New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-02

ALBANY, March 1.-The Railroad Committee
Of the House held n meeting tits morning TO consider
the subject OF repeating tlc Eric Classification act. Mr.
southmayd Of the firm Of Sherman ( soutlmayd made
an argument IN favor Of repeal Mr swar solicitor for
the English stockhodcr, present. Atr soee pro
llininary remarks, Mr. sout'mayd SAID:
Nov let me call your attention briefly may bo
10 ne legged grievance Of which tie shareholders com
plain You viii OF course unGc rsId Aat fi' history u
detail Of the dolncs ~ these durus thclr admins,
trn'ion. would he very long ono a. the main that
must he tie subject Of udca invest cation IN the courts
OF law. ton have neither the iimc uo. inclination 20
any facilities for examination into questious OF fact
! whch disputed fairly disrutable, and
nanstnt he rsss glcn hes men have sS 6npt6cd
accessible in GO v"iient aud undsputahls shape
For The purposes Of TIC case which have 10 lay efore
yOu may rely almost exclusively tVOn the Official re-
ports made by the manager OF tns company 20 me
state Engineer anu NurIcy"r, IN Phishhee OF tno
! LEGAL requirements Ia that oIc Z Thee reports
show the results attained in respect to changes Ia
expenditure, and tie hOrnd yOlunes o the oicia rail-
road reports Of tie different ialroid; 81 tc 1tSt.'
ing In tie main tie chief grievances 81 whicl We CON,
plain aud for the purposes o. NJ present. arsunfu
shan cOnine nv allegations cc7y % slch - az uWn
from these official reports Of thee nanlcG themselves
and which certainly they may not ga1>iY.
In the official report Tor tic year .h-lhE otivnc5
1868, will appear from page sos 81 me '9nra Noo
SIC gO9 DO being an Increase ~ ovc- - c0n0 nom mo
previous year, and, IN the official .crot Of these
san sane sAnsger nn LOT I'm '1 Sa 32 OF h volume
ports Tor the year, N appears tat the sua zap 20
debt at tiat time was S2J9iS,sM I'uS ~ 7oE ' ,
under this Fisk and Gould admin,tI non. dT,ht Nc
the funded debt Of the Company was nc'ca-ed sf,'
there an increase of lis C'pI"I 10 rue tAND;
accompished2 Tho men had not ad de Iot even Pre-
tend u have the power to increase ine caal DN the
rect ISSUE and sale OF share. TIE amount az capital
both common and preferred, lad been GriAteiy hA'h
by legislation at the time ~ the oeahlzat on o. ~ -,
Railway Company upon the foreclosure 81. the lnoTca-''
tl was aecompIshed by this device VIZ provision OF
fta oral Istllr
bio 10 this Company, authorize. the boUo"lIg ~
money TO eSmpe@ am cqp ,c SH' t Lo0' " S,
by another provision Of that act, railroad corposll
10 inst ri in the bonds privilege 20 the holder o. con.
vcrng them into stock Of the company Juir color "t
these provisions these DaIagers du1g TIC Two years
issued coverable bonds Tor This amount ~ Nf-1,'UI
These bonds subsequently converted into stocl5
OF capital shown by the report.
Now you will bear in mind that this whole amount %
s53OO6CO Of bonds issued under q power or Der
rowing money for building aud coupling TIC road unG'r
right pretcnse Of right Now let US see WHat teic ~
show the asscfS OF this Company TOT ms sblOj
Of bonds thus issued Fortunately We have TIE means OF
GscertAnlng WIN eXac ines, lron mos SUI % ,
Cal reports the amount OF expenditures made or Ob th
mana gers alleged to have been made for buildings ana
oluipping their railroad during TINS enilfo petio sh
VIII recOect that by the provisions OF thc lroah &C,
companies arc required to report ther eXchtules Ioi
these purposes in quito minute details THESE managers
lave reported their expenditures In such dctah
book Of reports for lsCS you Will ind their own
statement OF these expenditures for tho year ronn41
from September 1901 10 September lsGs. Tue eXpcrdi-
lures arc here ella shcd according to the subject snS d,
aIasos am ana ond bt statSns bid1gs and T
lures engines and carhOuses, machineshOps, machinery
and fixtures, land, land damages AID fences,
locomotives and fixtures and snowplows, pas
scngcr aud baggage cars, freight aud other
cars, PavUuia Ferry; and the whole amount OF cNiDa
lures Tor All purposes is t2,i6idj s. THIS amount ln
cludes all expenditures for permanent improvement
improvements of additions to the road nLd is equip
| meut which these men claim to have teen made. on
page S3 OF the Book OF Railroad Reports Tor o9 you Wl
| Ind like detailed statement ~ "i me aLe-od
expenditures for these various purposes in he year
running from September 1867 TO ptem5ef, ls anu mo
gross amount Of thsm Is Sj!tSl ~ SOW" l@hh5 tn'ie
own figures we find that although thrr Issued nd. 70
alleged purpose OF borrowing money to 9ald aud equip
tho road, they do not even pretend 10 have e2-
Pe ad md 5Es ' tSsS f .S57 3d. I leaves
deficiency wholly unaccoUnted for amounting to A1l2s
G5J. 1t will be agreed that this IS large amount For
this deficiency the beUdcrcd shIr holders ma nothing
whatever AZ the way OF assets IN the hands OF M Com
tim6 they admit increase Of the funded
deb. 10 the extent Of e9csOOO IL is truo
there is shown boating debt OF Jl5 % and they do
not acknowledge any boating debt at the close OF Tao
that no floating debt then existed; but glanths
for the saks Of the @rSu9S ra lt t oS t5nnsi
the creation Of new one IN us place, save
the Increase Of sos 900 in the funded debt tie aggregate
dminutun Indebtedness would be only s-G7G aud, IL
we deduct This sum from the deficiency before men
toned there will Still remain deficiency OF aOOut
Now, let rs 500 what results these men
o of this praperty to the permanent improve.
