The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-19
ANIMUS OF THE PRESENT SUITS.
Responsibility for His Actions
and Whom He Will Hold.
A CIRCULAR TO THE ATLANTIC" PEOPLE
[BY CABLE TO THE HERALD

conversation with him on the subject of his
garding these liquidation proceedings" said he,
~ want it distinctly understood in the begin
ming that I do not owe the Erie company dol
lar, and not an official OF the company will
dare to say so. On the contrary Erie
is largely indebted to me, the ac-
counts, as made by j. A. c. Gray, its
attorney, showing u balance of 100000
due me. Even within the last few days have
had offers to settle the matter ut once if would
Western and the Cleveland, Columbus Cincin-
natl and Indianapolis railways. l have "a letter
from Mr.. GRAY dated the 10Th of March, 1875,
stating that he protested against opening up
my accounts already adjusted by me (NIr.
Gray, as the agent Of Erie, leaving nothing but
the simple questionable you make the Cleve-
land, Columbus, Cincinnati and Indianapolis
purchases account of Erie or Atlantic and
Great Westarn railways or on your ownl Your
you did was at the request of Barlow and Wat
son, and for the sole benefit Of the Erie Rail
way
THE WESTERN CONNECTION.
"Now," continued Mr.. McHenry, ~ purchased
these shares at the request of Mr.. Watson
shortly after l placed him in the presidency Of
the Erie Railway as the successor to General
John A. Dix. Mr.. Watson wrote me that unless
an extension of the Eric system westward was
secured the Erie would remain a mere local
line, comparatively worthless; but if would
provide the means to purchase controlling in
tcrcst in the Cleveland, Columbus Cincinnati
and indianapolis line it would make Erie for the
first time able to compete with her great rivals
on the north and south, and add $4,000, 900
to the value of the Erie and the Atlantic and
Great Western railways. This letter, subse-
quently embodied in Mr.. Watson's official report
to the shareholders, was accepted ut public
meeting in London.
SECURING THE SHARES.
I'm Ordcr 10 secure the snareS maze con
tract, mt Watson's suggestion, with ii. ID. Hurl-
but, then president and now vice president of
dianapols railway. l RENTED to Hurlbut
through Watson, $25O,OOO in cash. Watson
added codicil to the agreement by which
was to pay Hurlbut further s75O,OOO, to be
secured to Watsons satisfaction. Watson en-
Joined secresy, to prevent any interference by
the New York Central or the Pennsylvania
companies. Therefore, S. l.. NJ. Barlow, the
Erie counsel was appointed to make purchases,
and / raised in London and RENTED to him
I'll 200, 900 sterling $50, OOO, OOO), when Wat
son in London induced me to secure further
shares, of which at one time l thus controlled
10000. though never bought share myself
and have not to this day seen them.
HOW ERIE WAS BENEFTTED.
"The result of these purchases was that in
March, 1873, Erie secured the control of the
Cleveland, Columbus, Cincinnati and Indianap-
oils line ut a time when Erie was apparently
wanting money very badly and l refused to
purchase of the shares were covered. Mr. Gray
one of the Erie directors, was sent to London
with instructions from Jewett and complete
powers of attorney, authorizing him to take
over the shares the property of the Erie Rail
way Company, paying all costs and charges.
There were continual demands for money from
New York during Grays stay here, which pre-
vented him from paying for the shares, although
l negotiated for the company during that time
the raising of nearly SIC, 200, OOO almost the
whole of which went to New York in cable
credits. Fully contiding in the Erie admnstra-
ton, retained nothing for my own reimburse
mcnt, trusting to the arrangements cmphat-
caly promised and undertaken in letters from
Watson and other members of the Erie Board
MIR. BARLows OPINION.
'1Icrc is the letter of s. l.. NJ. Barlow to Mr..
Stebbins, dated the 18th of September. 1874,
in which he says 1T IL due Mr.. MclIenry, in
all fairness and good faith, that the purchases
which he made, without even remote hope of
speculation, but solely in the interests of the
Erie and the Atlantic and Great Western com
pauics, under President Watsons advice.
should not be permitted to become u serious
loss to him.
COLONEL sTEBBINs ON RECORD.
A..
the Eric Committee of Finance, wrote me ON
the sth of September, 1874 "A realizing sens,
If the whole matter In forced upon mo by til,