The New York Herald Newspaper, March 25, 1873, Page 7

™ THE ERIE INVESTIGATION. TESTIMONY OF 8. L. M. BARLOW. A Lengthy Statement of the Overthrow of the Gould Administration and the Means Used to Accomplish It—The Exorbitant Fees Paid to Lawyers—Influencing Legislation— General Sickles’ Little Bill of $52,000 for Services Ren- dered—Behind the foenes in the Erie Railway Offices. The Assembly commitvee resumed the investi- gation yesterday morning at the Fifth Avenue Hotel, at ten e’clock. All the members of the com- mitee were present, Mr. Babcock in the chair. No ‘witnesses were examined at the hotel, as the com- mittee immediately adjourned to the Erie Railway offices for the purpose of having access to papers ‘which were to be brought in as evidence. The ses- ton was held in the directors’ room. Mr. Watson, President of the road, was present, and one or two of the directors. 8. L, M. Barlow was the first witness called. He testified as follows:—I was eounse! for Bischoffsheim & Goldschmid at the time the change in the Erie direction was made; I took an active part in that change; some time in Febru: ary Mr. F. A. Lane said to me that it would not be dificult to secure the resignation of the majority ef the Erie directors if the proper measures wer? Qsed; before 1 consented to undertake any part fm: the business piedges were asked of me, fhe nature of which have been teld by Mr. O'Doherty; Iwas then told of the nature of the steps which were about to be made; I commnuni- sated with my friends on the other side, and the ames Of a number of persons were sent on as proper persons for directors; Mr. Lane then said that it would require $1,000,000 to buy up the directors; this large sum was not at first objected te, ana‘I sent a telegram to London stating that compensation would be required, leaving a blank for the amount, which was afterwards filled up by Mr. Lane for the amount of $300,000 instead of the larger sum; as I was engaged as counsel for General Sickles in a similar suit, I said that I must impart the nature of Lane’s plans to him; Sickles, on hearing of it, assumed control of the matter, and called on McHenry to send the money to him tmstead of to me; the money was sent to him; exactly $300,000; ater some consultation between Mr, Thompson and myself: it was finally agreed ‘at the directors should resign and my nominees be legally elected. 1 DISBURSED TNE AMOUNT myself; Lane and Thompson got $67,500 each, Archer $40,000 and White $25,000; some days atter J was teld by Lane that the whole plan would fail except I would pay Mr. O'Doherty $50,000 and an associate of his, Colonel Gardiner, the same sum; he said that except those men were paid the whole pian would faii; I agreed to pay them $25,000 each the event of the scheme being successful; the Doly other sum 1 éver heard of being disbursed was the sum paid to General Sickies for his services @uring the four or five months he was here; there were other smaller sums paid to counse?; immedi- ately after the organization of the new Board a Setter was submitted from Generar Sickles stating that the stockholders on the other side had paid is expenses and claiming a large jopenpenen Hort for his services; the mutter was reierred to a cominit- Jee, consisting of General McClelian and Mr. Steb- bins, who reported that as they were only appoint- ed to fill vacancies they did not think themselves Justified in authorizing the payment of very large 8 ;, $40,000 was, however, paid for expenses to General Sickles on vouchers presented by him or for him; at the new election in July it was rep- resented by Mr. at, that the total amount paid by the London stockholders was $50,0000, in- cluding a large compensation paid to General Sickles and $50,000 toa man named Crouch; at a meeting of stockholders held seme time after, representing 000,000, it was recommended that the directors uld take some oe tohave the expenses paid, but the recommendation, according to my know!- cage, has never been acted upon, although the holders in England have consented to accept half the sum; Bischoffscheim’s account has never been closed, although the stocks have been trans- ferred to the new agency of the London eS I have always thought that claim to pay the expenses was 4 proper one, but there has been an unwillingmess on the part of some of the direc- tors to bring the matter up; there has been no ac- tion taken by the Board relative to settling Bischoff- BANKRUPTOY STARED THE COMPANY in the face; I re gees to Bischoffsheim, offer- the consolidated bonds to be placed on the market; an answer was returmed in a few hours, Money was received, and by that means the Oompany was saved; the common bonds were held ehietly by Gould, who had bought them up; the sonsolidated bonds could not be sold in London, unt! the bends in the hands of Gould were re- oovered; meager were entered into with } and the bonds were finally recovered; Homan & Green, the London directors, were appointed to negotiate with Bischoffaneim ; the negotiation was satisfactorily concluded and 8a result the bonds were all soid, and the actual fois to tne company was about two milhon dol- a8 rapidly as the bonds were sold Bischofis- was repaid for the advances made; on the rst of January last er 000 was still in the hands of Bischoffsheim, and the Londen Ba: Associa- to take these bonds at ninety-one eents; when Mr. Homan came over in July he was asked why so large a commission was paid and he It no Lee than any other London banker would have charged for similat service; J. ¥. Morgan & Sons were paid $70,000 commission, altbengh the they had to sell were not by them; Homan was not, I think, one of ‘the men Who advanced money to effect the cl ; BISCHOFFEBEIM & GOLDSCHMID im the first instance agents for the Eng- ‘stockholders in the disbursements; a not claim that ‘Was more than they were actually entitled and did not have nce to ser per- formed; I aasume that the amount act in the Bischoffsheim is the £80, wi they to them; the bonds were payabie in lew York ; the rate of interest chargea 4m London was the same to the Erie Railroad as to ; 1 have heard that Bischoffsheim i E any ether road here always ited that this 000 should always: Se peia to him; according to contract Bis- 3 elm was not to claim the two and a half per cent named except upon the bonds which were ac- negotiable; and more than this, he has never asked; I omitted te state that the only sui tome and my firm for the eervices rendered me was $5,000, and since that time I have been ‘8 ie the rate of $10,000 a lay ain) am. over my books, I @ payment of to me, but the money docs mot belong to me, and 1 know nothing of tiie pay- ment; we had no written contract with the Far- mere’ Loan and Trust Rhy ben for $18,000,000 de- wish them}; I doa’t know what commission ere paid; the contract with them was made defore we obtained control of the road; the cou- paid to Morgan & Sons was $71,000; it ‘was paid by Bischoffsheim, although, as I said _be- forg, ho negotiation was made by him; the Far- mers’ Loan and Trust cee. have