The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-21
ERIE'S EMBARRASSMENTS.
President JeWett Denies Mr..
McHenry'5 Allega tons.
AN ENEMY OF TIE COMPANY
The Railway Owes Him Neither
Money Nor Friendship.
ley TELEGRAPH TO THE HERALD. I


SARATOGA. N. Y. August 30. 1879.
In accordance with instructions from the HERALD
called this evening upon President Jewett Of the
Erie Railway, who happens to be in Saratoga just
along with many other railroad kings, and
asked him If he had read the statements of MIR.
McHenry and others III regard to the great London
failure and whether he President OF
the Erie Company. desired to the
many allegation made by Mr.. McEenry against Erie.
Mr.. Jewett. while not disposed to enter at all
upon the various features OF the McHeny failure.
talked quite freely in far these features related
to the Erie Company. 1t having been stated in the
despatch from London in the HEEALD of this morn
ing that it was not known there how much duo
upon the Cleveland, Columbus, Cincinnati and Ind
annapolis Railway shares held in this country also
that proposals had been submitted to Mr. Jewett.
thought best to enter upon that phase of the
subject and u conversation, OF which the following
is an exact transcript had with the Erie presi-
dent in Mr.. Jewetts parlors Of the United States
HOTEL
ConnEsroNpENr-Mr. Jewett. how much is there
due from Mr.. McHenry to the Erie upon the Cleve-
land Columbus. Cincinnati and Indianapolis shares
in America?
President JEwETT-My recollection is that we adj
vanced on account of that stock for the benefit Of
Mr.. Mclenry over 100000. The amount therefore,
due is that sum, with the interest since the ad
vance made. in October, 1874. My un-
Outstanding, derived from the notes I have
received of the decree of the Master
OF the Rolls, is that the Master found the amount
properly due. and ordered the stock to be delivered
to Mr. McHenry upon the payment of such amount.
Upon these conditions we are ready and anxious to
make the delivery
PROPOSED COMPROMISE.
CORREspoNDENT-Has any proposition for compro-
mise been received and if So will it be acted upon?
Mr.. JEwErT-No direct proposition OF compro-
mise has been made to me. l have been requested
To sta tie wi tern /
these requests have come through persons who il
they had the authority to make such requests did
not exhibit such authority to me. aud declined to
consider the question of compromise until the
proposition came from Mr. McHenry because
/ believe that the object to get
from a suggestion OF compromise to
be used TOR improper purposes by Mr.. McHenry. I
ing to from Mr.. McHenry in an interview OF
his which lately appeared in the HERALD in which he
states that such propositions had been made to him
and that he had declined them. My counsel in Lon
did ask me to authorize some one there to accept
payment in settlement OF the amount of Judgment
which authority immediately transmitted.
CoRREspoNDESr-Now, in regard to Mr. McHenrys
authority to act in behalf OF tue Erie III these mat
ters Have you any statement to make with refer.
ence to that?
Mr. JEwErr-The Erie Company no doubt placed
in the hands of Mr.. McHenry portion OF its bonds
sale in the European market and. in connection
with such sale and renting of the proceeds thereof.
he constituted the agent OF the company; but
tar regards the matter in controversy lie had
authority to purchase the Cleveland. Columbus
Cincinnati and indianapolis shares for the Erie Az
late 1874, short time previous to my becoming
president of the Erie Company, Mr.. Mclienry. IN
negotiating for lease Of the Atlantic and Great
Western Railway to the Erie. prepared contract
which executed by the Atlantic and Great Vest
ern Halfway by which that company assumed to
Cincinnati and indianapolis Railway stock. aud. in
consideration the Eric guaranteeing certain bonds
that stock to be placed i'll trust and held
curity for the bonds thus uaranteed the trus ees
being required to give the proxy upon such
Henry had purchased all the Cleveland. Co
lumbus Cincinnati and indianapolis stock
which he had purchased. His intention then
to sell the stock to the Atlantic and
Great Western Railway Company. realizing payment
therefor out OF the bonds OF that company guaran-
t.ed by the Erie. 1t until after he failed
negotiate that lease that he set the claim that the
stock purchased originally for the Erie and un-
dertook to contiscate the bonds of the Erie which
he then had III his POSSESSION. to the payment OF
debts incurred In such purchase. aud the suits
against and the recovery which has been had in
such suits is for the money thus retained by linn.
