The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-09
ERIE ECCENTRICITIES.
Continuation Of the LegiS-
lative Investigation.
Belden, the Broker; John n. Conner, Attorney
General Barlow and General A. 8. Diven on
the stand-"Tall Swearing" by Some
body-senators Narrower and James
Wood Implicated in the "Divvies''-
A Peculiar Goal Contract"

the charge OF having brbed certain members OF the
Legislature 1872 met again yesterday morning
at the Fifth Avenue Hotel. Among those present
were Attorney General Barlow and a number OF
brokers and bankers. 1t was eleven O'Clock when
the session commenced.
The first witness called was Joseph Segman,
who testified that he had experience in placing
rates OF brokerage for railway bonds; the rates are
generally about from two and half to four per
cent; knew OF the ERIE consolidated mortgage
bond; think q reasonable rate for placing the
bonds of the loan on the English market would be
about two and a naf per cents that rate upon the
whole $50, 600, 900 would not be fair commission.
To Mr.. Burnett-lf those bonds were in bad re-
pute in the English market because of some pre-
sumed irregularty IN the issue, and money had
been advanced in anticipation of the negotiation,
IL would alter the case.
To Mr.. Linceln-I Erie stock had been down to
thirty, and by change Of directors mad been
raised to sixty or seventy. and if the money had
been repaid on the loan to the banker the rate OF
two and half per cent to four per cent would be
fair. II say four per cent, because there are many
expenses in London that should be met.
N. b. Shattuck was the next witness. He had in
the course OF business placed on the market
railway loans during some five or six years; knew
only by general newspaper report of the Erie con-
solidated mortgage bonds; should say, as far as
know, that two and half per cent would be fair
commission for placing loan on the London mar
ket.
To Mr.. Lincoln-l never knew of such bargain
as paying two and half per cent on $3o,0oO,00O
when only $4,000, 900 had been negotiated; should
not want any corporation with which l was con-
nected to make any such bargain; | should say two
and nalf per cent would be an outrageous CON-
mission on such state.
To Mr.. Burnett.-lf any such charge should be
made by any reasonable men should say there
must be some very extraordinary accompanying
elements in the question.
Here the members of the committee and counsel
(Mr. BurnetD constructed hypothetical cases as
questions which had no bearing on the facts of the
case.
VALUABLE SERVICES.
Mr.. william Beden was called and examined by
Mr.. Stickney. He said-l have no knowledge OF any
moneys being paid to any Senator or member Of the
Assembly or to A. d. Barber or A. Van Vechten, or
to any public private individual for the purpose OF
influencing legislation. There was a contract made
by a Mr.. Hays and myself with Mr.. Fisk to cover a
certain interests Twas to have contract for carry
ing coal; was to buy coal, ship IL the road and
pay the freight; Attorney General Barlow, nor any
other Attorney General or other oflcer, not in
any way interested in the matter; the considera-
ton OF this contract was services was to render
! was to receive $4,000 month cannot say posi-
lively whether any time was stated; think it
lasted three or four months; have no copy of the
contract; think General Hays has; the monthly
payments were discontinued on account of Mr..
Fsk's death; / think he died within a
month of the signing OF the contract;
cannot remember what services l performed
the contract VIII show; i performed various
services for Mr.. Gould; the contract car
what services performed; Mr.. Gould called on me
10 do good many things, which would do, with
out being able to remember now; l received the
money-S3, 0oo-for about four months performed
very valuable services at the time of the disturb
ance at the Grand opera House: the contract was
never carried out because OF the pressure of bust
ness; Mr.. Fisk agreed to give me the $4,000 a
month in lieu OF this coal contract.
To Mr.. Lincoln-The contract was made some
time in December, 1871; it had been under consid-
Grafton for a long time; can't tell what was the
specific consideration, except the services | rem
dered; can remember services on nth OF March.
and can remember the man had at my house
LORD Gordon-Qaughter) this was
A REGULAR RETAINER,
in the shape OF contract; received the first in
stalment when the contract was executed; the
second and third at intervals OF thirty days. re-
ceived payments for some time after March II up
TO June or July was paid by Mr.. Could; had
rendered services to Fisk and Gould prior to the
contract; performed many services III their pri-
vate business; was not paid Tor those services,
services; was to have the use OF the Erie yards
and save IS cents or one handling or the
COAL on each ton; suppose the point of the
ton on the coal without doing any
special work In connection with it; ! remember
the "Black Friday;i 1T was claimed that Fisk and
Gould were liable for large amounts Of gold pur.
chased by me; similar claim was made on geld
ny a pun had I
many OF them were false, but put them In, as they
were claims; put in some liabilities as mine that
parties clamed were liabilities vi FISK and Gould;
had never received
GRATuIrous PAYMENTS
from them previous to "Black Fridav:n never
had any coal contract with them before that time
II never occurred to me that Ii for services
had performed; 1t would have been serious matter
Tor Fisk and Gould to pay in gold that they
should be liable for on purchases made by me
this coal contract had nothing 10 do with it there
were no services specified In the coal contract that
had rendered or was to render; have no idea
now that IL was those gold contracts that made
Fisk and Gould pay me this money.
Here Mr.. Stickney explained that the committee
mad been informed that this money was intended
not so much for witness as II was to pay to Attorn-
Witness in answer to that, said-I did not know
Attorney General Barlow for some time after this
contract was made. | saw him, for Mr.. Could,
once at his own house. summons had been
served on Mr.. Gould by the Attorney General, and
we had reason to believe IL was instigated by this
man Gordon; we had no proofs, but were satisfied
that heswas an impostor, ana wanted 20 put the
ATTORNEY General on his guard ana told General
PLANTATION OF the matter; believe the proceedings
dropped then; there never was any understanding
that we were 10 pay the money TO anybody; was
to receive the money for general servicessuch, for
instance, as this very case, calling on the Attorney
General.
To Mr.. Lincon-It was not to be paid to General
Barlow; bencVe he never received n dollar; we
received the money by check; 1t was Mr.. Gould's
cheek, not the check OF the Erie Company.
Attorney General Barlow here explained that no
summons mad been served on Jay Gould at that
time, as no suit mad been commenced until some
proceedings taR m aug
him as director.
John II. Conner being recalled, said-I believe
Mr.. Belden and Mr. Hays were 10 80 INTO the coal
business; Mr.. Fisk and MIR. Gould were TO furnish
the capital, $30000 which was to be paid in
monthly lnstalments do not know ofany services
being performed by them under the contract: /
know money was paid TO Them because have du-
pcates OF two receipts paid TO them out OF the estate
Of Mr.. Fisk Mr.. Gould sent me letter in which
he certain made claims aoalnst the EIsk L.