rendered no account to the company; hoffeheim & Co. have made no claim u} the company for any commis- sion on the $18,000,000 held by the Farmers’ Loan and Trust oie rit when the idea was started in the newspapers tiat Bischoffsheim was to be paid im advance of the sale of the bonds I wrote to London and received an answer stating that the statement was incorrect, no commission being erect on what were actually sold; if at any time daring the yueeinte ne any of the bonds are issued they are entitled to their commis- sion; it was intended that if all the bonds were sold the same commission wag to be charged; I sought to protect the company against paying com- mission on bonds which Were not sold, and 1 think Idid 80; Bischoffsheim & Co. have a commission of two anda hall percent absolutely on the whole amount of the bonds, but they can only draw this on the bonds actually disposed of; if the securities were withdrawn from them now and given to another party they would be entitled to $70,000 for ving up their contract; on the Inst issue of 10,000,000 convertible bonds issued by us they ‘Were paid the same amount of commission; the Erie Railroad Company stands much her in credit now thau it did a year ago, the last fesue of Erie bonds being the most suc- cessiul American loan that was ever placed UPON TRE EUROPEAN MARKET; the bonds taxen by the London Banking Associa- tion netted the company par; if the Fatmers’ Loan and Trust Company issue the bonds held by them there is nothing, to prevent Bischofsheim trom ciaiming his commission; the Farmers’ Loan and Trust Company are er the custodians of the bonds for the Erie Railroad; Bischoifsneim would be entitled to his commission even if they ‘were not stamped by him, but that is an improb- able oceurren: as the bonds are utterly unsalable ‘without his stomp; the services they perform are to give the Loi ‘ they undertook no liability except theireredit aul ever the Continent; the signing by Bischotisheim te a certification that the bonds are genuine; the service rendered by Bischoisheim & Co. saved the company frem insolvency, and the commission d by them was not too much in view ot greas service Wey rendered $9 09; the Bu the eredit of the Loncon market: | advance made by them was the most ous 1 poy we would have acce; the ta "eau trees to efara me nt ; were Di usas's Company to place the bonds in the hand of other frm; our whole credit was due in the first instance to the change of ment; im the second to the assistance rendered to us by ‘& Co.; before we came into Rassa'Ss Baspotere fwansnens ss rs I wag about as ee ing ust “Mr. Gould to him bonds which ~ ht ae Goad at a low rate; bet. un‘maxiogfagulten T found that it would be to, the iact that had not it them the pped ; ‘rise in the value of the bonds not simul- tee Sone with the Fise in the stock; 1r the bods were wR erg get Te reg ae Lon- house pose would have gold as wel 'as by Bischoffancim, but they have, I think, facilities for ities upon the mar- roses their connec in land and W the tinent, than any other firm, and it any of the direc- tors to place the bonds tn any other house after what they had done: for us; ifa loan was hawked around on the London market before it was issued, it would probably kill it; the commission was not aD unusual one ; been counsel within a year for a raliroad company in whfch $15,000,000 of bonds Were issued at the rate; I know of a similar tiation which is now go! 000,000 at the same rai Ba’ pel new Board; I don’t think the Erie make any claim upon Bis- for this sum; I would omen resist any such claim, as I think they are entitle to the sum through every consideration of fair play and justice; amount expended in the cam) against Gould was between seven and eight hundred thousand all of which was paid before the 11th of March; we have made the issue of the convertible bonds at a higher rate than any other loan ever placed upon the London market; I have never heard what the exact amount PAID TO GENERAL SICKLES for his services was, but I understand it was alarge sum; I believe Mr. McHenry advanced $250,000 meet the expenses of the movement and he has never received any benefit from the rise in the stock; if the stock had fallen instead of having risen the ntiemen who advanced the money weuld havebad no claim for compensation; they would simply have made a rash attempt to restore the Erie Railroad to credit and failed; the state- Ment made that Bischoffsheim stills holds in his hands $1,200,000 out of the proceeds of bonds sold is a pure fabrication and hag no toundation in fact; the only reason I can give for Bischoffsheim ad- Ba gi) the money bin believe, to put the rail- road into the hands of ah honest administration; I cannot tell what other motives the gentlemen had in making these advances; I donot pretend to analyze their motives; neither. one of the three London directors was @ member of the London firm of bankers and had Do connectien with it; the gross. amount received by Bischoffsheim on commis- sion up to the present time would, I think, be about two hundred thousand dollars; Mr. Lane was the only person who made the ar- pix iewyged ty with the old Board ot ctors make them retire; 1 saw none of them, except Mr. Thompson; Mr. Ramsdell re- ceived nothing, and did not retire; he was most anxious fer a change, and I understood he was ready to vote for it; I heard of no arrangement being Made with him whereby the contract he holds ovér ths ras of the ae Railroad should be peopel wi “ de Rice iret coger to take a seat a ee! thougnt & tiCwak miner ie owed to the mie 4 acca ; General McClellan and Mesers. Traver and Sherman consented from the same motives; | have seen a statement that a letter was written to Mr. Gould py General Sickles, promising the former immunity; I think I have seen the letter in the hands of Mr. Gould, but I am not sure; General Sickles never told me in terms that sueh an ar- Tangement was made; there was no compromise je on the 9th of March between Mr. Gould and the new directors to my knoq#ledge; on the Monday night after the election, when Mr. Gould was occupying one hali of the building and we the other, one ef the old directors came to me and said that the company would suster from the Gissersngement and that Mr. Gould woula be willing come to an arrangement by whici: he could resign, on condition of a release; @ meeting was arranged between Mr. Gould and myself and the terms of the negotiation were en- tered upon; as 1 was a director 1 did not feel my- self justified in preening. to an (any Sen ry self, and I named General Sickles, who immediately saw Mr. Gould; the new Board of Directors were then in session in this room, and some time after General Sickles came in and said that Mr. Gould had surrendered unconditionally; I don’t know whether General Sickles had made any other ar- rangement, though : GOULD AFTERWARDS CLAIMED HE HAD the resolution passed at @ subsequent meeting of the Board, directing that $31,100 be paid to the New York Central tor our share of the legisla- tion procured in Albany, but