Smyrna times., 1874-03-04
The N. J. Southern.


The Committee on Railroads and Lands of
the n. j. Legislature met at IL o'clock on
Tuesday of last week, to investigate the affairs
of the New Jersey Southern Railroad Co.
Jay Gould was the first witness examined.
He was a stockhOldsr, but held no official po-
sltion. He said he was President of the S.
b. and S. S., and owned the Vineland road
individually; if the New Jersey Southern
road had its rights, it had control of the
Smyrna and Delaware Bay Railroad; he was
President of the New Jersey Southern ro'd
up to October last ; sold the company the boats
bstwsed Sandy Hook and took stock in pay
ment, 10000 shares, q million of dollars, for
the boats; the par value of the stock was
SlOO; no valued it at $25; he bought enough
more CT the shares to give him majority
thinks 1t was fifteen thousand shares the
amount OF the company's stock was then So
100000; il creditor to upwards of $4,000;
has notes for portion and bonds for other
| portions; he considers the $4,000 a loss
took up loan of the company between $780,,
900 and $300,000 thinks altogether about
$300,000 the substance of his loss, he says,
Is about $650,000, and that he has received
nothing for it; the expenses for 1873 summed
up 1851, SO.
| MIR. Sender testified to the correctness of
these expenses, and said the total cost of run
ming two boats for four months. including char
ter, was $l5l, 900; 100000 paid on old liabili.
ties on the Jesse Hoyt.
George Ii. Bentley was sworn-Hs was
General Manager Of the Southern Road from
May, 1870 to June, 1873, the last two years
Vice President; he held one share of stock
the capital stsck was $4,000, 900, afterwards
Increased to $5,000,0O0; the first mortgage
bonds were 81, ,0OO, 900, and the second $l,000,-
OOOi the receipts we're used in making i'm
provements, paying running expenses and in
terest on bonds in June, 1873, Jay Gould
claimed that he had advanced to the New
Jersey Southern Railroad $4,000 or 100000
the New Jersey Southern owned about Sl79,
OOO OF the Vineland Roads first mortgage
bondsi the third mortgage bonds were gotter
up by Jay GOuld's direction; Gould bought
) the Kent County Railroad to make connection
! The concluding part OF Bentley's testimon!
would seem to indicate that matters on theS
road had been carelsssly and extravaganza!
managed.
, A correspondent, writing to the Philadel
r pha Press of Friday says:
} SIR: Before committee of the New Jer
! sey Legislature, appointed to investigated tn
affairs OF the New Jersey Southern Railroad
Company, Mr.. w. S. Sneden, the receiver ap
D pointed by Chancellor Runyon, under a recen
act OF the Legislature at Trenton, testified o.
e Tuesday, 24th inst, that the cost OF running
! the two steamers Plymouth Rock and Jess
y Hoyt, during four months, between New Yor
t anu Sandy Hook, was $l5l 900. This
, equal to Sl,237.7O per day for l22 days, i
t four months
a Jay Gould testified that he sold the stem
q srs to the railroad company for one millio
8 dollars, payable in stock, to which stock h
e added by purchase other shares sufficient
y give him majority of the whole number {
e shares issued
J. 1t is obvious that the directors of the Ne
J. Jersey Southern Railroad Company, withOu
whose cOnnivance Gould could not have col
h sumated his initial scheme, knew that tn
d steamers Plymouth Rock and Jesse How wer
:. too large aud too costly to run in connectiO
d with New Jersey Southern Railroad trains b
> tween New York and Sandy Hook. And it
y a question whether the directors are not amer
Is able in law, along with Jay Gould, to a charR
n of collusion tor fraud Their joint official a
ID ton plunged the railroad company into inso
re vency, aud thereby deprecated railroad pro-
{ erty which they accepted Office to foster at
ls protect. 1t is strange, indeed if directO
ID can with impunity conspire with person
he notorious as Jay Gould to throw a road in
a bankruptcy, expressly to reorganize on bas
ly adjusted to his own selfish, plans, for his ov
b. speculative purposes