New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-03-24
TIE ERIE INVESTIGATION

LED LOBBYING EXPENSES
An the members of the Erie Investigating
sommittee Of the Assembly we're at the Fifth Avenue
Hotel on Saturday. Mr. stickuey appeared ss counsel
Cor the Committee and Mr. Mcfarland Tor the Erie Ra
xny Charles f. southmayd, Of the firm Of Evarte'
southmayd h Choate, and Charles Day were the only
witnesses examined The session closed early IN the
afternoon the books OF the Company not having been
produced II rs understood however that they Will be
brought forward to-day, and that Mr.. Watson and Mr.
BARLOW, the present President and counsel OF the COM
paDy, will give testimony.
TESTIMONY OF c. T. S0UTHMAYD.
Charles r. sOuthmayd testified in 1871 the firm 10
which belong instructed 10 take such action as
might be necessary for the removal OF Fisk and Gouu
the management OF the Eric Railway; aced 10 DC
hall of Heath and Raphael the London Protection Oon-
ltiee Of the Erie stockholders, who represented sn
worth about Sl5OOo0 there being law OF 1865 winch .
CURED that sneh should be carried Oh .orot
,he and knowing that at that time the
then was in favor Of the Erie IN'ao'
thought II would be useless to apply 10 MN 'ne
wAs therefore, laid over until tue heioiin o 1880
ls7l When Gen Barlow was elected ATTORNEY -"e"i',
sfier Gen Barlow bad got fairy ih'o oi"0''
.,ak measlres IN conjunction WIN hIm' ~
80, The Erie managers 70 make restitu-
,,on 20 The stockholders; Mr. Evarts and myself were
The persons who called upon him; he asSehteo tua' ~
proceedings should be carried on, asking thAV ne &c
httorneyG euera should retain control OF the sun Ho
at the time stipulated thtt Aho o''''O
demnifed for any expenses that might be lheuireui
was in doubt whether the Attorney General was egay
entitled 10 pay for his services We OF eouIse "o"u
have preferred 20 pay him, but on LOOKING over INC "a"
he finally came 20 the conclusion that he Woud receive
no nav directly or indirectly; Gen. sckes soon al'er
made another application of the same nature as ours on
behalf Of Bischofsheim a GOdschmidt; as they were
largely interested in the Atlantic and Great Western
Railroad We supposed 1t was their intention 10 make
Eric subservent 70 the former; we were somewhat
Jealous Of them, hut finally concluded TO unite our
forces and drive the enemy; from the state
Of the judiciary in New-Iork at the ume' we hne" II
wac of DO use 10 apply courts here so II was arranged
the suit should come on IN Albany, anu lST. Ss
were retained IN that city; MI Barlow suggested 'nat
onusel should be employed who resided there, ana Ly
mau rTcmain, Mr.. Smith, and Matthew hale Wtre re-
tanned AT fee OF $3.50 each MT carpenter was az
pointed associate counsel IN TINS clty the bppVu.ne'
of Henry Smith was fully assented to oy me nc Was
member of the Assembly at the time, aud he aferWau
became Speaker put TINS h'd hoi,ns sY a. me srit.
with his selection OF the cOunsel IN tIe si.
arranged That the preparation for the bill Of COM
plant should be III my hands, we ueeiueu mat we
tLoud support allegations against the managers
ly direct evidence. and we thought It better 10 SET soe
smart fellows TO work to ind out deias soe tT
net wac reported iavOraby IN both houses N a rev
weeks after came the coup detat of Gen. sckeS, OF
which We knew nothing; Mr.. Smith was retained as
lawyer only his advice considered 0 s1ch value
lived t6e an 800 which bv some mistake stated
having paid to rue by sickles never received
dollar from Gen. SicRles or his agent as Mas speeia
retained by Heath Raphael; the counsel were retained
in December before the legislature met anu te re; nam;
lug of Mr. Smith had nothing 70 40 1lFectt vi 'H W.