I.don’t think the amount has ever been paid; the claim was an intormal one, birt | stating that a large sum had been expended in Albany for counsel and agents; I den’t remember by whem the matter was brought up; it wasa subject of common talk; I don’t re- member by whom the statement was made at the Board that the claim should have been paid; it may have been made by, myself; the reason why the bill has never been paid, is that vouchers have to be presented to the treasurer fer the actual amounts expended, and these were never presented; the claim was that the Central Railroad, in an about the Legisiatare of Albany, had spent about one hundred thousand dollars; General Dix was President of the road at the time the resolution came up; the money had been expended during the Gould administration; there was no one’s name mentioned who knew anything of the pay- ment of the money; the sum was xed. by the directors at 111, without any other evidente being before them ; there was CONSIDERABLE DISSENSION about the | done of the amount, the question arising as to the proportion which we should bear; among other measures which were sought to be defeat the payment of this money was the juestion of local rates and pro rata freight bills; I ion’t know from whom the statement was re- rating the chorbelm & Oo. for 7 ceived on the part of the New York Central; I don’t know what the nature of the expenses incurred in Albany was; ‘We had the assurance of the New York Central that the money had been expended, and we be- Meved that the Railroad were hono! en- titled to its shure of it; no check was ever sent to the Central for the amount and afterwards returned; I think the entire arrangement with the New York Central was on the part of the Gould administration ; I know that the new Board as well as the old one were very much interested in some billg in Albany, particularly the Pro Rata Freight bill, and one or two of the directors and my part- ner, Mr. McFarland, went ort ae against it; there were no terms of compromise between Gould and Sickles made known to the Board; I am in- clined to believe that there was some arrange- ment made between General Sickles and Gould on the morning after we took ssion, but it was never communicated to us; I think there was ae paid to James Thompson; General Sickles id me 80; he was employea by General Sickles to help to get up the facts of the case for General Barlow; Mr. Thompson is a member of the New York Bar; Judge ‘was also retained in the case; all the counsel was employed by General Sickles; for what pu some of them were en- [don’t know; | cannot state what services ir. Goodrich rendered. The examination of Mr. Barlow was concluded at this point, and the committee adjourned until four o’clock. At four o’clock the members went into executive session in the Erie Railroad offices for the purposes of examining books and papers. The investigation will be resumed this morning at the Fiith Avenue Hotel. ANOTHER BRUTAL OUTRAGE BY A NEGRO, GEORGETOWN, Del., March, 24, 1873, At eleven o’cloct: this morning, while the daugh- ter of John Lank, a respectable gentleman, resid- ing near Rehoboth siation, six miles from here, was retarning from the house of her uncle, she was accosted by a n named Joxeph Green, or Bur- ton, who tore off her clothes and violated her per- son. After the assault Burton fled, and the girl, who is nearly fifteen years old, managed to reach her father’s residence, where she made known the The male ulation of the neighborhood are searching ior Burton, and it is believed he will be lynched if caug ht. MORE DETECTIVE WORK BY THE ATLANTIO OABLE. « Boston, March 2, 1873, John Keddie and his son Andrew, Scoteh emi- grants, who arrived in the steamstup Malta yesterday under the name of Stott, have been ar- Tested on a cable despatch rom Edinburgh, charg- ing them with serious irauds, They will be held until the arrival of an. Edinburgh officer with the OF then aapabers tor their extradition, Thenature of their offence is not disclosed. THE FRANKLIN BANK TRAGEDY, TiTUSVILLE, Pa., March 24, 1873, The jury in the case of Thomas F. Anderson, the bank officer, who shot himself dead on March 14, | have returned a verdict of insanity. The investi- | gation was most searching and exhaustive, and the evidence proved conclusively that Mr. Ander- son was deranged when he committed suicide, ‘The bank accounts are strictly accurate, and no ) apnea motive existed for the sad occurrence. ‘he result of the inquest proved conclusively that the trust reposed in deceased was not violated and that he made mo improper sition oF ployer’s funda” aiepo bie em- NEW YORK FANNY HYDE’S ARREST. The Alleged Murderess of George W. Watson Again in Brooklyn. Detective Miller, of the Washington police, ar- rived in Brooklyn last evening, having in charge Mrs. Fanny Hyde, the alleged murderess of George W. Watson. Mrs. Hyde has been wanted for some time pasteby District Attorney Britton, who cansed that fact to be telegraphed te Washington, whither it was thought she had gone, and other eities. It may be remembered that Fanny was tried in the Court of Oyer and Terminer in April last, when the jury disagreed. She was subsequently admitted to bail in $2,600, but last January, when the District At- tormey desired to try her again, she did not appear, and he afterwards took the measures described to secure her arrest. The bail was also forfeited. Mrs. Hyde was found on Sunday mora- ing by Detective Miller at the residence of a Mra. Clegget on Myrtle street, Washington, where she had been living for some time. Her husband was not living with her, He is stillin Brooklyn. Mrs, Hvde. after being admitted to bail, ied to Wasi wn and took up her residence with her mother-in-law, Where, however, she remained buta comparatively short time. When informed by the officer of the object of his visit, she expressed a will- ‘acco! him to Brooklyn and said that she wished to have her case settied at once. She appeared very we.] and was quite cheerful un- til she arrived in Brveklyn when she began to weep. She soon recovered from her despond- eucy, however, and upon her arrival ot the Police Central Office, corner of Court and vingston streets, was cheeriul again, and talked quite freely: with some acquaintances. District. attorney Britton was infermed of the sence of the prisoner and had her taken te the hiagton street police station for the night. He roposes to move for trial at the next Oyer and miner, which will be held in April. The killing of George W. Watson, on the 26th of January, ih the prisoner, Fanny Hyde, cre- ated a great deakof excitement in Broeklyn, and the trial which followed was one of the most inter- esting that have ever taken place in Kings county. Watson was en, din the manufacture of ladies’ hair nets on First street, Eastern District, and the prisoner was one of his employés. She had been on terms of Laproney intimacy with him, but alter- wards married and endeavored, as she states, to Jead a biameless life. Watson sought to renew his improper relations with