The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-03-06
THE NEW YORK CENTRAL RAILROAD.
RGorts to Avoid the sI,I5O,OO0 Tax-Gar-
bled md snpprea aaed TenIlmNnY.

E00rtR To Avoid tho GI,I0O,O00 TaN-(duF-
bled and suppresaed TestIn0ay.
From the affidavit of Hudson G. Tanner, late
Official Stenograpber to the Legislature of New
York, in relation to the scrip dividend issued by
the New York Central Railroad Company, we
give the following:-
REAL EARNINGS OF THE CENTRAL.
Deponent further says that he has made ex-
tracts from the sworn statements of the New
York Central Railroad Company to the Legisla-
ture Of this State, which show that the net
earnings of the road from 1858 TO a time shortly
prior to the passage of the dividend tax we're
81 697, ,01221, showing conclusivey that this
dividend of S23 000,0 600 was not earned before
the passage of the Dividend Tax act.
1t also appears from the same sworn state
ments that the cost of the road aud equipments
up to 1858 was So, 2,O44, ,529'25, and that it
amounted, according to the sworn report of
1868, 10 $50 COZ, ,696 81 thus showing that the
amount expended from the earnings of the road
for that purpose was, during that period, $l4,-
563 l67'62--thus disproving the position taken
by the railroad that this dividend of $23 600 900
was used in improving the condition of the
road.
Deponent further says that he does not ques-
ton the accuracy of the following, to be found
on page AZ of the printed report of Horace F.
Clarke's testimony
q. There was q condition, | believe, in the
interest certificates in regard to the payment of
the dividend? A. Yes, sir; the condition was
that the dividend thereon should be paid out of
the future earnings of the road.
Q. Only to be paid il the future earnings
would warrant il? A. That is all
q. Has there been any injunction against the
payment? A. Yes, sir.
@. Has the injunction been removed? A. 1t
has not.
.. Can you state to the committee whether
the road would have been able to pay the diyi-
dend upon the interest certificates out of its
earnings had the injunction not been issued? A.
They had the money.
@. understand they were not to be paid
unless the future earnings the road
ranted A. That was in the future; they had
the money, and it belonged to the stockholders;
the money has certainly not been earned since.
q. The idea was, would the subsequent earn
ings Of the road since the issue of them lead you
to believe that you could pay a dividend on
these certificates !? A. No, sir; the interest GER
ti1lcates were issued upon money then in hand
Well regulated railroads do not make dividends
out of earnings in the future; they wait until
they come.
BY Mr.. Selkreg-Q. Is there any difference
or are they alike the stock and these interest
certificates: that is, if the company declare a
dividend upon their stock, do they expect to
declare dividend of the same amount upon the
interest certificates also? A. Yes, sir: they do
q. Then L understand that this is stock in
effect, although not in name? A. 1t is not stock
in effect, because there is no legal authority to
issue stock.
SOME OF COMMODORE vANDERBILTs TEsTI
MoNY.
The following testimony of Mr.. Cornelius
will be found interesting as expressive of his
views regarding the ''pool:"--
By Mr.. Vanderbilt--We made drive at them
fellows Che Pennsylvania Central Railroad)
two or three weeks ago. They kept cutting
down and cheating all the time. "My God !" l
says, "when you get down again low enough,
stay there" Did you see how they began to
halloo The reason why | bought Erie was,
there was lot of people in the street that
called themselves my friends, came up to me
and pressed me very hard to go in with
them. 1t is altogether out of my line. ''D-n
your pools l don't know anything about it
anyhow" but declined going in the pools. I
says, 'If you want me to help you, will" |
bad some loose money. eff you want me To
help you along with your Erie L will help You
along" And they got me engaged in it, and
bought pretty large amount of Erie, but on no
such idea as ever taking possession of the Erie
Road-not the slightest / held the stock until
the Erie war was pretty much all over-uutil
they got lawsuits and got them settled aud
everything about them-and then / sold my
stock. They are sueing me for the stock [ sold
them at 70:-That is Mr.. Fisk.
@. Has ne sued you? A. Yes, sir.
Q. heard it was withdrawn! A. 1t may be,
but l have no knowledge of it, l never had the
slightest desire; d-n il! Never had time to. 1t
is too big thing 1t was very sudden and by
the solicitation of our frst-rate people down
town, and in the country too, that / had any
tbino IN In with tho Dno1