The New York herald., 1879-08-26
ERIE RAILROAD HISTORY.
President Jewett Enlightens the Leg
iSlanve Committee.
ArIIENRY'S HALF MILLION.
Standard Oil Company Rebates
and the Car Trusts.
[By TELEGRAPH TO THE HERALD


Of Mr. Jewetts offer to give any information in his
power to aid in framing legislation for the correc-
ton of any defects abuses that may exist in the
railroad laws OF this State They set Mr.. Sterne
temporarily aside and allowed Mr.. Jewett to
proceed in his way without any caviis
or Interruptions by counsel. The consequence
that the committee obtained in about two hours
more useful information and more actual facts than
they have elected during the three days Mr. Sterne
has conducted the investigation. Mr. Jewett ex-
planned all the history of tina Erie Railways bank
ruptcy and of the reconstruction scheme by which
1t was sought to save the valuable property to the
owners. and laid frankly before the committee the
facts relating to the Standard Oil Company,
the coal land purchases. the proxy scheme
of the corporation and all other matters
of which the committee desired information. Each
member of the committee in his turn asked such
questions as suggested themselves to him. and the
frank manner in which they were answered by the
witness and the clearness with which he explained
subjects not thoroughly understood by the commit
tee, convinced many of its members OF the expe-
diency taking the control OF the inquiry into the
commitees hands and abandoning the idea of yield
ing its functions to counsel prejudced against and
hostile to those from whom information is sought.
The examination of Mr.. Jewett was not concluded
to-day, and his statements win be resumed in the
morning.
CONFIDENCE THE FUTURE
report is current here that Saturdays decline in
Erie stock and bonds was occasioned by the report
in the New York papers that Mr.. Jewett has de-
cned to express his belief in the present and pro-
spectve value of those securities. This statement
unfounded. The official record of the testi-
mony shows that Mr.. Jewett said that he deprecated
questions such Mr.. sterne had put to him
in regard to hio opinion Of the value of
Ev,a &f
the property would distort and misstate
answers further their ends, but he said that
ns question had been asked his refusal to reply
would be used in similar dishonest manner. and
therefore, although the committee had ruled out the
question, he desired to state that his confidence in
the future of the road and in the value Of its secur
ties unshaken. and that if the property
is allowed to develop itself and complete
its improvements he believes it will more
than realiz, the expectations Of its friends
and well wishers In a conversation among some of
the members of the Chamber Of Commerce who are
here tie opinion expressed that influences are
being secretly used upon the investigation in the in
terest of Phiiadelphia and Baltimore, although, of
course. without the knowledge Of the committee it.
self. leading New York merchant said:-"Stop
the trunk lines running through New York State
from bringing Western freights cheaply roads
running through Pennsylvania and States South
and New York city will have West
ern pcasiuce to ship. Our warehouses will
have to he closed for want of something to store,
and this is what Garrett of the Baltimore and Ohio
Railroad. wants and what he has been working for
for years He has the support instead of the op-
posta or his State and Of the city of Baltimore
his efforts in this direction" rumor is current
that the Chairman of the committee has
bean induced to forego any further examine
of Mr. md fhart he afta will
not again be put on the witness stand. Mr.. Jewett
to-day went into elaborate explanation Of freight
discrimination. and argued against the practcabiy
of pro rdtd freight tariffs in this State, while there
are competing trunk lines leading to competing
Atlantic seaports without making New York rail-
roads merely local roads and cutting off
their Western freight business. He depre-
Gated any action the part of New York
State alone this subject, but expressed tho wish
that all the States interested would simultaneously
and similarly legisate upon it, that Congress-
whose power he did not doubt. would take the mat
ter in hand. or that the various trunk lines them
selves would make some permanent arrangement in
good faith that would prevent the cutting OF rates.
JEwErr RESUMES STORY.
When Mr.. Jewett resumed his place the stand
Mr. Sterne desired to put portion of the speech Of
Sir Edward watkin. delivered in London, in evi-
dence. with Mr.Jewett's kilograms, referred to on
Saturday.
Mr.. Jewett-what kilograms? You speak to me of
kilograms; want TO see them.
Mr.. sterne-Thcy the kilograms I had on Sat-
urday. You thom.
Mr.. Jewett--I never saw them. TThe kilograms
we're handed Mr.. Jewettl
Judge shipman submitted to the committee that
public speech delivered in London not evil
dence; it was something out of the ordinary pro-
reeding OF courts.
Mr. sterne thought it evidence to the extent 1t had
reference to the subject matter.
Mr.. Jewott, having examined the telegrams, said
he had no idea that he sent such kilograms and
further addressing the committee). he would like
20 have Mr. sierne sworn to where he got those
Mr. sterne asked If Mr. Jewctt had book in the
Office Of the company which would show all tele-
grams
Mr.. Jewe:. said there was in his Office n hook
which would show the ssLjeci matter to which all
Telegram related but ncthine more. He would
.. Wnzt relation did Sir Edward watkin bear to
the company and to the Reconstruction Committee? (?
Mr. Jc~ett answered that at a meeting of the bond
and stock holders held ia London sona time in 1871
they created what was called reconstruction COM
mitte--s committee to try and bring all the bond
aud share hoIders together. that they might agree
upon some programme Tor reorganization of the
company; tie bosrd selected such committee
elected Or T. ward hat1ln chairman; he ia chair
Of the Board "a Trustees and has no other rcla-
ton with TIE railwsy company; if lie had any
-'- 't"sA ~" hOt Know III, anu MS
understanding was thai Sif Ld~ard Watkin drew n O
salary FROM the company.
Air. Sterne asked whether Mr. Jewctt knew that
in the documents before ths committee appeared an
item OF GiO,OO9 paid 70 sIr E3~ard watkin?
Mr.. Jewett--l never saw that account texamiuinp
ftli dont nnder@&nc iliisi there il charge here
(reading tDwhcther that il for hms elf or the whole
committee or Tor Committee expenses don't know
have no doubt that would be taken from the assess
incnt money.
Ar. Stcrne referred him to another charge in tho
document of 81, 900 for the other members OF
The Reconstruction Committee.
Dir. Jewett thought these items for the cx-
pGnscH Of tho committee
AIR. Steruc pointed out another item of several
thousand pounds which assumed to pay FOR legal
charges. miscellaneous expenses, &c, OF the com.
Ll.tfce.
Mr. Jcwet:-I have no objection to your putting
d. fh4t whole sheet ga evidence and taking il for
granted that Il was paid TO DIR. Watkn and his co.
trustees. The COMMITTEES had the power, under the
L.a- tl.n