her. She resisted, and on the day in question, in a fit of trenzy in conse- quence of his pursuit, she shot him dead on the stairway of his factory. The defence on the trial, which was for murder in the first degree, was tem- orary insanity, ‘The trial was commenced on londay, and the following Saturday afternoon the case was given to the jury, who, being unable to agree on that day, were locked up over night. On Sunday morning wey. were brought into Ceurt, and stiil being unable to ‘ee upon a verdict, Judge Tappen discharged them. They stood ten for acquittal and two for conviction. WILL THE GAS MEN STRIKE? esi Interviews with the Presidents of the Gas Companies—No Trouble Appre- hended in the Upper Districts—Propa. bility of a Strike in the District Below Grand Street. Will the gas men strike? Will the city be wrapped in darkness? These were questions which gave rise to a good deal of discussion yes- terday. A HERALD reporter called on the leading representatives of the different gas companies to ascertain if they apprehended any serious trouble with their men. The reporter first called at the Manhattan Gaslight Company, No. 4 Irving place, which employs about one thousand men and sup- plies the immense district between Grand and ‘Phirty-toyrth streets. ‘The President was not in, but Mr. Carpenter, the Assistant Vice President, said the company was PREPARED FOR ANY CONTINGENCY that could possibly arise. Whey had reduced the ‘wages of their men from $4 and $3 56 to $3 50 and $3aday. The men were working from this day at the new rates, he satd. The reporter saw General Charles Roome, the President, late in the alter- noon. General Roome, who received the reporter with much courtesy, said:—‘Our men have mani- fested a unanimous desire to work at:the reduced rates, and we do not apprehend the slightest diml- culty. 1 may as well correct some mistakes which several journals have made. It is true the men work twelve hours, but they do not work inces- santly. They charge their retorts only once in five hours; it takes them twenty-five or thirty minutes, During the rest ef the time they have to throw in the coke occasionally to keep up the fires. It is not an unhealthy business, read in a paper of last Saturday that these men could not live over three years while they were at this work. The fact is, we have some men at our works who have been with us thirty years, Yeu sec, last vear we raised their wages from $3 to $4 rather than give them eight hours, which would have UNSETTLED ALL OUR BUSINESS ARRANGEMENTS. ‘This was an additional expense of $160,000 a year. Meanwhile our other business expenses have vastly increased. Coal, for which we used to pay $6 75 to $7 a ten, now costs us $825 aton. We gave them a@ week’s notice that we should have to reduce their wages fifty cents. ‘They were all satisfied. Even at the new rates the wages of the stokers will be $1,277 a year ($3 50 a day), and these of the helpers, who just bring the coal, $1,005... This is more than the majority of clerks receive, and this is no ‘skilled’ Jabor at all. all our men are periectly satisfied with the new rates, and, as far as We are concerned, there is not the remotest possibility of the city being wrapped in darkness.” Mr. C. Vandervoort Smith, the Engineer, gave the reporter a similar statement, so that the resi- dents of the district may feel sa‘e for the present. ‘The reporter left to call at the ofice of the New York Gaslight Company, corner Elizabeth and Hester strects, which supplies the district below Grand strect. Mr. ©. L. Everitt, the President, said that the company were determined NOT TO GRANT EIGHT HOURS. ‘Their men had held a meeting last week, and weuld hold another meeting on the 3ist, but he could nei tell whether they would strike. The company were prepared for any contingency, and the city—or this district, at least—would cer- tainly not be shrouded in darkness. They col get new men immediately, without the slightest interruption to their business. They were paying now $3 2 id $250. “You see, there are a few men who tive on strikes,” Mr. Everitt added, “and these few make all the trouble. The; gre otlicers of these socie! nd do not wo! es, and when there are no strikes tion 1s: toed We have erected sleeping procured cooking utensils for over one hundred men, so that our new men—if we should have any—should not be ex to molesta- tiens in going to and retarning from their work. The wages are liberal for this class of men, and the business is notan unhealthy one. The neighbor- hood of gas works is generally freer from disease than most others. There need be no alarm on the part of the public if our men should strike. WE CAN GET PLENTY OF NEW MEN, more than we want, and without the slightest in- terruption.’’ The Metropolitan Gaslight Company, which supplies the district between Thirtyiourth and Seventy-ninth streets, also intend to reduce the 8 Of their men fiity cents, and anticipate no culty. The only district in which there is at fiat any aay otal | of a strike is the one below rand street. The HERALD reporter conversed with some of the men, but they said no decisive action would be'taken until the next meeting, which is to be held on the 3ist. TRE ESCAPED OONVIOT AND MURDERER, PERRY, AvbcrRy, N. Y., March 24, 1873, Areward of $1,000 is offered by the Sheriff of Cayuga county, N. Y., for the capture and return of Bugene Albert Perry, who effected his escape from the jail of this county on the night of the 14th instant by knocking down and ay | the jailer, Perry is described as being about thirty years of age, five feet eight inches in height, having light brown hair and a light mustache, which has been colored. Perry also has an India ink band pricked on hia left wrist and a star pricked between the thumb and forefinger of his left hand, THE POCKETBOOK GRAB GAME, John O'Neil was the name given by a young man who grabbed a pocketbook last evening from the hands of Mrs. W. A. Barnaby, of 160 Clinton street, Brooklyn, The lady was passing through Elliott place when the fellow seized the article in question and ran away. He was pursued by a crowd of citi- zens, one of whom attempted to arrest nim, but the po nog him a heavy: knocking him down, De' ve Powers, who jotned in »»_ BUC™ ceeded in ‘the fellow in Fort Green place. The prisoner had in his possession a letter of re- Pg yh) and Ly Perea a C44 aa was ven the name am Smi J seeond street, New York,’’ ny — THE BROOKLYN TABERNACLE. ‘The energetic ladies of Dr. Talmage’s congrega- tion are lending invaluable assistance in the enter- prise of rebuilding the famous Brooklyn Taber- nacle, whose destruction by fire was so startling an incident in the history of the City of Charches last Winter. Under their auspices a ladies’ fair will open this evening in the Brooklyn Academy of Music, te continue throughout the week, and wind up with the usual distribution of prizes on Saturday evening, the proceeds to be devoted to the completion of the new edifice. A feature of the fair will be B Aahy Be er, entitled the Taber- nacle, to be edited