The New York herald., 1873-04-01
THE ERIE INVESTIGATION.
FURTHER EVIDENCE OF CORRUPTION.

Testimony Of Homer Ramsdsll, Henry Thomp-
SON. General Diven and 0thers-Ps-
euliar Legal ssrvioss''
The Erie investigation was resumed yesterday
D0rning at the Filth Avenue Hotel, all the MEM
bers OF the Assembly committee being present.
The evidence adduced during the morning session
Of interesting nature, and 1t is evident that
the names Of the Senators who were Dribed In
Albany during the early part OF last year cannot be
much longer withheld. The evidence Of General
Diven Enthusiastically points to the fact that there
has been . scheme concocted between the New
York Central and the Erie Railroads to influence
legislation ct the State capital.
THE EvIDENCK.
John Taylor Johnstone was the first witness
sw0rn-I was q director OF the Erie road when
she last dividend on common stock was declared; I;
lwas opposed to the declaration OF the dividend,
because ! did not think the earnings justified 1t,
And also because the company at the time was
under the necessity Of raising q great deal Of
money; l did not think there had been allowance
enough made for depreciation; the repairs and
construction accounts, when properly settled,
would have left very small sum for dividend; II
was the absence OF the statement OF this account
i
dence in Mr.. Watson as a thoroughly honest man,
but, in the absence Of evidence, did not see my
way clear to o vote; knew that the company re-
autred to raise money to pay debts IN London; the
Issue OF the convertible bonds was intended
t. reduce the Indebtedness OF the company; these
were the only points which made me oppose the
declaration OF the dividend.
To Mr.. Lincoln-I have been q director OF the
Erie Railway since last July; do not know what
the amount Of surplus earnings was at the time
was elected directors do not think that the earn.
ings would have justified the declaration Of divi-
dend II the company had not too much money; l
think they would not have been able to pay it; il
the equipment had been credited with the proper
amount 1t would have essened the surplus earn
ings; think in making up the equipment account
the expenses were not accurately stated; the con-
dtton Of the road has been greatly improved within
the past year, the given for the declaration
OF the dividends was stated to be the fact that o
large majority OF stockholders desired IL; as o
great portion of the stock was held by stockholders
In England and as they were known to want div
tdend 1t thought that in Difference to them one
should be declared it not stated that the divi-
dend was declared to keep up the price OF stock
and the credit Of the company; supposed Mr..
Barlow represented the interests OF the English
stockholders
10 MI. borlOW-l examined Cne statements maze
oy Mr.. Watson, but not the accounts, and don't
know from personal knowledge whether the earn
ings were sufficient to justify the declaration Of
the dividend
HOMER RAMSDELL'S STORY.
Homer Ramsdell, sworn-I was one Of the old
directors of the Erie Railway; and still direc-
tori before the 11th Of March, 1872, received some
tntmation that change was about to be effected,
! got the information from General Sickles; on
the 1st Of March George Crouch came to see
me on important business. General Sickles said
ne would give absolution and indemnity to
all :he directors; l said for myself l wanted
neither; he said a new element was necessary to
establish confidence; acquiesced in the observa-
ton. and we proceeded to bring about the change
the great difficulty was to have meeting OIL the
Board; this meeting could not be convened with
out the sanction OF Mr.. Gould; Mr.. Gould was, no
doubt, aware what was about to happen, and he
kept of the danger as long as he could; q meeting
was finally procured in the manner which has been
already stated; had no knowledge OF or partici-
patton in the manner or way in which the directors
were brought to resign; the reason that General
sickles promised indemnity to the directors was
being brought against them for their acts in Office
II was necessary that change should be made so
that the stockholders could be represented In the
early part OF last year Mr. Vanderbilt presented an
account Tor $50 600 in connection with legislation
the money was expended who paid it; was
present at the meeting OF the old Board when Mr..
Of e %
that six Senators had been paid $4,000 each it
was considered very desirable that the Pro Rata
bill should be defeated; Mr.. Archer was not di-
rected to the methods to be used to defeat 1t;
had no idea that any money should be used
To Mr.. Lincoln-I can't tell what means were
used to defeat the bill; there were no instructions
given as to the use OF money; when the Central
that they were earlier in the field, and, inasmuch
rs they made common cause with us, the money
had been properly expended; by implication the
Railroad to be paid might have some connection
with the visit OF Mr., Archer to Albany; think the
i don't s' know in ~ what manner the
money was spent by the >, Central;
men going to Albany to represent large corpora
private persons; think II it were necessary to go
to Albany to defeat an unwse measure would 90,
even though 1t Is considered disreputable to do SO
/ know something about the Archer contract and
ITS terms. and | think it is profitable one; it
another person; there are items in the business
which there Is loss upon, Others that he makes
whole, q profitable contract, as Mr.. Archer was 0
poor man when the contract was made he is o rich
one now; think the Company could do the bus-
ness as cheap; Mr.. Archer controls the business in
q more economical manner than the Company
the business could be be- done 81 as S cheaply; have
no knowledge OF the amount OF Mr.. Archer's
profits; there are contracts with express COM
panfes and sleeping car companies; Pullman holds
the contract for sleeping cars; 1t has been very
profitable contract for him; the option still rests
with the Erie Railway to become stockholder
with Pullman; the Erie Company takes its fare
and the Sleeping Car Company It's fare; the Sleep
ing cars are mainly run as an accommodation for
those people who wish to ride comfortably; the
contract enables us to save our own cars; 1t Is a
little more expensive to draw their cars over the
road than 1t Is our own; don't know any instance
in which persons who held contracts divided the
profits with either the managers or officers OF the
on the Eastern Division and its delivery in New
York; all administrations have conceded that the
contract is advantageous one for the
Erie road; / don't wish to defend the
contract; II the company think they can
do better they are at perfect liberty to
freight transported any cheaper than 1t is done
under the contract; am not losing money by the
contract; will keep 1t If 1t is desirable to do SO,
but as said before, don't care about IT. believe
Mr.. Archer is the only person who Is interested in
the ontract; l don't know Of any director who