New-York tribune., 1874-07-09


That OF the foregoing amounts there never any
preense that any person or corporation whatever was
liable TO pay to the Ere Railway Company any part OF
the items numbered IN TO- H. and IT, In the foregoing
account amounting IN all TO SloGj56 SO, those amounts
being simply payments whch had been made as part OF
the current expenses Win no expectation OF recover
ing them back and the other Items beng absolutely
worthless consisting OF expenditures for the benefit Of
corporations which were enltey lnSoINeht OF deluhc
and he recovery OF which entirely hopeless, ana
not looked for 10y any officer OF the Company, and II
these accounts had been changed they should have
been TO the profit and loss account, IL would have ap
more than 100000 Jan j. 1872 instead OF the nominal
surplus which appeared at that date.
g. That the time of making up the said accunt de
pouent mad not had opportunity of examining the
details OF the accounts the items composing them,
the Company the date of December 81 1872 then be-
evng the be correct and far deponet has
account being $3.50, ,S25 .Ol, was correct.
G That the statement OF expenses during the year
1872 in the said accounts did not include the OF
SSi237 ~ legal expenses which we're paid in said year
and charged the cost of road and equipment cdp
tai account will appear by reference to 6 Of the
official report Of the President of said Company, made
to ats stockholders uuder date OF July 8, lSs9 That
depOnet has Investigated the items composing the said
account Of legal expenses ana mas ascertaned that
no portion OF the same are properly or legally
chargeable to the capital or construction account OF
SAID Company, but that the whole amount Is proper
and legal charge against its earnings during the said
year and should have been added IN the said ac-
count TO amount Of current expenses for that
7. That the amount OF current working expenses for
the said calendar year 1872 was further understood III
the account aforesaid by the sum of SG096 a. that
amount having been expended upon working expenses
the dultlOn 10 tfe amount stated In
the said account but the same was deducted from the
account OF work expenses by the order OF Peter III. Wat
son, the President OF said Company upon the ground
that inventory OF materials IN the hands or the sew
era officers OF the Company, and for which they were
held accountable made up for the first time IN four
years at the close OIL the su year l- ana showed tha
materials OF the value OF SS50084 81 thus held by
the officers OF the Company whereas there charged
them on the books, under TINS heading only the sum OF
81 277 $50 95, making difference III favor or the Com
pany $602 196 A. which, 10y direction of the said Wat
son depOuent deducted from the working expenses OF
the last three months III the calendar year 1875 that de-
pOnent has been informed and believes that this
Increase i'm value OF materials was arrived at In large
mart by invoicing the same at prices higher than those
paid for them by the Company and that in so far the
said increase IN nominal value consisted Of any actual
increment OF materials, the same had extended
period Of than four years; and deponent Is now
satisfied that part Of the said S6O296 ~ properly
deductible from the working expenses OF the three
months which received credit for tho same, and he Is
doubtful what if any, proportion was properly deduct
1872, such gainf there really was any actual gain TO
tho Company-being spread over period OF more than
four years and deponent therefore believes that not
more than OnefOurth OF this sum-at the utmost say
S5OOOshOud have been carried to the credit of profit
aud loss for the said year 1872 and that amount
would not have represented any money received. or
anything except an advance i'll price o materials con-
stantly In use for the operation OF the road
g. That said item of current expenses for the year
1872 should have been further increased by 100000
that being at least the value Of equipment destroyed
during that year, portion OF which, as deponen is n
formed and believes, made good In the equipment
account of the Company, while more than that
charged 10 construction OF capital account for the pur
chase manufacture, rebuilding OF equipment as will
fully appear by the annual report OF SAID Company
he In the office of the state Engineer at Albany and
by books and records OF the Company and its officers
That this fact concealed from deponent at the time
OF stating said account and for long time afterwaTd
and did become fully aware OF the fact until
short time previous TO his leaving the service OF tie
Company.
O. That with the foregoing corrections the account re-
ferred 10 the said Assembly document, II had been
according tO the facts would have shown the fol
lowing result: .,,.-oo oo -,
ADJ sundy credit Oi the aecOuht..,.., 4755 80