by Dr. Talmage himself, whose eleepy or trenchant pen will suffer it to be no prosy journal. | The Head Money Question and Its Effects on Now York. How the Commissioners of Emigration Are Working Against the Interests of this Port— ‘What the Steamship Officials Think of the Proposed Bill—The Extra Taz To Be Paid by the Emigrante— Where Does the Money Go? ‘That this country owes its establishment, its prog- ress und its prosperity to the influx of the poor and oppressed people of other nations is a fact which cannot be disputed. In a pamphlet pub- shed by Mr. Frederick Kapp, one of the old Board of Commissioners of Emigration, this question was stated very fairly, in these words:—“People who are happy and comfortable as home do not emi- grate; the poorand oppressed only, who cannot finda fair reward for their labor in the land of their birth, er who feel themselves obstructed and thwarted in their religious or politica) aspirations, seek to better thetr condition by 3 change of coun- try.” To such as these, beyond a aoubt, is owing the settlement and development ef the great West, and to such as these and thelr descendants is owing, in a great degree, the triumphs of the late war and the censequent preservation of the Union. It cannot for a moment be gainsaid, therefore, that any action by private corporations or legislative bodies which tends in any degree to retard emigration must militate severely against the interests of the entire nation, and particularly against the interests of that port or portion of the country where any EXTRA AND UNNECESSARY EMBARGO Js laid on the progress of the business connected with or directly interested in the transportation of aliens to these shores, These remarks are called for bya bill which is now before the State Legislature providing for an increase of the “head money,’ or commutation fee, paid by the owners of vessels carrying emi- grants to this country inte the treasury of the city for the Commissioners of Emigration. Previous to 1847 the emigrants were transported hither chiefly in sailing ships, and, being landed at some of the docks on the East River front, were found to be an easy prey to runners, “‘scalpers” and thieves of ali kinds. The Legtsiature, at the earnest solicitation of many of the leading citizens Of this city, passed a law creating a board of com- missioners, who should take full charge of the busi- ness and see that the emigrants were properly treated, cared for if sick or needy, and promptly forwarded to their chosen destination at the lowest. practicable rates. in order that this might not be- come a burden on the taxpayers of this State or city a system of commutation or “HEAD MONEY?” was established, by which the sum of $2 was col- lected for cach alien emigrant landed, This was for the purpose of paying all expenses incurred by those emigrants who were ebliged to remain here, and entitled the needy to be cared for during five ears, This commutation was raised to $2 50, and in the course of a few years the Commissioners had @ large balance to their credit in the several banks of deposit, In 16% it was found that the financial condition of the Commission was such as to war- Tant a reduction of the “head money” to $1 50, and as the Commission at that time passed, like al other departments, into the power of the great dictators and direetors of the local politics, it was found expedient to make a great show of economy in their favor and against their predecessors. The system of squandering which marked the adminis- tration of other departments soon showed itself, hewever, in the management of Castle Garden, 80 that the Commissioners, in their last report, estimate that at the end of the current year there will be a defictt of atleast $63,000. tate Legislature, by an The bill now before tite which it is propesed vo create INCREASE OF THE TIKAD MONEY, as may readily be understood, is one in which every citizen of this cliy and State is direetly in- terested. It has. hitherto attracted apparently very little attention in New York, but the citizens of other seaport towns have shown tnat they fully appreciate tac importance of the measure and are getting ready to take advantage of the conse- quences should the Legislature be so short-sighted, or be so blinded from any cause as to pass the bill, and the Governor by any possibility sign it or al- low it to become a law. For the purpose of ascer- taining the opinion entertained by the chief for- warders—steamship and railroad companies—a re- porter of the HERALD called on several of the prin- cipal agents fur the purpose of obtaining their views on the question. ‘The first agent cajled upon was Mr. William Coverley, junior member of the firm of Henderson Brothers, of THE ANCHOR LINE, plying between this port and Glasgow. Mr. Cover- ley seemed to be thoroughly au saiton the question ol the general management of the emigrant busi- ness in this city, and expressed himself very de- cidedly, a8 may be seen from the tollowing con- versation :— HERALD REPORTER—Mr. Coverley, I have called to ascertain your views regarding the effect of the bill now before the Legislature, providing for an increase of the commutation money for emigrants, Mr. COVERLEY—My candid opinion is that it is against the interests, not only of the steamshi companies, but most decidedly against the interest of this city and this State. The people here may stand it, but the steamship companies will not. They cannot. The cost of roaning a steamer 16 now 80 much greater than it was last year that every extra penny imposed for commntation fees must be id by the emigrant. ‘There is not the slightest doubt about that. MEPORTER—The extra dollar provided for in this new bill wonld, ip your opinicn, then be imposed on the emigrant ? Mr. COVERLFY—Undonbtedly, At least on such of them as insisted on coming to this REPORTER—Do the steamship companies intend to make a fight against this bin? “Mr. COVEKLEY—I cannot say ; but I think not. The matter was spoken of jast December, when we got an intimation that this increase would be at- tempted, and a committee was appointed to look after the matter. Mr. Franckiyn, of the Cunard line, was chairman of that committee, and I have not heard of any action having been taken, so I dare say there has been nothing done, and proba- bly nothing wilt be done. i SiN the companies let it go by de- fault? Mr. CoVERLEY—The compani re now making very littie from the emigrant-trattic, and you may be sure that THE COMPANIES WILL NOT BE AT THE LOSS of this extra imposition. The way we shall do will be to take those of our emigrants who want to £0 direct to the West land them at Boston, and let our steamers come on here with the cargoes. The Boston and Philadelphia and Baltimore people are taki advantage of this matter. There are, no commution fees, and although the faciliues for landing emigrants are not quite as as they are here, the fact that they can be sent to the West 80 much cheaper will tell in their favor. The fare from Baltimore to Chicago is $3 less than from New York, and