The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-15
TEE ERIE WAR.
The Transfer Clerk ON the
Stand Yesterday.
HIGHLY IMPORTANT DEVELOPMENTS.
Three Millions Of Convertible
BOndS.

Circuit Court to conduct this most important
inquiry
Mr.. Southmayd appeared for Heath and Raphael
and Mr.. Morgan for the Erie Railway Company.
The proceedings yesterday were exceedingly in
terestiDg ana threw considerable light upon the
manner in which the affairs OF FIRE. in regard to
registration OF stocks and the OF shares, nave
been hitherto conducted.
At the opening OF the case Mr.. souhmayd asked
II the books for which order Of tho Court yes
terday issued were now produced.
Mr. Morgan replied that they were not, Mr. Hill
ton who had charge OF them, not having been regu-
iarly subpnnaed.
The Master remarked that the order had been
issued through the company's counsel.
Counsel said he had no control over the books. and
no wished 1t to be understood that the Erie Com
pany cid not decline 10 produce then.
EXAMINATION RESUMED.
John A. Hilton testiled-I have been empioyed In
the ONCE OF the Erie hallway Company as transfer
clerk for ten years. had charge Of the transfer books
seen them; j have also charge q mat
mt the farmers Farmers Loan and Trust Company. ~
Q. Whatd your company furnish Q, the basis OF
ns the stock tnen with the humber Of
shares embraced In each certificate.
q, Have you furnished to the Farmers Loan and
Trust Company since that time record Of any ad.
diuOnal stock to that which was embraced In the
first llstg A. Notice was given 70 them OF the issue
O. Is that the only new Issue OF stock that has
been made since the opening OF The Farmers Loan
and Trust Company A. cannot wen answer that
question without my books,
O. DO you recollect as a matter OF fact whether,
besides the new issue OF 100000. since the opening
OF the Farmers Loan and Trust Company, there has
been any enlargement OF the shares OF The Erie
COmpany9 A. 10 answer that question shall have
70 refer u my books containing record OF what
has been done. -.
The Master Then without your books you cannot
answer the question: a; the books VIII sio show
ton is, can you or not answer rne question wihou6
your bOoksY A. l Can answer 1T: there has been an
enlargement, but when l cannot say without my
d. What was the amount of that enargemcnt9
A. Three millions; tnat must nave been some tiue
In December OF january last
OF stock which had been LETT at this ONCE OF the Erie
Company BY Mr.. Won HOFFMAN, on behalf OF Heath 10
Raphael, to James Ii. Coleman, receiver appointed
by the CourtY A. do; first saw those certificates
ON the day they were transferred to the receiver;
the unpaid cerl6cates were then placed on the
safe by me. and they remained there for two or three
were all made in single book; the transfer book
was closed on the nth OF February, 1870 and le-
maiaed q sed until AFTER n a,dnsn they
after the election; in registering In the Farmers
Loan aud Trust Company the owner Of stock is re.
ssaR e Ss o n fs SSa, ~
the owner Of the certificate; was notin town at
liz liz COM Company All aSa ain hot aware that Mr. Harris
had any duty 70 perform IN taat respect.
O. Was not MI. Harris in the habit OF receiving
certificates for examination as a step preliminary 10
their registrations A. He was not; mis- recelps Of
60 600 shares was an exception to the usual rule
am not aware that Mr. Harris had anything 10 do
with the transfer OF certificates to the receivers that
o These original eerti6cates after having re.
NAMED Tor several months IN your safe, were sent 70
the auditors Office What was done with them then ?
A. They were all cancelled either by myself or by
o Was not that done al once, after they had
Gates issued unsteady A. / think not; 1 don't recol
lect the exact date OF the cancellation; they are
gen .raily cancelled when the transfer ls made the
not cancelled at the time Of their transfers
we used TO send person named Dillon to the Far
mers' Loan and Trust Company with certificates to
DO cancelled. ] cannot say what his name Is
whether 1t Is Billy or Johnny.
Q. you do not send Billy or Johnny who do you
send A. Most any one we could get.
O. Is 1t not matter OF trust to send some trust.
worthy person with themf A. Yes.
Q. You would not pick up any person you would
meet for That purpose Who do you employ IN that
business A. When we find IL necessary to send to
the Trust Company, II am not in 10 send this mes
senger, generally call on the assistant secretary
Mr.. Smith, TO send me reliable person
available for that purposeG
Mr.. Morgan-Is It not quite large numper2
The reporter heard no response to the question,
MIR. Southmayd proceeded to ask-Do You know
anything Of those certi1caes oI $4,000 shares sent
Company having that round mole punched III them
Witness-Yes.
O. Did You direct that to be doneS
Mr.. Morgan objected.
The Master-Did you direct that to be done9
WitncsS-Yes.
O. How much did you send OF the 10000 shares TO
the Farmers Loan and Trust Company A. Thirty
thousand shares; cannot tell when sent these
q Was it at one time, or az several timess A. 1t
was not at one time.
casion s." '-'l.' ''''' - ''~' = wv -
O Was that all done ON two occasionss A. Yes,
q. Have you any means, from books or otherwise,
of giving the dates on which youeent those &C, COO
shares, AND the amount sent on each day !? A. My
books would show that; cannot tell that without
reference to my books.
O. DO you knew about when 1t wass A. 1t was
during the months OF December, 1870, and January,
Q. BY what messenger did you send tnemS A. I
o. Did you send any verbal or written message
with thcmf A. do not think sent either; Go
not recollect that ! directed the messenger to DO
q. was he merely to get the certificates cancelled
A. was merely 10 take them to the Farmers Loan
o. To yet them cancelled and bring them back is
that 1t Was 1t not TO get other certificates regis.
tered In place OF them for those surrendered certa-
Cates2 A. Yes, sir, IL was.
o. He was to get other certificates certified by the
Farmers Loan and Trust Company2 A. ! do not
Q. Had not other certificates been already made
o0t by you? A.. Yes.
Q. And signed A. Yes
Mr.. Morgan objected. unless the witness remem.
hered who signed them.
The Master-lhap is the question, whether he does
or not
A. They were signed by the President and the
Assistant Secretary.
Q. Did you know to whom those certificates
belonged when you sent them down, or by whom
they had been left with the company-I mean those
certificates that you sent down to be canceiled A.
Did know whose certificates they wereS
@. Yes. DID you know they were part OF this
Heath and Raphael stock which had been issued to
James IL Coleman as receiver A. ! did when !
sent them.
Q. Did you send down new certificates which
were TO 30 to James H. Coleman receiver, In place
OF those new certificates which Won sent down TO be
registered and which you made out to be signed by
the officers OF the companyY Were they certificates
IN favor OF the party 10 whom this stock had been
transfcrred-that is, james II. Colemanf A. No.
Dir.
q, Were they in favor Of Heath and Raphae,9
Mr.. Morgan oh, ected. The certificates would show
what they were.
The question was allowed by the Master.