New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-12-02
A STATEMENT FROM JAMES McHEyRY.

HIS VERSION OF THE ERIE C'StRON hitsf hhif
COMMENTS FROM PRESIDENT JEwkTr ASD $. !
". BARLOW.
James MeIIenry has made another statemen
about Erie which his representative IN this cou
try james A. Reilly. last evening gave 10 Mr. Hepburn
Chairman Of the Assembly Committee. The impor
parts OF Mr.. McHcnry's statement, when Is en-
tifed statcwent Of James Mcfenry IN relation th'
loans NEGOTIATED IN london for the Erie Railway Con
pauy 1872 1873, 1874" and which before tho
United States Yice-CoBsu IN Paris. ioi!ows;
undertook the construction Of the Atlantic and
Greet NhstPrn 10 extension Of the Ele Railway WIFI
full Enowcdge that ITS prosperity depended on is hon
orsble treatment BY the Erie son after ts completion
strangle the great railway which constructed. EGTty
In 1872 accepted suggestion MADE By Mr. :. l.. II.
est administration for the Erie took the only course
tnnt appeared open 10 me- induced b. money pay-
The nominees OF Mr. Barlow. I relied entirely ON
Mr. Barows statement 10 the position ~ the Erie
ana accepted implicitly every auiOn they represented
being necessary for The benefit Of the Erie Company
edgedO strengthen the Erie financially aud morally
so that II woud no IN position 70 carry out It's engage
menfs To the Atlantic and Great Western.
Immediately the election OF General Dix. March.
1872 within twen'y-fOur hours called on for An
receiver nrgonsted this with Mcssrs BscLOffsheim
{, Godschmdt. aud realized 10 the company par value
successu negotiation which received tue thanAs
OF the company. Shortly aiterwsrd law was passed.
SIS 600 paid by resolution o the Board, making te
Erie an exception to all American railway ia requiring
the directors be rcsd citizens OF the Unied STATES
which legs alton concentrated all me power IN tue
HANDS &, Mr Barlow and hIs confeicrates
Ia tie letter Of May name rs Ior the nrst
time Introduced thc holder OF bonds worth
$4,000 600 which IL was suggested should b. repur-
they we're said TO have sold Gould az 20 yer cent
Tie et'er OF June reports the purchase OF these bonds
nj 76a per cent. aad ~ IA stated that the
pure Ease will largely bsuehs the Company. aud tie
eradication increased by the knowledge that Could
yond the actual bonds. bus contract for
the sale OF these bonds coirc'dentiy made with
was realized BY the sale bonds about t6JO0oo
Thns early was deceived by Erie officials. aLd ny
terms made useless by the profit not the whole
proceeds, going into private pockets
the earnings being used Tor permanent work on
the railway. and suggests that the sSO.JCO " resoue "
1 oSf Of 'd the balance Of bond proereds
was raising this money Ia London nnds5 the
Tie Improvement OF the railway ard It's equipment In
thIs deceived
known tie Watson Programme and his various
suggestions that further amounts were REQUIRED Tor the
$40 600 600 convertible bonds, pro pectus attached OF
these 600 900 we're al once made available at par n
negotiated under the Instructions Of watson IN London
the pegoaIon these loans Received the expression.
under SEAL OF the thanks o. the 30 ri.
The next nm aneial movement London by the
Erie Company the issue OF 100000 sterling
second consolidated bonds the arrangements Tor which
were made by President Watson without knowledge
or consent Tue loan iaure scarcely 10 per cent
beng subscribed OF which at least ohe-haf was used 10
tho expenses connected with the issue. Watson incn
sought my assistance, and negotiated advances to
large amount the uDsoid portion OF the bonds, being
rore than % eco 600 sterling unsod when President
Jeweft came Ito power the proceeds OF which
plaeed ~ his disposal through the agency OF Mr. j. A. q
Gray, Of the directors sent especially 10 London for
The, WAS not a single collar Of the proceeds appro-
prated without the consent OF the Erie Company or
u officers
Tue summary Of these financial transactions is as fol-
lows TIE Erie received 10 1872 proceeds OF first mort
6 20 bonds. s6O00OOO; 1873. proceeds of ertI-
Dles ut least S9,000O00; 1874. proceeds Of second
the financial gement continued representations
were made that the money was urgently required for
belle we'd and acted upon and It was not until the last
bond sold and Mr. Gray bad returned with the final
Erie physically and financially in no better pot;on
diatey sfrerward passed into The hands OF receiver
and the legality the second consolidated bouds
officially called Into question.
VIEWS or PRESIDENT JEwETT.
President Jewett visited yesterday at his
Office. bu, did not to take very
lively interest in Mr.. McHcnry's statement. He
was very busy. merely glanced at the paper and
said that II Dir. McIIenry cared to keep his
by continued publications he MIR Jewetp could not
ton In all bearings had been discussed ia eouIt OF
law elected by Mr. McHenry to settle the matter, and
McHenry for about two millions OF dollars.
TALK WITH MR.. BARLOW.
s. L. VI. Barlow who found at his office, No 80
wlliamsst read the paper through carefully making
the following comments several points he pro-
ceeded:
Mr. McIIcnry begns bis story without specifying
dates and II would appear. from what be says that
engaged in building the Atlantic and Great Western
at the time or the Fisk and Could OF Erie.
In fact he began the construction OF that
road about 1852. and IL finished bout 49, :.
He says that law was passed at my instance
requiring tho directors OF Eric be resident citizens
the UDted States. This law made t pcIial odene.
the nj the head NJ Erie gnize proxies
aud was dr. up ry Evarts. S>urhmayd and Chcate
and had the clause Mr. NceDry complains OF tackled
mt the end. / and those working with me dii -,
could TO prevent the passage OF the bn withCu
avail With reference to the repnrchase OF
We objected 10 this. but found making inquiry IN
for ine bonds Gould himself. But we knew
we could realize something Ike OF per cent
In London. We Offered repurchase OF Gould,
who refused 10 sell except for something like 92 per
cent or 80 per cent iiis bonds In England, ard
we threatened TO attach them for the Judgment oh
tanned against him. We had him far IN our power.
aud he compromised ar 70 per cent by which means I
saved about $3.50 600 10 the Erie Company When Mr..
McHenry says. " There not sugle dollar OF the
proceeds appropriated without the Of tho Erie
Company ~ Its officers agents." need only
renln that court Of bis choosing rendered uJg-
ment against him for two millions. due from him
the Erie Company.