The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-22
Conspiracy Of the London Stockholders
and the Secret Service Done by
Crouch and Sickles.
The Price of the HOnOr(0 of the Old
Board of Directors 100000.
GENERAL BARLoW's RETAINER.
Queerly Entangled Testimony and Some
New DisclOsures-The Plot OF James
McHenry to Consolidate the Erie
and the Atlantic and Great
Western Railroads.


The Erie Committee again assembled yesterday
morning at the Fifth Avenue Hotel and proceeded
with the examination Of witnesses All OF the
members were present.
The first testimony taken was that OF Mr.. John ].
Cisco the banker OF Wall street, who was sworn
and said -
became Director Of Erie just after the coup
a'etat, in place OF Mr.. Hall; l was present at the
meeting which directed the payment OF
$4,000 TO W. II. VANDERBILT,
but was not present when the resolution direct
ing the payment was passed; was present when
the dividend was authorized; heard the
statements OF the officers Of the road,
and was in favor OF declaring 1t, as
every confidence was felt in the probity Of the
enicers making the statements and in the correct
ness of the sta tements themselves; had none Of
the negotiations or correspondence with Bischoff-
scheim Co. relative to the 49, 900, 900 convertible
bonds; should regard commission OF two and q
half per cent for such a loan as very reasonable,
and deemed the transaction extremely favorable
to Erie.
To Mr.. Babcock-I was not informed OF the state
ment OF former auditor that a surplus of only
$4,000 earned in the first six months Of 1872.
MIR. WHEELER II. PECKHAM
was next recalled and testified that he had seen
report OF the proceedings on Saturday that Mr..
Shearman swore that he (PecknSn) had divided
fee OF $4,000 with General Barlow, and further,
that when the Grand Jury had commenced an In
quiry into the transaction, they were discharged;
all that he had to say OF this statement was
that it was wholly untrue; no part OF the
fees Of witness were divided with General Barlow,
either directly indirectly, in that or any other
case; never acted as agent for General Barlow in
Improperly to General Barlow, and, as far as one
man could be certain Of another, was certain that
no money had ever been improperly paid him; had
no relations with the Grand Jury Of which Stevens
was foreman, and had nothing to do in the re-
metest degree with the discharge OF that Grand
Jury.
MR. SAMUEL j. TILDEN
was sworn, and testified that no money derived
from Mr.. Gould or the Erie Company was ever paid
into the treasury OF the Democratic Committee |;
has been chairman of that committee since 1866;
neither has any considerable sum been received from
william M. Tweed; this period covers the gala days
Of these chaps; on one occasion Mr.. Tweed
made contributions to the State Committee,
but none of very considerable amount;
could not remember how much he had con-
tributed, but possibly he gave $4,000 to the
election Of Governor Hoffman; does not think he
contributed anything in 1870 nor after; Tweed
was not member of the committee; as
. general thing the bills OF these gentlemen
amounted to more than they contributed;
knew that train load OF runians arrived in
Rochester during the Convention OF 1870 but was
not aware that their fare was paid by the Erie Com
pany; they sent in hostility to witness, whose
watch was stolen by one OF them; the Tweed and
Erie gang had never been Of any use to the COM
mittee; they were selfish and rapaciOus; an armed
neutrality existed at all times between them and
TO Mr.. wight-Mr Gould or Mr.. Tweed might
have contributed TO the election OF Senators and
Representatives without the Intervention OF the
Central COMMITTEES; that committee seldom mixed
In with such elections, leaving that to local COM
mittees; no free tickets were furnished to Roches-
which they rode to Rochester.
s.. L. M. BARLOW
was recalled, being present and seeming rather
nervous and anxious to say something. He re-
article on the affairs 81 the Atlantic and Great
Western Railway Company published in the
tention. Its statements were entirely incorrect
and they were evidently concocted in the HERALD
once In New York. Then in reference to Erie mat
tiers, he said in response to questiOns:-
At the time OF the statement made up by Mr..
Morosini, the late Auditor, it only designed to
show that the earnings Of the Erie road had been
sufficient to pay az per cent dividend on preferred
stock; 1t was made chiefly from estimate; even IN
that immature form it showed q small surplus;
books was had. and 1t was ascertained that the
earnings were large enough to declare both
cnt from that made by Morosini.
Mr.. Z. 9. Clark,
and Hudson River Railroad, was sworn and testi-
ned that he knew of no money being paid to Z. ID.
Barber. A. Van vechten and butcher py the Central
paid to any person for favorable legislation at
Mr.. Vanderbilt Si An for expenses at Albany IN
connection with the Pro Rata Freight bill;
there nothing paid MI. Depew except his legiti-
amounted to only couple hundred dollars; If
any large sums OF money had been paid to any
on q Il .0r legislation AZ Albany Sn0ua nave known
q. F. MoRIsrNI,
late auditor Of the Erie Railroad testified in OPP
position to the statements OF Mr. $. L. M. Barlow
regarding the surplus earnings justiiying the de-
mon stock, that the surplus earnings Of the road
for the first six months OF 1872 were only
$1,000 that was up to the LIST Of july; he left on
the goth September, and the earnings from the list
July till then had decreased very largely, on &C
count OF the coal strike and other causes he left
the Erie office because the new Board Of Directors
wanted to give him private information about the
previous management OF the road, and treated
him as q spy more than an Auditor.
HORACE y. CLARK
was examined regarding the connection OF the
Erie road with the Atlantic and Great western;
from his knowledge OF railroad matters he believed
the stock OF the Atlantic and Great western never
was and never could be worth anything; he be-
almost every large trunk road have largely in
creased during the last few. years; ne con-
sidered legal expenses should In no case pc
charged to construction account; such ex-
penses were worse than lost; ! dent think
the Erie Road can be operated as cheaply as the
Lake Shore Road; no broad guage road can be run
ms economically &c q narrow one; the surplus earn
ings OF the Lake Shore last year were $4000ooo on
which dividend OF eight per cent was declared;
Ms far as personally know l cannot say whether
Messrs. McIIenry and Bischonschen own any
stock In the Atlantic and Great western; the gross
earnings OF the Lake Shore Road for the last year
were more by 000 and yet the net or surplus
earnings were less; this was caused by the in
creased cost OF running the road.
To Mr.. Barlow-We have also increased our CAPT.
tai stock.
At three O'Clock the committee adjourned.
Evening Session.
At nve O'Clock the investigation was resumed
and many attaches OF the old and new regime OF
Erie were present, seeming more or less oppressed