New-York tribune., 1879-08-26
THE TESTIMONY IN DETAIL.


mittee assembled 1890 o'clock The attendance was
large, many ladies being present
Mr Je0ett resumed his place on the stand
Mr. sterne desired 10 put portion Of the speech OF
Sir iward watkln delivered IN London IN evidence
with Mr. Jewets grams referred to on saturday
Mr. Jewett-What telegramsi You speak 10 me oi
kilograms, / want to see them.
Mr. sterne-They are the elegrams had on Saturday
You saw them.
Mr.. Jewett-I never saw them. Irhe kilograms were
handed to MI. Jewettl
Judge shpman submitted % the committee mat
public speech delivered IN London was not evidence;
it was something ont ordinary proceeding OF courts
Mr. sterne Thought II evidence to the extent IL mad
reference 10 the suhject matter.
Mr. Jewett, having examined the teegrams' sald nc
had 10 idea that he ever sent such kilograms ana Iu
thor addressing the conimttee) he would like to have
Mr. Sterne sworn ~ to where he got these papers.
Mr. sterne asked # Mr. Jewet had book In the Office
of tine company which would show all kilograms sent
Mr. Jewett said there in his Onict book wuich
would show the subject matter 20 which all teegrams
related hut nothing more. He would telegraph ana
have the book examined.
O-What relation did Sir Edward Watkin bear to the
conpauy and TO the Reconstruction Committed Mr.
Jewett answered that at meeting OF the Dond ana
stockholders held in London. some time in 1870 they
created what was called Reconstruction Committees
committee try aud bring all the bond ana shareholders
together that they might agree upon some programme
for reorganization oi the company Inc ooaIu eiec "
Sir Edward Watkn chairman. He is chairman OF the
Board of Trustees and has other relation with the
railway company. II no had any other relation Mr..
Jeweft did not know IT, and his understanding was that
SIR Edward WGtkn drew no salary from the company.
Mr. sterne asked whether Mr. Jewett knew that IN
the documents before this committee appeared an item
of $4,000 paid TO Sir Edward Watkn. Mr. Jewett-l
never saw that account examining ~. don't under
stand this. There charge here (reading ~ whether
that is for himself the whole committee, or for com
mittee expenses, don't know; have no doubt that
would be taken from the assessment money.
Mr.. serne referred him TO another charge, In the
same document OOO for the other members Of the
Reconstruction Committee. Mr. Je~ett thought these
items were for the expenses OF the committee.
Mr. sterne pointed another item Of several thou
sand pounds which assumed TO pay Tor legal charges
miscellaneous expenses, etc. Of the committee.
Mr.. Jewett-I have objection to your putting that
whole sheet in evidence and taking IL for granted thatlt
waq paid to Mr. Watkn and his cOrustees. The com
mttee bad the power under the arrangement made be
tween the shareholders and the Dondholder. act
thev saw f and for at years hr time OF sir
Edward Watkiu and other members Of the committee
was occupied in corresponding, visiting localities, etc.
and that these services the amount was agreed TO be
Mr. sterue referred to an iom on the following page
Of ne document, OF tine Purchasing Committee oil
Mr. Jowctf stated that under an order OF the court
certain cash payment Was 10 be made upon The pur-
the Reconstruction Committee for the necessary funds
which were placed on deposit win me formers Loan Loan
100000 be held IN the Trust Company 10 cover possible
judgments. There Judgment against the Eue
Company IN favor Of MIR. McHeury, for $4,000. Mr..
Barlow his attorney, submitted 10 me hs proposition
20 borrow from the company 500 and | consented
that such loan should he made upon this JUDGMENT as
collateral, Mr. McIlcnIv al this time held large
Of assets OF the company, ana WOud nave done
anything reasonable at thai time IN order 10 get control
OF those assets.