from Boston $2 less, If this bill is fea there will be $2 50 added here that will not exacted in the other cities, and you see it will cost something like ONE POUND LB6S " from other cities to the West than from New York, and that Is a big item for emigrants to consider. REPORTER—What necessity do you think exists to call for this increase? Mr. CovuRLEY—None at all that Ican see. We pay now all that it is worth to tac Commissioners of Emigration for keeping all the emigrants who are thrown on their hands, KEPORTER—About what percentage of your emi- grants remains here? Mr. COVERLEY—Not more than one-fifth. How- ever, we don’t intend to make any more fuss about the matter; but I think you will find the steamship people a unit in the opinion that this bil) will aifect the emigration business of this port, as well as the companies, The ter thanked Mr. Coverley—who, by the way, ia the type of a fine Scotch gentieman, pretty thoroughly icanized—and wended his way to the o1 of THE INXMAN LINE, where he found Mr, Nicholsen, the passenger agent, deeply immersed in the business of the company. After the usual formalitics tne following conversa- tion took place ;— REPORTER—I haye called to ask you how you, as re} tative of a ateamship company, regard hill now before the Legislature providing for an Increase Of the “head money?” Mr. NICHOLSON—I think it is simply preposterous, It puts me in mind of the old chteftains on the ler—tf you passed through thier lines ou were obliged to pay your way. This whole jusiness of commutation money is now, along with many other things about Castle Garden, a great humbug. Why, that whole place is just AS ROTTEN AS AN OVER-RIPE PEAR, ‘The fact of the matter is the emigration business is entirely changed, When the Commissioners of Ei ition Were originated it was undoubtedly a ‘eat boon, Le be ae were brought here in ships and in all sorte of ways, aiter a the ships would go on toweme other place, and the owners Ald not care for the emi- Now it is diferent; the steamship have made ita part of 223 H com- ‘heix regulay busi mess, and if t their interest to have the emt- grants property treated both on board the vessel and aiter their arrival. Sothink the Commis- sloners have outlived their usefulness, RTEK—Should REPO! this bill ‘would your com- pany increase the e to this port? CHOLSO) rtainly, We must. Why, just look ; here 18 @ letter tromMr. Inman which J have ust received, (Reading from the has advanced -4ix shil- ty-five ehiliings, and everything else 1) Now, what can we do } ‘T'bts thii was done some years ago. We went to Albany an: laid before the committee what! then thought most con’ Arguments. ‘The Castle Garden people it sent Up some Other kind at pearl (with a smile) and the bill right through. Oh, no, we shail net attempt any flerce Ce rn ‘but will send all the a tte can to Boston ger Bt poet are deci of opinio: imereage will fall on th grants ? '. NICHOLSON—Undoubtedly. In some parts of Sweden and other parts of Europe where the people are very poor they form A number people club together into a of per cl ge » pay common fund, say two cents a week, until they Dave enough to buy a passage ticket. ‘tr they have to secure an extra dollar it may throw them over a whole season, and the one whose turn it is to come «must stay at home. Thus, you see, the country Jones trom each club the services of one stalwart man, at least. - REPORTER—I lean that there is a great deal of Snpost tion Springing up in other cities. . NICHOLSON—Of Course there is. The Allen line, which runs to Montreal, ia already taki away a t part of the trade, as the Gran ‘Trank way rates are so much less than those of our New York roade. If the extra tax is levied Med fernalios will certainly make the emigrants "Tue reporter next called at the effiecs ef ‘THE NATIONAL LINE. and propounded questions similar to those above quoted, to Mr. Hurst the general agent of the com- pany. That gentleman in reply stated that he thought $1 50 was ample, and more than ample to carry om the business of the Commisstoners, There is a great deal of money squandered some- where. Where it gocs to is a question, They do the work very well at the Garden, as far as we can see, 800n that score we cannot complain. There is no doubt that the extra tax will fall on the emi- san or their friends. Take, for instance, the case A POOR SERVANT GIRL who works hard to save a dollar ortwo a month from her earnings so that she may pay the passage ofsome relative, The extra dellar will surely put her back a month, during which time she may lose her situation or may fall sick, and then all she has saved to pay doctors’ bilis, ‘The Allen Line, for the purpose of inducing emi- grants to go to Canada, offers a bonus of a pound sterling for every emigrant. It cost our line $15,000 more for coal last year than it did the year before, and if any of the lines should lose a ship the profits of the whole year would be: gone. ‘e can now barely make ends meet, and if this bill passes we must put it on the emigrants. The Commissioners cannot show any good argument in favor of the in- crease, and it should Pel nye There is no neces- sity for it, ey have built permanent establish- ments with the emigrant fund. It was never in- tended to use that fund for such a purpose; but, even g0, those buildings are ail paid for, 80 tuatl cannot see what the increase Is wanted for. The office of the : WHITE STAR LINE was next visited. Mr. J. 8. Gartner, the passenger Agent, in reply to the reporter, stated tnat as yet his company had taken no action en tne questien of the increase of commutation, as the line was the youngest ¢rossing the Atiantic. Whatever the other companies will do the White Star Company will heartily co-operate with, He could see no ne- cessity for the increase, and he felt assured that it would militate greatly against the interests of this city. Reronrme—What do you think induces this call for an increase? Mr. GARTNER—Oh, I suppose they want a fat thing. You will find, 1am sure, that the steam. sbip companies are a unit, and the increase must be patd by the emigrants; it won’t come out of the steamalp CQMpBDIEB. es ee 4 WILD AM® AND auion’s agent, Mr. R. G. Cortis,in reply to similar ques- “tons, expressed binmself very “decidedly inst the management of the emigrant business in Castle Garden and on Ward’s Istand. He said that he advocated the pastege of a law which would com- pel the steamship compames to take back any pas- senger whe should pyre a be not capable of tak- ing care of bimself, He paprocases the fact that litics had got mixed up with thé affairs at Castie jardea, and stated that When @ certain man was named very recently a8 agent for the Erie Railroad two or three of the steamship companies protested and thought it was an outrage to make such an appointment; still the man could only do his duty there, and they could watch him prett closely, if it snouid be decided he should stay there. He instanced the case of a man Who had been here seme three. or four years and had become paralytic at