'Not dollar
ConREsroNpENT-Then may regard your last
answer a reply to the statement of Mr.. McHenry
that official OF the Erie dares say that he
(McIIenry) the Erie dollar.
AIR. JEwErr-Yes. sir. But Mr.. McHenry. in
liking that statement knows that it is not true for
the Erie officials have claimed that he the full
amount demand. Their testimony to that effect
has been tken and it upon the faith OF that tess
tlmony and Mr.. McHenry's inability to sustain his
claim that the stock bought for the Erie that tho
judgment was rendered.
ConnEsroSDENr-Then all the claims Of Mr.. Nc.
Henry that the Erie owes him any money are ridicu-
lousi
Mr.. JKwErr-simply untrue. Mr.. McHcnry claimed
bonds Ill his hands. As understand the Judgment
the Master of the Rolls. he allowed tor every
claim of that character not only to . reasonable
but a very liberal extent.
NOT ERIE's FRIEND.
CORRESPONDENTS there anything further besides
wish to say in connection with the Cleveland. Coun-
bus. Cincinnati aud Indianapolis purchase aud the
Atlantic and Great WcsternY
Mr. JEwErr-Nothing further. except that In no
aspect OF the MIR. McHenry with any degree
OF sincerity claim that the Erie is responsible to
him tor the Cleveland. Columbus. Cincinnati and
indianapolis purchase or for the consequences of
sucn purchase. Tho correspondence between him
and parties engaged with him in the purchase dem
onstrates the fact that the purchase was enter.
prise OF his own and on his and their own account
and for his and their individual gain. and that it
not until after il developed that the speculation
would prove unfortunate that he undertook to
charge the Erie with the conscq uences thereof.
CORRESPONDENTS II true. Mr. Jowett. that 1t was
not until alter your appointment as receiver that
you began the SUIT against Mr.. McHenry?
Mr.. JEwErr-The suit was instituted after was
appointed receiver, but for months preceding had
ment of his account with the Erie hallway and to
make settlement thereof. 1t was not until failed
in this that the suit was brought.
FREE CONTROL.
CoRREsPoNDESr-Snce the beginning Of the suit
what have been the relations between Mr.. McHenry
and the Erie!
Mr.. JEwErr-There has been no change from the
day that it was developed to Mr.. McHenry that his
power the Erie Company at end, that
the existing management not to be controlled by
him in ats policy and not to be directed by him
III its contracts. aud that he to be made to
count for the proceeds OF the bonds placed in his
hands for sale. lie has waged n constant upon
the company and its management. This state OK
affairs commenced previous to the beginning of the
suit and has continued to the present time.
CoRRrsroNDENT-Did you have any interview with
Mr.. Mcnenry these subjects while you we're in
Europe in 1SIGl
MIR. JEwErr-AIr. McHenry came to me while
was in London. He sought At both the interviews
which had with him TO induce me 10 recognize hts
claims upon the Erie for the Cleveland, Columbus.
Cincinnati and indianapolis stock; but he presented
no facts beyond those which have been repeatedly
stated and could not recognize his claims without
doing direct wrong to the Erie Company and those
Interested in IL. therefore declined to entertain
his propositions.
SETTLEMENT.
CoRtEsPoNDENr-Was Director Gray authorized to
make any settlement OF these matters with Nc.
Henryf
Mr. JEwETr-Whon became president of the Eric
In July. 1871 found TINT SllUUD 900 of bonds