New-York tribune., 1873-03-20
TESTIMONY OF EX-SPEAKER SMITH AND
MATTHEW HALE.

Mr.. llale's testimony couoborated Mr. Smiths, so
far as the latter gentleman was concerned; and
with reference TO the use of money TO influence
legislation last Winter he said he had no knowledge
that anything of the kind was done No lobbyists
were employed to bis knowledge by the English
| stockholders for whom no acted as counsel and he
! could not swear that any were employed on the
other side. great many persons living on the Inc
of the Eric Railroad were in Albany last Winter,
and their sympathies and influence were known to
be in favor Of the then existing management of the
road but he could not say that they used money to
influence legislation on the subject.
The Committee will hold its next meeting in New
York, at the Fifth Ayenue Hotel, on Friday Of this
week at 10 a. M
MR. SMITHS STORY OF THAT S1,5OO-How HE
WAS RETAINED AND WHAT HE DID-MR.
HALEs ACCOUNT OF THE ERIE CAMPAIGN
PLENTY OF LEGISLATION BUT >" NO MONEY
IN IT.
GENERAL PRESS DIsPArCH.I
ALBANY, March 10.-The Erie Investigating
Committee met this morning at o'clock at their room
in statest an the members being present, except Mr.
Opdyke. Eyspcakcr Henry Smith and Matthew Hale
before the Committee, and gave testimony the eX
animation being conducted by Messrs. Baucock and
Carpenter.
Ex-sPEAKER SMITHS STORY.
Mr. Smith being duly sworn testified that be was re-
tanned counsel by Gen Barlow Jan. l. in suit to be
brought by Bschonsheim and Godschmidt, represent
ing certain branch Of the English stockholders This
was the first time that he had been spoken to by the
Attorney General who slid that the English stockhold
ers had resolved to undertake suit against the Direct
ors OF the Erie Railroad, and that the suit was to be
under the direction Of Gen. sckes. Gen Barlow had
concluded to bring the suit and had been instructed to
employ counsel, who were to be paid by the English
stockholders, whom sckes represented. Gen. Barlow
determined to retain Mcssr5. Hale, Trcmain and Smith
as attorneys and on account Of his opinions regarding
the judiciary in NowYork decided to bring the suit In
Albany. The reason given why said counsel were se-
lected was On account Of their familiarity with SUITS
against the Erie Railway Instituted by Ramsey and
others. Mr.. Smith stated that he was at that time
member OF the Assembly; the symptoms were that he
would be elected Speaker and he at first objected to
acting counsel III the suits as he would not have time
10 attend 10 legal business. Mr. Barlow stated that ms
sc ryocs were very important and that all that would
probably be needed from him would be an occasional
consultation in NcwYor and that he could attend to-
THAT $500 FEE
On January he received a note from Gen. Barlow
incosing check for $500 This was deposited IN the
bank in The usual course Of his business and used by
himself for his purposes. 1t was all the money re-
ceived from Mr Barlow There nothing said about
legislation or influencing il. lie was not informed
by any one, directly indirectly that any services
would be required influence legislation, and had no
suspicion that the suits IN any way connected WITH
it. He only sought, in any legitimate way to obtain the
repeal of the EIie Classification act and to secure the
passage 0; such laws would give the Erie stookhod
er5 the proner control Of their aiahs and the road
through proper Board OF Directors.
ERIE LEGISLATION.
The bill known as the "Attowcy-Generals bin was
drawn up and reported and was pending IA the Com
mitee OF the Whole. The intention Of the bill was TO
suspend the existing Erie officers, and there was bill
Iafrf Is
election aud the exhibition Of the stock list, and 1t
provided that no Director Of the Atlantic and Great
Western should be Director of the Erie. He never was
before any committee while he was Speaker except the
Judiciary Committee, and then not on Erie Railway
matters. He did what he could to influence legislation
in favor of the Eric stockholders in proper manner
and no more. He had been connected with the Ramsey
suit to remove the Erie Directors; also with suit
brought by Mr. Burke He supposed that all the logsla
on required would be to secure an accounting from the
Erie managers Of their proceedings and expenditures
and the only reason for tie change OF reu OF the cases
was for the better success Of the suits Mr. Smith
further testified that he had connection with the bill
known as the attorney Generals bill" He had
letter from 3r. Barlow 10 come to NeWNora when the
engagements OF Mcssrs Trclnain and Hale would permit
to consult as to the complaint Mr.. smith mad no
knowledge. Information or suspicion that money was 10
be used TO influence legislation IN the acts passed by the
Legislature last Winter and not to his knowledge was
MR.. HALEs STORY.
Mathew Hale was next examined by Mr. Babcock and
testified that he was employed by the Attorney General
as counsel IN the case He not whether he was
spoken to before Jan not; thought that Mr. Barlow
did speak to him about ii few days before that hme
Mr.. Barlow told him he had been applied to by Gen.
sIckles who represented the English stockholders, to
take the cases. and that Mr. Barlow was 10 have control
of them and to employ proper counsel and TO fix their
compensation. Mr. Barlow employed him, also Mr. IRE
main and Speaker Smith, Mr.. Barlow said at the same
time that il would probably be necessary to procure
some legislation, and that he employed Mr.. Tremaln
and Mr. Hale to that end. Mr. Smith was in the Legs-
lature and Mr.. Barlow would have TO depend upon MI
Tremain and:Blr Hale to do the most Of the work. On
Ian he received letter from Mr. Barlow containing
81 900 as retaining fee counsel in the suit OF the En
gsh stockholders against the Company and he was 10
be counsel before the Committee of the Legislature Inc
retainer understood TO come from the Bschoishem
and GOldschmdt party Of which Gen. sckes was agent,
and not from the state The counsel not to look to
the state for payment for services He was employed
counsel before the Committees and TO draft such bs
necessary 1t necessary afterward to obtain
information from parties living on the line OF the Erie
Railroad relative to the acts OF the Off GERS Of the road
before anything was done.
PLANNING THE ERIE CAMPAIGN.
He went TO New York, early In January with Mr.. IRE
main They met Messrs. Barlow, slckles, southmayd
and James c. Carter, and consulted with Mr.. Smith.
Mr.. southmayd represented the Heath and Raphael
branch of the English stockholders, and he understood
that both they ana the Bschosheim party were to act
concert In suits to oust the Erie Directors The con
sultation took place at Gen. BarOws house, In New
York IL was agreed to bring the suits in Albany. Mr.
southmayd was TO draw the bill Of complaint, and sub
NIT Il 10 the other counsel before II acted upon
MI Tremaln and Mr. Hale were 10 draw the bill for the
Assembly relation TO the suits against the corpora
tions and the bill to repeal the Eric Classification act
was drawn by some else. MF Tremaln drew the At
torney. Generals bill, which handed to Mr.. Tobey TO
DO introduced The Erie bill to repeal tho Classification