The New York herald., 1879-07-11
ERIE AGAIN UNDER FIRE.

THE ''TRuE INwARDNEss" OF THE coMPANY's
FOR PRESIDENT AND RECEIVER.
When the Assembly Committee on Railroad Man.
agement resumed its session in the room of the
General Term of the Supreme Court. yesterday.
there was fair attendance. The examination of Mr..
George I. Balch was continued. He testified that
when the Erie Railway was sold the court copy of
the inventory Of the property of the company was
taken to the place Of and represented US the full
inventory. How much of the property was rightly
in the inventory was question which referee
was now deciding. Mr.. Jewett had stin some
property on his hands as receiver of the
Erie Railway-the Grand Opera House-for
instance, and securities worth $259,sOO. Mr..
Jewett's salary receiver is $4,000 a year; his
salary president was fixed at $4,000 year, to-
gether with an advance of $4,000 year tor ten
years; this salary and advance. making total OF
$4,000. paid to him when the agreement was
made in September. 1874; the road went into the
hands of receiver on May 20. 1875.
Alter some further testimony the witness was
cross-examined by Mr.. Shpman. He testified: 1.-THE
memoranda have used in this case were prepared
by me within the past four weeks. partly from the
printed records of the Erie Railway Company. ut
the request Of Mr.. Stern. Several letters were
handed to the witness and marked for identification
copy Of letter of Mr.. Jewett to Colonel Bach was
offered in evidence and read. 1t is dated May T. 1s7S
and states substance that Colonel Balch had said
he well fitted for preparing reports to State en-
gneers and stockholders; that all the reports
made by Balch; that he was trusted in that work
that when charge made against Mr.. Jewett that
the reports were incorrect he expected that Mr..
Balch would take upon himself the responsibility,
but that he refused that Mr.. Balch called on Mr..
th011
ers and wanted to form combination to the detri-
ment of the company; that Mr.. Balch has used
every secret to upset, overthrow and destroy
the Erie hallway Company and assist it's enemies in
their attacks it, that his conduct has been dis
loyal and dishonest, and he therefore removed him
from Office.
Mr.. Stern said the letter was all bosh, and simply
amounted to this That Mr.. Jewett got himself INTO
bad box and was charged with perjury, and then
wanted Mr.. Bach to shoulder all the responsibility.
Here Mr.. Balchs letter to Mr.. Jewett in reply
read, ana Is a general and complete denial Of
Mr.. Jewett's charges. He denies thar he ever was
engaged to make up reports tor the stockholders.
THINGS THAT WERE NOT SAID.
The examination the letters then proceeded
and the witness said IL don't recollect having in
my letters to p j. Lynch. the engineer attacked Mr.
Jewett; did not to my recollection state that
would make the fur fly by and by. and then would
reward my friends; attended as witness for the
Grand Jury in connection with the charges against
Mr. Jewett, hut was not examined; do not remein-
ber having stated in my letter to Mr.. Redmond, in
Liverpool. that Mr. Jewett escaped indictment
henchman Of Governor Morgan and that the press
OF this city all bought up Counsel piled the
witness with number of questions in regard to
statements made by him in his letters and to every
question came the answer. IL don't recollect."
Reference was made to Mr.. William Pitt Sherman
charged that he a discharged employe OF the
Erie Company. Mr.. Stern promptly repelled tho
charge and said he should call Mr.. sherman to the
witness stand.
@. Did not tho reports prepared by yon for 1874
and 1876 conform substantially to the reports of
| her A..
| did not; they were misleading as regards the
| floating debts: there was certainly great change
effected in the method of making reports under Mr..
Jewetts administration.
Q. For the betterq A. No. but greatly for the
lead the public there is difference in items between
the reports made to the State Engineer and those
| to the Board of Directors.
| Q. Do you know Of any railroad compsny that
gives floating debts in detail? A. do.
recess was here taken for halt an hour. at the
| expiration of which time the witness resumed -
What mean to convey by misleading reports IL that
only the reports vague and obscure, but they
absolutely state untruths; the interest due has
always been charged to the interest account whether
it paid not; the reports intended for the
| public and to be honest they should set forth in
foot notes how much of the set down in the
interest account has been paid previous to the ad-
ministration of Mr.. Watson the profit and loss ac-
count included legal expenses, but under Mr.. Watson
and Mr. Jewet the legal and reconstruction expenses
not so charged
the proceedings against Mr. Jewett the charge Of
| perjury never had any regulations with Mr.. Nc
| Henry, have ever seen him but once, and that
| at distance; never considered myself in the en-
ploy of Mr.. Jewett; was servant of the proprie-
| tors Of the Erie Railway Company; never had any
interest in common with Sickles, McHenry any of
| that gang.
@. What was the increase in the funded debt from
| 1874 to 1877? A. In 1874 the funded debt was
$l34 927 and in 1877 s142 95940 the increase
| being in three years $S.0j0Ol3: had interests
| which could be advanced by depreciation of Erie
Railway property reflection any of its ofii-
| GERS.
To Mr. shipman-I may have stated in a letter to
| Mr.. Redmond that the Lord would not allow Mr..
| Jewett to 20 unpunished. .L
q. For what particular sin did you mean he was
to be punished? A. For his general unfitness for
| the position; never thought he proper man
for the position Of president receiver found
great many irreg gulsrties which, during my term Of
Office labored to correct; for instance we found
| l,GO0 squatters who had never been source of
| revenue to the company, and made them pay up
till the company derived handsome revenue there
| from.