New-York tribune., 1874-03-13
ERIE ON CHANGE.
EFFECT OF RECENT RUMORS.

AUDITOR DUNAS's COURSE.
The stock market showed increased activity
and strength yesterday. with occasional fluctuations
Erie was exceptionally weak declining from IIi to 49,
| and then rallying to ni-tho closug price. Tho
"bear clique" have been successful thus far,
| though in far less dogrco than they
seem 10 have anticipated. ON Wednesday night
the substance OF the statement presented bycX-huior
Dhnan nj the time OF his resignation sont TO Lon
don, where It's publication Yesterday morning caused
serious decline In Erie stock that market and reacted
on New York.
There was meeting Of Erie directors held yesterday
morning at the COmpaDy's Offices the Grand Opera
Horsc Eight of the ~ directors were present Mcssr
Robinson. Brown Bllizsr. Barlow. Dlnc.n. Johnston,
Ramsdell. and s'huchardt. Al EXPRESSED the utmost
confidence IN tho correctness OF the accounts Of
TIE Company. as made publIo from time 70 hmr.
ana OF the statement presented by President Watson in
negotiating the now loan in London 1t was generally
believed that the recent action OF tho Auditor taken
in the interest of certain persons who had large nau-
cal interests IN depressing the stock After some con
Sniaion, the following preamble and resolutions wore
unanimously adopted:
whereas II is reported 10 this Board By the Hon
Lucius Rob'nsOn, Acting President. that < H. Dunn
late Auditor OF tins Company d1 at the time ~ toDder-
Ing his rc'gnnion ~ AuditOr on the morning OF the
nth inst make certain tasments m gard 20 the past
policy OF this COMPANY, an especially wh rcierehcr 10
its accounts. by which such policy ana tho method oi
keeping Lne said accounts are attacked; aud,
Wcreds 6taiemonts ipnr01i 10 ihe cieNt OF this
posioi bJ said Ddnan srnuitdIeonsiy wita hs ro''g,i
ton. have been "rc1aoi ior Ten dyt past b. por,Qns
whose avOwcd purpOse w1s TO dcpTecLtc the market
value o the stock OF this Comrahy ana 10 !rtyon lne
slmm1cd by the President ~ LondOn therefore.
Resolprd phat MOssrs. COrtlnndG llrs3g, Frederick
S,hnr,n,,ii John Taylor Johnsf,u g. rrgo II Brown
and Hermann r. Bhrl.r b5, aud tney are hereby
appointed. a committee Of this board 10 ex,
amount cf the floating debt Of this COMPANY,
and that turir report 10 the same bU published; aud
tue Company from tlo dac OF IT., reorganization under
Gen Dix the present time, and 70 tuly investigate
sons who may present themselves 10 he sit Committee
said accounts. aud that SAID Committee ho re-
quescd 10 report thois CONCLUSIONS thereon 40 oIjod!
