New-York tribune., 1874-07-10

exhaustive examination thereof, aud Will soon report
thereon. . -
That so far from the capital stock Of said Company
having been impaired since this depoueut became cOh
nected herewith the same has been sreng an!
the condition of sand COmpany's road and equipment
has been greatly improved that every honest effort mas
been aud being made by this deronent ana ia" oer
directors Of said Company to Improve Us condltlon,
stTeugthen Its credit and retrieve II from the lJues
infected on II by certain corrupt members OF iorel
administration of its affairs in this case purpOrthx 10
have been sworn the 9th day OF June last ana IN
answer thereof deponent saws; th3t ne nas o,Cu ~
formed and believes that the only shares IN the capa
stock OF the Erie Railway Company whlcn sanu ~ % .io
name OF the said plaintiff were transferred 10 bl on lhe
5.h day Of June last by one OF the Mekuo uIohc!S
and agents Of jay Gould and from the fact that the su
plaintiff reputed to be without pecuniary nt tansorfe-
sponsbity, and that he has heretofore allowed MS name
to be used IN legal proceedngs similar 70 & Tow low
pending IN this acion IN ihe lhteres, ol tc "iu & 80
could and OF James Fisk ir, now deceased as inns
deponent crediby informed deponent charges that
the said plaintiff tine bona de owner Of the shares
of Of which he claims to be the holder nor OF any
said company, ana that ne is entitled, either
stockholder bondholder 10 bring any action or pro-
cecding against the said Company, but that he u the
tool ana secret agent OF the said jay Goud ana OF
his associate cOnsprdtors who seek through Hh 10 &c
cunrcs for their personal gam and who nave ioI
long time past sought TO embarr5ss the sdid company
and credit; and depOnent believes that these improper
results the sole object of the said paint and hs
cO-cOns spiTatOrs in this action. - 80.
Denonent further charges that the said plaintiff las
succeeded in becoming even Tor the purpose ol @ lI1
action either sOckhOier bOndboder Of The sald
f I'll tSn facts now ronnianed Of and solely Tor
the purpose OF enabling him To bring this action IN we
interest Of his employers and tha he is not entitled to
ask relief from any court or any officer OF the StAte
Dcponent further that the allegation OF the SAID
paIntG as TO the foaIIng dcht of sand COMPANY Is
grossly exaggerated and untrue. That the total amount
OF the temporary loans and bills payable at me chu OI
lime 1914 as reported by the treasurer Of said company
was less than S2.J0lOJg, OF which about one hiH III
amount was amply secured aud tldt the fcm,lhI"s ~,
curtlcs of the company uuDledget are more Than sum
Gent to pay the whole sald sum, while the sald jay
GOud, who Is reported 10 be solvent now owes I1 e
sad company sum sufficient nearly 10 pay the whole
the unsecured amount thereof; and to this claim a.
pouent believes that sad Gould has no deensc OF pre-
Daponcnt further states, that ms he Is advised hy
counsel aud believes the Erie Railway Company pos
SesscS all the powers OF other railway coi9I'loIs ~
the state Of NewNOrk 10 the issue Of bonds ana the
power secure the same by proper MORTGAGES ana th
there Is no legal requirement c'lA9e ng ahE tr
thc publication of notice before the actual clriloh
Of any such MORTGAGE. But that 6y way OF ~ ~lurlirr
caution. aud before dtp0nent was ADVISED l't 10 3un
notice was necessary, the sad Company dlu dny give
tine notice which the SAID paintn alleges u nave nctn
necessary and did the same TO be duly published
Depoucnt further says that the Erie Rail way Company
hranchss. and leased lines OF the Atlantic and Great
Western Railroad Company as viii appear by tAe cO.y
made aftCr tu consideration, under the advice OF lhe
general counsel OF the Company aud OF other consc
specially retained. and was made III cl0I lah aul III
fnrtncrauca of business OF the said Company aud IN
pursuance of Its TiEltlu powers as CurpUrdtlOn ana
thereto or with rogIrd the other ordinary business OF
the said Company ia connection herewith, or with the
dponent is ADVISED and believes iwpertnent and that
the same need not he more fully answered.
~
SAID jay Gould and his cOOnsprItOrs are a. uePoueht
believes substantially set forth in the concluding portion
Of said Angels affidavit, their object DtlnH-I ial'e
rumor, unjust ani un!ouuded legal procecdlngs the cor
rliutiOn of empOye of the COmpanv, and the employ
meut OF willing tools, so 10 em0aTraSs ana annoy c
said Company and It's stockholders as to enable hem to
again secure the control OF the Company AGAINST the
to the destruc ion Of the credit OF every American rail-
way whose stock or securities are a. Is .ae case WIN
nOn-res dents Oi the United States. +. H. WATSON
OTHER AFFIDAVITs.
