The New York herald., 1879-08-27
Mr.. Jewett Continues His Statement to
the Saratoga Committee.
OIL TRANSPORTATION
Cost OF the Reconstruction to
the Company.
icy TELEGRAPH TO THE HERALD


upon Erie Railway management Among tho in
terested spectators number of ladies' and Mr..
Bailey Potter. n. p. of London; Cyrus W. Field.
Mr. Isaac L Hayes. Judge Morgan. of New York;
Mr.. Garrett president of the Baltimore and Ohio
Railroad. and Mr.. William H. Vanderbilt. The ex-
animation has attracted great number Of railroad
men from all parts Of the country. and being repre-
sented In force to-day they were observed to pay
eager attention to the lucid, elaborate and
convincing description which Mr. Jewett gave of
the complicated and much abused property over
which he presides. He was allowed to pursue much
the same course yesterday. Mr.. Sterne not being
permitted, through some judicous rulings Of the
Chairman. to meddle with the committees business
as hitherto. In fact. it seems If the committee
had grown ashamed Of its listlessness allowing Mr..
Sterne to conduct the examination entirely and even
to produce papers which the committee had
never seen; much so, indeed, that
these Legislative representatives have como
to be generally known here "Sterne's
committee" Almost every member Of the commit
tee to day asked timely questions Of Mr. Jewett in
courteous manner. strikingly in contrast with the
method OF Mr.. Sterne himself who, whatever may
be his right to appear all before the committee.
which many question, has certainly behaved himself
toward witnesses as If he trying parties under
criminal Indictment rather than aiding the commit
NOTHING CONCEAL
In the effort of the committee to obtain clear
statement of facts to the pooling arrangements Of
trunk lines for the transportation of oil and Of the
contracts of Erie with the Standard Oil Company,
Mr.. Sterne. pursuing the tactics Of prosecuting
attorney, finally drew from Mr.. Jewett the remark,
"You can get nothing out of me- Mr.. Sterne,
by such means; am telling the COM
mittee all that know on the subject and have
nothing to conceal which drew from Mr.. Sterne
an i'll tempered speech which properly rebuked
by the Chairman. who, after excluding papers which
Mr.. sterne wanted to introduce. stated that the
committee understood Mr.. Jewetts answers and that
they were clear. frank and to the point This and
subsequent incidents showed disposition the
part of the committee to use Mr. Jewett's manifest
Willingness to aid in their inquiry to relieve
themselves from the rather equivocal position in
which the proceedings of the last few days have
placed them before the public fo- there is evi.
dent and marked difference between what Mr.. Sterne
wants to get at and what the committee honestly
desires to obtain. In answer to question by Mr..
Grady Mr.. Jewett gave al interesting statement Of
the advantages possessed by Philadelphia Baltimore
and Boston New York in terminal facilities,
showing how the Inconvenience in the handling
and the storage OF freights increased the cost Of
shipment and distribution in New York and added
erable drawback to New York commerce. While not
charging neglect the part of the State city gov
ernments. he commended highly what other
cities had done for the encouragement Of their
trade. In response to various questions Mr. Jewett
frequently assorted. with evident candor that whls
he thoroughly familiar with all the general
business and management Of the road there were
yet many matters of detail which left to his
assistant, Mr.. Blanchard. in whose sagacity and
Judgment he had perfect confidence; yet while often
appealed to- Mr.. Blanchard has not yet been sub
pDnaed rumor being current that the failure is
due to objections tho part OF Mr.. Sterne
member OF the committee, learning this fact, has
said THE committee will call Mr. Blanchard, as
the committee regard Mr.. Blanchard's information
transportation matters as OF the utmost impor-
lance in periecting their knowledge OF the subject
Indeed, without obtaining the information which
Mr. Blanchard possesses, for nearly his whole life
has been devoted to that business the committee
would be justly criticised and would be very remiss
in the discharge of their duties.
BALCH AND THE BIG INVENTORY
The redirect examination OF Mr.. Jewett elected
some interesting facts-among others, the COM
pany's relations with Colonel Dalch who had been
employed as statistician by the president of the
road and who had testified before the committee
that he had been directed to make inventory and
appraisement OF tho property of the road Mr..
make an inventory called for by an order of tho
Court whilo Mr.. Jewett was receiver. He said
that appraisement was ever made by Colonel
Balch, one required. While making the
inventory however, as 1t appears, Colonel Bach for
some purpose commenced making three Inventories
one for the trustees in London, one for the Office
aud for the Court, and with 1t to attach valua-
ton to the property. while the order Of the Court
limited the receiver to mere inventory. Upon MIR.
Jewett discovering that the time and money OF the
company were being thus improperly expended
he directed Mr. Balch to conine himself to
making the inventory ordered by the Court ut
which he took serious offence. All this, SUBJ
sequently discovered was being done not that the
inventory might he made but to enable him (Balch,
At the expense of the company and Tor his profit
by having form tor the inventory of railroad prop
erty copyrighted, several editions of which were
presented to the committee, aud which, it Appeals
with other matters led to his dismissal From this
to the foes OF the Erie either outside inside
of the office. Tho ring" who had
the company under their control. and wlo were
the same set who had New York in their grip during
the Tweed regime. were the enemies with whom the
management OF Erie had to contend. us New
York city had atter the ring broken. But as
New York city is emerging from the heavy cloud
under which her plunderers left her so. according
to Mr. Jewetts evidence. the Erie road hopes In the
eud to be freed from its difficulties.
MIR. JEwE1T STAND.
MIR: Jewett was questioned as to what bonds were
handled by Bschoffhem and Goldschmidt. He re-
piled that he did not know whether they were Sec
ond consolidated or not; they charged fs0,OOo for
Co. indebted at all to Erie the timo OF heir
failure IL but o small amount-$30O or $500; he
could furnish the account; the Erie Company has
registry of stock Europe; 1t is all doue in its
Office here in the plan of reorganization there
provision tor certain services In London; pro-
vision was made tor any payment therefor; 1t was
lett the future; IL the Erie Company pays twenty
per cent per barrel for oil going over the road,
whether going through the pipe line or not, II is
misappropriation OF its funds, unless there is
consideration for IL; IL the company does
make such payment / will ascertain the Stardard
Company assumes all risks except those originating
In the negligence of the carrying company; do not
know who comprises the Standard Oil Company;
have heard several names mentioned In connection
with It; never heard that the Devoe Manufacturing
Company was a member. or that O'Day was treas
urer; the Eries old docks at Weehawken are leased
to the Standard OIL Company, or Charles Pratt 4
Co.. II said the terminal facilities In the hands
OF the Standard Company. In reply to question
OF the chairman to whether his statement as to
risks taken by the Standard Company was rightfully
understood, Mr. Jewett said he understood that the
delivery of oil In good condition IL IL was re-
ceived In good condition; that 1t was re-
sponsibc FOR all Intermediate accidents IL caused
by its negligence; Mr. Rockefeller (proviously
toned In connection with the Standard OH Com
pany) never had any connection with Erie; never
drew salary from that company for any services
rendered; Mr. Jewett remembered the conference,
mentioned by Mr.. Vanderbilt il his testimony, held
for the purpose of compelling a division of the oil
traffic; the standard Company agreed to an equilza-
tion Of the transportation. according to his rccol-