New-York tribune., 1873-05-17

ment drawn for by lhe Treasurer of the Ehe COM
pany aud pr0ts male against tho charge Of t30uOJ
nor any demand for statement of the particSn
lars oi Items until alter the oommencement oil tnis
investigation No official action has been taken
by the company, either I'm acknowledgements OF
the claim of Blsohodsheim d Co, for reiinoarse- s
men 10 recover tho moneys sil remaining IN tnG,r
hands shertly before the time for tbs election OF D
rcCtors. in July last, contract Tor the negOuaon
500 900 Ool of consohdated bonds was entered into with
Bisohoff ,cheim and Goldschmdt This contract con
tains some unusual PROVISIONS B0tweeh SIX am ~ s,
millions were be sold. and s0Jl0)O are restry io
tho year 1920 and commission Of q por coat - W
be paid on the whole amount whenever snu OF -, I,o
performed is 10 exchange tne new bonds lOF l"o Wv"
aud t. stamp ana counttrjign the same. .,o, ON ,he
As 10 whether this "a an unusual Commission IN m ~ Nv
100000 there scoms to ne sumo cOuncJO VI oP''"
different Witnesses Bat your COmmtt3o or, 81. w ", ,otn
ion tha under all thD circumstance me rate "a
mission az that time was not too Large upJI Ii1 @ ~
Of bonds actually negotiated Eut upon tue s],y yi
which were 10 be exchanged for tho same amount n'
by the Fdrniers' Loan aud Ttdot Company anu seSps
S. Morgan Co., the ratio 0i c'htic'SuUn aconno5 nv
nnst services rendered by Bischoffshem & co; Ia
cfcctng the revolution OF tho hfie t. poa. n, ssy
er Wpt,ese Inc afvances made by BisohoEshem
Co OF $OJO 900 upon the bonds. soon ator to 10 ',,u
rcctors Ciino ~, doubt relieved the comPJ 80 in
on,b bat they received tho usual rates oi n
terest Jhcso advances, In auuiuOn 10 uu Vi,r,o
tbe a. xIrlyaglnt amounts cOrlslty employed III VIoi
throwing the Gould direction, from the tOasuiJ VI s
Ene COmpany IA not In the IN nds 0t your ~
in auy way defensble, except upon the principe th''
10 the yiciOrs belong tho spOls'' .,, and
Great western Bisoh0nsheim Go. were large dehleis
in railroad securities particularly III Erle stovhs @
their principal object IN tho movement was 70 J
upon The rlso which they believed wOuld ensnc hnu
which did ellsue upon tho change OF mahaRcuicht.
well known that tho latter, at least made lage ss @
I'm the advance whicn followed upon tue slooh 1l .
Company. from about ~ To 60 cents on w i,iSa
mani cut OF the results which followed ana WhiCh
were Anticipated by them. III Iio IniuIeiPt,
is be ostolshed that iew hteresSYI c Inv me
stock iObbors having no permineut interoH. az, ~ ~
corrupt use of money or Oy Violence taAe alu 1l e
session Of great railroad cOipDraon, anu vs.
themselves ont OF It's treasury, Is unt 'no i
uuder,oo by the public Suth pOhcy Wolu uosltI ~
ali stability in railroad management anu pacu az a. ,i ,
mercy Ot few adyenureTs and speohldtora hNlns no
boldness 20 ADVANCE the means, theac great P''oo ~
terprises. tue proper manag .lnent 3i winch 10 81 o"
From the testimony OF Mr. Evans OF London, ana
others 1t would appear that by the cniHSo ui h
trafiOn together with the contract Wlt ~,
CO. aud te advances made by them, the credit OF the
Company greatly improved, anu perhaps, tne iu a.
ger of insolvency aycrte1 It's STOCK was dOuOl1d ~
Valne within "a brief period, and the value OF it5 stCI
ties increased aud made available Ol lheso MsIc Vi -
tunate incidents following the overthrow, produced III
pIrt by belief In the integrity Of the reform dlree-
ton and of which fortunate results a. W
are known 10 have availoi themselves 10 large extent
by the previous purchase of the sOoA Oh tue Ee oau
IMPROPER USE OF MONEY.