reetly with any interest he might be able 10 use IN the
legislature knew OF no nFey T9hg eS Tsga ' in
TACT, 1 do not believe any such money was
p UsSS HE Heath & Raphael of London had
agent Mr. swan, in this city to conduct an tne aus
fIe expenses borne by Heath Raphael nor do know
that the BscbOfsheim Goldschmidt party nave been
90 reimbursed the latter, however, got possession OF
the Treasury, and might nave thus reimbursed them
selves Gen sckes placed the $4,000 in the Attorney
~ han ds a a counsel the COuI
eel who had conducted the Ramsey SUITS albany and
Geuera; when / went 10 Albany, personally assured
fbe Railway Committee Of the Assembly that there was
nsed Oh our side to procure legislation, whatever might
have been done 10y the other SIDE.
TESTIMONY OF CHARLES DAY.
Charles Day, a director Of the Erie Company, test-
FED: was not one Of OLD directors in the Erie Rail-
road but knew OF the change winch took place before
II occurred; l had frequent conferences with Gen.
ejcEIes on the subjects personal knowledge Of
the amounts paid directors 10 resign; OF that
know nothing; know that Mr.. Crouch received $4,000
for his services received 5000 myself in connection
with the matter have knowledge OF any other
,uns am not positive by whom the payments OF the
$4,000 named previous testimony were made have
no knowledge OF further sum OF $4,000 being PAID II
II was paid in Europe at the time there was some
discussion last Fall at meeting Of directors TO refund
90, sum Of $4,000 which used 70 procure legislation
ia Albany the New-YOrk Central was equally interested
m the oh, that was being carried through and made a
Lain On Erie pay its share OF the expenses the claim
was made IN the form OF written request; there
W. gooI deal OF discussion the matter but the
final conclusion reached the passage OF Dill alpfo-
priating $4,000 TO pay the claim there was opposition
made to tie payment OF the claim several grounds
oue that money should not be used IN TINS
Imow whether the New-YorA Central received the
money II was not stated az tne ue Hhst Diauo " n
legislature had been lnnuencedi 1 returned 5Ioi. ron
A. none ~ time the election in july 1872 don't
Know any money being used at that time for the pur
Ie of efIecting change in the direction there
meeting Board after returned prior to the cleo
The proposed change l was charged with special
mission on behalf of the Erie Railroad while was in
Europe while in Europe Mr.. Bisehotshelm very
iTequenty had some conversation with him relative
70 the Erie loan which was placed upon the market
there wac no one refresen1ng Ere present res except
"A one OF the conferences there were three OF
the directors Of the Eric present IN al ON
lal capacity and that conference the terms OF the
sontrast were arranged between the Ere Railroad
Bischofsheim according 10 the agreement the latter
wac paid out OF the proceeds OF the sale OF the
bonds for money advanced by him; there some dis
agreement about the terms which Bischohsheim wanted
for negotiating the bonds took part In the discus
son as authorized 10 act ana Ielt decate ia
The matter; money was at that time wanted IN New
York, and Blschofsheim was 70 advance S4o09Oo; ne
was himself from the sale OF the bonds then
- tue h1 boSsS 70 be too high and one Of the directors
present said BscbOshem ought to take less an effort
70: Bischofshem claimed that he had expended extra
ordinary effect the change IN the direction OF
sa matter commission IN order that he might relm
burse himself for the outlay The names OF The new
ehmidt but was their interest that they
elected the arrangement for the sale OF the bonds was
that they net the New-YOrk Board par in cur
rency, ar they gold bonds; do not know at what
price they put on the London market there
about SGOOOOO0 OF the consolidated bonds deposited
with the Farmers Trust Company, and about $5,0OO0OO
with j. Morgan Sons, and out OF tue sale of the bonds
,heb were placed upon the London market these par
fes were to be paid their commission know nothing
sbOut the claims made by the Farmers Loan and Trust
I,cmpapy; the commission paid to Morgan
shout one per paid Gen Sickness expenses here
M Crouch left for London Immediately after
mn. oyerturp and came back III January, 1872; the
teryIoes rendered by Mr. Crouch were various he
we'll aeauaued with the members OF the old Board aud
- n ~ be In The cIA