The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-21

ME Southmayu-t0r whom does MT fierrcpunt
Mr.. PIerrepont for the Erie Railway Company
This inquiry, he thought IA regard To 80 900
shares OF the stock or Heath and Raphael. On this
subject lie had advised Mr. Gould to render all pos
siblc assistance by the production OF the books ana
documents demanded by the Court. Heath and
Raphael were holders OF 10000 shares OF Erie stock
and sent their certificates TO the Office or the COM
pany after the books were closed 10 be registered 10
james X. Coleman was appointed receiver OF TINS
stock. which was delivered up to the company IN
September, 1870. This stock he observer. hau never
been taken TO the Farmers Loan ana Trust Conf
pany and had not becomc marketable under the
rules or the stock board. The coal strikes last
winter and DINER disasters caused the receipts 0f
Erie TO ia. OF hair o million monih. THIS rea-
dered IL necessary to raise money outside OF me
Income 10 work The road. The Executive Commit
tee therefore, passed resolution to issue convertl-
bic bonds mat would equal The 10000 shares OF
stock and use those bonds FOR the purpose OF raising
money 10 meet The Requirements OF the occasion.
These bonds sold for the market prices Of tho
stock, auu rhe anuant was used TO dcfray the COM
panys EXPENSES. These bonds. thus converted into
stock and returned 10 the company were represented
by stock. The stock was sent to the Farmers Loan
and Trns, Company Tor registration, In order that
Tins stock would be sold IN the market TO pay the
holders Of the bonds. AS each parcel was sent
take cancelled certncares 10 the Farmers Trust
Company 70 the same amount, the more readily TO
facilitate their purpose ana the stock was SOLD IN
the usual manner. This statement Mr.. Gould would
substaEtiatc on oath.
Mr.. Southmaya-We have proved fraud-the
stealing Oh our sock WHAT has become oil IT. Mr..
PierrepOnt saws Mr.. Gould VIII state the truth upon
his oath, perhaps upon his honor as II we should
be expected not TO contradict his assertions l do
not regard mr.. Gould rs person who holds the re-
lalion whicb entities hts word Of honor or oath to
any extraordinary credit. We have proved the
robbery: we nYc endcayorinp 10 optaln redress IN
the usual manner.
JAY GoUID ON THE STAND.
Jay Could, OF Erie was the next witness sworn.
Examined by MIR. Soutnmayd.
q. You are President of the Erie Railway Com
q. Look at that summons. and say &c Is dupll-
cate OF the order served upon you, ana whether you
produce or decline 10 produce the papers which nre
served upon me was blue papers think this Is
duplicate.
q. DO you produce or decline 10 prodcce the
have made personal examination OF the books In
the treasurer's and auditors departments and
there Is no entry containing an inventory Of the
stock
BY the Mastcr--Tnat is not the question. 1t is
whether You produce or decline TO produce the books
and papers called fort A. The only entry there II
the proceeds OF the convertible bonds $3.50, ooO.
Mr.. SOuhmayd--l VIII ask the witness IN detail.
q. The trst book called for In this order is the
stock ledger, or the ledger In use from September
1870, to the present Time Is There any such book
A. Not to my knowledge
q. You don't know. then, whether there Is or is
not stock ledger OF the company of which you are
presidents A. never saw 1t to my knowledge.
q. DO you know whether there is stock transfer
book OF the Erie Railway Company which was in use
in september 1870, ana transfer books which were in
Use December, 1870, and January, 1s7l--had your
company any transfer books III those monthsY a. l
presume
suppose they are III the office.
q. Have you ever seen thema A. Never to my
knowledge; know that we sent down here three or
four car loads Of hooks.
q. VINO gave directions for the sending mere OF
those bOOksY A. gave directions.
q. What books did you give directions should be
senIS A. ] directed the transfer clerk TO send such
books related To the transfer OF those 900 shares
OF stock to Mr.. Coleman, rs receiver.
