New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-01
THE ERIE INVESTIGATION
Confined from Fret Pase.

AGAINST vexatious suits which Gen. sickles thought
would be begun against the old members Gen Siokoe
seemed 70 think that all the members mao ame
something for which they might be sued come
indemnity designed b. be given TO those WHO
held Office for the loss Of salary have no knowledge
Of payment Of money for legislative purposes; have
heard OF some money being used for the soppage OF the
Pro Rata bill Mr. Archer wa Instructed TO 80 10 Al
hany at the time to prevent the passage OF On injurious
bin he went with Henry Sherwood director; never
heard OF Senators recegng $500 apiece except through
the papers at the time Of sending Archer TO Albany
che character OF the Pre- Rata bin was discussed IN the
Board rs very injurious bill, hut instructions were
given TO Archer as TO how he shonld bis influence
against it nothing was said about money, and don't
believe he used any think the Central Railroad had
10 do with defeating the bill than the Erie they
earlier In the field; tak that Ecie acted Ia concert
with Vanderbilt; did think that the $4,000 voted 10
DC paid TO the Central had any connection with Archers
mission TO Albany though might have been MISTAKEN
Thought that It to pay the expenses OF gentlemen
whe went 10 Albany to use legitimate means OF miuene
ing members OF the LegislatSre by arguments &C
believe it TO he mans duty to 90 TO Albany 10 ueest
nnwise legislation; would never STAY away & Erie
IL disreputable to 20 there no money " pau ny like
except for service rendered woulu hU nncral
Wav with the terms OK the contract bui 90 not
know of the profits Il would he dnlcult tnS -
rive them think that at the time the oSpt h FOR
made II nav not have cost the Conn moro IMAM lot
mery, and at the same time have been IeIS Inst no
very profitable and others which cannot pc ~ nSe
have been profitable on the whCe, Iu o ot think
that his wealth has been gained at the expense Oh VIC
Company Tor he control his laoOr SETTER t ' az
Comnany can AZ would the Company as mueh 10 40
The work as they pay under the conrSet the sea
Ing car contract has been modified II used 10 pe
nrofaele 10 those holding it it is now heie by MT fl
man and there is option that The Erie Company may
Become stockholders in the seePingcar ariangehe
me Compsny now takes only its regular faFe ana nf
Pullman takes the extra charge; che Company ~ saNeo
the wear and tear Of its own cars e. the seePng S
Company could afford TO pay for the privilege OF puhs
carr on the line dg MOI E AnoS S amy Ss let
into any OF those secrets; have contract LOT ine
freghtaee on the Newburgh branch; ths y Denec. ~
10 Eewburgh. and is shipped thence TO NeW-1ork Ds
barges this saves SC miles Of rail- saves the GVererowd
more expeditions delivery OF the freight don't know
that the contract IS profitable one year. in which Mr.
Gould took the business away, the barge company made
larger profits than when it had the railway business
80 MI Wght-In regard TO the Archer contract IiroI
aud employed superintendent as competent as Archer
the work could be done as chsapy as now auu le pro
The late dividend declared; the statement OF Mr.
ranted the action | understand thar the road aud
Mr. Watson explained that it was his purpose TO have
constructed thai each portion wore out could
be replaced ~ that cars should at all times De
IN good working order.
Mr.. THoNPsONS TESTIMONY.
Henry Thompson was sworn testified: Was
uuested by Gen. sckles cooperate with him 10 the re-
organization Of the Board. 1t was favore idea with
him that there were be large profits the advance OF
stock he said that those aiding in the change should
in the profits the $4,000 spoken Of were placed
Mr. Barlows hands and distributed as already shown
presume Mr. Gould anxious 10 defeat the Pro Rata
b but don't hnow OF any money having been used for
the purpose / know that $500 paid TO Mr.. Bar
bour. but don't know for what purpose made the
NJ anH bga
legal services don't know what services were this
probably in February 1872.
The following voucher approved ny witness inste9d Of
Mr.. Gould. was shown:
En, Railway Company VIM ~ '''''''
ToA p. Bsrbour n
1871 Buspess address, NeWi ORR City
tau ID FOR legal services T-'V
HESEI THOMPSON Comptroller,
Date, jan Is 1872 Received Of THE Ede Railway Company the @
$50 i've 'OHD''' D. B,Hsovu
KIsmihed by me found JAY GouLD, President
My signature 10 the voucher was merely matter OF
form; signed at the request Of the President knew
that that they We're lobbying services and that lobby
thing about with certainty do MT know Of any other
payments TO Barbour and II pave approved any other
payments to Mr. Tweed on 81 services Wondered by
him have gen him at the Erie offices; presume his
petion as legislator was favorable 10 the ERE Com.
bAnv; have no knowledge of the recent declaration ~
= dividend but think II was not pad from money
rarned Of the opinion that the commissions pad
Bisehofshem Co. Tor the negotiation Of bonds were
excessive the claim of $4,000 by Bischohsheim az part
repayment Of expenses Incurred by them lie pFepOs-
To Mr. Barov-I have no personal knowledge OF the
Of the road since ceased TO be dreeiOi 40
not believe that the money lnpropeIsS u 10y ", IN
Company while was director would nave Deen SUI
hcient to have declared a dividend OF per cent
TO Mr. Wight do not know why the money was
placed by Mr. Siekles in Mr.. BarloWs hands; 40 not
Know int y nrd SoSt know what hs character 10
among business men he has number OF good frlendsi
didD't think the money paid me was Tor abSOuhoh or
To Mr. Babcoek-I knew at the time that Mr.. Gould
was about 70 TeOrganze the Board and 10 leave NE Out
don't know how learned this this fact mad aeon,
trolling influence upon my action In CONJUNCTION WIN
snkles; i supposed that Bisch0fsheim had twice been
reimbursed his expenSesonce by The terms Of his con
tract and by the $4,000 paid 10 MeHenrl;
,,1en! h;s Tor erfraordinary services did mo- come
before the Committee, but were paid by Mr.. Gould.
PR. RAMsDEILs TESTIMONY.
(Iaeoned)
Homer Ramsdel testified, ia reply % Mr.. Barlow
believe that the contract with Bschofsheim d Co.
MADE 10 save the Erie Company from bankruptcy aud had
poreference to incurred by hem there
no firm In this country who would have made generous
terms as they at the time Of the change Of admnisra
ton the Company had credit whatever; expected
day 70 day TO see 20 into receivers hands the
acceptance OF the contract was not only the wibest Plan
but the only plan; Blschofshem d Co. made market
for Erie bonds and gave the Company all the credit
II has. -
Cen A. \. Owen testified have been q director or
the Erie since March, 1872 director the first two
or three months Of last year was present at the meet
ing Of the Board Of Directors when tho dividend was de-
eared and in favor Of it, account Of the state
eBt Of the President that there balance over the
amounts expended in interest and leasesnot balance
40 the treasury, but in The permanent additions 10 Tho
road felt little doubt about the crediting 80 much to
the construction account that is flexible accounts
without depreciation account think there nigh! have
been naI sn for mistake; the only objection heard
urged was that no statement had been prosecuted which
eOnld be examined I understood the earnings had
been expended on permanent additions 10 the road ,