New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-02
THE PROCEEDINGS.

TESTIMONY OF S, d. BABC0CK.
s. ID. Babcock. a director of the Erie Rail-
way testified: opposed the declaration Of the recent
dividend the President presented statement the cor
recness of which did not doubt but did not see the
propriety of taking which needed for repairs
to distribute among the stockholders; think there was
no statement or the floating debt; have tnforma-
ton as 10 whether dividend any part of 1t was
paid from the new Issue OF $10,OoOO0O bonds; 1t
was that they TO be used In the con-
srlotion account have no knowledge Of the uses to
which the money realized from the bonds has been put
am banker and from my knowledge OF the business
think that the commissions paid Bischofsheim Co..
were not excessive; at the time the dividend
Uas declared IL was known that Charge
amount OF stock held abroad and that loan could
be negotiated better abroad dividend were decared
do not know from what source the money came. but
N2OOOO was paid the President made statement that
the earnings Of the road were somewhat more than
enough for the purpose and assumed that this was
correct do not think that anything was charged to
the construction account winch did not increase the
value of the property of the CompanyS think the de-
claraon Of the dividend helped the credit OF the Com
paDy nauch people estimate the value of stock by
its ability to pay dividends thought statement Of
the net earnings Of the Company would have the same
effect but evidently the English stockholders did not
think so believed that the Company had legal hight
to make the dividend but doubted the expedenCy tho
question OF the proper charges against the construction
account is very much matter Of opinion think the
stockholders OF each year entitled 70 the earnings OF
that wear the money refunded by Gould devoted
10 taking UP the floating debt have no knowledge Of
the value Of the stocks and property restored to the
Company.
TESTIMONY OF o. II. p. ARCHER.
Oh p Archer. being recalled explained the nature Of
his freight contract and the circumstances connected
with bis receiving it. Ho first held contract for East
River Station aud afterward took contracts for the
Eew-York and Jersey City work at the request OF
Mr.. Burdsi. He said be willing to give up The
tract at any time and would give it to the COMMITTEES IL
the Company would accept them. He then read state
ment Of his receipts and expenditures during 1874 show
Ing that bis profits only slss37 TO- The expenses
OF bis business had been vastly increased By the cop
Gated system Of keeping books and accounts introduced
by Mr. Watson. ..a. "A. .. o".
He continued from my experience as vice-President
Of tho Erie Company. LIDO not believe the earnings Of
the road warranted the dividend; the Company met
with great losses by fire in 1872 and the property has
not been replaced the dividend could not have been
paid from the earnings OF the roads on the day was
declared the Company was unable 10 pay my bills
against II tried 70 negotiate loan Of 100000 for IL
about that time at tho request of Mr. Wbte the
obtained by loan from Bischofsheim q CO. Ol,oOoOo0
was used In paying can oans and tho road was then In
the same financial condition as before the dividend
could not have been paid except for the money realized
from the $4,000 900 convertible bonds; think the
InissiOns paid Blschofsheim Co. were excessive; the
money claimed by them reimbursement for moneys
expended IN efectiDg the change In Erie management
no NJ IL BsTJS have no personal knowledge OF the
details Of the earnings and expenditures OF the ROAD Tor
1872 s - a., ,,
with fhe south Improvement COnpany Mr.. watson
f0d me 10 February 1872 thd no was getting ~ sgoh
o0@T4HJ sith S=slL4 VI sOOOOOOv' 'Ae s'h'iA'l Wa