The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-29
THE ERIE INVESTIGATION.
Mr. VIM. M. Tweed and His Little
Bill for Legal Services.
INFLUENCING LEGISLATION AT ALBANY.

a Sum Of s13l, 900 Paid to tho Boss for
Legal Disbursements the Money Of
tho Shareholders Was squandefed.
The Erie Railway Investigating Committee re-
sumed yesterday morning, at ten O'CLOCK at the
Nfth Avenue Hotel. All the members oil the COM
mittee were present, Mr.. Babcock In the chair.
w. Archdal O'Doherty, w., A. Beach, Mr..
Archer, Mr.. Barlow and number Of other prom-
nent persons who formerly had connection with the
Erie Railway were in attendance, and from their
appearance It was evident that the session would
be one Of unusual interest. Those who expected
this were not disappointed as the facts divulged
were OF the most startling character. The bill
paid to william M. Tweed, $lsl, 900, for legal SER
vices, produced deep sensation, as 1t is new
feature In the revelations Of Erie. y4is1T d
O. II. p. Archer was the lrst witness sworn. He
testified as follows: IL was Director OF the Erie
Railway prior to March, 1872; was also Vice Pres
ident; ceased to be a director in April 1872;
was present at most OF the meetings OF the Board
Of Directors from January until April: was
present at the meeting when the designations Of
the old directors were tendered did not resign;
do not know OF any money having been spent from
January until April of that year; there was q
measure before the Legislature called the Pro Rata
vantageous to the Erie Railway py reso-
luton Of our Board In March was
directed to go to Albany and look after the inter-
ests OF the road; was not aware that was to con-
fer with General Sickles and Mr.. Vanderbilt about
the measure, though q resolution to that erect
Ii In the minutes of the Board; was present at
meeting OF the Board the Monday after the resolu
ton; the Board, when they asked me to go to Al
bany, gave me no directions had no conference
with any one as to what should do; l left the
same afternoon for Albany; my object in going to
Albany was to defeat the passage of the bill; when
got to Albany called upon Mr.. Whitbeck, mem
Der OF the Assembly, who was my counsel; he had
always more or less business Of mine on hand; his
partner has still business OF mine; / don't
know what the particular business connected with
real estate was in which Mr.. Whitbeck was engaged
for me in at the time; consulted with him in re-
lation to the Pro Rata Freight bills told him that
a THE PASSAGE OF THE BILL
would have bad effect on the road did not ask
him to hinder the passage Of the bill; told him
that he might know what the bill was when it
came before his House; l talked to Senator Tie
mann about the bill; teegraphed to Mr. Rutter,
our general freight agent, who was in Cleveland. to
meet me in Albany; he came, and instructed him
to appear before the Senate committee and testify
aud having no further business returned home
don't know OF any money being paid in Albany;
there was none paid by me; gave Mr.. Rutter no
against the Erie Railway for money spent to pro-
cure legislation; made no representation to any
spent money! the first ever heard Of $4,000
being spent was since this committee commenced
It's n ead the I ID o ne
claim; / have a contract with the Erie Rail-
for work vary from to time; / have no other
bill or claim against the road, except my
Dy h
In the city; don't know his business; was intro
duced to Abraham Van vachten for the first time
this morning; have no knowledge of any money
being paid to either of these gentlemen; there was
no money paid up to the time resigned my POSI-
TO Mr. Wilht-The only occasion on which
visited albany was the time referred to-; spoke
beck, except to Mr.. Hale Il don't don know anything
OF the course Mr.. Vanderbilt took in connection
with the Pro Rata bin; !! saw no members Of the
Assembly or the Senate except the ones referred
to; took no part at Albany In connection with
the report of the classification act.
To Mr.. Stckney-I said nothing to Mr.. ParkeS
about my business In Albany; may have men,
toned it TO him; we were together most of the
time In Albany merely y, asked iab MN 70 g 60 with me
acquainted with Albany; that was one OF the rea-
sons why asked him to go; don't know whether
he saw any persons In Albany in connection with
the bill or not; my object in going to Albany was
to secure legislation; my main object was to bring
the general freight agent before the committee.
Mr. Archer at this point got very excited and
said he had never brbed any his ife and that
he would not do 1t for the Erie Railway or any
TO Mr.. Wight never spoke to either General
Sickles or Mr.. Vanderbilt about the bill; have o
freight contract with the Erie Railway Company;
1t has been in existence since 1864; agree to de-
liver the freight at all stations In the State and in
SeT ovsr to esH S IN
proper classification OF it, so that the Western
roads have no trouble when 1t comes to them;
receive for freight that comes to New York forty
cents per ton on grain sixty cents, and on freight
that goes to warehouses seventy cents per ton
there have been no changes made in the contract
since Mr. Gould let the gross receipts OF the last
hall year under this contract were about seventy
four Thousand doars the net profits to myself for
the past year cannot state I; don't think have q
right to tell what my profits yand losses are; that
is private busness my contract is for the good of
the Erie Railway; there
HAS BEEN NO FAULT FOUND
by President Watson with the terms Of my con-
tract could furnish a you with statement state Of my
by the terms OF the contract the contract can be
terminated at sixty days. notice; don't want the
way the Pro Rata bill, If It passed, would have
affected my business; would have had less to do;
suppose had personal interest in defeating the
count will net do 1t; have already furnished
statement to President watson; the statement
was not presented In an 0ficial capacity.
To the Chairman-If the contract terminated To-
day don't think the work could be performed at
cheaper let them do so; there was no condition
when resigned that this contract was to be ex-
tended; resigned INTERNATIONALLY; Ii you nave
legal right to ask for written statement for 1872
will furnish 1t; II not object.
The Charman-The committee think they have
the right, and would like the statement produced.
Evidence cOntinued-I received no sum to re-
sign received nothing for that purpose; re-
ceived $4,000 to indemnify myself for any action
might take In connection with the Erie road and
the change; there were various responsibilities
devolving upon me; the change OF presidents re-
buried some indemnity; we had been trying to get
q board for some time; there was an executive
meeting held on the Friday morning before the
change; Mr.. Gould called the executive meeting
we protested, and Mr.. Gould said have ad-
journed the meeting" and left. cs
Q. What has that to do with the $40, 900. A. We
made q change OF Presidents; the Money was paid
to me In March; consulted with Mr.. Lane relative
to the amount: alse with Mr.. Tho npson; under
stood the money came from Mr.. Sickles; don't
mean to say received $40, 900 to resign; 1t re-
uuired me. az Vice President OF the road To call