New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-29
THE DANNEMORA INQUIRY.

that of the Hon. Thomas C. PIatt fOr QUARANTINE
Commissioner.
THE DANNEMORA INQUIRY.
Ex-CoSTRoLLER oLCoTI EXPLAINS WHY HE LhAsh
WAS MADE.
TrRoN THE REGULAR CORRESPONDENT or THE TRIBUNbI
ALBANY. Jan. 2S.-The investigation OF the
leasing Of the Dennemora and Platsburs Railoau-ou
by the state-to the Chateauga Railroad company WINS
begun this afternoon by committee appointed pS inc
Assembly The committee consists OF Assemblym
Ioeersoll Rhodes, Potts. Cbckering and Hayes
Several suished personaees, VINO are DeeNeu "
have intimate knowledge Of the circumstances uhdeT
which the lease was made, were present. III
GLIDING ex-COutroer Olcott. LOUIS d. f"Spu'! E
the SUPERINTENDENT OF Prisons: Thomas . DICK
son, President OF the Delaware and Hudson
Canal Company; Smith Weed William r.
Mooers member OF Assembly from Clinton County
Matthew Hale appeared as counsel iGr ". sauI 10y
Louis d. Pisbury. This appearance OF counsel e&oteu
considerable surprise. -. a.. ,,,,o.s M
ExControler Olcott was tDe hlst %llueSs. on Iie
testified that he thought that the lease T sata
be very SaVahhaSeoe aSnro oTe Of ~ The
road ran through sparsey-etted region, and he De
Moreover If il was retained the State would be liable
Tor any nccd nts it, There was and conld Oe very
yided bv HE prison IL was costing the state from
1000 $1,000 per month ABOVE the earnings 10 run
TWAS leased he said, after 1t had been run by the
State months The State by ts lease retained az tae
benefs which accrued II bV the construction OF the
road The State obtained DO cents day for the labor
of each convict after the construction OF the raroaa
a day. BY the terms Of the lease the sup
plies Of The prGn mere 70 De SapS UT 10 e4nm
81 sixteen miles into country which was vi hout an
oneninS and in which the State owned lands. There
Was cause in the lease which compeei the leasing
company 10 so extend the road within two years The
original act authorizing the construction OF The road
gave permission to the State authorities lo lease IT,
At this point Smith Weed furnished the cOpmIIIee
with line map OF the region Through which the road
ros and Mr. Mooers exp planned that the United states
had given permission To the state 10 run the railroad
across the Uni ed States Reservation at Piatsnnrg'
Mr. OcOtt then resuming his testimony, SAID I'D reply
to questions That he dd not believe nor nad ne any
In the construction of the railroad The hrt time me
witness heard of the proposed lease was through Mr.
Thomas Dickson. of scranton. Penn. testified
that he was president " ine ,h Ne%Y s%
anu al%u'O" Canada iaa R@lroad and also Of the
ne@ora aud PIatisburg Railroad The lease was pre-
pared by him and sent TO Albany. NJ X Pils-
t HesS pe IayisT and Hadsn first T,is offer
he promptly declined The chief owners OF the mines
sburg and Lake Champian Railroad, instead OF
Connecting them with the New-York aud Canada Rail-
As he was president Of the latter road he urged that
the ne road should be built TO Piattsburg He wrote
osition TO lease the Dannemora and Platts9gTc
TO ne Delaware ara mSHsPs eassi tbe road %
penses greater than It's receipts Inc ore ands
He had. made them loan with the understanding
that they should ind some outlet Tor the mines As ne
made them the loan he thought he bad a rlght
20 dctaoe in which direction the proposed railroad
The Ogdensburg and Lake Champain Railroad Com
psny were negotiating with Messrs. Weed and Williams
at the time for the construction of the Chateau
Mr. Williams preferred making connection
with the Ogdensburg road He thought the Cnaeaugay
Railroad Company, by extending the DannemOra and
Piattsburg eighteen miles and sending ore over It,
could make the entire road pay without oe extension
hs did not think the Dannemora ana Platsp1rg lixe
would be worth dime. He would not take IT as grit
Ma .ne leased for the nomSa rent Of 81 year The com
pensation really CONSISTED IN me CARVING ree o. the
shen the extension had been built by the Chaeaugay
Railroad Company the State would unqnestionably nave
OF the iron from the Chaeaugay mines
beng over It, He thought tie State made 10000
year 10y the lease, however, as that amount
would nave oeeh Spe Win "p1 this deaeenev tee
building OF the railroad might have been stroke
for the State the income from the labor ofhe prison
would probably be Increased through It's existence
Tie Dannemora and Plattsburg branch of the Cha
as 1t was while the management OF the
state If no consideration was taken OF the ma
income would course. more and more ore
was Overt he was not aware OF its total income
the OK tension not completed I'LL late In November,
90 that road had not been tested very long
Smith Weed and Andrew Williams Will give their
Brief ss was tine testimony of Messrs. Dickson and
tss Snsd i've fully deSeoped That defence Is be that
the authort built the railroad In order to sell
rate, that although this anticipation was III nlled
the railroad did not pay expenses, mat the
Cha,eaugay Railroad Company. although reluctant
70 do SO, assumed the burden OF 1t and was
generous enough 70 give 81 yearly rental to the State
for lease and that both the State and the railroad
made profit by the transaction.
Furthermore that certain suspicious circumstances.
connected with the construction OF the road were
tirey accidental, namely the insertion III the bil au-
thorzing Its construction Of clause permitting It's
being leased and the of iron beds near
the prison belonging TO smith Weed
very important admission ii may be seen, was
made by Mr. Dickson. He acknowledged that the
Damn and PlsttsbuIg Railroad wou probably do
profitable This would be que, howevere said
to the large OF iron TRANSPORTED over II from
the Chateaugay iron beds IL has all along been
contended. by the critics OF the sale OF the
state Railroad to the Chateaugay Railroad Com
pany that II ii had been retained. IL would have
eventually had income above ITS expenses. Mr.
Dickson inferentiay anticipated this criticism on his
testimony ny saying that the State railroad would not
have received tubs great addition TO its freight II
the Chateaugay Railroad Company had not
extended 1t eighteen miles 10 the ore beds OF
Smith Weed He also. in substance. said that
the extension would not have been made unless the
Chateaugsy Railroad Company had acquired control OF
TIE Railroad, and thus made or having
sro. oi the proposed road over its entire length