Hamilton, Ohio. The Commissioner's agent wanted our line te take tie man back to the old country. The line would not do it. The commutation money had been paid and ‘there was no law to compe! them to take him back. Such a iaw, he gaid, should be passed, and then we would not have such a case as the old woman who sells epics here on the corner aud then goes up to Ward's Island to spend the Winter there. The whole thing is bad, bad, sir, and any increase must certainly be paid by the emigrant, Similar opinions were expressed by tte repre- sentafives of the Cunard, German anc other lines, and, it is safe to say, should the bill become a law, it will materially damage the business at this port. ‘There are two 1inesnow running into Baltimore ; by next Summer there will be three running into Philadelphia, and those of the New York lines tuat can affect such arrangements will land thetr emi- grants at Boston. The Montreal line has been fully explained above, and between them all and the absurd management of the Commissioners of gration the immense trade now brought to this city will be entirely diverted. The bill referred to is being shoved along very quietly, but should not be permitted to become a law. DESPERATE CONVICTS, An Organized Plot Among the Prisoners im the Jail of the District of Columbia to Escape—Timcly Discovery and De- feat of the Plan. WASHINGTON, March 24, 1873. A well-concocted plot of prisoners to cscape from the jailof this district was reeently discov- ered, but has just reached the public. The Jail guards, after being advised of it, made diligent search and found in the cell of Tom Wright, the alleged Rogeiski murderer, a large crevice in the wall, and on examination a large brags key was found, which on trial fitted the cell door. The key had been altered to something the style of a skeleton, one half the barre) being filed down and the flange also altered to suit the lock. Where or by whom it was done could not be ascertained, but it was evidently the work of adh expert. A further look was taken, but nothing additienal found after the eesorerg of the key. One of the guards re- membered that several nights ago as he was making his rounds the door of Wright's cell was found unlocked, and, although it was a remarkable circumstance, he concluded that, by some accident, the — had failed to lock it, ‘and, repairing the negligence, he passed on. Further seareh was made, and a few days afterwards several fine saws were found among the prisoners. O’Brien 18 mentioned as having been in the plot, which was arranged several days ago. ‘The guards made a search about them, and the result was that on Ha on fi discovered that some of the a ers had been working at the bars of the wind in the corridor and had already loosened one of them, making an aperture large enough for a small boy to crawl through, ‘The ceils were then close! examined, and it was found they had been at wor! there also, as in one or two of them a number of bricks had been removed from the walls. Among the crowd were several desperate char- acters, and if the yard had been gained they would have hesitated at nothi to compiete the job. Aiter the discovery the entire party were searched, and the only tooi jound was the handie of a tooth brush, and they asserted positively that it was tie only ti they had, and that the work had been done without it. Itis known who were the ring- leaders in the movement, and three of the worst of them were immediately ironed, and will conunue to be for some time to come. A COUNTY MUDDLE IN MARYLAND, Baurimore, March 24, 1873, ‘The report that a series of peculations, extending back seventeen years, had been discovered in the County Court of Towsontown has no foundation whatever. No member of the Court has been charged with the peculation or misappropriation of moneys. Towsontown the county seat of Baltimore county. In the e of venue many trials are removed trom Baltimore city to the Baltimore County Court at Towsontown and vice versd, and the question is whether the costs and expenses Incident to these trials have been re- spectively patd. The City Commissioner of Balti- more claims that Baltimore county owes the cit; for the expenses of the trials removed from Bait] more city. ‘The matter is now undergoing in- ‘vestigation. THE MURDER MANIA IN VIRGINIA RICHMOND, March 24, 1873, The Senate Committee on Courts of Justice has Yeported a bill proposing to amend the statutes of the State so as to give a jury the diseretion to say, in finding a verdict for murder in the first degree, whether the prisoner shall be hanged or impris- oned for life. This bili was taken up to-day, and was warmly discussed, the republican members supporuing: jt almost unamimously. Its opponents ridiculed it as @ Nerthernism and @ measure prac- tically effecting the total abelishment of capital punishment. The recent executions in New York and other States have given this subject an unu- sval interest, hut at present there is scarcely a prospect that i$ wil) paws, HERALD, TUESDAY, MARCH 25, 1873—QUADRUPLE SHEKT. 7 THE EL PASO RAILROAD. Testimony Before the Crim- inal Court of Paris. General Fremont’s Adjustment of Ac- counts with His Brother-in-Law. Where the Money of the French Subscribers Went. By our French files of newspapers which have just arrived we have further disclosures with reference to the eperations ef the Trans-Conti nental, Memphis and Pacific Railroad, The pro- ceedings of the trial now going on at Paris show that out of 863 miles of railroad to which Frenck subscriptions were invited 748 miles have never been surveyed. On the 4th of February, 1856, the Legislature, of Texas passed a law sanctioning the Memphis, BE Paso and Pacific Railroad. A subscription ef $40,000,000 was opened, and about $1,000,000 was received, with which the werks were begun. Im, mediately afterwards these works were suspended, the civil war broke eut, and when that came to an end the company had a capital, a floating debt ot some $50,000 and the conditional promise of the concession of lands, subject to the prier comple- tion of the line. It was then that GENERAL FREMONT BECAMK PRESIDENT OF THB COMPANY. Without seeking to obtain the further aid of Ameri- can capital he turned his attention to the resources which might be found in France. The first thing was to obtain a quotation of the shares on the Paris Bourse and to issue shares. The actors im this scheme were, first, General Fremont, then Baron Gauldrée-Boilleau, former Consul General of France and officer of the Legion of Honor, a persom well adapted to intervene at critical moments and to guarantee the uprightness of the undertaking to the French government, to financiers and to the investing public. Then came M. Probst, am old contractor in Mexico, having a thorough knowl, edge of America, who andertook any amount of responsibility upen condition that he received & compensatory commission upon sales, purchases and investments. A railroad engineer named Lassignol was found who assisted in the negotiation and drove hard bargains; also a banker named