New-York tribune., 1872-12-06
THE ERIE-GoULD SUIT
IMPORTANT TESTIMONY OF s. LIN. BARLOW.

WALL-sr sPECULATIONS AND GoULDS ARREST
A COINCIDENCE RATHER THAN CAUSE AND
EFFRCT-TIE TERMS OF THE OLD ERIE
DIRECToRY's SURRENDER IN MARCH-TliE
RELEASE SIGNED BY GEN. 5ICKLES ONLY 10
BE CONFIRMED BY THE NEW DIRECTORY On
THE yERIFICATION OF GoULD's STATEMENTS.
Sim Barlow, Director Of the Ere lsail-
way Company, having signihed his Willingness 70 answer
nertucnt nue,ons relative 10 his knowledge Of matters
coming within tho scope OF the suit Of the ETC ha"'
Company against jay Gould. Messrs- fieil anu 0no
man Counsel for the latter prepared the questions noteu
heIovy 10 which Mr. Barlow gayo the, corresponding
renIies which are TO be used with view to the making
M an affidavit I'm behalf of tho defendant on motion 70
yacate the order Of arrest.
The main part OF the testimony relates 10 the terms VI
surrender agreed upon in March IN tho hegolaIohS -"
tween Gen. sckes and Jay Gould. Mr. Barlow ciailnS
that while Cen slees was an authorized agent OF tpc
new Board OF Drectors the release given to the rerng
President was not absolute, but was 70 DO cohnrmeu
by the new Board after the books had beon care
uIy examipea and.Mr. Goulds statement that he had
not been guilty OF any msappropraton OF stocRs or
funds had been verified. The suit against Mr dou nau
been i'm contemplation two weeks before tho " cor
mel" in Chicago aud Northwest, ana tno oo,
ect OF Nr. Watson In insututnG n"u
causng the arrest OF the defendant to recover what
belonged to Erie and not to benefit any rhquo III "a
st. The bail fixed upon did not appear excessive ana
the witness did not suppose that there would be any de
Law in procuring It, The evidence is published below IN
full with the exception Of few questions winch nir'
Bariow's information did not Justify his ans~erng'
O. Are you an officer OF the Erie Railway Company
aud were you such Nov. a. and are you sun Sueh
officer A. Director. am counsel OF tne ooinp'HS'
and on Nov. o.
O. When we're you first appointed Directorf A. on
Mach II ts7a was elected Director and appointed
Counselor.
O. Are yon ono Of Committee appointed to prosecute
tbis action and IL so, who the other memberst A.
am not.
O. When was 1t hrstdetermincd TO bring this suiti A.
Many months ago. unless then pending SUIT was iou'
after a thorough examination OF tho accounts by Mr
Watson be sufficient TO cover the claims Of the CO"
pany against the defendant.
O. Who first broached the subject to the directors oi
the Companyl A. don't know at different times Gen.
DIX Mr. Homan. Mr.. Lansing, and Mr watson spoke Oh
it as necessary whenever the facts could be obtained
O. Was there suit already pending for the same cause
OF action and 80 was thers than one, giving inc
titles OF all such suit or suits and when they begun
A. remember only one, the suit in which Martin
& Smith appeared.
O. Was discontinuance Of any existing suit had with
a view to the prosecution OF this suit and II so when ld
such discontinuance take pacoi \. asked my part
ners to discontinue the suit then pending on the morning
of Now 2 1872 before the beginning OF thls one anu
believe 1t was discontinued.
THE ORDER ARREST.
O. Did you on that morning expect'to get the order
OF arrest on that day A. expected chat my partners
and Judge Porter would obtain the order at 10 O'CLOCK
O. Did you make any, and. II SO, what effort towards
Il A. had arranged to give them the papers Tor that
purpose which not all ready until a. NJ OF that
day and they were to the Hall at 10 a. M Tor
that purpose.
O. Were you at the Court that day. and II So
at what time, and what you there fort A. was
not.
O. Did you send any word or cause ans communica-
ton TO be any persons In Wast or IN Broau-St
respecting the order of arrest II give their name
and occupation. A. did not that communicated
the fact that expected TO have the order by l0 a. H.
and that Could would probably be arrested before H. to
Mr. Trayers when the order did not come from the Han
by sent messenger TO inquire the cause oil the
delay; ! learned that my partner was st IN c0nsuta-
on with one or Of the Judges and would soon be
down; about l2 sent again and urged nate; a9out -
~ / rstand, the order was granted, ahd ~ wa
served at once; it obtained at the earnest prdcu
cable moment and served Immediately thereafter
q. We're YOU at that time interested ia the common
stot X OF the Chicago and Northwestern Railroad Com
pany, or in Erie Railway stock ana II 50, 20 WHd' -
lent and how long had you been so nterestedI A. llI
no interest any way in NorthWest was an owner or
both and preferred Erie; purchased part siA
months or more ago, and the remainder aDou NOf' -
my total interest was 2,1OO shares OF Ere. =,
o. Had you at that tmO any contacts Outstanding IN
resDect to the said stocks aud II SO, what contracts A.
o. We're YOU interested in any contracts not made with
yourself personally, but in respect to the SAID SocAst
A. None.
o. Were your friends Interested in the said stock or
any contracts respecting IT, and II so give the names
o. Did Won AZ anytime have any interview with Henry
n smith in respect the said order OF arrest or in re-
any contracts for the said stock any time between the
Ist nd the 22d OF November as aud If so, when was
Interviews did you have A. had repeated interviews
with Smith for nearly two weeks Dsi9rs he sur, always
none as stocks though understood that he was m
terested as = stoch sPecuator III ''I4ouS 9'o0A'' u
g. Did he give you any information in respect to your
clam against Mr.. Gouldf A. had no claim; he gave
me Information the counsel OF the Company almost
UV' o. We're Won shown the books Of tho firm of Smith,
Could Martin 4 Co., extracts from them, ana II So
when Tor tue first mei A. first the books OF t.c
drm about Nov Is or H. am not certain as to date.
THE EVIDENCE AND THE BAIL
O. What effect did you think ,the arrest Of Mr.. Gould
would have upon the price value OF the stock
OF the said Chicago and Northwestern Railroad Com
panvf A. had no opinion as 10 It's effect on North
West believed that ian earnest effort 10 collect the
money due to the Company from the defendant would
probably enhance the market value OF Erie stock but
this had nothing to do with this suit in any way either
time Otherwise in fact, Mr. Watson believed
that the suit could have been begun many days before
but from day 10 day postponed solely because he could
not finish his accounts and 1t was nearly midnight ON
the 2ls that he was for the first time able TO swear to
the affidavit which the order OF arrest made.
@ Did you think that Mr. Gould was largely interested
In the stock or In contracts for its pure ehaset had
heard that Messrs. Gould, Clark, Sehe and others Ia
combination with them we're the owners ofall the capital
VI Northwest but know nothing ON the subject.
Q. Did you Lot suppose that IL would cause great de-
probation In the prices A. know nothing, had no
opinon and did not care.
O Did not think IL would cause him TO fail in the
performance OF his contracts A. No, as supposed
from what had heard he and his friends above named
owned the whole capital. .,L add r- . L.. ....
O. Did you not think that word be fatal injurious
TO the recovery OF your claim against him A. or
course knew that his failure would damage the Erie,
If he failed honestly but this suggestion made
by any one; had no idea that he would fell.
O. Was any, and IL so, what effort made 10 obtain an
order OF and holding TO bal IN upwards OF nine
millions OF dollars; II who made the effort and by
whose direction was 10 made A AL the counsel OF the
CompanY. Including Messrs. OCOnOr Judge POrter. and