New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-28
EXPOSURE OF AN ERIE SUIT.

ONE OF THE PLAINTIFFS ADMITS THAT 1T WAS
BROUGHT AS A sToCK-JoBBING 6PERATIoN-A
FOOL FORMED TO MANIPULATE THE STOCK.
James A. Reilly, one of the plaintiffs III the
new snt Potter and others against Hugh D. Jewell
receiver of the Erie Railway Company. was examined at
length before the referee Saturday W. W. Maciar-
land and A. A. Rcdold appeared for Mr. Jewett and the
plaintiffs we're represented by exJudge Ashbel Green
and Eliln Root The examination disclosed some tacts
OF much interest to all connected with Che Erie comp
cations
Mr. RedAeId said last evening that examination of
Mr. Reilly for the purpose Of discovering the motives
which influenced him In bringing the trial TO stop the
foreclosure and make him produce the evidence II he
had any, to sustain his cause of action Rey's test-
mony thus far before the referee. was OF
somewhat startling nature. and disclosed carly in
the investigation the history i'll part Of an organized
pool to pulate the Erie stock for speculative pur-
pos,s Mr. Reilly testified Saturday thai he was the
owner Of hundred shares OF Erie stock when asked
t what time he acquired stock he said in November
lie then asked from whom he got the money 10
purchase the stock and he said that he borrowed IT, but
that had yet paid it back, nor dld he know wIen
would, II h. expected to do sd hen requested
to say who loaned him the money his memory iaied
him. and he was unable to furnish the name at present.
or until he had an opportunity to refresh his memory
Mr. Reilly also testified that he was induced to bring
This suit by his brother by lnslee ~ Hopper ana
others who said there would be plenty OF money IN It,
Their pau disclosed To Reilly, was 10 form comol
nation or pool to manipulate tue Erie stock, aud divide
the profits Reilly to purchase 200 shares of stock
al 9ac. and become one OF the plaintiff to the
an; To euon the foreclosure proceedings and advertised
sale with understanding That he was 10 participate
IN the profits that might arise from the stockoDbIhg
operations. II no money we're realized rom the SCHEME
ne was not To assessed for losses bar he was not to
be- paid anything for his agency Al The proceedings lie
claimed that he taken unto the scheme ana aofeed
i,i Inc m a
Qurstiors was put the witness as II the sources OF
information for the charges IN the c0npidht IN fespcct
TO the business and management o the road To when
he responded that II impaired by certain employees
of the road When asked for the uomes OF his normanis
objections were urged to the admssibty Of such evil
dncc IL behg claimed by the attorneys tor the plaintiffs
that II WA, m the uaure o. confidential cOminunica-
lions and need b. diyngcd. Auer long argument 'he
referee decided send the question To the Court for
decision The examination OF the witness was soon
n'tcrward brought To a conclusion by hr. Reily5 re
qucsiiu to he permitted to refresh h- memory from
memoranda aud letters which he promised 10 produce
TODAY.
MI Mcfarland was found at lis home on staten
Island last evening. After corroboratins Mr. Redhelds
statement he said "Reillys examination shows the
.mptincs. OF these attacks on Mr.. Jewct have had
commission issued under which | shall have
al his co-paiutifs examined ana We shall prob
ably Hnd out what .csrs and Mcfieury know about
tins suit ESQ A. for Reilly he has laid himself open 20
a dozen indictments by swearing 10 matters ~ when nc
admits he knew nothing have no doubt that he was
the tool OF MClIrnry and Sckcs, and That Mceury !ur-
n.shcd the money t. buy his stock BY his own admS-
-ois r ha- never SPOKEN 60 MI Jcwctt. does not know
who most of his cop,autiGs are and has no better
GROUND Tor swearing the charges contained IN his com
plaint Than that hc has heard counsel make them IN
court After We have Examined some % his conicd-
crates we stall move for dismissal Ot the complaint on
their own showing" The examination viii be continued