issued This very question as to the
legality Of the issue Of the Douds was considered by the
The gantcmln's partner, MI Evarts at time, end he
advised proper to defend the legality Of it.
Mr.. southmayd-Tbat statement is utterly untrue
Hr shearman-The firm OF Evarts soutbmayd &
Choae received $1,000 from the Ere Railway Company
m 1861
MI SOuthmayd-That is not true.
Mr. shearman-Ihe gentleman's partner agreed with
that whatever may DO the morality Of the transaction
hwas a legal tone. fMr shearmans yeracity having
been by tus time sufficiently called la question: he
allowed % proceed urinteTuptediyl II you took the
bonds lcstmen 10 pay interest year by year you
Woal- sink the road al The parties who took the
eold would have attempted TO collect their interest
he read could not have paid them. they would have
Attempted 70 pat the road into bankruptcy
hW'd Aa been sold for ust enough to pay the mort
Gaees The material The stock valuable because
he.e va always q speculative demand for that; 1t s
on " the finest speculative stocks Oh TIE street, since 1t
va oIcamzel ~ it's At one timo there was a great
saeula We nOy,uelt il the stock. and these convert
Die Jouds sold at about "a That was under the
kst prtcoe ng direction II was carried as high az 50,
ead me DeJus who bought the convertible bonds e1-
chang them FOR ttock whic1 they sold at profit
don't eny that there has beer all manner OF charges