New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-09
ERIE'S LEGAL VAR.
ORIGIN OF THE LATEST SUIT.

ORIGIN OF 4 HE LAlESl etll.
FURTHER TESTIMONY FROM JAMES A. REILLY-rHE
STOCK PURCHASES WHICH PRECEDED THE Ac-
TIoN.
The examination OF the plaintiffs in the
reference ordered the of Charles Potter and others
aeainst Hugh j. Jewett the Erie Railway and
others, was continued yesterday before the ref
cree Freng II. Smith, at No. l9l Broadway.
Mr. Mcfarland recalled James a. Reilly, one of
The plaintiff who at the previous hearing gave some
interesting testimony to the origin OF the suit The
circumstances Of his first connection with the and
his motives for verifying the complaint were made the
subjects of searching examination. Mr.. Reilly SAID that
he refused to verify the complaint until he had
thoroughly satisfied his own mind OF the truth OF the
statements contained in IL. Tie complaint shown
to him in the early part OF December last 10 satisfy
him OF the truth of the allegations many statements ana
alidayits were furnished 10 him. Some of these state
ments were represented to have been taken from the
Er,e Railway books lie had evidences OF the truth Of
e statements that were made beyond these papers They
wore nut into his HANDS by General Sickles. Among the
anldayits the only one that be remembered was made
hy John Winge, regard To stock cars lie recoectcd
that there also aavts in regard to the Erie
Railway contracts with the pennsylvania Coal
Compauy sud the United States Express Company
The witness acknowledged that he knew nothing OF the
merits of the contracts and Of his personal knowledge
me could not declare that any wrongful act had been
committed by any connected with the Eric manage
ment -
Mr. McFarlapd-Dd you wish me 10 understand
iIon what said In your examination the other day
that YOU had information rom railroad men, OF actual
wrong dealing In the Erie management
: Mr.. Reuy-Not directly. SIT. learned what knew
through General Slcrs who said that he obtained The
information from railroad He told me about the
general bad Of the road about the payment
OF too bigh wages the carrying Of freight ut losing rates.
aud waste in other directions.
MIR Mcfarland" 80 you took the word OF General
sckes as TO what had from railroad men, and N this
tocutbcr with the statements shown you, you felt
authol ized In mating affidavit to this complantP
Mr. Reily.-l din sir
Mr. Mcfarland emdeavored tn reach the origin of the
suit by inquiries To the persons who 10 pay the
oxposes ~ the present litigation. Nj Reilly said that
he hac no knowledge who would pay for it, He very
sure that he did not expect TO pay for IT, He did not
know whether James NcIlenry was pay for tbe WAS
not In Mr Mcilenry's counsols.
The witness said thai his own object in undertaking
the snit 10 speculate He bought stock early In DO
ceber because IL low, and e considered IL good
investment. Afterward this suit was proposed 10 nun
the readiesi means OF increasing the value OF the
stock by putting tbe road under proper management
He therefore h the stock TRANSFERRED to nis name III
order that he might become plantn IN TINS sint Inc
witness admitted that I'll, transfer was mace before he
had concluded 20 verify this complaint and about ten
DAYS he had first bought the stock Tue complaint
was verified by him on January IL. 1873.
Mr. Mcrarland-;o y0u had tlis stock transferred 10
Won for the puTloses Of this suit, without knowing
whether you had any cause OF actions II You do not