The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-05-27

Of the company received by any officer agent thereof
postory located person Receiving the same,
g may be after the receipt hereof" The moneys
embezzIed by the Comptroller were collected at the
nal local stations upon tho hne Of the road desire
the part of To favor particular bank in Albany
caused these moneys TO be ked over tho road 70 be paid
the Comptroller, with view " their deposit in the IA
yortc bank. They should have been depoLed in the 10
cal banks upon tho line in strict compl nce with the rule
There solvent banks at Fort Plain AZ Herkmer Oneta
and other Ike stations between Albany and ,talo The
local receivers should havo been required at their own
banks receiving these could have easily trans
ferred them period caty 10 any general depository may
be said that banks Ac hosc indicated were selected
by the oard and that to have done would have greatly
multiplied the labors of their Thu. affords
Why the business Of concern as large that Of
this company shou be made 10 flow In channels other
than tho which entirely safe. Thirteen fourteen
thous and dollars paid by the company 70 this ONCE al
compensation to s chief and subordinate clerks Is very
handsome equivalent for much larger service than 10
rendered by them
Upon the organization of the company an auditor of &C
counts and pay chosen The auditor was con
timed until about year since, when his duties we're
merged in hos Of comptroller who was thsn appointed
The Oncc Of compo ocr was continued until inc recent
fraud discovered, when II was abolished and B du-
ties tran ferred as understand, to ono or moro clerks,
subordinate TO the treasurer superintendent The offices
Of auditor and pay master were lled persons who had
for been employed upon the Utica and Scncneca
dy Railroad, in places subordinate to the superintendent
Their appointment @as not oan, one no knew
them and at all acquainted with the important and re
spopsibe duties which wero evolved upon them by t1a
appointment Though possessing o'erable clerical aoli-
of character which required in the investigation Of
accounts which would before them for their action
Who viii believe that either OF them dare question any
Of the Items charges contained in tho vast accounts Of
Corning Co for materials and articles furnished 70 the
road. Ono of these ohlcersthe pay master-was located
ia the Supentcn enls oicc and, in addition 10 the duties
Of his Office exercised sort Of supervising drec ion in
relation the accounts and books Of the superintendent
Tho Office OF voucher ia show the exact amount paid
in money with The yow It's being entered IN the pro-
per account understand that under the direction OF tho
paymaster above mentioned vouchers have been for
inatly n QfN hn
settling Of freight balances bet~ the Central Railroad
and other lines OF transportation carrying property in con-
necon With t. These balances are settled at stated periods
They sometimes in favor Of and sometimes against
the Central road When they favor OF tho Central
the station where the connection s formed When the
balance is against the Contra road, ID paid b. the pay
master with funds drawn for That purpose.
The receipt voucher taken such payment should
be for the exact amount paid for larger amount,
understand has been the practice some Of the con-
Meeting stations the voucher will afford test Of the
curacy Of the IN which may be credited. To
certain is accuracy would involve examination of tho
freight statements made at tho connecting station This
be done only by expert IN that business s not
intended " arege that frauds have been committed in
taking vouchers as above mentoned though s cay to
perceive that wide door has been opened through which
much OF the company funds might have escaped Tho
matter should DO investigated.
Something than year since, report indicated that
extensive frauds had been committed in relation TO certain
contracts for wood 1t sad that payment had been
made for large quantities OF wool which had mover been
delivered to the company. An vedigaton was instituted
by the board Of directors during the absence OF the res
dent In Europe. II Was prosecuted with considerable
energy for a period II was then nterDitted, nothing
more heard in relation TO H. One o! the members
most active In s prosecution has since retired Why this
matter has been Quoted | am not Informed. Tho more
uncharabe say that the wings Of were likely TO be
clipped whose eight vs. higher than that OF ordinary birds
Oher instances of uansacung business by ihe agents Of
might be mentioned but forbear for the present
Enough already been stated ~ show that some changes
are required IN the manner OF uansacng tho business Oh
the road.
II has become so fashionable FOR railroad managers 10
trade with the concern managed by them, and at their
own prices that such positions regarded stepping
stones suddenly acquired wealth. Railroads, from the
nature of their present organization are prone 70 run into
power concerns. Some leading spirit, In most
railroads. by his skin and arolness obtains the power,
through the proxies of stockholders, TO make his own
sISmcnts of his viii b and long continued manage
bcgci impression that the road should be managed
by such man as absolutely as it we're his own property
When such a manager Is honest and upright as we'll az
shn the interests Of the stockholders will be we'll served
and cared for But unfortunately such concerns subject
to constant CHANGE and human nature Is 80 constituted ~
TO require proper perfect system in railroad
ment wen in government affairs. Can any good rea
be assigned why corporation welding stupendous
capital like that Of the New York Central Railroad and
| Possessing an income approxma,pg TO that Of the
the medium Of independent officers, checking each
other in regard TO receipts and disbursements, a.
do the officers OF the slater why should not the
treasurer all OF whom should be ma My independent
G1 or no %
organization leaving the appointment of other necessary
all skilled in construct system for the
action OF business which would to great extent insure
should supervise the general business Of the Company,
conduct all important negotiations, and generally direct
such alterations and repairs as should constitute sub
ftan,lally new work. Tho superin ndent and his assist
ants should be purely executive officers. They should
neither nay receive any money except their
sonable salaries and be content with their wages. Tho
treasurer shoud be the keeper Of the fund.- and
should not he permitted to transfer or law fund5 from
any OF the depoories except upon his dram, counter
signed by the comptroller Al agents or receivers,
collecting receiving moneys for account Of tho
Company, should be required, al stated periods, 10
deposit their collections in some depository the
line OF the road, causing the teller clerk prefix
the Of the dcpositor, and should ,hereupon
transmit detailed statement OF such deposit IN the
treasurer and true copy thereof TO the comptroller
Zach deposit bank should, at least often as
in each week, transmit iG statement OF ts account
w the treasurer, aud alo IN the comptroller, Tho pay
master and his assistant clerks should pay aud discharge
all the debts and obligations Of The company for labor
materials and other maors 30 uat In no case payment
should be made by the person hiring purchasing
materials. This rule should be strictly Observed, dc
Walton from is source Of much fraud The duuos OF
al auditor defined by The tile If his Office aud need
comment
Such 81 stem as that above suggested is fully within
the reash OF the stockholders. may require adi
tonal legislative enactment to accomplish II. For such
law they should boldly and icsrlcssly ask. In ling
they should demand the honest aud faithful operation Of
the present managers II Is their undoubtcd right, aud
they should rown down all aemps the part oi those
legislators and others with the OF the oompanys funds
In the shape OF free passes otherwise. let be
alarmed at the above suggestions They made n the
strong conviction Of their necessity and with the approval
Of many who largely interested in the property thu
company If they carried out they will greatly In.
crease the value OF the stock and largely promote the pub
C interest The CO ntrsl possesses the best line In
the world. Nothing required to e. absh upon a per
msnen and durable basis, but TO perfect rs system Of
organization AMI management STOCKHOlDfJL
CITY COMMERCIAL. REPORT.