New-York tribune., 1873-05-17

Ia ana
so far Gen. Barlow Is concerned. the question " oe
wholly intent and from all the Testimony oeloro 'o
committed, ii does not appear that hr' olo''"
tainod for purposes other than ius luoh' ou' 'o"'
was employed for the reason apn & tns ants Retaining
familiarity W tn the Ramsey ana bur' ,,,i1ce nm
fees to eminent cOunso, w 5t tor contemnlatod
derstand TO be paid ireguenpp Tpp.cfcd ic 10 be re-
turned II the litigation fails TO pfooeer ~ donhL
yoI acted from proper motives in
this matter The statute OF lSO reqHs az ~ % hn S,
o @ ,I General, under which u becomes proper
Tor him to employ or detgnae R tSa onnins @
SeI Ss the law officer OF the state The testimony OF
@ @@I' ~ n "a shearman tO the effect that, in the
,,a,te named, Gen. Barlow was acting
dou6le part. that while pioicssediy cirrting on
" sniff I'm the interest OF tho EnglSh stockholders,
Ss was secretly receiving large sum from Fisk aud
Goud with the understanding that no harE was to re-
Sicted by several witnesses. In the absence Of any
proof whatever your COMMITTEE cannot resist the con,
eusion that tho whole story was fabrlc1tion ana that
tho parties giving currency to inc tale hal ProPany
shearman by innuouo and false charges sacken tho
character OF tho Is deserving vi lhe
'everoS' 'onSule' THE CORP p,r1,r
Of March H. 1872 which resulted IN the displacement OF
the Gould direction in the Ece Railway Company was
chapter in the history OF the management OF great
corporations Impatient at tho laws delay, the repro
sentatves Of the Engsh stockholders decided 70 attain
by revolution that which they professed to despair Of
stock Of the Ee Railway Company has been and is 10
a large extent owned and controlled by persons
in Europe. 1t was claimed by them that
the affairs OF that corporation were managed In tots
disregard OF the rights or stocKhnluer una. nne
OF the real owners OF toe road strenuous Efforts hhu
previously beer made 10 get possession Of tne ROAD but
had failed While the proceedings bcfOrcr'ciied we're In
progress at Albany, another scheme was ootered upon
which successful would FENDER acton oy sio a. c
what, iu the other case, would very hhey consume
II seems to be matter OF some dispute as to who
should claim tho honor 0t cOncying a1i carrying out
cOmflturc OF the then existing direction, ana tne
installing IN power Of tn new board, VINO were unueI-
holders However bold and ingenious the plan, how
ever weskled and aeu cd the actors 1t is safe TO say
whole scheme would have met an ignomnlons
failure, proving again the efficiency Of well
led camp chest. m campaign against an enemy fertile
in resources ana on tDc alert From the OnfaleF
Of testimony upon this point appears that while mat
then the counsel uf lhe Ene Company, commenced the
work of b-ibing maOnY Of the Board Of Directors TO
Board Ths was easy 20 accomplish, from the
fact that Mr. Gould had also contemplated forming
new Board of Directors to give the Company standing
before the financial puDnc ana tns would son1 INTO re-
trement the memuers OF the old Board Hence they
were NOT lOth to put themselves IN the market. "HV
inc seen certain OF directors and arranged with
them that they should resign on receiving certain peou-
mary considerations" Line at once communicated this
fact to Mr. w. A. ODOnerty, who immediately cOmmun
Gated by cable with MtlIenry OF London " Of.nnE him
noforty of the Enc Board consideration OF the pay
,nent of Sl5GOCO." ." His replies were for some time
indefinite but he ultimately agreed pay that amount
RschotFshein Gu. OF London, brokers and financial
aeents MIR ;. L. NJ Barlow was next admitted TO the
Confidence OF the parties engaged VINO being Mc nry's
LEGAL agent tins country also teegraphed the iormer
urging HIM ind the money ana carry OUT me propos
on Tbus matters definitely arranged about the
"ST P 5inpv o. lad sent ont Mr. George Crouch AZ
sort of man of all work, who in somc way discovered
the plans Of Lane, and communicated then TO Gen.
