The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-06
THE ERIE RAILWAY WAR.
HUNT AFTER FACTS AND FIGURES.
Extraordinary ignorance Of Eric Officials
About Erie Affairs.

The reference before MIR. Kenneth G. White, the
Master In regard to the 6o,054 shares OF Erie stock
claimed by Heath and Raphael, the English share
holders, to be their property, was resumed yester-
day. Mr.. Southnayd made an energetic hunt after
facts and figures concerning the stock In question.
anu elected the fact that the auditor OF the Erie
Company did not know, as he swcars, OF the issue
OF the convertible bonds for IS 0o0 900 until he saw
O statement to that elTcct in the newspapers.
Mr.. Sonthmayd and Mr.. Tweed appeared for TN
English shareholders, ana Mr. Beach, Mr.. Morgan
and Mr.. Lane appeared Tor the Erie Company.
TESTIMONY or THE AUDITOR.
Giovanni Morrissin was the first witness ex.
amined. He testified as foows:-I am the auditor
Of the Erie Railway Company, and nave been such
since February IL, 1875 keep the general books VI
accountable journal and the ledger; there Is cash
book 1t IL kept In the tTeasurer's ONCE; the ac-
counts OF the transactions between the Erie Railway
Company ana Willard, Martin 4 Beach are kept In
the ledger; did not know in December and January
last that two convertible bonds had been issued by
the company; nrst saw an account or their issue
one for S2,000,00o ana another for siooo,oo0-
the newspapers; l did not know In
December ana January that $4,000 shares of new
stock had been Issued; first heard Of such issue
ledger is posted by one OF my clerks from my cash
BOOK but supervise 1t; this book, which is called
"The Tckler," contains an account showing the
money paid by the company to Willard, Martin Il
Beach IN December AMI January, 1871; II is the
original book kept at the time; ! produce
the ledger showing the sums OF money
paid to willard, Martin & Beach from De-
cember IS 1870, to January 1, 1871; 1t Is the orr.
ginal book Kept at tnat tine also nave the Journal
Tor the same peri0d thee Is entry ia any book OF
the company IN my department showing that 1t re-
cevcd anything as the proceeds OF two ConveltlDe
bonds Tor s3.000,00o issued in December and Janu-
airy last; there IS no entry that l know OF IN any
book of the company containing statement OF the
issue OF the convertible bonds OF the proceeds VI
the sale OF the 80 eco new shares; when bonds oi tho
company are created they are generally entered or
terca by III the books OF account; the lalufd
thus to onter or register such bonds would neles-
sarly render them Incomplete
O. Up TO this date has there been any entry IN any
of the companys books OF the issue OF 10000 shares
OF new stock and the proceeds OF their sale OF OF the
Issue OF convertible bonds for S3,V0o,000 and the
proceeds OF their sale 4. There is book in the
treasurer's or bills payable, but they properly go
into my ledger; there are no such books IN the once
payable; there used 10 be BOOK OF convertible
bonds kept in the otce OF the company, but 1t was
closed long ago; II u convertible bond OF the COM
pany was issued / would not make an entry OF ~
unless ordered to do SO; there Is no entry that
know Of in any book OF the convertible bonds for
s3,00O.Ooo; there no entry of them made by me.
On the morning Of December 49, 1870, the account
between the Ell Railway Company and Willard,
Martin L. Beach stood 100000 in favor Of the lat
ter, and the sums received from them during the
ensuing month were credited TO us; Mr.. Gould was
not credited IN any amounts; don't know how
much Willard Martin a Beach had loaned 10 the
company over ana above what was returned to them
during that period; the running aud operating ex-
penses of the company during December and Janu.
airy last are contained in these boozs the receipts
were 81 s53 SS5; the comrany's account with Willard,
Martin & Beach Is a running account anu stll
exists 1t does not contain any reference to the issue
OF the 3o0GO new shares, nor TO the issue Of the con-
vertibe bonds.
the convertible fund book being closed; did you
enter In 1t the proceeds OF such bonds until the re-
ceipts on their issue came IN! A.. did not and
when entered them generally entered the authO-
fity by which the bonds were created. closed the
bond book one fine morning, because had nothing
put in It; II these bonus were given 10 Willard,
Martin & Beach security for advances, that
would not be entered on the books OF the company
unless ordered at the close OF January last the
Erie Company Dwell willard, Martin Beach
ss25,0Jo for actual money received from them for
the general purposes of The road, l do not know
what security Willard, Martin d Beach held for
At tins point OF the inquiry the examination Of the
witness was suspended 10 enable him to draw up
written statement OF the cash for December and
joan A. Hilton, the transfer clerk, then took the
stand. He deposed:-Tne 800 shares OF Erie stock
issued to T. J. Titus Deccber 2s 1871 are credited
on the books OF the company thus:-The amount
issued by the company on account OF convertible
bonds issued December 2s 1870, Is stil standing TO
his Is 1900 shares; Nj. TITUS Is clerk In the
firm OF willard, Martin 81 Beach; when the books
Were closed IN February last s7So shares res
shares were also issued to u. X. Willard
Co., on account OF convertible bonds, and at pre-
sent 1860 snares remain his credit 500 shares
Issued at the time 10 Willard, Martin 4 Beach
are credited 10 the same source, rs are also $500
issued to Forrest Willard Co.; $500 shares
Issued IN the latter part or December. 1870 and 500
shares issued in January, ISL to William Heath Il
Co. are credlted to convertible bonds
q. Is James ii. Coleman credited with any stockY
A. Under date OF september, 1870, James II. Cole
man, receiver, Is credited with the stock claimed
Inv tinnth MI Ru nlI q OF r. N
transfer III the transfer book took place a day or
two afterwards, certainly before he election, which
on the l2ta OF October. Mr.. Coleman voted ON
this stock at the last ciccton.
y. For wnom I'D lie vote-the ticket including
Fisk ami Gould A. | cannot say as TO that; l
should Judge
air beach-I object to the witness stating what
me hiastcr-Preceed.
Wness--All the votes cast a. the last election,
Win the exception oi Jew, were given III favor OF
fiyk ana Gould.
The reference was further adjourned til Monday.
Ii 4, DR.. and the CEi0n pEciG, Railway
Company.
Tho suit OF James FISK. jr., VI. The Union Pacific
Railroad Company, the credit MoDilier Of America
aud Others Is removed from the state Court TO the
United states Circuit Court. Yesterday Fisk fled
his amended Lil In equity IN the United States orr
CUT Court. The bill ptays chat the establishment
ana management oi the Credit Mobiner OF America
ny Tue directors OF the Mon Iaclic Railway Com
pang, DC declared fraud that all the arrangements
ANA contracts made between these parties bc set
ASIDE as fiauducat, ana that The Onion Pacific Rail
way Company be restrained rom receiving United
states osts ana grants OF land and that tic sane
be taken Dy receiver appointed by the Court.
JUVENILE rEpssary IA jersey
A sud CHAPTER % Damesiic HIscries.
About year ago John Bannon, boy abou, twelve