New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-02-16
THE ERIE RAILWAY INVESTIGATION.

TIE ERIE ELL BEFORE THE JUDICIARY COM
MITTEE-IMPoRTANT STATEMENT OF THE
AFFAIRS OF THAT RAILWAY BY MR.. HALF
WHY THE ELL SHOULD DE REPEALED.
ALBAyr, ". y, Feb. 15.-At meeting of the
Judiciary Committee OF the Senate this afternoon, sena
tor OBrien's bill repeating the Erie Railway Directors
Classification act, and providing for new election OF
directors came up. Messrs. Hale, Peckham, and Nc
Farand appeared IN behalf OF the passage Of the bill,
and Mr.. Sherman in opposition. After hear
ing Mr.. Hale, the Committee adjourned
further consideration OF the subject to the 27th
inst The folio wing is summary OF Mr. Hale's state
meut respecting the financial affairs OF the road 1867
stock s25ll?IO; funded debt, s2242999O total $751;
1870 1s7l-stock Sso,5S5ol0 funded debt, s2G,39sSOo
total l29357IO Increase in the amount OF stock and
funded debt since 1861 when Gould and Fisk came nin
stock SCI 425oO; in funded debt s39 $780, total increase
since 1861 Sos S9i5SO The above has never been fully
accounted for by the directors except by an evidently
false entry in their reports The construction account OF
the old NewYork and Erie Railroad Company was closed
some years ago, when the present Erie Railway Com
pany created and the only way that the directors
the Erie Railway Company have attempted TO account
for above has been, by the gross
and glazing fraud OF adding nearly S50,0O0oOO IN
their annual reports 10 the old construction
account" Of the New-Iork and Ede Rail-
road Company 1E the annual report Of 1867 tie amount
charged 20 construction by the New-York and Erie
Railroad was ss 9672S 45 In the report OF 1891 sworn
by jaw Gould ana L. D. kuCkcT, inc amount Vi tulh
account stated al Ssc02G2O 7s thus showing appa-
rent increase since account which could ~ no
pc sbty have been really IL creased single dOuhr OF
<7Of 600 g. and the only for this evidently false
entry and gross fraud made by Mr.. Sherman III his re-
maIk before the Railroad Committee OF the Assembly
on Wednesday that the printed blanks
furnished by the state Engineer contained ne no
These blanks however do contain places Tor the state
nent OF the cost OF road and equipment, including
-raGatOn, masonry, superStruc:u-e, passenger and
freight stations engine ana houses aSScnEer and
freight cars locomotives and fixtures all OF which are
.d ND and credited to the directors at large figures;
t nowhere except in the false entry above mentioned
P-c auy accounting for the S0OOJ there CONCEDED,
the $685. O0pte actual amount OI the increase
Of stock and funded debt. .
beside ~ this the income accounts drawn from the
annual reports show that TINS $5CO00O added 10 the
stock and debts yield return whatever under the
present cement according 10 what they claimed ID
lie true aCconts In lo67 the capital was S5l 40 This
Welded net surplus FOR the shareholders or SlAe,sJ
a little more IMAM four per cent on the callt9I. In
ISL with capital of SSG536,9l0 tn, net surplus III
come stated - Sis 265 tbirteenhundrehs OF one
per cent capital In 1870, on capital Of over
$50 OOOO, deficiency against income was TT
ported OF $2g2O21 -. mus, according 10 these
reDorts The result Of more than trebling theif
capital has been TO almost II not quite wipe out the
income road Deses, these directors nave Deen
guilty of misconduct: Firstly, BY refusing TO stock
holders rights OF transfer )ndy by 1Iauhu-
cutv Selling stock OF which we're endeaV Or
ng 10 have transfers made; thirdly, hy refusing 10
exhibit 10 shareholders the stock ledg ana transfer
booAs as re0ulr, by law, and. fOurth' ny passing
fraulcnt bylaw denying the right OF insers OF Stock
upon trusts and agencies, which are IeF1ecly ia"iu
by voting and procuring votes STOCK
ON the books in the names Of rsons Who have
long parted with It, while nreyCtng tAe transfer
OF suCA stock the present actual CtTS, ny S'LuIc,
Of receivershp, and other radu-ehV AodeuIcs