New-York tribune., 1882-04-29
WESTBROOK-WARD INQUIRY.
THE JIrDICIARY COMMITTEE IN NEW-YORK.
nprxrSG SESSION AT THE ST. JAMES HorEL-viCE-
pppsIDrNT GAIIAwAY. OF THE MANHATTAN

otsh accommodations TO the Assembly Ju-
uiciary Committee while investigating the
charges against Justice 7. f. Westbrook and
rx-Attorncy General Hamilton Ward OF improper CON
nuot in their relations with the Manhattan Elevated
Railway recevership proceedings. The room has high
ceiling and fronts Twent yseventh-st but its useful
ness as a is impaired by the noise Gre
ntod by the private carriages and occasional wagons
which rumble by Its windows through the street At
times the noise seriously nterfered with the commit
lees work. and the afternoon ringing of Trinity Cnspeis
bells at one time made the Investigation an e1aspera-
uon Prompt measures also required once 10 sup
Dress the disturbing strains OF handorgan, wbich
q dilapida;ed Italian wandeIer manipulated IN close
proximity to the committees quarters
When the committee began its rt session In this city
at D. ~ there present Assembymen Poucher, the
chairman smith, Parker searl Potter, Chamberlain,
livingston and Armstrong. Afterward MosSrs Chapin
and Morrison came IN, leaving only McCeand absent
f. L. stetson and ex-JudGe Albcrtus Perry were the
counsel OF the committee. Hamilton Harris represented
Judge Wcstbrook and W. b. Ruggcs the exAttorney-
General Raphael j. Moses jr who has hsllred in the
Insurance recevership Investigations. was among the
few outsiders present yicePresdent Robert NJ Gala
way of the Manhattan Company. was the first witness
to arrive and he impatieny srode the room while the
committeeman struggled in slowly from their dinners
Henry Loewenthal City Editor of The Times, ques
toned rs the examination Of the affairs of the Man
haitian Company and the proceedings connected with its
OF severe structures Messrs westbrook and Ward He
identified many documents connected with the legal pro
ceedings but declined to say who wrote the published
articles or to produce and identify them. My reasons
Tor doing" he began are that certain persons CON
cccted with the accused"
object to this useless stating OF reasons, Mr.. Harris
nterposed
Mr. Loewentbal was given untf today to seek advice
before he declined finally to answer the committees
questions.
Mr. Galloway sworn to the accompaniment of
The Babies the Block played by the organ grin der
put In Twenty sevenh-st The most important points
In his testimony that he knew that the Manhattan
Company had the resources to pay its rental obi
cations 10 lessor elevated railroad companies about
ree months before the default on July l. 1881 that he
had expected postpone the default by raising loans
and that the of receivers certificates allowed by
Justice West could not be negotiated He also gave
eyidencas to the judicial proceedings held In the West
.ru Union Building by Judge Westbrook.
Mr. Galaway first testified with regard to his connec
lion with tie company the original lease agreement of
MAY 20 1875 between the Manhattan and the New
York and Metropolitan Companies and the issue OF
Manhattan stock in equal parts TO the two
lessons lie sald he wrote the memorial to the city au
thories on April 25 1881, pleading for the remission OF
the taxes against the MaDhs;tan Company.
Mr.. Stetson-NOw. at thai time the company was inso
vent was n mott
Mr. Gaaway-At that time it had paid everything dne
Mr. stetson-Buti It could not pay it's debtsi
hlr Ga.laway-It did pay them. The company did not
deanlt on guarantee to the lessor companies Of div
denGs for months. and interest OF bonds for SIX
months until July !. 1881.
Mr. stetson-Did you have any previouG knowledge
that 1t could not pay It's July INTEREST,"
MT Gsllaway-No, sir 1t could have been paid If the
paymen, had been prevented by Injunction The
proceed iugs which prevented payment were moi nnex
pec,ed far reeards the condition of the earnings
as regards the default they were surprise.
Mr. stets On-IIow long before July did you know
that the company could not pay it's obligations out of
its earningsf
The witess testified to the making Of the compromise
Agreements OF October % and November a. 1881, by
which the Manhattan Company had lts rental reduced
In reply Mr. Harris he said that before the agree
ments The company was insolvent; after they were
made became solvent and now is So The peculiarly
condition OF the company was unchanged except
absolute PAYMENTS of the company to wihnits ability
TO pay The witness testified 20 the consent given by
all the companies the various stage of the proceedings
in the receivers appointment and discharge.
Mir Stctson-By consent you DO not mean the con
sent Of the people through their Attorney-Jenera
Mr.. Galloway ay-No, sir lreerred only 10 the compa-
Mr stetson-You never paid any attention to what the
NJ Hnrris bristed up at this and asked "when you
have any property YOU which you want TO sell, Go
You seek The advice OF the people before sclnugi"
Mi Galloway testined hearings by Justice West
br,ok IN the Director, the Western Union Bmd
Ing adjO!ng the room Of Receiver Hopkins the aiier
being too small 10 Accommodate The persons VINO at
tended. jay Gouds office he s,i a'Joned the direc
tors room hearing for the hdrSc Of the rcceV
ers held IN Attorney General wards room III the
was III aud Judge Nestbrook at the une was holding
court il Albany.
fore the July default Did you have any knowledge
OF any present or prospective resources with which 10
nissr Sr Gaiawav"i ccud not teiSiat the earnings
might have been before that tune they might h4ye
doubled supposed the company "omd meet ltS obi
Nj Stetson-From what could funds have been
Mr.. Oaaway-I did not know then supposed partly
FROM earnings and partly from loans. Up 70 July /,
when thc Weller injunction against paying the rental
was obtained expected the Obligations would nc paid
that y Lawrence, attorney for Mr Weller, few days
after injunction obtained had appeared Or the
Genera in tho proceedings the appoint
neIt of it wOuld NOT have seemed 20 HIM 10
DE a concurrence between the persons concernedf
Mr Kugglcs-It seems me that II inIcrences art TO
be these condolences they ought to be made
" Mr.. stctson~n you object, VIII press my ques
MI Ruggles--I think that some lcsa rules ought TO be
MIR stetsOnI believe that is a good legal rule that
when conspiracy is under IN 'eslganon is proper To
ask one OF The eonspat atOrs ABOUT the IMPRESSION pro
cnced his mind by ths acts of one oI the Cocoon
spirators when he iearus OF them
MI KuggieS-My learned friends statement is correct
with the amendmentIat the conspiracy must tlrst be
established before that Is goOu rue Inat uas hot
been doLe In this
Continuing, Mr galloway said that the proposed Issue
Che defultcd rental before the expiration
OF the ninety days hxed tue limit of default during
need not forfeit its lease OF the New
the Metropolitan lines The proposition hrst
was preached at meeting Oi the Manhattan directors
by General Wager SwayDe. He SAID that some at the
stockholders would furnish the money II the proper
form OF certificate was made.
Mr. stetsOD-Wuat dd they consider proper form
Ole which would be satisfactory 10 their private wShes
dr. GallaWay-SOmc form which could be negotiated.
Nil stctsonWOuid the form of certificate granted by
Ind 2. McsfLrCOk's order have been satisfactory
MI Galiaway (enphatcalyi-NO, sir NOBODY would
Aaye advanced money OD .hOst certificates.
lr SietsOn-WhO were the stockholders referred To by
Gcnerel ~ ayHcf .
hr OihliaWhy Why-Diherent people was told that ;. H.
Kuse.aud one Of them.
Mr. stct.Ou-Ma- there any suggestion made 10 the
COuI u i.ir KIND OF certificates desircdf