The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-19
NEW YORK HERALD WEDNESDAY MARCH 49, s7a-TRPLE

In refusing the stockholders dividend II one had
been fairly earned. Their opposition was only
proper II the dividend was O fraud designed either
TO innate the stock or to gain false reputation LOT
the directors for efficient management They Will
no doubt be very happy to explain course OF
action which other members OF the Board have
represented TO have been induced 10y secret de-
sire to deprive. the road OF the rare credit OF pay
ing a dividend on its common stock. have heard
1t limited in this city by director OF Erie, since the
present session commenced. that the sympathy
ana interests OF Mr.. Pruyn were with the New
York Central and that neither Johnson Olyphant
or Babcoch had any honest love for Erie. there
fore hope the committee will give these gentlemen
an opportunity to explain their position for them
selves.
THE SURPLUS SIX MONTHS AGO.
1t Is very certain that SIX months before the
dividend was declared the whole surplus in the
Erie Railway Treasury, after paying the dividend
known to Messrs. OTIS, Hilton White and Lane,
who were on the old direction and are familiar
with all the affairs OF the road To pay the recent
dividend OF three and half per cent on the pre-
ferred stock ana one and three-quarters per cent
on the common stock the road must have made
clear earning OF ST. 600, or they must have OBJ
tanned the money with which to pay 1t from some
illegitimate source. II they paid the dividend
fraud on the ' stockhoders and on the public. Now
1t Will probably be found by the Investigating Com
mlttee, II they make the inquiry, that under the
present management there Is entered on the
books OF the company the
FULL CHARGE FOR TRANSPORTATION ON THEIR OWN
This ia, of course, fictitious entry 1t serves to
swell the apparent receipts OF the road on paper,
but as no money can be received for the transpOr
tatiOn OF the supplies OF the road 1t s in reality
deceptive entry, intended to mislead the public by
making the earnings appear larger than they
really are 1t Is stated that this plan was adopted
in consequence OF a decrease in the passenger re-
ceipts, and was necessary to prevent the showing
OF material falling on IN the aggregate receipts;
tested by an examination Of the books by eX-
pert. y the dividend recently paid was not hon
estly ened IL will be only an act OF justice TO the
stockholders to ascertain how the money was
raised and on what terms. have been informed
that 1t came out OF the new
TEN MILLION DOLLAR LOAN
on construction bonds, negotiated by Bschof1sheim
Goidsenm Gs and was advanced by those gentle,
declared: frst to raise Erie stock in England,
and, next, to aid them In successfully putting on
the market the SIX million and quarter bonds OF
the New York, Boston and Montreal Railroad
speculation.
The English stockholders OF Erie had been per-
suaded that reform in the Erie direction was
alone needed to insure the payment OF large
dividends on the stock II no dividend mad been
been discredited AS one was declared any STUFF
they might offer on the market was almost sure to
be readily taken. As this English firm has already
been literally dealt with by the present Erie man.
agement 1t will be well for the Investigating Com
70 @ 10 Wnetnep .e o 10 pay te
Godschmidt, and, il so, what remuneration, in the
Shape OF heavy commission or otherwise, they are
to receive in return.
81 HINT FOR THE COMMITTEE
y have already intimated that the Assembly Com
mittee may elicit useful and interesting testimony
in regard to the payment the $50 600 to the New
York Central Railroad to reimburse that corpora
ton for money expended in Albany last Winter to
defeat legislation inimical to the interests Of the
road, by summOning before them Messrs. Archer
and A. S. Owen, and that Messrs Johnson, Oily
plant, Babcock and Pruyn may be abe to eniighten
the committee as to the reasons for opposing the
payment OF the recent dividend. l would now
suggest that Messrs. Lane, Otis, White and Hilton
may be found useful witnesses on the subject OF
the general affairs and management OF the com
pany, since they were directors with the Jay Gould
Board as well as being members Of the present
Board. One OF these gentlemen, at least, has eX
pressed his disapproval OF much that Is now done
by the Board, and has recently asserted that there
was bigger 'ringn in Erie than when Jay
Gould was making the stock the worst and the
road the best in the country. The committee
might also
SUMMON PRESIDENT WATSON
before them, and ascertain why, about the 5th or
9th OF October last write from recollection only,
and may not be quite exact in the date-he posi-
lively asserted TO q reporter of the HERALD, in an
Interview that no dividend would be paid on Erie
stock for five years. Who ''shortn OF Erie
when this positive declaration made by the
President OF the corporation 7 Who ''ong"
OH Erie two months afterwards, when the dvid-
end was declared And who ought to have known
~ hat was going TO take place better than the Pres
ident OF the Board of Directors These are inter-
estng questions, one and all. The committee has
to-day commenced its investigation. When and
how will it end