The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-08


The Legislative committee, who are attempting
to fathom the affairs OF the Erie Railroad. took
further testimony yesterday. On the assembling
OF the committee Mr. White read the following.
iui ,i Nxw YORK, April 7, 1873
SsAs sia-we the undersigned, having been employed
for several past in the AUDITORS oaice Of the Erie
eonssaSy Il Sork nasins ds taIIs q freight ana
., SHOW snow s 70 your
sght and passenger earnings is grossly exaggerated
s8r te5r #ro T Rs6 Misiis {. SRxMxER.
John Williamson was the FIRST witness called. He
testified Had been employed IN the Auditors
oflce OF the Erie Company IN freight matters until
January 81 last; was then discharged. for . cause
OF which witness was ignorant; does not know
what testimony has been given relative, TO that 70
the committed; when witness discharged
they were then working on October accounts or
sccSPafely brourht up the accounts FOR those three
months 50 as to make up statement IN FEBRUARY,
many accounts were NOT even s,irnetaT ~ ana md
not actually proved. u.
Counsel for Erie objected to the witness giving
his opinion as an expert until 1t had been shown
that he WAS an expert. In answer to questions
tending to show his expert knowledge witness
continued Had charge Oi agents. balance sheets
of heights all such balances passed through wit
ness hands, and were checked off to approve their
correctness;, mad made the freight statement Tor
September; did not know whether the amount fer
that month was testified before the committee |;
there % sew the aca
balances for freight; 1t disappeared a few days be-
fore witness was discharged; had asked higher
officers for it, but they had said 1t was in use; 1t
was not possible that any persons could have been
at work upon the monthly returns OF December
without witness knowing it; under the new system
that three used to do. r
TO Colonel Burnett-What witness meant by the
new system OF accounts only referred to the
freight department. as witness was only posted on
matters in that department; twelve new men were
put on In October to do the work that three men
had done before; witness had never made returns
tally by substituting figures; had not concealed re-
BOOK mentioned as lost had been found IN witness
desk, with other concealed papers, after his dis
charge; knew Mr.. Burgess, Of the Erie employees;
had never stated to him that witness had seen Mr..
Gould anu that the new Board would be turned
out and Mr.. Gould back before July; neither had
witness ever had an interest q low dance house !;
had specific fact In recollection on which he
based the charge OF gross exaggeraton OF earnings;
had written the letter to the committee at the in
stance Of Mr.. Contes
; ff FREpERICK S. GRAMMER
sworn-Resides In New Jersey; was formerly q
clerk In the passenger department. OF the Auditors
ONCE, Erie Railway; had signed the letter read to
the committee this mornings his duties in the Erie
ONCE were to superintend the checking OF the
agents returns OF tickets sold; this was done by
comparing coupons with the return sheets; he
made out the sheets OF passenger earnings OF the
whole road; hence he made up monthly state
ments: witness was unable to give any figures,
that tended to show inaccaracy in the statement
made by the company to the committee; has no
knowledge OF any false entries being made in
the comparE's books; does not know that
the statement Is not correct transcript
Of the books has formed his opinion as to their in
accuracy solely from his knowledge OF the COM
plexity OF those accounts and from the size of the
amounts put into monthly earnings; they are for
months VIGOROUSLY slack OF passenger traffic:
comparison OF the boxes used to keep cancelled
coupons in shows that that Tor October, 1871, is
nearly null that for october, 1872 scarcely has the
bottom covered again, 1t usually took witness two
weeks to check Off months returns; had done
that work for October 1872, between ten A. NJ. and
three r M. ofonc day; was unwilling to say posi-
but the facts stated inclined him TO the opinion
that the entries must have been rom estimate and
not from &c ual yerhcation.
Henry r. Antes, late an attache OF the Auditors
office, requested TO be sworn, and gave the COM
mittee long account OF his childhood that
much. He said he had been bad boy in his youth
and got into many scrapes, Which he had TO get
old Methodist and thus he had learned experience;
after testifyng on Thursday last he met President
Watson in the hall, and Watson invited him into his
carriage and took him to his houses on the way the
conversation turned upon the'dividend OF February,
and Watson said he expected his action would make
would be put out, but he believed the dividend
had been honestly earned; he said he had two
positions vacant, and he, ne was was, glad 70 ,, nnd
ncss' superior qualifications should have supe-
ri0r positions witness told him that his expe-
rience was that man gained nothing by being
Mr.. Beach at this point remarked:-I ought to
state in Justice to myself that the gentleman
represent--Mr. Dougherty--has no suspicion that
the books OF the company were ialsifed, and that
he has perfect confidence in the honesty and integ
A significant remark was dropped by Mr.. Lincoln
during the examination OF Mr.. Grammer by Mr..
Stickney, counsel for the committee to the effect
that the direct examination part0ok very much OF
CrOss-ex2 minati0n
ned as to the call made by the Board as TO the
earnings Of the road, and he stated that they were
made the agents which inc e
We must give the amount to the aRcns
or foreign road; we have no reserves
that no Justification of the books had been made.
Oliver W. Cook, Auditor OF Traffic, testified that
he furnished . report OF the passenger carriage
stated the mode OF completing the report OF the
actual revenue for each month; the returns were
taken from the agents reports; he testified that
Williamson Jailed TO keep his accounts correctly
and neglected to attach the vouchers; so far as
he knew the accounts as shown In the books are
correct ana he knew OF not q single Justification.
Two O'Clock having arrived the committee took
witnesses to retire. went into executive session.
A few moments later Mr.. Babcock, the chairman,
announced the investigation adjourned until four
ON reassembling the first witness called was II.
D. v. Pratt, superintendent OF the Transportation
Department OF the Erie Railroad who testified
that he had been such since September last; had
charge OF the track most OF the time since he went
on the road In 1857 during the year 1872 there
were new iron bridges built on the Susquehanna
division; had made close examination OF other d.
visions, but can emily speak OF the Susquehanna di-
vision large force OF men were at work on the
Delaware division; the item OF $4,000 Tor IRON
bridge at Emira ne believed to be correct w.t.
ness was shown statement OF accounts for certain
repairs made In 1872 and verified them so Tar as
said repairs had come under his notice in his spin-
lou the rolling stock between December 81 In 1871
and December 81, 1872, was as good as 1t has
ever been, and the iron in even better condition;
q week ago yesterday he laid trains up, owing TO
danger oflandslides travel had been as good this
Winter as 1t had ever been before; he said the
Presidential election increased the travel In Octo-
Der very largely, and he had never known OF pass
having been given on political principles; freiRhts
were larger ths year than last, TO the number OF
from 2 300 to $500 more cars than In the corre-
spending month OF last year.
Mr.. Watson at this point said that when he came
In he found money was borrowed by the company
nom the men; he ordered that all the men should
be paid promptly aud II any Borrowing was done
the company should do II on Wall street.
James &. Clark, a candidate for general manager