New-York tribune., 1877-11-23

had instituted a suit in London against Mcllenry,
which the latter desired TO have compromised. 1t is
now understood that AttOney-General Fairchild
has been induced to interfere, and that he has given
notice to Mr. Jewett TO take further steps in the
suit or the settlement of his accounts in the re-
organization of the road on the English plan.
M'IENRYS WAR AGAINST JEWETT.
TIE WORK DONE BY HIS REPRESENTATIVES IN THIS
COUNTRY-CHARGEs AGAINST THE RECEIVER
WHAT MIR. JEwLTI's FRIENDS SAY.
Among the first acts of the administration of
the Erie Road, under the receiyershp Of II. j. Jowett
the institution in England Of a suit against James
McHenry for ~ 900 900, and the proposition for
construction OF the company upon plan. which would
put the road upon paying basis and enable the English
stockholders to realize something from its earnings. The
debt Of the company heavy that the traffic could
be expected to pay interest and running expenses;
and considerable part of the assets. ike the clam
against McIIonry OF doubtful value. The recon-
sucton scheme therefore, met with favor abroad and
the suit against McIIenry vigorously pushed.
Several months ago, General Daniel +. slckes, who
had been instrumental in oustng the Gould and Fisk
directory Of Erie 1872 made his appearance in this
city the counsel OF James McIIenry, authorized as
understood, TO oppose the reconstruction scheme,
and 10 defend the suit agai MclIwry. He cred
led with retainer of $1,000 part Of which was 10 he
expended In securing assistance and collecting evidence
I
in the English courts. General Sckcs retained Henry
L. burnett. OF No. 100 Broadway, who had formerly
counsel OF the company to assist him IN this work
II was claimed by General Sclcs, shortly after his
here part OF the basis OF his opposition to tac
reconstruction scheme that the first coupons OF the re-
construction bonds paid with borrowed money and
that time when it represented by Mr. Jewett
to the court that majority OF the English stockholders
had agreed TO the reconstruction scAeme, very few ad
80 agreed, and that at this present time majority has
not actually consented The payment OF the first c0u
pons alluded made TO influence other Ensiislmon
to sign the agreement to reconstruction. Only ihs
one coupon it was alleged oy General sickics had ever
been or would be paid.
Rtve to the suit against James McIIenry, his coun-
sci Is understood have claimed that oyertules for
settlement had made by the Erie counsel IN London
through John \. c. Gray Of this city, then IN London
| Mr. McHcury had replied that compromise was ont OF
the question The SUIT which had then reached the Mas
ter OF the Rolls was mputauOu uOn bis honor as q
anancicr and his standing in business circles depended
upon his successful OF this SUIT and he should
/ therefore resist IT.
The friends OF the present management Of the Ecc re-
cOguze this necessity of NcIienrys position, aud be-
licye that while defending the sut in England he WAS
quietly working through sices To secure the removal Of
Jewett and the substitution Of friendly manag ment,
which would not only discontinue the suit begun by
Jcwctt but also pay McIIenry the Sl0OOOOOOO Which
| hc has set up offset OF counter claim
Evidence these and other points has been accumu-
lated by General sckes and SIR Burnett. In doing ths
they are understood 10 claim that they have come upon
evidence showing colusiOn in tho appointment VI M
Jewett as receiver and il upon tLis that tine Attorney
General is said have acted already IN a very quiet
manner. He has gwen notice so Mcllenrys coun-
7 sci clamsj to the receiver that no viii oppose
The reorganization proposed, aud also settle
men Of tie receivers accounts, the ground that Mr.
Jcwett's appointment was obtained through fraud ana
couson The present condition OF tnc affair, as given
by persons Intimately acquainted with the plans OF the
/ opposition, is substantially as follows:
At tue time Mr. Jewett appointed receiver OF the
Erie Company, in the suit Of the People partner OF the
then Attorney Daniel Pratt. of syracuse named
Wuber f. Brown made the requisite affidavit IN the case
# has since been discovered that Mr.. Brown received
So 900 as COMPENSATION making such affidavit This
receipt bears date January ,, 1876. \ Photographic
COPY of TINS IS at present the hands OF those who made
this discovery. Mr.. Jowets counsel has been warned,
so the opposition assert by the AttorneyGenel not 10
take any further steps towards carrying out tic reoFean-
izaiiou scheme, without giving him ample no.ice
The suit OF the People against the Erie Company was
Instituted during T. H. Watsons administration, and the
case was beng conducted under Attorney GeneraI
Pratr- directions by Redfcd Hill, Of hs city, when,
tryious To the appointm nt OF MI JcWott Driei note
was received Iom sIr FaIrculd, who then Deputy
,ttorey General under Pratt directing ReGicld * lI
~ forward all papers 10 once to Albany. An amended
complaint was prepared, and the papers were used as
bassupon which to obtain the upp0uJmcnto MI JeWett.
Other suits wcrc brought, in which Sr JeWet was again
made receiver OF the company but the Peoples SUI. has
moi becu olanfonei. and it is claimed that Attorney
General Falrchd has legal right TO insist upon lul
exclamation OF tae alleged coiuson above mentioned
prior 10 settlement with Mr. Jcwett and foreclosure
! OF the property.
The friends of the present management state taat II Is
not true that Mr Fairchld has given notice tnat lie VIII
ouuo,e the present reorganization scheme. They assert
unsyely that lie Is fayorOf the scheme, aud vi" DO
/ all ne can to promote H. Ibis assurance they
I saw he has gwen during the past week 10
| several persons who have spoken TO nm on the
supect The reports circulated by the representa-
tIyes Of McHenry here, they claim, nave
been manufactured Tor the occasion, TO create public
attention. About oue-ha Of tue stockholders have al
ready pald their assessments, and others are paying
! daily The moment Mcllenry found he could not use
Mr. Jewett ne began to abuse him, and has continued
I la. auuse to the present day. ~. ,....-
Al a meeting OF the directors OF the ffie company
resetdav a resolution was adopted formally emlOMt
inc Ercciyer .ewett To use such means ls nc hiShl
masses. 10 facilitate the reorganization OF lAc company
/ upon the In sish scheme.
,.,-,,,,,,r,,r, a. INIT A MOLLY MAGIIlsI.