Az TO payment OF money to Influence legislation con-
neced with said Company, or other irreguartes Inc
testimony OF several witnesses was taken on TINS SUD
iect and although tho information acquired was not as
specAc as could be wisbod enough obtained to show
that the railroad companies have been In the habit OF
spending large from year to year. either to secure
or defeat tho passage Of bills In the minutes OF the
directors meeting OF the Erie Board held July D. 1871
was found this resolution:
ResolDed, That the treasurer be authorized to pay
$50 900 as this Companys proportion OF the legal eA
penscs OF the ew-I0rk Central COMPANY az AlpanIy
last Winter to prevent legislation affecting prejudciay
the interests OF this Company Seo BarOW tesuhohy'
page 49,
This resolution was passed upon statement before
h,H VdaHa
largo sum at Albany to defeat the pro rata freight bill
and other bills In which there was a common interest
voucher was drawn. and approved by the auditing
Committee and Secretary. (oee page l5ll Wneh TINS
President who directed him not pay 1t at the time as
he wished TO satisfy himself more fully AS to the nature
Of the claim. There IS no evidence showing that tue
amount has actually been paid Yet u appears con
elusive that large amount reported by one witness at
500 OO0 appropriated for legislative purposes by
the railroad interest IN 1872, and this was the Erie's
proportion. Mr.. Diycu's version OF the mat
ter is this, that after the aalonrnment I'm % OF ,nr tae
OF the Central that expenses had been incurred In Al
Cee pages 80 and 27l) Afterward, Mr. Dutcher IN be-
half Of the Central TO him and represented that
agent Of 1G Csg % ne GSd vbcb PfG ns e Sn v e no
hursed, aud named six Senator'S who had been paid
5000 each Tor iheir votes ON the pro rata n Wnen
first the stand, Mr; Owen could remember but one one
name; when recalled, he remembered one other, and
gave the Of the two Senators, but added his belief
of their innocence.
1t is but just to say that Mr. James Wood Of the
Senators named. aftefW4f1
swore positively that he had never received dollar
directly indirectly, for any vote gwen aS Senator
paid In the House To defeat the milk trans
portation bill but names were given. Mr.. Van
Vecnen and Mr.. Barber were both upon the stand The
former had usually received about 5000 per year from
Gould or the Erie Railway, which had' ne SAID peen
retained by him for legitimate legal services. Had
never paid any money ~ eiiei1 vi te aditSd
receiving about $4,000 from butcher In 1872 to be en-
pOyed about the Legislature, but could gave only an
Unsatisfactory account OF us use Inc memory OF ths
witness was very defective Could not remember how
when the sum was received OF 10 WnJm ~ was lhn,
except that part Oi u was used 10 'e' note WHICH
he had ind0rset Could not remember paying any por-
tion of the sum to members of the Legislature aud did
not recOlect telling Ddcher that ne hau Out uu WAX
up and down the I'LL ana Talk with memDers q Sood
Your Committee were not able to corroborate Mr..
Dyens testimony from butcher himself. as he was alb
the State, aud so remained during the c0ntin-
OF tLe Investigation This at least is IN evidence
tuken before the Committee that largo sum OF money
sent TO Albany by the Ra rjid interests In l2 TO
influence legislation. Ia Wnat manner II was employed
the Committee not gye To say 1urther than already
stated IL were useless TO express nn opinion upon
question wheroon lIo puDc ana the House are as wen
qualified to pass rs they 10 say that 10 portion OF this
money GsblTsCd u Individual members would be to
attach undue ceu to the conversational powers OF the
men having IL IN cnaTgt.
EVILS OF LOBBYING.
From the testimony Of several witnesses, 1t appears
that men out ode the Legislature spend their time about
the capitol year year, during its sessions with
no visible occupation except to serve certain interests
by their influence with members. Some voluntar.
ily ready TO engage ia anything that may turn up.
Others here ~ various corporations and inter
ests for the purpose OF guarding their rights,
as claimed, but frequently TO ad-
dtional privileges, or 10 combat the schemes
OF rivals, These pers0us popularity termed the
lobby" Parties desiring cgslaon OF doubtful char
acter furnish considerable sums Of money TO forward
their schemes and employ the skilled talent" Of the
lobby TO dispense ii, lnnOcenty suppOsng that their
money will Nc paid to influence votes but generally
threefourths OF the furnished retained by the
lobbyists themselves (See testimony OF Avord, page
coTl Itia ia an eyi uf gtau1iuO has in
with the OF corporate wealth and rival
1t has been denounced by tho press, and
mcnt 1t is not easy to prescribe o remedy, but
your Committee believe that the evil would be
materially lessened by the enactment OF more
general laws and more stringent provisions regulating
the affairs Of corporations. and by constitutional
49,