Crampon, wha maintained that the bonds of the railroad were first rate stock and duly QUOTED ON THK NEW YORK STOCK BXCIIANG nd that Congress had voted a guaranteed Interest, and that the railroad was also in running order for a large portion of itslength. Then came Paradis, now dead, who was at the head of the Tivages Finaneiers, 8 company which readily em- barked in all new enterprises. One Autfermann, who had a large local knowledge of the country, Was also found useful in launching the new project. A statement was inserted ina New York paper to the effect that first mortgage land bonds six per ceut of the Memphis, Wl Paso and Pacific Raliroad Company, principal and interest payable in gold, are offered at 105, in paper, by Hodgkin, Randall & Co, and Auermann. «Wher this notice had beem procured the following certificate was obtained by Auffermann and forwarded to Europe :— By order of the Council of Directors it is certified that that the first mortgage land bonds of the landy of th Memphis, £1 Paso and Pacitlc Railroad Company, ivsned in two series of $5,000,000 each, in denominadens ‘or $10 aud $1,000, arg pdmitiea to negotiation upon the New York Exeflange. The merits of the company were vaunted in many French newspapers, and the consequence Was that the Freach public took up the bouds to @ large sum. Interest was paid upon taese subserip- jons for some time, After the subscribers failed to secure further payments proceedings were vom- menced, which Were interrupted, and have only recently been resumed, The following is the state of accounts ascertained to have existed when the law intervened, The total amount of bonds taken up was 20,643,470 francs. of that @mount there was paid for materials pur- chased 2,750,000 francs, At the time the books were seized by process of law there re- mained in hand but 2,039,282 francs. There is, therefor 335,418 francs to be accounted for. The explanation is that 637,000 franca was spent im jaanching the affair, 5,450,000 in allowances and commissions which the accused have received, 890,000 francs tor the repurchase of securities stolen or forged, 1,980,000 francs for the payment of interest, and 6,400,000 francs forwarded to New York, Of this last amount General Fremont an his coadjutors are alleged to have received 3,500,0 francs as commission, and as to the remainder no account bas been given. COURT PROCEEDINGS. From the proceedings betore the Police Correc- tionaelle at Paris we take the following ex- cerpts:— TESTIMONY OF MR. CRAMPON, who was well known ior his large dealings in the Paris Bourse some years fee. By the Court—General C! America, denounced the enterprise, did ke notr hr, pone vess that is so, but en our side we had General Fremou!; Mr. Curtis, United States Minister at St. Petersburg; Baron Gauldrée- Boilleau, former French Consul at New York, and their united testimony confrented his, Eventually, however, Mr. ves im the Eelaireur Financier, attacked the scheme. 3 thought that an enterprise that had 210,000,000 of francs as capital was solid. Mr. Lissignod then went to Ameriea and brought back statistics which exploded the affair, und tne Ameri- | can newspapers of the period also denounced it. 1 maintain that I was only an agent in the affair, and not a principal. I was referred to Baron Gaul- drée-Boilleau, who spoke very highly of General Fremont, and that settied the matter in my mind, MM. MAGNIN'S TESTIMONY, He commenced by stating that the emission of bonds was brought ubout by the false signature of @ man named Spencer, who was an imaginary per- sonage; how Probst and Lassignol had endeavored to obtain through General Fremont the quotation of the bonds in New York, but that Consul Boilleaw had said no quotations of the bonds could be had until the construction of the road was completed; to which Probst and Lissignol replied, “THE BONDS MUST BE QUOTED AT 108,” which would make the effective vaiue of the bond 3,900 francs; I believe that only four miles of the Toad have been constructed; 13,000,000 of franca have been received by General Fremont, Auffer~ mann, Gauldrée-Boilleau, Paradis, Crampon, Probst and signol; Baton Gauidrée-Boilleau has re- ceived 766,000 francs for cemmission, according ta vouchers. TESTIMONY OF BARON G. BOILLEAT By the Court—You speak in your correspondence of the difficulties of obtaining a quotation in tlie New York Stock Exchange. Baron Boilleau—I had no hand in that business. ue the Court—Probst declares that you wanted to be heavily subsidized. Baron Boilleau—That is untrue; for I had no in- terest in the affair; I received 248 bonds, worth ‘700,000f, from my brother-in-law, General Fremont; we both married daughters of the late Senator Ben- ton, of Missouri; Fremont had made unfortunate speculations with the fortune of our father-in-law. WHEN FREMONT MARRIED HE WAS A SIMPLE LIEUTENANT, without fortune and was ready to plunge into any new enterprise which promised a fair gain; but he was uniortunate in money matters, and Senator Benton's estate soon went. Senator Benton died im 1858. I went to New York in 1863, but our ac- counts had not been settied and General Fremont had spent much money for election purposes. To settle aifatrs Fremont gave me the 248 vonds. [ have no account of this transaction, for Gencral Fremont was my iriend and brother-in-law. By the Court—When you received these bonds they were not officially quoted at New York—how, then, could you fx their value? Baron Boilleau—I believed that the enterprise would be successful. The Court then read a statement of Probst, who declared that by order of General Fremont he had aid the Baron 766,320f, for commission, which ‘obst and Lissignol demanded should be ré- funded. Mr. Ponpinel, secretary of the late Mr. Parader, admitted having received & bonus of 00,0001, om account of expenses in negotiating the bonds in France, ret, who had lived in A PRIGHTFUL FRATRIOIDE. A Young Man Shoots His Brother Threa Times in the Presence of His Aged Father. Lovisvirie, Ky., March 24, 1873, A terrible tragedy occurred near Bardstown last Saturday. G. W. Holtshouser, one of the oldest and most esteemed citizens, was sitting in his office at about half-past seven P, M., with his um married son, D. W. Holtshouser, when his married son, J. Holtshouser, entered the deor, and, without, speaking, pulled out @ navy revolver and shot hi« brother, the ball entering the left breast and lodg- ing under the shoulder blade, The wounded oung man arose irom tue chair, aud ag e did so received another shot, entering hear his shoulder, when he fell forward, recetvini a third shot on the crown of the head, the ball pet ‘under the right eye. The fratricide im- pect nay left the premises and has not been heard ince, ‘The cause of the murder is supposed to be a feud of several months’ standing. All the parties wero heretofore heid in ngh esteem, and great excites ment has been caused in the community by the tragic affair. The father and mother of the young men ate nearly seventy-five years of age, and the Grief Of the venerable people ia heartrending.