The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-23

THE ERIE RAILWAY ACCOUNTS.
President watson's tatement-Lettsrs Of Second
and Fourth Vice Presidenta
Il VIII be remembered that while President Wat
son, OF the Erie Railway was en- route rom Eu-
rope to New York Mr.. s. H. Dunan, ex-Auditor OF
the Erie road, published letter addressed to Mr..
Watson, In which he charged that the accounts Of
the company had been falslned so as to show the
shareholders and the public that the dividend was
declared out OF the actual earnings or the road.
Immediately after Mr.. Watson's arrival In New
York Mr.. s. L. M. Barlow addressed letter to him,
accompanied by letter which Mr.. Dunan had
written to Mr.. Barlow, in which he (Mr. Dunan)
said :-''There IL nothing In our books which any
man may not see and only keep one set OF
books" At meeting OF the Erie Railway direct
ors which Mr.. Watson presided, he stated that
the charges Of Mr.. Dunan were wholly false and
that he was then preparing statement which
would erectually reute all these accusations.
This statement Mr.. Watson promised to present to
the directors on Tuesday last. but owing to the la
Dor accompanying the examination OF the accounts
1t was not finished until yesterday afternoon.
PRESIDENT wATsON's LETTER.
At q meeting OF the Executive Committee OF the
nuHWdy NOupuuy, uclu yebIeTudy dILeIuOOu,
Mr.. watson. President. submitted the following
reply to the charges Of ex-Auditor Dunan and
others, which was approved and ordered to be
printed
To DIRECTORS THE ERIE RAILWAY COMPANY
GEyTLxxEN-Beiore leaving England the charges Of the
the q snns
Sspproximstely," 50 that accounts which MI Dunan
y Dsoa
at once gave prompt denial, which published in
Sl
s 70 @s s%
and rom it his account and affidavit were published
This original manuscrlbt was partly, printed and was
o Ths Of Mr Dunan Is thus as
proved ed. BY h ri. own o,ynn hand and
letter q The 18Th DsSsnbsr alleged have been to
70 mat mr.
ter dated shortly before and almost immediately after
Statements the condition OF the company which this
s e. 81 nsys @ R on the s
20
few weeks and rest to insure cure, and
tune the company .' had another cSeci in yieW
sSs svssass s SS pssssaon q
liz h u I. 60 mn .
no # as whs Wee ne
hS 6 s0
opportunity 10 examine them that there we're per-
sss%; ss.s 4: s;d
copy the report to The state filed January
ready reference and comparison ! would have sent
from That sent Ihis cannot the copy
20
a
from me- and SseYs without an n%snon
certain general statements thus made BY hlm
only that the accounts IN question complies
hut that IN % his
the alleged letter OF the 18TH December is cton,
Il a hs
Snsfses s g5Sss q ovs
been consn. TO says The whole natter but NJ: publisa
SDi
the
and stockhoIdsrs simply frequent aividends
ali Ct
@ ,ss ssp1 no only
for knowing thatby 70 this PUBLICLY ayo wed
policy we can alone secure that degree credit with
out In complete detail our programme BY which tins
owners city state and to the whole coan.
tryha become as ought to be- the cheapest and best
West And now, tree from his misstatements Of facts
50 far as they important or tangible they
H Hs ane
ordered the arthar sum Of s4o 4 % to
be similarly transferred the certificate OF Mr. TYSON
TAird~rhat there Is deficiency in cars and engines
as 70 e sm s ~ e to saps
These journal entries were made by authority in the
sssmsn! They were ana entirely proper usual
ops as m 70 N ny s
months ending Without usual dividend pc.
GsySne
% an On % basis ss ns net
tns large part sum thu. Charged was n" no.
%oasSt ssrsisss called upon sssoa as's and nd
third Vice Presidents for an analysis of these
be M from ns
SSs.Ssr IL sa question: s'S *sss
might be q either with proprs The ony
ana
70 deduct from any, and II what carry il
TO account OF net earning 20 This question answered
with uil knowledge OF the facts upon the reports
Of the officers in charge OF the particular disbursements
in question, by ordering proper entries to
correspond with the facts and the time
entries werc assume, thercupon made by Mr. Dunan.
though the mere time OF making these journal entries
unimporant. and this performance by him. q strict
duty, which he then approved, Is al that Is now
IRON both the second and third vice presidents made
my request since my return, which fully confirm the
which they held in september last and show the
absolute Of the transfer then made to account
OF income by my order Furthermore you will nnd that
by my report Isated that had omitted to carry
credit Of income, but had charged wholly expenses
relayng $50 miles OF rails with steel
or steei.headed rails and this item alone would have
warranted much larger transfer from expense
70 capital account than was really made
1 refer only to this one item but there are,