Mr. sterne here read the testimony Of Mr. Barlow, in
which lie said that loan made ol 100000 by the
finance committee hccHuse MI. stebDns WIS member
OF the committee and warm IFleHd oI Mr. Mchehry,
and asked th- witness If that was fact. ,-,,
Mr.. Jewett replied that ne Ola not know. II might be,
o-Wicn did You discover that Mr. McHenry was
was before became receiver in May, 1875. The iudg
mcut Of Mcienry against Efie was In July, lo'+ Tor
In reply to the question why money was paid counsel
on account of the judgment Of Mr. McHenry, when be
said Sii MT. ''' McHenry could have ielzci the
assets Of the Ere Gompany ,icv IN London mako to-
the payment and avoid trouble had made various
efforts to adjust the difficulties between the Erie Com
pauy aud Mr. McIIenr, ana the London Banking Asso-
catiOn through Mr.. GRAY Hugh Mccullough and Others:
after The failures instructed counsel to try 10 effect
settlement never could get plain statement Of the
count from Mr.. MCHeny; Mr.. Gray reported that
McHenry was indebted to the Erie Company; the dis
Tie bonds sold by Ar. Mcileny was very great
iioni at from il to G9ju great wrong was done
the coumttee, winch he tJewe.p is tryIng 10 rtct}.
Mr. JeWctt gave an account OF WRONGS ne saw IeSdIu-
ing proxies and advised Tie directors 10 take measures
u 4. =
Of $4,000 paid for pr0Xcsi never gave me attorney
for the Erie instructions to allow tns item the habit o
selling proxies is hIgny Objectionable holders O stock
as collateral can nave ue htOth alu VOC
thereon WTOngfulY; In other cases stock which has
an by fhe registered holders; the subject
OF the wrong Of proxy voting Is one Wnch
but Mr. Jewett could not advise what means should be
taken TO lre!ehl thea liiu M MI Ciie-I5 oII @ NDo
by the pay ment OF comparatively small sum men not
holding ahy stock might obtain control; ne c0mTauy
On hgUIV md he fUgk
ownership OF stock The object OF the shareholder IN
the reorganized Erie Company ~ delOsltlng control
ling portion Of shares IN the hands Of trustees 10 vote
thereon until dividends were earned on pre-
ierGe1 stock, was to rectlfy omissions IN the law;
and prevent outside parties getting control Of
the company by buying proxies; think better admin
isratOn of railroads could be secured by stockholders
II they would select TO conduct the same who
not stockholders and had no interests To but
those of the railway The power OF Mr. McHrnry's
proxies ceased In the Erie Company in 1873. Nh jew
etts salary president OF the New-Hork Lake Erie and
Western Railroad has never been fixed; he only receives
salary receiver.
THE BORROWED ROLLING STOCK.
Being questioned why the New-YOrk. Lake Erie and
Western Road aid furnish Its own ears insteadcOf
depending trust for equipment, 1lr Jewctt said
the payments OF assessments stockholders did not
afford the necessary funds supply and the car
trust was created propositions being mace to car bud
ers TO supply be paid for IN five years through
the car trust under this oars were obtained low
rates certificates being issued at first bearing per
cent and afterward per cent; all the cost OF
the trust was S2,OOO per year, the pay
OF a clerk and expenses; trustees do not
make any profit; the New-York, Lake Erie and
Western Company are guarded I'm their dealings
that they are certain Of getting welbuilt at cost
and without any profit enuTlDg 10 the trustees.
Mr. Jewett on being questioned regarding past opera
ons Of the Erie Company, said he had much 20 do
I'm caring for the present business OF the company
that had time 10 10 INTO Od transactions the
settlement with JAY Could was in February, 1876; he
agreed 10 gs=ign 100000 express stock, par value
Uut the stock was Issued 10 the company;
fualIy S5OO.OOO OF stock was issued on this
Dccount To the Erie Company; know Mr.
Cassatt, fourth Yico-president or the Pennsylyaula
Eafoad who has charge OF the Transportation; there
. Iu,,r Cnfupluy doing busiuess ttst t,.d