The New York herald., 1869-01-20

meeting; the Substance OF It was read on.
Q. Il was read or from . paper was Is nots A.
O. win you produce . copy OF the paper from
which It was read A. will give an order for lt.
What portion OF me wnoie smo9n. ~ was o nonx
Q. Was half INTEREST," A. 90 not know. lnas u
q detail do not 60 into, as said before.
state K Ensinser r in DecemSer, 1857 observe that
the total earnings and receipts are $l3s1s,el4,
saa ne @ suns q s ss osS saa
Sss % S.; and for dividends. 80 that the net
earnings for that year are $AooA7SS o. leaving
Q. Win you explain how In that year any net earn.
ings were applied TO construction a: 40 not
know anything about that; was not there.
Q. Have you discovered AZ any time any mistake
In the annual reports inadeto the state Ensineers
20 Have any been mentioned by any ofncer OF the
company, i K. Not to me that | can recollect. ;.
Q. Have you any reason to suppose tnat any mis-
takes have been nader
Witness-Mistakes In whatf
Counsel-In the reports made to the state Engineer
A. Not that know OF.
OF the road ~ A. mean mems labor; mean OIL
and waste and everything that pertains 10 daiy OK
penses and daily use.
!. Q. Do you mean repairs9 A. Yes.
o. And the supply OF engines In place OF engines
broken aud destroyeds A. Yes; keeping tne STOCK
up In every way.
@. supply OF cars for cars worn out and bridges
for bridges broken DOWN A. Yes.
@. supply OF ralls for rails broken and worn awayf
A. Yes; 1 will close that up with closer answer
take possession OF railroad to-day send my men
over 10 examine II In every particular and an over
they report to me tts condition. and then y ls my
respect to What 1t Is then for the pext Years fepor
in respect to the g rolling Stock and a.. every.
IS n SUBJ subject which mi may be credlsed T to the the
road-to the stockholders, II you please; mean
that II we take hold OF 9 road and investigate ID
much money, and the road bed In such . condition,
at the end OF the year, we see II we have 6ettered
these th!ngs we have bet.ered the road pea s OF
way or whether It is worse than IT was; supposng
ns @ Ass s SsR II
are to keep everything up; and II there Is posi-
bility OF our improving anything for the good OF the
road, then they have TO make the Improvement; II
build an iron one thai cost S. 900 the SURPLUS amount
beyond What it would have cost to build new
wooden bridge would be proper amount for con-
struction.
O. Is It for items Of that kind that the interest Ger,
ti1cates are issueds A. / do not know that
there Is any such item In our state.
we make OF the road and for every enlargement;
those are the very things that the money OF the
stockholders has been used for from time to time as
we get 1t from our bo0kkeepers
Q. Please to explain the theory upon which you
issued the interest certificates A. Upon the theory
that we have used SO much Of the stcskholders'
money that they were justly entitled to and that had
been withheld nom them by former boards.
Q. Do you mean that such use Of the money Of The
broken down bridges &C. is Improperly using the
money Of the st0ckhoIdersf A. Not the way you
pat WooseS bdse that
charge at the time 1t was built to the railroad; sup
pose we build bridge that cost 5000 instead of
road; You keep the Whole $780, but the surplus is
from the stockholders money, because tnelr money
0. Have you o right, as directors, 10 use
stockholders money for such purposesy 4: can
awsys sS done ~ II was done before came here; this
road has been In existence for long while; IL has
been doing a great deal OF business; when went
INTO the road did so with this understanding;
said that did not want to receive any more money;
they have received money enough for years back II
cannot make the railroad as good as any railroad
ought to be In this country by getting the same
money that they have got before, then do not want
to he In the road; how do make its make 1t by
tai Of that road for pretty ngn 5000 Oo5 per year
better than any that has ever been In it, then
DO not want TO be IN the road: there u where cal
culatc to get that money and II mas been 80 on every
road have been In yet.
O. Am TO understand You that during your con-
nectlon with the road net earnings have not been
applied to constructions A. No; II they wanted any
repairs they would use the money OF the company
as they had 1t on hand and at the end OF the year
o. Am to understand that you nave not used the
money OF the stockholders Tor Constructions A. No,
do not want you to understand that; we use any
money that is In the treasury 10 keep our road fixed;
wnen VIC wind up at the end OF the year the result
1s as tell you; might have spent considerable or
that money, but we had enough to do all our
Q. Tnen il the theory-that II at the end OF the
year you Ind the road was oi more value tnan Il was
at the beginning OF the you can Issue interest
certificates TO represent that increases A. No, that
ls not toe theory.
running q road and you spend nine or ten millions
TO II, II cannot do 1t for eight, and do 1t as
we'll am ready to go from the road; that is profit
enough FOR me; that has been my principle with
steamships; never mad any advantage OF anybody
In running steamships; but II could not run
steamship alongside OF another man and do 1t as
well he for twenty per cent less than 1t cost him
would leave the snip.
o. am speaking Of the application of net earn
ing5 to construction and what you mean by the eA-
preston; during your connection with the road
have you or not applied any earnings 70 c0nstruc-
tionf A. II they had any construction 10 make, they
O. What has been the facts A. do not know about
that.
O. For how long have you been connected with
that did not attend 70; when l go the line OF
the road and see anything not right say. Elk
thts,n or "Haye such ana such thing done;" and
then II Ii their business to do it, and not mine.
q. Bv your connection with the road do you mean
your presidency A. Yes.
q. What was the fact previous to your presidency
A. 1 had nothing to do with It.
q. You had no interest befores A. was q small
stockholder only.
which you have issued these interest certificates,
net earnings applied previous TO your presidency
A. great portion OF them are, should think.
Q. Il has been your policy during your term not
70 apply the money OF the stockholders 20 construc-
toni A. No, sir; not my policy at all.
q. IL IL your policy when you do make such
an application to give the stockholders the interest
certificates for the surpusf A. IL is my policy 10
give them the amount Of property that properly be-
longs To them whenever / get In such situation
thai can do It without injury to the road.
2. What do you consider 70 be properly properly
laid track the other day from here to the -
depot; did 1t with the stockholders' money; but
they should be paid for II In some form; IL 10 ad
dition 70 the property Of the road and belongs TO
the Stockholders and they are entitled to the money
some time.
q. Is this your thcory:The property OF the stock
holders at a given period " the whole property Of
the corporations; and II after that time, whatever
that period may be, an increase Of the property Is
erected, that increase should be represented BY ad-
ditlonal certificates gwen 10 the siockholderss A.
u should be represented In some form, and IN the
best form that the people can devise.
U. And this form OF interest certificates IL the best
that you can devise a. liked that; think 1t was
the best way; IL suited me exactly.
.N.l-I