The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-16
THE ERIE CLASSIFICATION ACT.

Meeting Of the senate Judiciary Committee
| Statement Of Mr.. HUE in support al
| senator O'Bricn's Biil-Crushing Indictment
| OF the Erie Ring.
ALBANY, N. y. Feb. 49, 1872
At a meeting OF the Judiciary Committee OF
the Senate this afternoon Senator O'BrIens
bill repeating the Erie Railway Dlrectors'
Classification act and providing for q new
election OF directors came up. Messrs
Hale, Peckham and Mcfarland appeared In behalf
OF the passage OF the bill and Mr. Shearman in oppo-
sition. After hearing Mr.. Hale the committee adj
journed further consideration OF The subject to the
9th inst The following are some OF the statements
made by Mr.. Hale respecting the
AFFAIRS OF THE ROAD
iss7nstock, s2S 2lo; n andea deot s2a 49, e2o;
debt, s26 a0s, $685. total, sll2s35. 7lo Increase in
the apount OF stock and funded debt since 1857,
since 1891 s65,se4.5so: The above sum has has
o ors except BY an evidently and ne conceded neeet
false entry IN Their reports The construction
was closed some ten years aao wSen 3h
present Erie Railway Company was created, and
the only way that the directors OF the Erie
been BY the gross 900 and ND slaring fraud Of
reports the old construction account OF the New
YORK ana Erie Railroad Company. In the annual
and Erie Railroad was s3s,Se4 72s As. In the
report OF 1871 sworn 10 by Jay Gould and
L. D; kucker r.e inc me- amount OF tins account is
rent increase since 1867 In an account which
s0nd By no possibility icy, have been really
Tor this evidently
FALSE ENTRY AND GROSS FRAUD
made by Mr. sherman In his remarks before tho
Railroad Committee OF the Assembly on Wednes-
day, was that the printed blanks furnished by the
Of the rea These anks or ine enty
do contain places for the statement OF the
cost OF road ana equipments, including graduation,
stations engine aud car houses. passenger and
freight cars, locomotives anu fixtures, all OF which
at large figures. but nowhere except In the
false entry above mentioned IS there any
accounting for the $47, 100000 there conceded, or
Tor the 500 600 0Oo the actual amount OF the
OF STOCK and funded debt. Besides this the income
accounts drawn from the annual reports show that
this $50 100000, added TO the stock and debts yield
no return Whatever under the present manage
ment according to what they claimed to be true
accounts. In 1867 the capital was s25.1ll,2lo
This yielded net surplus for the shareholders or
$o4S, 900 or little more than four per cent on the
capital. In 1871, with a capital OF $50 5se 0o, their
hundredths of one per cent OF the capital. In 1870.
On capital OF over deTSe s against
to these reports the result Of more than rebng their
capital has been TO almost If not quite, wipe out the
been guilty or mlsconduct-First, In refusing to
stockholders their rights OF transfer; second.
ers OF which were endeavorng TO nave
transfers made; tnird, In refusing to ex.
nlbtt to shareholders the stock ledger and
transfer books required by law; fourth, in pass
ing fraudulent bylaw denying the right OF trans.
Of socK Upon trusts a voan ns
votes upon stock standing on the books IN the
wss e
present actual owners w seizure orders Of re-
Ownership and other
FRAUDULENT ACTS.
The bill now before the committee PROPOSES
FIRST repeal the Classification act so lar as 10
Affects the Erie Railways second, TO provide fO-
new election on the second Tuesday OF July next,
to be held by impartial inspectors, and TO prohibit
persons VINO have parted with their stock from
voting on II IN person or by proxy, though 1t may
stand IN their names on the books. IL also contains
PROVISIONS designed to secure the stockholders their
gnLs q inspection and examination OF the transiev
books and STOCK edgers, and for review by an imS
partial tribunal OF any eecion Oh the directors OF
ne company, and 10 prevent an interference with
he election by er pdrte njunctions frapdulentU Ola
AIMED and INDEPENDENTLY grRnteQv