Year: 1873

RUMoRED CONTEST BETWEEN PRESIDENT WAT


SON AND Ex-VICE PRESIDENT ARCHER-A


LUCRATIVE LINE OF BUSINESS.


Another sensational phase of Erie Railway
administration the verge of development and VIII
illustrate In startling manner the capacity Of some OF
the leading officers the old Board Of Directors, and
show why the stockholders of that unfortunate ROAD
were deprived long of return for the vast sum Oh
money which they had invested.


From what be Cleaned in relation to the matter IL
appears that very questions have arisen between
President Watson and ex-vioe-President o. H. 2. AT
cher relation to the fulhllment Of remarkable con-
tract which the latter has held for years at vast eA
penditure TO the Company.


This contract which has been for years the envy OF
many of the officials OF the road. authorizes exViee
President Archer TO receive forward all the freight
OF the Erie Railway Company at NewYOrk and jersey
City, and receive compensation for 30 doing hand
percentage the receipts for transporting he
same


The history Of this far be learned
from those who cognizsnt of 1t is as follows


About IS years since o. H. p Archer left the service OF
the Hudson River Railroad Company, by whom he hao
been employed station agent and began at the old
Chambersst depot charge Of the -four and grain
wharf of the Erie Railway Company at Coenties-snp
After brief period ne obtained contract for the manu-


ling Of all the freight OF Erie al that wharf reeeiy
ing as compensation 5000 per month.


Upon the death OF Receiver Marsh OF the Erle' MI
Archer obtained additional avOrs through ]. c. Ban
croft Davis and other leading officials OF the Company
These favors finally eliminated In a contract giving
Archer the receiving, handling, and forwarding OF all
the Erie's freight at Jersey City and New-York at
handsome percentage per ton.


Some idea Of the value OF this contract may be derived
from the statement made by Of the Erie bookkeep
ers that the amount paid Archer has exceeded SooD
the aggregate payments in 1870 alone being over
slOOOOO. In addition to this contract Mr.. Archer was
the purchaser large quantities of Erie supplies upon
which he netted handsome


The attention Of Jay Gould having been called TO the
terms Of this contract aud the there was no
check on it, nasmuch Mr.. Archer kept the record of
the freight handled and presented his bill for percentage
on any specified number Of tons alleged to have been
handled. and that IL paid without question
Gould at the expiration OF the contract insisted that
should be modified and IL done IN slight degree,
Archer agreeing dispense with his perqustes on the
handling OF supplies for the company.


This contract has been the subject OF much discussion
and investigation the part Of the Watson admnisra-


on and the officials who constitute the latter are
very much dissatisfied with IL and developments which
have light in their researches 1t s not improb
able that legal proceedings viii be begun against Archer
to compel him TO restore part-of his profits.
Mr. Archer, who received $4,000 for his vote and
assistance in removing Gould from the Presidency OF
the road been summoned before the Legislative In
vestigang Committee testify TO his knowledge Of the
facts. Messrs Watson Barlow, Day and Others OF the
present direction of Erie and Edward Taylor, private
secretary Of Mr.. Barlow. have also been subpenaed