New-York tribune., 1874-04-11

cyp resigned the ONCE OF bcneTsu Auuilol VI l'A'
Erie Railway on the morning of the uth ult' aud
,rmediately advised You by cable that had done
,. You had been informed of my intention TO do 50
some days previously, and had urgently desired me
10 remain ID the service, both in message by cable
direct 10 me- and through one of the directors
Preferring rather TO be guided by my own iudg-
Kent in a matter which affected me only, disre-
ruarded your appeals 30 withhold my resignation ana
decided no longer 70 remain in a service which had
become repuguant to me. For tins act OF NINE
performed with Your previous knowledge ana thd'
of at least four of the directors Of my intention 20 90
it. the management have eDdeavoreu I" NIcaA
vengeance upon me which would IN theH Juus-
ment be commensurate with me INJURY tue exposure
Of the truth regarding the Enc Railway may nave
upon their plans While those Of the management
here were reviling through the press, you ana
those associated with you in London were, avn
informed publishing 70 the community there tnat
had been dismissed from the service of the Company
II Won did not instigate tins publication IN Lon
don Won are IN a large measure responsible Tor It,
because you knew II falsehood, and could pave
prevented it's utterance had You seen nj To 90 so.
You could not have forgotten soon the fact that
had IN my possession vOur cable dispatches urging
me to remain with the Company and you evidently
had in your possession my dispatch TO you an
ueuncing my resignation.
You are en- route home The committee appointed
to examine my report TO the Board OF Directors
have asked for delay until your arrival before they
be reoulred to report They want your explanation.
have concluded 20 write this letter 10 you IN hopes
shat u nav be the means of saving much trouble in
she settlement of the whole matter. The true con-
Sition of the Cumpauys affairs has always been
concealed. While you knew the facts concerning
them. YOU were constant IN your admonltlons 10 me
that else, not the officers ot the Company
should know them. While TO the world we presented
the attitude of apparent tranbness, we carefully con-
eealed eyaded OF denied the truth. This could not
last always Tue truth must have come out sooner
OF later. L matters little by what means II is made
public. 90 long as It could not forever be concealed
And that IL is out and the true condition OF the
affairs of the Company is known accept the position
in the proper spirit. and endeavor TO correct the
errors which have been committed. ANY attempts
to excuse the blunders which were made OF 10 show
the Company in prosperous condition, will only
involve those who make the effort deeper II the
mire
You came 10 the consideration % the subiect Of
report to July l. 1873, with the fall knowledge that
there was large deficiency in the earnings a.
compared with the expenses. You had the papers
which showed that result. To publish that
fact 10 the world was simply 70 ac-
knowledge the ineBiency Of the management.
and II must be avouled To accomplish this the ac-
counts must be falNihed. ] consented to mOdlfica-
tons in tine proHt and loss account by the omission
from that account of a sufficient Of current
expenditure to make the earnings equal the expen-
ditures l1r operations. / could 20 no further. The
question Of a dividend was discussed. You knew
there had been none earned, and pass TO
your credit the assertion made 70 me
thai there should be none declared Even as late as
the 25th Of August You declared that TO be your de
termination. Upon that declaration l caused the
modified accounts 10 be made up, which showed
balance to the credit of income account OF SlOU'pO
This left the Company about square IN Its operations
from oct. l. 1872, 10 June 30. 1873; taking credit
however FOR the 100000 surplus the inventories
of materials in January, 1873.
By this account you had, 1 am wen convinced,
decided to stand; aud l considered the matter as
settled. The expense accounts had not been dis
turbed. except 5y the inventory entries. The only
falscat 81 had been IN carrying along as assets IN
Our open account, large amounts of current expenses
and the omission Of the depreciatiOn II the equip
men. &C.. from the expenses
You VIII recoec, tLat on the morning of August
27 the day before the board meeting met you with
Mr. Barlow 40 your rooms, by appointment Mr..
Barlow was decided in his opinion Of the policy of
declaring dividend, and that the accounts should
be made % show that one had been earned. You
Will do the justice TO say how strenuously
| opposed auv further tampering with the
accounts and how earnestly l urged that If dlvl-
denG must De- made that 1t be made out Of the
surDlns which remained over IN the previous years.
The question OF extra TepaTaton which had been
advanced as plea tOr the cxtravagant expenditures
in working the road. was taken INTO cOnsldera-
ton suggested that II there was ANYTHING IN II,
il was Just as we'll 70 declare the dividend
out of tine old surplus 10 was to alter the accounts
and that bad no accounts to show for any extra
reparation. You VIII recall what followed. 1 was
sent from vour room 20 await a conference between
yourself and Mr Barlow. The conference hav-
ing ended, you sent for Mr. Clarke, Le
Third V.ee-PresGeut, and Mr. T ys0n, the Fourth.
Jleft for my Office. Their visit resulted IN the pro-
auooD of the letters 10 you which formed the basis
0ftheentres which took from the expenses 81 l@30O0
This gave the amount desired for the dividend OF
e7sOa00 on the common stock, and 100000 on the
eref.rred You approved their reports. and l
directed to see that the accounts were made
10 conform. This act committed on the
18Th dav Of August 1873. and It's consequence was
made 20 appear in the accounts for June 80 1873,
long aft er the accounts for that period were closed
and balanced of.
The theory Of this extra reparation false
already had the amount of SG02.OOO been deducted
from the working expenses for the nine months and
now an additional amount of Sl.l23,OOO was
also deducted. There was nothing to sup
port the latter. There is now nothing
10 support it bat mere assumption. The fact
does not exist. There is not one item of an
account in the Auditors office that will prove the
correctness of the statements, account be
stated that Will DO so.
The fact l. generally known that the enormous ey-