The New York herald., 1873-04-01

was that they were largely interested IN tne road
purposes; Mr. Ramsdeli told me that large commits
siOns were paid to Bischoffsheim Co. IN consld-
Snowledge % Il m myself why the large commissions were
allowed II considered IL very extraordinary tnlng
TO reimburse Mr.. Bischensheim out OF the treasury
OF the Erie Railway; don't know what sum Gen.
erai slckles received for his services; think the
system OF declaring the last dividend would be
rulnous to the company II persisted In.
To Mr.. Barlow-Ihe payment OF the money to
Mr.. Barber was made under the old Board; can't
remember who told me that the money had been
knowledge on the subject; know nothing OF the
repayment Of Mr.. McHenry; have no knowledge
director; it would be possible Tor the dividend to
have Deen earned within the past twelve montns
without my knowledge. a. xos ,or .ander,nv
my resignation from Mr. Barlow; General Sickies
placed the money in Mr.. Barlow's hands for DIS
bursement; Mr.. Fisk and Mr.. Gould had been try
ing to effect change before; the character o. Mr.
Sickles among business inen-l know notMng
about he mas scoa many me rcnas m IN sse Of Se
pro&ts which is was expected would be made;
did not take the money either for absolution or
Gould eaI WAS attempting to reorganize the Beard.
leaving my name out; heard this from various
sources; that had controlling influence 0a9c IN the
made with Bischonshem to reimbursed him for
expenses; think Mr.. Gould was opposed to the
made in that way; don't know anything OF money
being used for legislation In Albany inferred that
Mr.. Barber was lobbying in Albany at the time the
money was paid him; the ordinary expenses OF the
road are usually presented to the Auditing Board;
Mr.. Tweed's bill did not come before the Auditing
always came before the Board; the bills for extra
ordinary legal services at Albany did not; these
were usually paid by Mr.. Gould.
CONTRADICTORY EVIDENCE.
Mr.. Ramsdel was recalled, and denied that he
ever told Mr.. Thompson that BiBchOffaheim d Co.
formerly made; ! understood that the company
was on the eve Of bankruptcy at the time the loan
firm on this continent that would have given q
similar loan; the result OF the contract with
Bschofrshelm was that the bonds and securities OF
the road were greatly enhanced from my knOwl-
edge think the like results would not have &C
crued to the company through any other firm;
every day to see the company 60 into the hands OF
receiver; think the entering upon the contract
was about the only thing that could be done.
To Mr.. LincOln-There was no money In the
treasury when the Gould administration was over
thrown; after the loan Of $400O,000 had been paid
@ a s
seventy; the loan was negotiated after the stock
had risen; think 1t was necessary to pay the
company; it takes very strong house to nego-
tiate large sums at the time the bonds were being
m m nR
the market value Of the bonds; the Erie Railway
has as good credit abroad as the New York Gen.
directors have increased the value Of the road re-
nects great credit upon them and the financial
General A. S. Dven sworn.-I have been for some
time director OF the Erie Railway; have been q
director since March, 1872; had no connection
was present at the meeting when the dividend
was declared; / was for the dividend; voted for
1t on the representation OF President Watson that
the earnings would justify IL; had some doubts in
my mind about the construction account; the con-
structi0n account is 1exible account; voted for
the dividend because 1t was stated tnat there had
hpen earned the nyDnnR0a a sum.
cient sum to pay 1t; IN making the account would
make depreciation account and construction
account; don't know what the-divldend had been
declared out Of; the money expended upon
permanent improvements out OF the earniugs
the know wRas ns
than what have heard; do not know how much
was placed to the construction account at the
that there was money enough in the treasury to
pay the dividend; don't remember OF any other
dividend being declared by the he Erie Railway
that the New York Central has declared dividends
upon the same principle; the written statement
by the President; it was said we had earned the
money and it was proper and right that the
sydspS mat should sSs S as Il so
inc ssea the debt of me i9s the policy policy
S the state Of the Erie Railway is not
much different from what 1t was year ago; the
Wner and nroEen rails ana accidents the ear
ings OF the Lake Shore and Michigan Southern
have been very large, and their capital has been
same policy with regard to dividends that has been
followed by the Erie in this last instance; know
the terms OF contract with Bischoiisheim 4 Co.,
very little experience In these matters; do not
know OF any effort being made to have the loan
negotiated through any other house; the terms OF
the contract were arranged in London and ratified
here; there were some changes made in the terms
when It came here Understood that the gentlemen
w n m "a VIZ nra In rfya
holders Of stock; have not very clear opinion
OF the proprlety OF paying the expenses Of
no money being paid to influence legislation ex-
cept q general statements derived my information
from newspapers and persons; IN 1872 while there
an effort to repeal the Classification act, 1t was
understood that money was being largely used to
prevent the repeal by Mr.. Gould and his friends;
did not know Of the specific manner in which the
money had been used; / cannot think of any
specific changes that I remember; think
the matter was common talk at the time; I;
paid sums OF money on the first day .of
my coming to New York; heard from Mr..
Casscaton act Mr. Gould had endeavored to
defeat the Pro Rata bill he said it would be well II
or some one else would go 70 Albany, as the Pro
ter for him to continue his opposition to 1t him.
self, and let the other roads interested pay their
share Of the expenses; after the adjournment Of
the Legislature ! brought the matter before the
Erie Board; asked Mr.. Vanderbilt for state
ment OF items; his agents were John V. butcher
made statement, but / would not like, except
upon compulsion, to state what the items
were; my conversation was mainly with Mr..
butcher; he told me that he had paid the money
to Van vechten and Barber; the amount was about
$4,000; 1 don't remember Van vechten saying
who he had paid money to; when he said he had
not paid any himself, he spoke in low voice;
butcher said want you to understand that did
not pay the money, Ipaid 1t to Van vechten and
Barber; he told me that money mad been paid to
members OF both branches OF the Legislature;
don't remember how many persons he said were
paid money understood that the money was paid
for defeating the Pro Rata bill, and the bill rcguat-
ing the freight on milk; 1t was said all the
money was used in connection with these
two bills; the number OF Senators who were brbed
was five he did not say how many members OF the
Assembly were paid; think he said IL was either
$4,000 or 1900 that was expended In the Assem-
bly,; the senators were paid, think, $4,000 apiece;
only recollect the name OF one Senator, though
all the names were given to me; Mr. Van Vechten
had the reputation Of being smart lobbyist;
gave the Central Company encouragement that the
Erie Railway would bear their share OF the ex-
penses there were no names OF members OF the
Assembly given to me who received money.