The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-21
Mi. Vanderbilt'S Testimony Before the
Legislative Committee.
is THIS A POLITICAL MOVE ?
The Scheme to Give the Canal Towpath
TO a Rival Railroad
[By TELEGRAPH TO THE HERALD. ]

Hepburn committee Mr.. vanderbilts testimony
showing how Baltimore and the stateiof Maryland
favored the baltimore and Ohio road and
furnished it ample terminal facilities, the
very contrary % what New York State
did for its great highways generally applauded.
He claimed that the great corporation over which he
presided did not discriminate against New York city,
and If the State would only do other States did
New York city would not be losing trade. All the
other railroad magnates Jewett. Blanchard JOY aud
Others agree to this
POLITICAL VIEW.
Tomorrow, however, when Mr.. vanderbilt's ex-
animation will be continued and other parties
examined. an attempt will be made to show the
political bias that lies ut the bottom of
this investigation. It is openly charged
here tonight that Mr.. Thurber. of
the leading prosecutors Of this investigation.
is candidate for the republican gubernatorial NOM
nation. The Farmers Alliance. in session at SYRIA
cuse to-day. have thrown Robinson overheard. and
q committee is at work preparing address
to the Republican Convention urging the nomina-
ton Of Thurber. Hepburn the chairman Of the
committee. is candidate for Secretary of State on
the republican ticket.
A RIVAL RAILROAD SCHEME
The political leaders here, mostly democratic.
have also been caucusing tonight with the railroad
men. They remember that strong effort was made
last winter in Albany to grant the of fhe canal
towpath from Albany to Bufllo. already graded. to
the newly incorporated Albany, Syracuse and Buffalo
Railroad; that Alfred Wilkins. Tiden's right hand
in the interior of the State is the leading man
in this Corporation. The bill voting away this
of the towpath, enormous franchise. costing the
State millions Of dollars. was defeated; but i'm
medately after the Investigation commit
tee was appointed. and the testimony now
1,a;r <o ha xI,ivtar
revive this scheme under the pretence that both
the Erie and Central roads need competitor that
has not to pay interest on eighty millions
OF stock. Once granted that privilege of
using the towpath and compelling the use
Of steam the canals throughout, 1t is
believed here that the new concern will make a COM
bination with the older roads, and that the people
will after all get relief from heavy freights.
Owing to the presence here Of numerous politicians
from all parts Of the State. well
the West. the investigation is attract
ing attention at this stage of
it's proceedings than it has since it commenced
operations. The sessions may continue for ten
days. Saratoga being sufficiently attractive to all
concerned to induce them to make the most of the
investigation.
PROCEEDINGS THE COMMITTEE.
The Legislatures Investigating Committee on Rail-
roads met in the Supreme Court room. in the Town
Hail. at half-past ten o'clock this morning. From
the Erie road there present for examination
President J. Jewett. Vice President George r.
Blanchard and Auditor Stephen Little with ex-Judge
William d. Shipman counsel William H. Wander
bilt Of the New York Central and Hudson River
road was present, with John Z. Burrill and Chaun-
cey Depew as counsel. Tho Chamber of Commerce
and Board of Trade were represented by Simon
Sterne Thomas +. Fowler and John s. Myer. who
conducted the examination.
MIR. Sterne called for information in relation to
the working of the American Transfer Company and
the Standard Oil Company as to rates paid for
through aud local traffic. NC.
Mr.. Depew stated that all the information obtain
able had been given; that Mr.. Rutter on previous
examinations. had furnished all Information called
for by questions at that time
Mr.. Sterne offered in evidence some testimony
taken in the case OF the Commonwealth of Pennsyl-
vanis against the Pennsylvania Railroad Company
Judge Shpman objected to the reading OF the
evidence. opportunity was given for cross-ex-
animation. that 1t was taken in another State. &c.
Mr. Sterne stated the substance Of the testimony
that the witness was induced to make rebates, &c.
and that the American Transfer Company was
other name for the American standard Oil Company.
Mr.. Sterne then offered in evidence circulars en-
bodying the joint action Of the joint executive
mitees OF various railways in this and other States
held August IL. in which they unite in giving up
special contracts and special rates, which were
marked exhibits. Mr.. Sterne also offered in evil
dence comparative statements of the construction
aud capital stock floating and funded debt OF the Erie
Railway from its organization in 1851 down to 1873;
also comparative statements compiled from tho
State Engineers reports from 1854 to 1869 Of the
Hudson River Railway; from 1854 to 1869 OF the
New York Central Railway. and from 1870 to 1878
of the New York Central and Hudson River
Railway; also articles OF incorporation Of the New
York. Lake Erie and Western Railway and certif-
Gates Of incorporation OF the reorganized company
which has succeeded the Lake Erie company. show
ing upon what basis the reorganization made
differs from the arst: also the new consolidated
mortgage of The aforementioned company, oil OF
which. with papers presented by Mr.. Depew, previ-
ously called for. were received and marked % ex-
hibits.
MR.. vANpERBILr's TESTIMONY.
Mr.. Vanderbilt then and examined by
Mr.. Simon Sterne He testified that he presi-
dent of the New York Central and Hudson River
Railroad Company: had been connected with rail-
roads about fifteen years, his first connection being
with the Harlem Road; identified the lease of the
Harlem to the Hudson River road; the capital stock
of the Harlem was originally $9.OOO.000: another
x10O0.OO0 subsequently, issued. which, under
the terms OF the lease. was to be expended in i'm
part OF 1t was so expended think the
dividend stock was about eight per cent; have
been connected with the Harlem road since 1864.
before the lease the New York Central; from that
time to 1873; ut the time of the lease vice presi
dent of the Harlem my duties ut that time were to
look into the internal affairs OF the road; did not
have much railroad experience and had to learn;
kne W more about the Hudson River at that time
than the Harlem after the consolidation, from
1850 to 1873. was director both roads:
had nothing to do with the lease OF the
Harlem to the New York Central; other officers
knew more about 1t than did was q director but
had not much experience; the other people were
perienccd. and IL left to them; the lease de-
on tnc part OF DOtn cOmpanlesi prOutaplo W
both-to the stockholders OF the Harlem and to the
Central. from the increased facilities In New York
CITY,
Mr.. Sternc's questions here sought to show that
through traffic 10 Albany via Harlem was entirely
suspended by the lease.
MIR. Vanderbilt stated that some business was
done by the connection with the Boston and Albany
road: that the receipts from milk and local traffic
equal to the payments under the lease; that
the facilities obtained by the lease at the Forty
ond street depot were valuable; the lease OF the
Harlem was part OF the scheme to benoht all traffic
sfntp in my IN har Ia
spirit at that time: was merely secondary; the
lease intended To benefit both roads;
cant tell the valuo of the property ex-
cmptod from the operation OF this lease;
one-fourth of the stock; individually hold
probably one-cighth. Mr.. Vanderbilt could give no
estimate the value OF the property exempted from
the operations OF tho lease When questioned as to