Rre,ircd That the directors of THIS Company
present 90 b0Tcby roas.rr 10 the "tochhOd'S OF tlb
Fri, Railway and to the pnblc their uuinlitol conn
denco thc integrity aud ability of the President Of
tbiS Company, tho n On Peer ~ watson whose openly
avowe1 policy is again atticfcd. in ma absence, by
subordinate through charges Wnch haNa already been
investigated by legislative Committee ana Ireey dis'
cussod III tLC public prints FOR moro thdU year past
and which revived Or no good q. proper purpose
TRIBUNE reporter talked with several Of th6 81
rectors who were present at the meeting. They said
that the conduct of Mr.. Dnnan was inexpiicabe TO
them except the hypothesis OF his insanity or dis
honesty. The accounts and statements which
he now declared false had been prepared
and vorinod by himself some of them ran back
year aud half ago. when dividend was declared on
the strength OF calculations OF the net earnings OF the
road The correctness Of those calculations and
the justice OF the declaration OF tho dividend
were sworn 10 by Mr.. Dunan over and over
again boforo the Legislative Investigating Com
mittoc last Spring. before whom he WAS tho principal
witness. He said that he had b5en wrong IN sey-
eraI particulars: that ho had carried to construction
account ana to the Could reclamation fund largo
sun, which should have becn charged to expense
count, aud which. II charged, would nave
left - deficiency In tho ycsts earnings
Instead OF largo surplus. from which
a dividend could bo paid. An example of tins was
stated 10 the reporter by oi the directors The
dches 10y The side Of the roadway ought 20 bo cleared
out each year. the annual expense Of such clearing
would bc. say so per mile. When the new di
rector, took hold OF tho Fri, the bitches had
not been cleaned ont for several years. and
the expense OF putting them into thorough repair
amounted 10 500 per mile. Mr. Dunan Thought that rs
the neglect in past had been due TO the m5appo
priation bv Gould OF money which ought TO have been
expcndod FOR repairs all the cost except $50 por mile
ought in Justice therefore 20 he charged to m fuDd re-
turned 10y Gould In settlement Of the suits against HIM
The pursued IN regird 10 all the Items IN
cnded N the statement Of the expense II maintaining
the road rcparing Of machncry 81 Up to the tlmo oi
President Wa'son's sailing iOr England. and indeed
until within short time. NJ. Duuan gave 10 evidences
OF having changed his mind on the SUBJECT; ana
the statement of the financial condition Of the Company
Nhicn President Watson took with him to London, was
based upon calculations made by Mr.. Danan himself
lie had lle!y. according 10 his own representations
discovered that ne had been wrong throughout; that
tho Company had ben paying dividends
which il had not earned; that the accounts
had been asaed himself for the past two years ond
the phbuc greatly deceived thereby. II was SAID that
if this was an honest oplion, strange that had
not been iutmatcd to the officers and directors Of tho
Company until IL reached them in vague
hint, through spectators IA stock, whom. II
was known. any statements injurious to Erie "oui
greatly benefit aud that, before representations
were made tn them by Mr.. Ddnan, tnoy shOIid have
been presented for publication bv agent Of Ole Of ho
most interruptions spectators with letter 0f Dtrodnc-
ton from his principal VINO was known to be 50 heavily
interested I'm Erie stochs tnat decline oi per cent
would be worth from $4,000 10 100000 10 HIM.
member Of the Board told the reporter that within
The last two weeks Inc vested Nj. Dnnan NJ the Erie
of e, and asked INN now ~ cGuid aceOdht os we ru
mors which adolt In Wallst. nbont tine anirs OF
was possible that he had some dishonest clerk
who. by making glrnIed extracts from me pooss'
answered that he had no clerk In
whom ho bad not perfect confidence. TIE director
or there was anything cJaccslc,i which, il
known. would ujure the crc1it OF the Company.
known h. MN which might not safely be made pubic
The director replied that IN ihai case ne % woIla ha
knew Of tue matter was The Attemp on lIc par OF a IP
saiencp said To- have bccn prepared Dy SIR Dunan, and
te sending of patch to London ON the same evening
filed with allegations injurious 10 the credit OF the
President Robinson together with his letter OF resgnd-
tion Wednesday, was doubtless the basis on MHch
the bear clique mad been operating ior week Deiore
the directors knew anything Of the matter.
Another director sdd that II Mr.. Dunaus conrse ban
been dcraei solely by honesty, his honesty hdd mani
fe,ted Itself % curious ana at 10 reindrhdpIN
oppOrtune time for the speculaors VINO had short
interests. II he hadn't made $4,000 by the operation,
then the which could De given for MS acton
must be insanity There could not be, IN this gentle
mans opinion. any other alternative thsh hha'ory ot
insanity.
TIE ERIE RAILROAD AND MR.. DUNAN'S
RESIGNATION.
10 N, Editor Of The TrtGHHe.
SIR. Your reporter called upon me yesterday