The New York herald., 1869-01-20

year for permanent lmprovementsS A. NO. su; NOS
o. In the estimate which was made Of the gross
amount OF earnings applied for enlargement Of
property do you know wnesser do not aver
.. Can you tell now what amount OF money repre-.
seIted BY these interest certificates was expended
C .. Or Or sSr1os FOR bridges 4. No sir:
Q. or for rsilss A. NO, sir; that Is detail do
o. e Can YOU tell now how much has been expended
for permanent improvements since you became
president OF the r0adf A. No sur cannot teii tnnt
inr an increase OF the stock OF the road In any way
under discussIons A. Not TO my recollection--for
the very good reason tast ma s we "e naa 0'
''0 q pv Was tSers anv proposition made during tho
year 1868 by any one connected Win tne G company
for issuing bonds convertible at option into STOCK
A. Sot co my reconecion; n there had been
should have vetoed 1t right straight down as only
another way to get stock that did not think was
8. was any proposition made during the year 1858
for Issuing debt certificates similar 10 those which
were issued IN 1853 or thereaboutsf A. know no.
.. / asked whether there was any proposition
made In 1858 for issuing certificates similar to those
that had been formerly Issued by the company A.
! do not know anything about those former ones.
q. Who originated this plan OF interest certincatesr
ratherthink that originated y; lstafea rec y ny
holders what belonged to them; then we called IN
sucn aid as we had among our directors 70 help
along to get Ii into shape TO suit US, ana nnalY we
failed upon tina. thing think ifthere s any rcspon
sbity about the starting or the whole OF it you can
q. il the Legislature should not hereafter author
TIE an increase In the stock, when could as holder
or an interest certircae get the principal sum rep
resented by the certncatef A. do not know; IL Is
representation OF SO much property. as take 1t.
q: sta higher representation than the stockf
o. Then what advantage do /, as holder, get from
the certificate, which DO not have stockholders
A, You have evidence that you have SO much pro-
Gs a nos rSo
as stock; that Ii the way estimate it,
@. What interest do get, In the possession OF the
Ho nass Seore p IS
as . stockholder has got.
Q. Then does on interest certicate represent any.
thing more than the interest Of the stockholderss
A. Nothing more than the Indebtedness to the inter-
ested stockholders; that Is the way understand it
Examination adjourned until tomorrow OF one
~ JAN. ID, 1ss9-lP.M.
Examination resumed By Mr.. Field-Q. In the
resolutions passed on the 10th of December "net
earnings applied TO construction Is the term used;
what do you mean by "construction" In that ex-
pressions A. That means foy every new nxture on
the road; turnouts for instance, new cars. new
8. DO You mean also interest in other roadsf A.
only mean in the Central road; that was all had
3. Then there were no other investments except
the investments In new parts Of your Central road,
tains the increase In the property Of the railroad
Q. BY "property,' Of the Central Railroad do you
mean everything 6Oug INC lIUe Oh Tue IO6u a. All
along the road; wherever they wanted to add TO
3 Thsn you DO not include any property
instance interest other roadsi A. Not that know
OF; do not know that there is; they have some
stocks m other roads, Dut as ior increasing tna tnat
road.
these interest certtfcatesf A. Not that know OF.
Q. That IS your understanding OF thats A. Yes;
they had taken some OF this very property that be-
longed to the Stockholders, as say, In realy and
O. That property is not represented by the interest
certfcatesf A. Yes. all that property Is because it
is the property OF the Central road for instance they
took SO much stock OF connecting road to facilitate
their business-though they have not done any OF
that since have been here, but presume they did
beforehand they paid for It out or the earnings OF
the company, and that legitimatey belongs to the
stockholders.
certificates represent anything more than the pro-
perty along the line OF tile road and understood you
to say they don't.
Counsel--Please explain how that Is.
A. That is the way 1 explain It; presume that
heretofore the Central owned some other railroad
stocks and property; that was paid for out OF the
earnings Of the road therefore they calculated that
that Is property and that 1t egltimatey belongs to
the stockholders; but the stockholders hadn't it re-
presented; it stil belonged to the company ior in
stance, they held thousand shares or the Lake
Shore road; they took II when they originally built
the road and paid for It out OF the earnings OF the
road.
@. Then In making up an estimate for the total
amount OF interest certificates you included not only
the permanent improvements on the line OF the
road but property or interest IN other roads which
you had purchasedy A. On the connecting roads.
q. What were those connecting nesg A. do
not know any other than the Lake shore; there may
have been more.
g W you 5ry to a reresh a sa your memSy A. to 40;
people, to secretary, treasurer &c that was not
done in my time; 1t was done before came here; II
they were now going to purchase anything with any
or the property belonging 10 the Central road
should look into 1t before was done; but that was
done before my time.
animation that the statement was prepared by Mr..
Chaplin Dir. Clark aud yourseifs A. Yes, that Is 30.
q. Then of course you know what the statement
IL you helped prepare its A. Yes saw
II and believed 1t to be correct.
q. You did, at that time, know what It contalnedi
A. depended more upon our Office people; our
treasurer &C., for the correctness OF the figures.
q. DO you mean to say that these three gentlemen
made up the statement, or that the treasurer made
Il ups A. The treasurer might have made " up,
and we Investigated II In looking II over; at any
rate the figures were put before Us that led Us to
o. who put them before yous A. cannot say
whether It was the secretary or the treasurer; We
got them from the otice.
q. Can you give any one OF those nguress A. No,
q. VIII you procure statement and annex 1t to
your afildavltS A. do not know; 1t Is all In the
q. wii you give instructions to an ofIicer to fur
nish tf A. II snat is necessary shall do q; we DO
all the world shall know every transaction.
Q. Then VIII you tell us that transactions A. I
viii tell you ~ nigh as l can.
O. II you do not know It and somebody else IN the
once does Will you direct him TO produce the inlor-
mationf A. have no objection at all.
O. ask you, will you do itf
Mr.. Fairchild-1 do not think 1t is necessary for
US to produce our books and papers here.
wItness-Then Ia Il proper for me to answer "no''
or "yesw
Mr. Fairchiid--I should not produce IL.
q. II you have not the Information yourself but
r o{o
troll, a. an oiicer OF the company. will you procure
II or will you n0ty
Wtncss-What fs itf
Counsel-The statement OF the net earnings sp-
piled TO construction, for which you issued the IN
tcrest certifcatess A. There IL doubt 1t Ia there.
O. VIII you let us have copy OF the statement
witness-wcI Mr.. Fairchid, what do you says
How must I answer that question: I want to be
governed exactly by what n right.
Mr. FairchIld-I should say that could not do IL;
the statement involves an examination Of a great
many books, which it would be necessary TO bring
down here; and there would probably be q carload
Of books TO bring down.
q. wasa carload OF books present al the meeting