The affidavit OF Samuel l.. VI. Barlow declared that he
was IN 10 way benefited by the coal lands purchased
ana had crest IN it he believed that the statements
aud accounts made by Dunau, on which the directors
declared dividends the common ana preferred stock.
were accurate and true; the efforts Of Dnnan in his
affidavit TO cast discredi the accounts were mali
cous, baseess aad in the interest OF stockJobDers;
Dunan before his resignation. had declared 10 the wit
ness that road could continue 10 earn and pay large
sem-annua dividends upon its entire capital stock;
the charge of the exAuditOr that the witness hld sus
pcious of the inaccuracy OF the accounts was scandal
ousy untrue :" the purchase by the Eric Railway Com
pany OF the shares IN the BuhiO, New-York and Erie
Railroad Company made, after careful cousidera-
tion nj the lowest price for which tley could then he
Lucius Robinson Of Elmira, " Y, a director. stated
that he one OF the committee when examined INC
accounts presented by Dlnah. Tue iattr on ~" otc'I-
SONS had SAID that tue accounts we're entirely accurate
and had never huted tnat thc President or ANY one
else had requested that they be altered
John A. C. Gray OF this city stated that the sale OF
certain shares in the capital stock OF the Buio ew
York and Erie Railway company 10 the Etle !,il, @
way Company made by himself. Al the ilme
they were sold, no officer director, or otbcr person
connected Win the Eue i'IlWaS hau any IuteIcst
IN the shares. The H-uuauon that persons conHccted
with the Erie Rllway had derived pacuniary or other
benefit from the sale "dr' 10 lhe Nthe>as d''o i.e
knowledge, false. The assertions that more tlah Tue
market price was pad for the shares were DaIGisss.
stephen Little Auditor 0l tle northern Cehlr"i hl"V
Company, and TucOaOlc Hnusl on secretary aHd Aultor
II the New O'"eS9 Midland i'frCau r1P@ny, @ n.y.
system OF railroad bookkeeping generally pIactccd IN
this counry abJut months ago 30 the request OF
President Watson. they had examined me uooaS 49, ana
accounts OF tie Ere Company from jay l. 49, 10
March, 81. 1874 TDey found tnat from July l. l54, TO
sept 80 1873 the net earnings OF the COMPANY htef "e
payment Of the working expenses, interest on
we're s2Q42,9s2 Sc but from their examinations
they were not satisfied that ID name accounts
material OF SGo2l95 i2. which they found to have been
deducted from the expenses in ascerainins ne aioie-
Company, that the absolute net revenue OF Tue Com
pany for the period bercre mentioned without de-
duciinc therefrOm the items lmpIOpery CHARGED, as
deponents believe, by said Dunan. to materials ae-
count" leaves considerable surplus OF ac dI Hel earn
iugs in excess OF the total amount OF all the dividends
declared by the Company under the administration Oi
MI Watson, aud tins 100 without taking INTO account
any norton OF earnings of the Company for the
first SIX months OF the year ls2 which appear ~ tue
Statement OF stid Dunan dated February IL, 1873 to
have amounted for the whole OF said year OF ls72 20
g O2G 1885, proportion of when, estimated by me mum
Der months would give the sum Of SOl54s2 80 as the
earnings for the period aforesaid
There appeared the credit of reclamation account
money returned to the Company during the wears ls72
and gross sum OF s 3SO463 6l and IN hcF opinion
IL would have been proper Tor the Ere KillWay Com
panv have declared, or Low TO charSe AGAINST tRat
fund such sum as the directors shonld aIter aster.
tanning the actual value OF said account and converting
the into cash. determine TO be wisely divided
among stockholders OF the company by of extra
dividend If should be determined by them that 1t was
no better policy by the company TO pursue to retain
This reclamation account as "a reserve fund.
The affidavit Of 5. II. DdddOw OF 81 Clair, Scbuylki
County Penn stated that he had read tue affidavit OF
s. H. Dunan which drawn on the 2i inst aud that
the insInuation II that lie had profted by the coal
land purchased Of Peter H. Watson was false ana mat
cious Tue had not been engaged, either lnul
,-..i1 Rnler Ii. Mli.mn = j.. NJ EArlnM