The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-11-27
THE RAILROAD INVESTIGATION.

DRAWING TO A CLosE-oNLY A FEW MORE SEES
sIoNs TO HEAR ARGUMENTS OF COUNSEL
TESTIMONY TAKEN YESTERDAY.
The labors of the Assembly committee appointed
to investigate the management of railroads in this
State at last nearing end. AL the testimony,
with few trihing exceptions. is in. and it is
believed that the argument Of counsel will begin to-
morrow All the arguments, both in behalf of the
people aud the part of the railroads. will occupy
about four days. SO that week more will probably
finish the investigation. The committee met at ten
O'Clock yesterday morning in the General Term
room of the Supreme Court and examined Mr.. s. L.
NJ. Barlow and Mr.. r. G. Villas. the former being
director Erie in 1872 and the latter its present
general freight agent
Mr.. Barlow testified as to his connection with Erie
as counsel and as director from 1872 to 1876; the
original change the Board took place by the resig
nation of a majority of the directors in 1872:
of these designations voluntary others paid for
at the rate Of $4,000 each; witness recovered
judgment oil $4,000 against Erie for
advances made to McIIenry; this Judgment was paid
before the road went into the hands of a receiver
when there was no thought of o receiver being
appointed; he thought the date Of the appointment
May &c, 1876 the English proxies on the Eric
stock were given to the control of the company on
this side in perpetuity; when Mr. Gray returned
thew had a Claim against Mr.. McHenry; he had re.
ceived very large sums in Erie bonds, upon which
he had obtained advances, which in turn were
handed over to Mr. Watson; he claimed that he had
turned over to the company all the money he re-
ceived from the sale of the bonds.
Mr.. Barlow continued:-Deducting every possi-
bio legitimate charge against the earnings there
was an amount to the credit of the company; as .
matter of fact, three and half per cent paid
the preferred stock and one and half on the COM
mon; the McHenry interest had taken $3,5O00OO
of the Erie treasury and forced the road into
bankruptcy.
MR.. JEwErrs ADMINISTRATION.
In relation to Mr.. Jewetts first connection with the
road the witness said that he refused TO take the
dcncy of Ere he finally agreed to come il SIS. 900
him in advance during the first six months of his
administration he saved the road more than five
times the amount Of the total salary paid him.
The usual recess was here taken. On the reassem-
bling of the committee Mr.. Henry N. Scudder. coun-
sci for<he Standard Oil Company submitted answers
formerly put in writing tending to show that the
South Improvement Company had no connection
with the Standard Oil Company Mr.. Archbold was
In contempt of court for refusing to appear on
former occasion. Most of the written questions
asked he had declined to answer Chairman Hep-
burn said he declined to let witness refuse to APP
pear then go into his private Office and prepare GER
tain answers to some Of the questions and then let
them be made part of the record They would tako
the papers and examine them reserving the right TO
call Mr.. Archbold after the summing up by counsel
Mr.. Il. @. Villas, general freight agent of the Erie
Railroad, was next called. He said that there
were, perhaps 100 to $50 special rates in forces
the company had endeavored to do away with special
rates much possible; they had been decreasing
every year.
This concluded all the testimony the except
that Of Mr.. Archbold, and the committee adjourned
until tomorrow at ten A. NJ. The session will be
held in the rooms of the Chamber Of Commerce at
the corner OF William and Cedar streets.