S'ckies, whose pride and Jealousy were naturally
uaad af is
ever credit prOf there might result from the opera
ton There was also tue possibility tnat OF the
hacyon political anticpatlOn5 which ho was known
to entertain might be seriously curtalled 10
nauyht if he snoud fail to appear gencral;ssimo
in he grand Erie revelation (See testimony of Charles
p shawl Accordingly Sckes set Crouch secretly at
vTE negotiating Win the same parties and tho same
~ - u ossiIfuJ dnaucicrnc he fonnd that the result
could bo accomplished for "a less sum than had been
named by Lane aud O'Dohcrty, and communicated
with MciIenry wUo broke OH The former engagement
Barlow united with Sickies ANA succeeded 1naIy
in harmOniZpg conf cns interests by promise or posi-
uons the new Board, or OF sums of money
10 Tie d.saleclel par es. Matters being 11aiiy
arranged, BlschOhshelm Co mclOSed credit 70 Bar
low IN favor Of Sckes for 100000 Suffice 1t to say that
attended by much confusion and risk OF failure, the ar
rangement was carried Out the ola directors resgnng
and receiving their p3ice, ana new board was elected
the nominees Of Mcllenry which gave hn absolute con-
troll Of the Erie road MT GOulu was evidently not una
of the matters IN progress but chose 70 allow the
conspiracy 70 proceed TO certain Poini, waen ne was
to bring TO his aid bis OLD any, an lnunctlon
10 be served at the opporauI9ne rune moment NO
cutiOn, but the aggressive parry were 100 reckless 10
heed this restraining power and, by disreGardng the
of the company. Gen. Dix elected PRESIDENT III. w.
Sherman treasurer, anu :. L. NJ. Barlow COUNSEL This
act made legal next day Dy Could resShlnS the
presidency, and causing reelection OF the new board
the reported consideration Tor which was the conrma-
ton certain releases from claIns Dy TIC Erie road
cor OF TIE REFORM.
The amounts disbuIsed for the reform" of Erie to
the various directors who resigned, were $4,000 each TO
Lane Thompson s5OOOO to simmons, $4,000 10 Archer,
and So 900 each Ous White and Hilton, making In ali
$3OoOOO. Mr.. ODOhurty afterward received $4,000,
and Gardener $4,000, Crouch was also paid
$4,000, and Gen Sickles, on his return TO
London, was paid 100000 more, according to
The stat men OF witnesses bill was also rendered by
sckes amounting to about $4,000 for disbursements and
expenses, including his hotel bills whilo in this
country THIS latter amount was directly paid
onT OF tie treasury Of the Erie Company, for
which vouchers shown. The whoie amount ex-
nended M connection with the coup d6tat stated
before the Board 10y McIIenry himself, IN July last
per BarlOw's testimony 20 be about N5OOO In order
10 fully understand the nature Of tins transaction.
which, without authority OF law, in single day reVo-
lutiOnlzed the MANAGEMENT cf one UI the leading ran
road lines OF tins country running the enre length OF
the state of NewYork 1t will be necessary to analyze
briefly the motives Of s0me or the actors McHenly and
BisChOhshclln co. oi LjnGOn appear most prominent
the persons claiming W represent the great body OF
Englsh stockholders.
There Is evidence to show that the latter perma.
nanty owned controlled any considerable amount OF
stock previous 10 the election In july l is IN evidence
that McHenry, who adV.nced more than onehah the
sdm used TO buy out the directors and for other pur
poses, was not permanent holder OF Erie stock, and
had direct interest IN welfare OF the Eric Road.
SO much dslnterestedness IS not commonly found
managers OF great Corporations, anu Cne secret
springs Of Mr. Mceurys actions must be sought in his
ownership interest IN the Atlantic and Great
Western road, corporation representing slO9000O OF
stock and bonded debt aud whose affairs arc currently
believed % In ns0lyent condition. This road has
its principal connection with the Erie Railway, and Is
maiy dependent upon 1t for the through traffic passing
over its track. It Is far TO conclude, from the testi
mOnv that McHenTy's OBJECT In controlling the Erie
Board for the purpose OF forming intimate Relations
the roads and thus 20 benefit the property
owned by hun, VIZ, Atlantic AMI Great Western. The
present Board was approved by him, McHenry himself
being present at the election.
O,Ler evidence Is wa0ting OF this purpose. The
counselor the Erie road is counselor for the Az
lantic aud Great Western anu ha5 been Tor number Of
years For further testimony this point page 723