New-York tribune., 1874-07-09

1s That the various notifications thus made in the
said accounts not made In pursuance OF knOw
edge Oh part of the said Watson the accounts
being In any way incorrect nut that his
orders based avowedly upon the ground that II
was not polite to publish the stockholders state
ment that would show deficiency IN tho working OF
6 That on or about Aug o. 1s5 deponent declined fur
ther to alter modify change the accounts OF the said
Company, desired by the said WATSON except upon
the order approval of the SAID Watson IN writing and
thereupOn on the 2Sh OF August S73 at abon 10 o'clock
n m deponent was furnished by the said Watson with
original papers OF which the following are copies, which
he was directed to enter upon the books OF the Com
pany and In pursuance Of which he was ordered to
Here follow the letters of Woe Presidents Clark and
H. That no further statements the details OF these
extra reparatons ever furnished Co dCpOnent
filed recorded IN any way IN the onice OF the said
Company, and the figures contained IN the letter OF the
said Henry Tyson intended TO be precisely 90 per
cent OF difference between the amounts expended
upon motive power and rolling stock in the year 1873
and the amount expended in the 1872 which figures
were furnished by the proper officer or the accounting
department 10 the said Tyson. aud were made by him
the basis OF calculation without any detailed nvesti-
CATION Of the expenditures upon motive power and roll
ing stock so far deponent has any knowledge, in
formation belief; that the amounts thus deducted
from the working expenses by order Of Mr. Watson, did
not represent any money expended upon construction
OF works. and the amounts above stated 10y depO-
nent as the working expenses for the said period Of
months did not include anything properly belonging 10
construction account nor was any claim made by any
of the paries to the aforesaid correspondence that
such expenditures made otherwise than for re-
pairs although IL claimed by them that the amount
expended in former years was Tess than It should have
been. and upon this ground, and this alone, they as
sumed 10 transfer the sums paid from the current
expenses to the construction account.
Is That upon resatement OF these accounts in pur-
Of the orders OF President Watson the profit and
port OF said Watson, dated Sept. 2. 1873:
Earnings for nine months ending June 80 %
Operating eIpeuses' O75lGjO 81
Profit S47755l2 SO
Interest rents, &c, ,&e....''...'........' 3O2is49 81
10. That deponent was familiar with the accounts of
the Company during the remaining SIX months of the
nd he any nfs in
any way furnish fnnd from which the deficiency OF
the first six months could be made up afford the
basis Of dividend Of amount whatever out of the
earnings Of the Company; but, the contrary the
net profits accrning To the said Company during
9o THAT the nrrn Of Bischofsheim & Goldschmidt or
London employed by the officers Of the Erie Ran.
way Company to dispose Of certain consolidated
gage and convertible bonds In the City OF London in the
years 1872 and said firm reported the OF
whole OF such bonds, but have been allowed TO retain,
according TO the books of the Company the sum of
s IS ont Of the proceeds Of such bonds for nearly
two years, and mp TO the time that depOnent left
office OF said Company in March last no entries were
made upon books explaining the disposition of the
said sum OF sGOO0O although as deponent has been n
formed and believes, the said firm claimed the right TO
retain the whole of said amount various pretexs
and part retain the SUN Of S5OOOO a cOmpensa-
ment OF the Elie Railway Company in March Is72 by
bnbng number OF the directors 10 resign, vote
for change iu such management.
a. That early in the month Of January 1873 deponent
was directed by the officers of the sad Erlo Railway
Company charge the frlD Of Duncan, Sherman * CO.
with $50 90 IN notes Of the Erie hallway Company
given to the said firm which ultimately paid in
cash that the said charge stood planned upon the
books nearly quite l2 months. the end OF which
time depOnent instructed by his superior officers TO
credit the saId Duncan, sherman Co.. against the said
charge by purchase OF 5000 shares OF stock OF the
Buffalo, New.York and Erie Railroad Company at $50
each, and dcpOnent informed by the directors OF
the Ere Railway Company that the said amount OF
stock had been purchased by the Erie Company AT that
price from Mr.. John o. &. Gray that deponent ia In
formed and believes the market price OF the said Buffalo
NewYOrk ana Erie Railroad stock at the time OF s puf
chase as Aforesaid, and al times during the year
1873 was less than 500 per share. That the
Buffalo, NewYork and Erie Railroad Is leased
for over 900 years to 10 the Erie Railway Com
pany, which latter Company agrees to pay seven per
per upon the stock and bonds OF the said
Buffalo. New-YOrk aud Erie Railroad Company and the
bonds OF the said lastnamed Company are now quoted
upon the New York Stock Exchange than 90 per
cent their par value; that the stock OF said last
named Company must be nrinsically worth less than
Its bonds being subordinate IN security aud not supe-
rOr income, and, deponent Is Informed and be-
eyes the market prce OF such stock has never been
higher than that OF the bonds, and GepOnen Is in
formed and believes the said 5000 shares stock were
reality purchased by directors OF tho Erie Railway
Company for t4500O less, and $4,000 OF tho price
charged 10 the Erie Railway Company have been
divided between some persons unknown 10 depOnent.
a. That large tracts OF land alleged to contain
coal aDd situated and the State Of Pennsylyanis
purchased out Of the proceeds VI CVnY bonds