Y. Have you ever given any directions that the
transfer books which related to the &c. 600 shares
winch issued and sold upon the street In lieu
OF $4,000 of Heath and Raphael's stock should be
sent here' A. 4 supposed the whole OF the books
would be sent.
O. DO you know anything OF the register of daily
balances register OF stock transfers kept IN De-
cember. 1870, or January, 1871. A. don't know OF
there being auy such books.
@. The stocK-certscate book from which were cnt
the stock certificates issued by the company from
inclusivc--are there such bO0ksf A. suppose so
l think they were all piled on the express wagon
and sent here.
Mr. Sournmayd-There was nothing OF the sort.
Tue two convertible bonds which were issued by the
company IN December, 1870 ana January, ls7l-one
being for two millions and the other for one million
DO you know OF the existence Of these two bondsY
A. Yes, know Of their existence.
Y. You say you don't know whether your COM
pany has u stock ledger? A. am entirely unfa-
miiar with the details OF the bookkeeping depart
mcnt.
q You don't know anything about the stock
ledger OF your company A. No. Sir.
q. Who OF your company does know anything
about itY A. suppose The transfer clerk.
O. If there Is stock ledger. who has the control
of itY A. don't know.
~.
books who has the control or them9 A. The trans
fer clerk
company? A. control them through the different
departments; they are all under my control.
@. II the company ~ ordered to produce the
books In Court-tbc books that now In the hands
OF the transfer clerk, locked up III his saie-whO has
the power 10 bring them down In compliance with
the order OF the Court or TO have them sent DOWN.
A. cannot tell without reference tn the articles OF
The UasIer-Is II within your power TO produce
A. without reference
ucles OF ASSOCIATION Of the company. lLaugh,er)
q. DO you always examine the articles OF assocla-
ZION before determining anytnlngf A. Yes, III any
o. Your transfer clerk is John A. Hilton, and he
has testified that most or the books ana papers
which are called for by this order locked up
the sale in his room the last time he saw them.
Whose direction required according 10 the course
OF business IN tine Erle ONCE 10 send those books
down before the MasterY Can the transfer clerk do
Il himself A. answer tnat nat. the e, 9cers powers
ana have never examined those rules with the
view Of oscertalning my powers.
q, who has the power II IL Is not yours or the
transfer clerks? A. could not tell without refer
ing 10 the articles OF association.
q. n you were engaged III a litigation in which
you waniea have those books produced In court,
do you pretend to say that you do not know how To
| get them down to courtY A. Before I undertook
that responsibility should examine very carefully
! the articles Of association.
| The Master-ilas the Erie Company never had q
\ litigation in which 1t was necessary to their
\ papers or booksy A. Never; this power has never
! been brought into exercise; 10 take these books
| away might ruin the whole company.
q. Can you tell me any one who has the power II
YOU have nuts A. only tell you that by refer
ing TO the charter OF the assocation that Is tne
practical way 10 get at 1t; IT was never put III prac-
| ticc before.
| q. Who are the powers that do things In that par
tIai way except yourselfr A. Mr.. FISK, Jr the vice
PRESIDENT Mr.. +. A. Lane and the board Of direct
crs. lThc witness mentioned the names OF the pers
sons comprising the directory
The Mastcr-iou say You could not tell whether
sou had authority 10 direct those BOOKS to be pre-
duced unless YOU looked at the articles OF assocla-
tion desire to ask you. as matter or fact, whe-
Their II you ordered your sub0rdinaies TO produce
those hooks. they would not be bound TO produce
! them here, and whether II would not procure the
producuon OF them II you, seeing it, ordered themf
I A. Let me explain.
| The Mustcr-Answer directly, one way or the
other. A. don't know: there are three sets OF
hooks The books o! the treasury the books OF the
auuit de partiBent and Of the transfer department..
o. You are president and treasurer. are you not 2
A. am president and nominal treasurer, Justin d..
bta Il asstsfuuL and also OF the