The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-14

The Erie Scandal Again.
Again the name of the Erie Railroad is be-
fore the public, and connected as usual, with
story of chicanery and fraud. There has
not been for many years any considerable
period of time when it was otherwise. Ever
since the Erie corporation has been before
the public it has had an unfortunate distino-
ton, even for an American corporation. in
the association Of its name with schemes of
roguery, great and small, and has been tina
stake in swindles Of every grade by rascals Of
every calibre, from pigmy pilferers, satisfied
with carrying away an account book. to
Titanic thieves, who would steal continent il
they could clutch it. Perhaps the operations
Of this character OF which Erie has been the
centre have merely been more fragrant, and
not morally, worse than operations
less known in the history Of other
roads; but there are some reasons
which seem to peculiarly make Erie
the proper prey cs speculative endeavors. In
its origin it stood ON less substantial grounds
than railroad ventures generally. Its gauge
was different and it ran through wilderness,
and as these facts made it less certain
property they forced endsavors to stimulate il,
and so the great game of speculation began.
It has held on with wonderful tenacity. At
the time that foreign capital began to come into
the country freely, tempted by the promise of
high interest and blissfully unconscious Of the
enormous latitude given by our law to thu
acts of dishonest officials, Erie proved most
effective trap for catching the British investor.
Nearly all its shares, therefore, fell into
foreign hands, and this fact was adroitly used
in the appeals to popular prejudice that wero
made to cover the brilliant enterprise by
which certain men intrusted with the manage
ment Of the road endeavor to make it their
own property. At that time we heard .
hear in regard to the national debt and
6 Eastern capitalists and "bloated bond
holders" Indeed, the men who had Erie in
their hands were to the English owners Of the
road in exactly the same position that the
Western repudiator is now in toward his credi-
tor in the Eastern States American farmers,
it was complained, had to pay oppressively
high rates of freight to make dividends for
the Shylocks of London who had seized Erie,
and it was argued that the farmers ought to
stop all that nonsense by some action up at
Albany that would finish the little game Of
those dreadful London capitalists. The little
facts that the London capitalist never received
any interest on his investment and could not
get any account from his agents of the condi-
ton Of the property, and was, perhaps, ct times
doubtful whether there absolutely was any
property, did not seem to invalidate the little
theory that he was fattening on the blood of
this great Republic, and especially on the Erie
Railroad Ali that which became scandal to
our name abroad was remedied at last, appar-
emily; but now we see that the game is yet
not altogether ended. The arch intriguer
who rode in the whirlwind and directed the
storm of all that Erie scandal is evidently 60
sore over his expulsion from Erie that no
blow against it's credit is beneath his spite.
No one, we suppose, has failed to see ths
hand Of Mr.. Jay Gould in the endeavor made
through Mr.. Duncan to show that the present
management is not much more honest than
the management it displaced; and, taking the
whole history of Mr.. Gould connection with
Erie, it should be sufficient answer to any
asperzions to show that they proceed from
him. It is, however, no doubt wise in thu
President and Directors to answer the charges
of falsifcation of the aocounts-as they prom
Use to do-in manner less liable to misinter-
probation.