ncnt OF when they claim 10 have added the sum ot
.GO0OOOO We mad tho singular fact that the more cap
ia they put in the less income they get On PAGES ~
aud 20 OF the reports OF 1851 we tad that the soss IN
come for tue year, running irom september lsGo 10
September, 1871, was th,57,2lJ II; tie expense
tlOGIi.y2l Sc; leaving AN apparent surplus OF
s3,Gi2,2yl 2s. From this sum, they paid interest,"
on the bonded debt, and rents OF leased roads,
dividend of seven per cent on Their preferred sloct
which dividend amounted % sj01Ol 81 ana inashuch
they paid dividend ON the common toc there was
a surplus income amounting to s7G65 9~ These
were the results OF share capital a u.s.,
UOO00, and this was in the year immediately
PIE, cding tho introduction of Mcssr,. Gould and Fisk
into this management ON page goo OF me Boh 81 he
ports for 1868 It appears that IN the year running rom
September, 1861 To september, 1885, with share capital
swollen to SiGoC0OOO under Tie managemct OF Msssr
Fisk aud Gould, the gross income was $l1,5I5sl2 %
the expenses sll7lGG3 20, leaving surplus o. g. Co.,
zoo o.. From this sum they PAID the interest ON no
bonds aud the rents Of the leased roa,s Tiry paid n
JAM sGs dividend OF seven per cent on The ~ ierrd
stock, such dividend amounting 10 tOI 30 liat rms
dividend was not paid out Of tc earnings between sep
tembcr 1857. and September o. but Wa paid Vu oI tie
N76pi when was on Ihhl at the 1'5 5 W" 80
McssTS. Gould and Fisk came into power ana rom tAls
tune forward until the present not Ohe phnN hs oth
paid in the shape OF dividend uponany oI TIE SOY ct
preferred On page So' OF the uoOk % lcPpis
for 1863. we ind that WITH capital then swollen 80
o0OoO these were the results 1Ioss inC1uo, f
500 81; expenses s3,7lS0S5 49, showing aii az
The bond debt, and the rent OF Leased 5@ads5 my
paid no dividend on The preferred STOCK lnc '' ,
shows apparent surplus OF siiSCH VI, WIZ" inE
have been applied on accolnt OF such dsIa.i"' IN 10
It would not have paid the tuIl seven per III 10
managers OF the company have steadIassS re
fused 10 nav any dividend whatever on ~ rt'
tered stock for this year, ana calsd unsn them
they alleged that apparent surplus OF S'S4 VI VS.
All mistake that in fact there was No >hriiu What
ever applicable the dividend ON the pre- ere9 soeA
Thev 1--we so within "A short time past, lnadc felNft
~ h yesT running from september, 1863 T. september
ilo Ihay9 not copy OF that report WITH roe Lu was
published In the newspapers rev days az np h 30
ect mis- much Of IL that II shows Sii' iiflet IN
rco ~ of S. the share capital raising tn' who're
anount 10 over ss3OS0o that me gross tc,' PIC ao
sated AT little 81 O0 O03nd tue expenses 80 esiy
bsorbed them that the net receipts ar stdtl 20 No
scn short some $4,000 and upward OF paying the IN
ierest OH the bonds rent ~ leased roads Now, com
pairing the results OF the HorhldHs U ui'S r 1
SoweP With the results OF their snansge-
n1nent and Won dnd this very singular rcsnlt
that the more capital they put into the ENTERPRISE the