New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-07
THE PROCEEDINGS.
TESTIMONY or p. II. WATSON.


TESTIMONY or P. H. WATSON.
Z. II. Watson testified: This statement of
liabilities and assets was made up 10 Dec l, 1871. and
this account came down from the books; can't say
whether 30 much has been expended whether there
has been less but there is not anything there since
that has not been actually paid out; what
paid before, that / cannot answer for; the amount
charged construction has expended the road
a welLconstTucted roadbed always improves with age;
the longer the bed remains the solid 1t becomes
property held by the company-rea estate, &c-has in
creased in value by time; in instances IL has
increased as much as twenty times its first cost; many
Of the bonds sold below par and charged in
the books at so much money at par having been in
vested In the road in constructions the value of the
sets has TO be determined by estimate and COMPARE
with other property in the immediate vcinty the
road worth to-day all that it have had clerks
at work for six months in order TO ascertain the exact
value Of all the property personal and otherwise owned
10y the rOad heretofore the books have been kept In
unsatisfactory manner and have not shown these
facts but by June next expect TO have thorough and
complete statement OF everything connected with the
road there has doubtless been very great extravaganza
IN the past but this has been changed great amount
OF fraud been practced by the payments OF
the but system has been established compelling
the purchase Of tickets in the office; the passenger
traffic has been losing one and il would pay the road
better 10 withdraw tie passenger altogether the
rates charged the much higher than at
the Offices to induce passengers to take tickets be-
fore embarkin there has been completely between
ducO aud passengers to cheat the road the conductors
charging the passengers less than at the Offices and the
company receiving nothing the of the rates on
the and the publication Of that fact intended
couuteract this FRAUD persons doubtless in
iured by II.
To Mi wight have been approached oy persons
who have nmated that IL would be necessary to use
Srsn means ana the usua sppanfssS s 20 Ppeyens
approached me hst would rather spend money to send
Mr.. Wight-WhO were those persons
witness-It would be difficult TO point actual per-
speak louder than words it was more the spirit than
the words will not mpeate any particular person,
II merely my Interpretation OF words and acts
persons had written to say that certain members
Legislature had not received their usual passes
aud yet when tue passes sent members of the
beers Of the Legislature have not said they
would accept a bride. but letters have been writ
sen stating that certain members had done GER
things and the writer added that he was glad wit
would not pay any money for such things, although
the success OF the measure would not be guaranteed
witness might put what construction ne pleased on the
letter but the face would bear nothing that could
be considered wrong object TO give their names be-
they did not offer their services in such
Is would render them liable to action in the matter
Improvement Company IN the transportation of oil, and
why the scheme was never carried OUT his connection
with that Company ceased fully three months before he
'Jncd the Erie Board.
TESTIMONY OF s. II. DUNAN
:. II. Dunan, Auditor Of the EriesRailway Company,
was then recalled. and identified the various detailed
statements presented to the Committee: The first he
allied detailed statement Of the earnings and
ceases for the year 1871" The next profit and loss
account 10 Dec 81 1872" and said it showed the surplus
apal at Jan. to be sl9l7624 49, which, be SAID,
than balanced at the close OF the year by allow
OF SO62S IS carried forward to the account
The interest accruing Feb J. March l. and April ],
S73 had charged to the expenses of 1872 leaving
he money 10 be divded-less by about $4,000 more
the actual expenditures for the year The stated
earnings net after all rebates, drawbacks &C. had
was for liabilities and assets on December 81, 1872
Etri Contained the realities OF the road I1e Ia
aud the assets at real ya,de, As near as
could be ascertained, ssa>'far as witness knew
mp Dee 81 lsJI I'd could not therefore be compared
Win that OF Dec 81 1872 the funded DEBT 10 the same
feht could not be ascertaned; the company ana NOT
we any more Dec 81 1872 than IT DID IN lSIl the
non issued during that year being for the purpose or
taxing up bonds that mad fallen due IN making up the
statement Of net earnings every ahowshCe was an6
The dividends declared out OF the net eafniags Oh
Iye eva CIV was credited to capital and added TO
ne earnings The witness presented statement or me
4 So $40 pounds Of rail we're charged repairs while
Dut ig4JO pounds we're charged TO construction.
TESTIMONY OF SAMUEL c. LEWIS.
san,pel G. Lewis of Philadelphia, Controller of the
Pennsylvania Central Railroad Company was called
and testified that he had examined the detailed state
uents OF the Erie Railway Company and had compared
them with the books; from his familiarity with railroad
matters for % wears, and his knowledge OF the plans
adopted by railways, he believed that the Erie
Company had earned the amount on the basis OF winch
The dividend had been declared, but whether or not 1t
WAS policy TO declare dividend purely matter OF
Indictment be believed the that had been charged
10 construction account leRtnnately an expense 10
mat ACCOUNT properly additions 70 the catal
f tbe road; the stockholders entitled 10 the net
earnings OF the road although improvements incIeaseI
he value OF the capital and OF the rQads ~ wOulo
not be fair the stakeholder that m order 10 pay Tor
these he should De deprived OF ms snare
>, the actual profits; all such improvements hhOuld De
provided for from capital either from ponds OF the
issue OF increased stock. .------,,
O Mr. Beach-The sOundness OF the statements would
iepend on he accuracy Of the charges 10 the dneret
.ceounts: witness had not into the minute details
n each statement; II the road had deprecated III 1871
,loVauce should been made for such depreciation
efore declaring dividend FOR that year, Dut tue De
DreeiatiOu had taken place Ia preceding years. tbe
iecaraton OF dividend for 1872 would be matter OF
judgments the proprety OF declaring the dividend Wonid
teI,eDd on the value OF the road and It's prospective
eaacty 10 earn dividend In the future nmoney IRON
me earnings had used for construction ON the pros
ect OF realizing upon bonds, such earnings couid ana
gught 20 he replaced from the proceeds OF inc Dohus
y using the surplus In hand FROM the earnings ue CON-
many was compelled 10 put bonds on Dau market
10 raise forced loan, and thus saved any depreciation
,yhich migut from such course.
TuR TKOVp1NCY INVEgTIE ALTON.