The advocate., 1891-02-04

corning the management Of the Erie
Railway company.
Its stock and bonded debt is very large,
Amounts OF convertible bonds have, under
former administration, been issued ~
meet the wants Of its management. These
often we're sold al ruinous rates and after
wards converted into stock, which now
stands At its par value, and on which div-
don6s, II made, must be paid, and which
necessarily comes from tho traffic passing
over the railway.
The liabilities Of the company, including
lbs capital stock, a. shown by tho statement
for 1876, are about Sl2O,OOOOOO.
The committee are fully justified in allud-
Ing thus 10 their great highway Of internal
commerce between the ocean and tho lake
and tho great west, because 10 Is a matter OF
groat public concern and interest, and the
Legislature may very properly, and should,
We believe, restrict by statute the formation
Of any Improbable alliance or complication
between different roads, 10 the injury Of
public interests and the directors should bo
limited in creating debts. (Report page 7,
Assembly document 98 Of 1871
From the COntrariety Of testimony upon
this point IL appears that while matters were
slowly progressing at Albany, Mr.. ". A.
Lane, then the counsel of tho Erie company,
commenced the work Of bribing majority
OF the board OF directors 10 resign, thus
clearing the way for the election of a new
board. This was more easy 10 accomplish
from the fact that Mr.. Gould had also con-
tomplated forming a new board of directors
10 give the company standing before the
financial public, and this would send into
retirement tho members of tho board.
Hence, they we're not lOatho 10 put them
selves in the market. (Ibid, pages II and
12.)
The amounts disbursed for tho "reform"
Of the Erie TO the various directors who re-
signed were $4,000 each TO Lane and
Thompson, $4,000 TO Simmons, $4,000 10
Archer, and $4,000 each to Otis, White and
hilton, making in oil 100000. Mr..
0'DOherty aftorward received $25,OOO, and
1000, Crouch was paid $4,000,
and General Siokles, on his return 10 Lon
don, was paid 100000 or more, according
10 the statement Of Witnesses.
A bill was also presented by sicklos,
amounting 10 about 100000, for disburse-
nents and expenses, including his hotel
bills in this country. The latter amount
vas directly paid out of tho treasury Of the
Erie company for which vouchers we're
lhown.
The whole amount expended, in connec-
ion with the coup do etat, was stated be-
ore the board by MCHenry himself in July
ast, as per Barlow's testimony, TO be about
'75O,OOO. (Ibid, page 49,
AT the July election Of directors, MoHen-
y and other foreign parties representing |
took Of the company, were present and
laimed that the whole amount Of $4,000
'ught 10 be a charge upon the company,
nd, after the election at a stOckholders'
Meeting az which S5OO,OOO,OOO Of stock was
epresent0d, IL was voted unanimously, that
he directors Of the Erie company should
AXE an early method Of reimbursihg all the
ctual expenditures incurred by those few
sockholdeB. (Soe Barlow's testimony, p.
D. In the testimony of President Watson,
p. 1857 he also says that at the meeting in
uly a resolution was passed instruCting the
oaEd TO audit the account for expenditures
nd thon pay 10. (Ibid, p. 49,
The right TO reimburse the eGtravagant
mounts corruDtly employed in overthrow
lg the Gould direCtion-from the treasury