New-York tribune., 1873-03-19
THE ERIE INQUIRY.
CEN RARLOW EXPLAINS.

now $4,000 WAS ExPINpEDmTHG He G0USSnt nD,nSn.
"" yrF oURsTIoN-sPEAKER SMITH NOT BRlBED;
-ONLY RETAINED.
pParIAR CORRESPONDENT OF THE TRIBUNE
,,p.NY. March 1S.-The Special Committee on the
So Investigation held their first session for the ex-
alton of witnesses, this morning. The only
.,ness examined was AttOrney-General Barlow,
- testified with regard TO the manner in which he
,;osed of the $4,000 intrusted to him last WINTER
- used against the old Erie directory. lie ex-
.;hitsd vouchers for the whole amount expended oy
him. the larger portion of which was Tor the en-,
,lovment of counsel. Among the counsel employed
.ere Lyman Tremain, Matthew Hale Mr' Mcf arlahu'
and Speaker Smith. After paying counsel ana o'ner
accidental expenses, there was balance OF between
- ooo and 81 600 which Gen. Sickles requested him
20 accept private fee for his services out ne ue
'rnsd il "a inconsistent with his position as Attor-
seyGeneral, and returned the balance to Gen.
Sickles. $1,000 =, o..
9Th as retaining fee, witness testified very en-
-hatically that it was not done to secure his in
snepce upon legislation but solely as retainer for
n. services in anticipated litigation before the
Corrts. As early as December, 1871, witness said
,hat he aud Mr.. Southmayd consulted together with
,sgard 10 the commencement of the action against
,be Erie Directors, and having agreed that 1t was
advisable TO bring the action IN Albany on account
of the New-York Judges being under the control of
lay Gould, they next decided to employ as counsel
,he same men who had previously been employed by
M. Ramsey in his contests with Erie. They accord
;nqly agreed to engage Messrs. Tremaln, Hale, Nc
Tarland and Smith, each of whom was paid the same
,stanine fee and at the same time as that paid to
Speaker Smith-on the 1st day of January 1872, this
hine the day that witness assumed the office OF
Attorney General.
He said that the idea never entered INTO the head
t either himself OF Mr.. Southmayd of engaging
Smith because of his being member of the Legis-
hture. At the time he was retained it was not ex-
vected that any legislation with regard to Erie
would be asked for except the repeal of the Cassih-
cation act which had been urged for two or three
wears previously, and had then been made party
measure by the Republican party. subsequently to
their retaining Smith. however they discovered that
legislation was advisable to enable the Attorney
General TO suspend Gould from the directOrshlp
pending the litigation, that he might not use the
funds Of the Company to fight the stockholders.
Bence bill was introduced into the Legislature
known as the Attorney bill" But at the
time Smith was paid his retaining fee, he repeated,
no legislation was thought of, and the fact that
three other Albany lawyers not members of the
same time was conclusive evidence, in bis estimation,
that Smiths fee was not designed as legislative
bnbe, independently of the absurdity of suppOsing
that Mr.. Smith could be bribed at so contemptibly
heap a rate The reason why Tremain and Hale
eceived other fees subsequent to the $500 re-
ner, while Smith received nothing additional, was
lat they performed additional service by appearing
before committees while Smith did not He said
hat II never suggested to him by Gen. Sickles
o. any one else that money was TO be used for any
WrpOse with the Legislature, and so far as his
knowledge extended none was used. With regard To
" money used to effect the coup d6tat i'll EewYork
kbsw nothing. He was greatly surprised when
tie cup dtGt took place, and not little indignant,
tr be thought Gen. Sickles bad no right while act
hgwth him TO achieve certain object to be en-
Heed secretly with others to effect the same object
BY other means. He had not seen or spoken TO Gen.
&tkles since.
Another meeting of the Committee will be held
tomorrow morning when Speaker smith will be ex-
Uined