The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-23
THE ERIE INVESTIGATION.
Testimony Of Horace r. Clark About Paying
Legislative "Ransoms"
A LETTER FROM GEORGE MHENRY.
MIR. r. s. Evans Gives His Views
on Oath.
THE PRO RATA ROBBERY.

The Erie Investigating Committee, resumed it's
sittngs yesterday at 10 A. NJ, at the Fifth Avenue
Hotel Messrs. Craig and Carpenter being absent,
Mr. Watson, the President OF the Erie Railway
Company presented extracts from the minutes OF
the company, embodying letter from Attorney
General Barlow. in which that gentleman accounted
for the expenditure OF money mentioned In the
testimony OF the previous day.
Colonel Burnett, counsel for the Erie Company,
presented the following statements, which he de-
sired should be entered upon the minutes:-
The Erie Company desire formally to announce
to the committee that II there is any point covered
by the resolution under which the committee Is
acting, or touched upon during TINS lnvestgation,
PRESENT MANAGEMENT OF THE ERIE RAILWAY,
upon which the committee may desire further in
committee nave any doubts as to the proprety
and legality OF the action OF the company, the
but respectfully ask that the committee will desig-
nate the particular point or matter. II any there
be- In relation to which any doubt exists IN order
roborative testimony which the company Is ready
to produce.
Mr. Babcock declined, saying that as this was,
the last day of the investigation the committee
would not have time to consider any further test-
mony.
TESTIMONY OF r. S. EVANS,
Mr.. r. s. Evans, OF London, on being sworn.
said his business to arrange loans for foreign
governments and also to forward any undertaking
OF the Erie road in London, and to represent the
interests Of The firms engaged In placing them; he
had also been engaged in negotiating the Atlantic
and Great Western loans; there was not much of o.
market for them In London the aim Of the reor-
ganization was TO improve American credit in
Europe In that class OF securities; the owners
OF that road were the public OF Great Britain;
hut 7 .1nvn hn hu
stockholders, and that was Mr.. James McHenry; he
felt that he had induced them to spend their money,
and it was his duty to try and get them some re-
turn; after the reorganization he ceased TO be the
financial ageut Of the stockholders, and Blschos-
hope ofimprovng the securities till Jay Gould was
ousted such was
THE OBJECT OF THE CHANGE
in the direction; the Atlantic and Great Western
interest had nothing TO do with it, save IN raising
the character of American securities generay;
they also improved Atlantic and Great West
ern, in which they were largely interested; he.
knew of no scheme for uniting the two roads; was
certain that such plan would be as unpopular in.
England as In America, Tor the reason that Erie
shares were divided up among small holders;
these small holders would not be likely to do any
thing to depreciate their own property.
TESTIMONY OF HORACE +. CLARK.
with the laws Of this State with regard to the Con-
sodatng law; the law was passed in 1869; it
prohibits the consolidation of roads unless three
one authorizing the leasing Of road
ton that has been given to this act is that the
corporation should do this; the stockholders have
no voice; in other States the laws are different.
and the interests Of stockholders protected; in
some cases the minority stockholders must be paid
for their stock II they SO elect was in Albany last
Winter when the Pro Rata bill was intr0ducedS
there were two bills the Pro Rata bill and the
other providing that the same charge should be-
there were many railroad men there, not only from
this, bud from other States; ! do not believe any
but legitimate means We're used before tnat com
~ SUGGESTION THAT MONEY WAS USED
to influence that committee Is an inexcuSabe Slanr
der; the thing was talked about before the commit
tee. when 1t was determined that the money should
be used, but that if the Legislature fit to pass
bill prejudical to the interests Of the State OF
New York they should do il and take the respensi-
bills has been for the purpose Of
EXPORTING MONEY,
and that all the money that has been paid has not
been as brides, but ransom money, just the same
as il a man were captured by brigands and would
have to pay money for his freedom; you might get
ransom; there is law against brigandage and
one, too, against paying ransom money; well, then
sne erg a would say you don't pay OH goes
PRO RATA BILLS
are constant terror railway corporations: the
money to ease the heads OF their stockholders; the
deacon OF q church would pay $40 to save his
incendaries / have heard OF plan to lease the
Atlantic and Great Western Road to the Erie Com
pany; received
LETTER FROM MIR. MHENRY.
a brother Of James McHenry, which win give to-
the committee. The letter was:-
81. wALnRooK, LONDON, March 20, 1873
w pTn Sa ne Of
or Il that G Erie ne to be-
sHVsnd ht naa al Tx & @ sasss @
this He has important information and II he To-
not otherwise retained would advise your communi-
eating with him, If you wish the lease upset Yovrs
Karnsdcli will be at Brevoort House part Of a day.
Ibid not 90 to see this gentleman, because was.
satisfied that no such move was contemplated; it
would be such an injustice TO the stockholders; that
under
and that Of the present direction the thing is not
possible.
Question-Mr. Barber testified that Mr.. butcher
paid him $4,000. Can you state what considera-
ton he expected from thata
Answer-Well, l know a man who went to
Albany to get school law passed, and ne paid
$1,000 to the chairman Of the committee there;
there Is no knowing what man will do when he
can help himself
o. You have spoken Of ransoms being paid:
have they been paid to your knowledge A. Yesi
often.
Q. TO wh0m' /. LIBEL.
A. would prefer not to answer; ! never paid
them myself; think great deal Of this ransom
Mr.. watson then stated that no proposition to,
lease the Atlantic and Great Western had been
made and would not be entertained either by him
self or any OF the present direction.
The committee then adjourned to meet in
Albany, at hafpast three this afternoon. 1t iss
understood that the committee will report to-
morrow.
ANOTHER TENEMENT HOUSE ROW.
Fatal Result Of a Dispute Between
Landlord and Tenant.
on Saturday last John Gumpman, German.