The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-30

them, Is not too large they took risks which no
one else would have taken in advancing us a loan;
they have enhanced the credit OF the company
greatly: suppose the advances were made by
BischOfsheim 4 Co. in purely speculative spirit
there has been great deal OF misapprehension in
relation to the terms Of that bond contract don't
know what amount OF money paid to General
Sickles; have no knowledge of the matter:
To Mr.. Wight-The contract with Mr.. Archer can
be terminated at sixty days notice; was present
at the stockhOlders' meeting when the resolution
was adopted directing that Bischo , 70:
services they rendered In erecting the cnange tne
account has never been laid before US and that Is
the reason IL has never been paid; heard that
three quarters OF the stock was represented at the
meeting when the resolution was adopted; do
not know whether or not the persons who were
most active in urging the payments to Bischons-
helm were persons who were working In his inter-
would be a legitimate action to pay it, / do
not know that there is a tacit understanding
ID tne saa' co e hers we're DC
one hundred persons present when the resolution
was adopted by the stockholders; l have never
heard that the names OF the Board OF Directors
elected in July were submitted to Bsch0ffsheim Il
Co.; suppose the names were satisfactory; the
acts OF the stockholders are entirely distinct from
those of the directors; have never heard OF the
amount OF stock that Bischoffsheim h Co. held at
the time of the overthrow of the Gould admnistra-
ton.
TO Mr. Babcock-The company claimed that Mr..
Gould should make restitution; the amount paid
by him Was $9,011 900; in actual cash the payment
was worth between six and seven millions; there
is a contract with the company and Mr.. Rams
tract is advantageous, the compensation moderate,
and the company thought 1t better to continue 1t;
wrong IN it am not in favor of contracts OF the
kind. however and intend, If possible, to get rid
TO MIR. Beach-It was on the 18th of July that the
meeting of stockholders was held; there were q
great many proxies in the meetings the ordinary
form of proxies IN the railroads represent Is to
vote for the election of officers and all other mat
ters that may come before the road; the vote OF
the stockholders to pay Bischoffsheim & Go. was
the payment OF the dividend was the usual one;
the money from variety Of sources made CON- m
company were paid and the dividend declared;
| cannot tell what amount OF the money was drawn
from the sale of convertible bonds; the capital OF
| the company was not increased by the payment OF
the dividend; there ten millions OF convertible
bonds; wnen the money Ia raised on these bonds 1t
increases the capital OF the company; the prac-
tica effect OF issuing the ten million bonds Ii to IN
crease the capital OF the company to that
the issue Of the convertible bonds is not theOret-
| teal one; capital borrOws from net earnings, ana
not sound principle to say that the declaration Of
the dividend would increase the capital or the debt
such an idea Is an absurdlty; we could nave paid
WV By BORROWING MONEY
and charging 1t to the construction accounts at tho
time OF the declaration OF the dividend dare say
| some OF the interest fell due; II the assistance
BY st Co. was Of tss
would have q right to pay back so large
commission; If the vouchers presented before the
|
upon their back the stamp Of the auditor of the
Erie Railway, dated April, 1872, cannot tell how
on by man VINO was afterwards discharged for I'M
faithfulness he had charge OF the voucher depart
made by Mr. Vanderbilt for sso 600 being laid be-
fore me; knew nothing about IL, and l directed
that 1t should not be paid l took 1t for granted
the indebtedness would have been presented; the
names Of the directors who voted against the div-
dend being declared were Olyphant, Prime, Bah
cock and Johnson; the discussion In the board
turned upon some of the points suggested by
the Ms Ks al St T vns 70 gs
River, 1t was deemed important that the point
should be reached, and proposition was , made
would extend to that point they would be REIN
bursed out OF the earnings of the extension; the
Western is now taking steps to have the road
built there Is no other instance in which the At
lantic is guaranteed any other contract the roads
and Great Western and the Bear Greek; the
financial condition OF the Atlantic and Great
Western at the time the contract was made Is
something know nothing about; the financial
reputation of the road was in some respects good
and in other respects bad, but the terms of the
contract neither Increased nor diminished the risk
| have heard that Mr., McHenry was largely IN.
terested IN the atlantic ana Great western out
heard that Mr. Barlow was largely Interested in
the road.
don't own a cent in the road:
Evidence continued did not know that the
with the change in the direction; understood
that the change in the direction gave additional
value to the stock in the market, but | never
bought or sold q snare of stock Of any kind in my
life; understood that the money was advanced by
Bischoflsheim Co. without security; had moth
ing to do with the transactions and can speak with
no knowledge about them; there Is pending
claim against the Erie Railway for 81, 300 900 on
the part OF the Atlantic ana Great Western; there
was some kind OF arrangement made between the
roads about the matter; trustees were appointed
on both sides; the agreement has not been re-
nfaIn m thn no ri N 10 ~ ~
10 Mr.. Barlow-I did not discharge Mr.. White the
treasurer, on the suggestion Of Bischolrshem;
Messrs. Otis, White and Hilton were dismissed by
me when found that they were among
THE PERSONS BRIBED;
learned this by the publication OF Mr.. ODOhertyS
letter, which remained tor week uncOntradicted;
l thought that the TACT OF those gentlemen remain
ing in the employ OF the company would be preju-
dcial to the sale of the bonds in the London mar
ket; refused to agree to any declaration OF divi-
dend until had made careful examination of the
accounts / continued my examination OF the ac-
counts OF the company up to the moment the divi-
dend was declared; had heard that Mr.. 0'Do-
Erie Railroad In London by endeavoring to depre-
cate the value OF its securities.
To Mr. Babcock-The Indebtedness Of the Erie
Railroad Company has not been increased by the
declaration Of the dividend, but 1t would have had
more money In the treasury to-day II 1t had not
been paid; the dividend did not necessitate in
creased loans; the net earnings Of the road belong
to the stockholders and the officers have no right
consent; as long as l am president Of this road l
shall apply the earnings as the stockholders direct
TO Mr.. Carpenter-At the time the dividend was
declared we had the money on hand to pay the
March interest-Ss00, 0O0 the statement made by
Mr. White know nothing about; we put the ten
millions OF convertible bonds on the market
last July the dividend was payable partly
| in New York and partly In London !;
company; the commission paid to Bischoirsheim Il
Co. was two and half per cent, the usual commits
sion; it is not true that Bischofrsheim Co. have
charged a large amount OF money for advertising
the convertible bonds; don't know whether they
claimed large amount for advertising the consoli-
| dated bonds; there was q bill for the expenses OF
| the Erie Committee In London.
$. II. Dunan sworn-I am the general auditor Of
the road; have general knowledge OF oil the
accounts OF the company; 1t would be impossible
for me to see everything have the account Of the
! earnings OF the road the sources OF the earnings
on general freights and passenger earnings, mails
and express and miscellaneous sources the re-
turns OF the earnings come In reported by station
agents once month; the money RENTED
to the treasurer Is credited to the