The New York herald., 1877-02-16
new JERSEY CENTRAL.
Startling Expose of Its Extraordi-
nary Management.
MYTHICAL ACCOUNTS.
How Its Assets Were "Raised u
on the Books.
THE. RECEIVER M. POSSESSION.

About hundred stockholders OF the Central
Railroad OF New Jersey crowded into the directors
at No. 1l9 Liberty street yesterday to hoar the
report tho special committee OF three appointed
the 5th TO investigate the AFFAIRS OF tho company
and learn whether advisable to raise S3 000 600
TO euabe the road to continue operations While the
asscmblagc In Mr. Lathrop, the newly
appointed receiver Of the corporation, took formal
possession OF the once and the books. and
issued printed notice that all the agents
and debtors and creditors OF the company
should communicate with him. Tho meeting of stock.
holders very stormy The report charged tho
management, particularly under Mr. John Taylor
Johnston, director and president with dishonesty
in making false entries upon the books In overvalu.
Ing the property OF the company in the annual in
vcntories, and in divers ways deceivng the stock
holders 10 the true condition OF the companys
affairs. Tho condition Of the corporation
scnted utterly hopeless and the stockholders
sdviscd to what they could from the wreck Tho
report was read by Mr.. John U. Brookman, chairman
Of the committee. 81 IT. Johnston challenged TO
explain the discrepancies in tho figures taken from
the books, and admitted hi. inability to
do So Mr.. Brookman stated that several
days ago. he learned the true condition OF the
company, he had at sold out at great sacrifice
all the stock OF the owned by himself and his
brother, amounting to about $500 000 and that he had
also erased his own and his brothers. nnme from the
subscription book for the loan which they had
subscribed for $3S 000 Upon this a number OF per-
present accused Mr. Brookman OF acting dishon-
estly in selling his stock before making his report
and even intimated that no had gone
short OF the stock and was then clearing"
II. The gentleman gave his word that he
had not sold a dollars worth of the company's SO.
icao oth thnnf he nd hia had haid
investment, and which they had delivered when
sold After great deal OF heated discussion Messrs.
Warren Ackcrman Stephen Condit and Dr. Coles were
selected to confer together and appoint committee OF
three stockholders aud thrce bondholders who will
make further examination OF the affairs OF tho
pany, based upon the Of the receiver and
report thereon at future meeting. The committee
will probably bo appointed to-day.
OPENING MEETING.
Mr.. George H. Potts--who, with Mr.. Brookman aud
Mr. Charles G. Miller, constituted tho special commit
tee-occupicd tho chair briefly stated the object OF
the meeting and introduced Mr.. Brookman, who was
10 read the report. The gentleman prefaced the re.
port with extracts from the annual official reports
the company for eight or ten years back They were
signed by order Of John Taylor Johnston. President,
and glowing accounts OF the increase of receipts
and the decrease OF expenses from year 10 year,
the arrangements with the Lehigh and Wilkcs.
barre Coal Company. the Central New Jer-
Lehigh and Susquebanna Railroad connection,
the American Dock and Improvement Company, the
improvements of the road and the buildings being
erected upon the land belonging to II and other things
indicating that all was prosperous. Mr. Johnston sat
facing the reader and seemed perfectly cool and col
lected as nc listened When Mr. Brookman read in a
sarcastic tone OF the new and beautiful station houses
erected along Inc no grim sme oroko % over me
the little room, in which they wcrc obliged to stand
during the entire meeting although there were many
gray heads III the asscmb'age few could not pre-
serve their equanimity when they considered these
statements in the light of the events of the past
days and they gave vent 10 their feelings in oaths
s'not loud but deep"
Mr. Brookman became himself somewhat excited as
he read and he brought tho points the extracts
with great emphasis. The reading of these extracts
he declared necessary to proper understanding Of
the report which he then proceeded to read, mount
ing char so that all might hear distinctly, for by
that time the room was uncomiortably crowded and
considerable number OF gentlemen had gathered in tho
hall outside the open door
REPORT or THE COMMITTEES.
To THE STOCKHOLDERS OF THE CENTRAL RAILROAD New
Your committee not being experts furnished with the
as & BE- woa
before sufficient facts to enable you to form some idea
Of the value OF your stock in the company and incidentally
Company IS hsr balance sheet q the date
1874 which time the formed by the merger
sa % S @ r. s gss
$ll2s7e 81 and the capital stock ooS repre-;
Wilkesbarrs Coal Company. except surplus stated Of
This merger included merger Of the Honeybrook Coal
Company whose stock in December Just previous :" this
s6Oooo The increase Of those other companies included
limited s i"s time aowed e0'a n0 "
% the hsn Hnd s ss s".
nscon Or rather took shares rpng a, The s
s5o6i ~ o and by their annual statement Of January
sa 81 S . tie S ey H
purchased s5oOI 90 bonds Lshgh Nikesb
npss
As
hsss hSa aetas s During ss sS ysar
40 the BOOKS f' the ' %eSs and
eS%ps"y sS% sys for and lands in s y 'r
F9m the s saao0 Fl the from
year have been made the charge personal property
and % sS SS Ss s ss S % @ OF
10000 for interest lands worked Yonr present
'%a9. .asa
as Sy Is S s 1 s es % TS os
debt is stated January 1917 M $65si, ,457 TO- The com
sons in 1876 tons In ali three years
gssas ss Sni "%s '0' AZ ''
LOSSES on MiSiSc.
sooc as % Of IN is' .' 81
aa@ ni'sss syse.
se7 ~ 81 Gs the scss ssn%se 7 a. .Ss, time OF
los 5y operations ,1H"f or %' tSce years s7ss M There
.ss On be S .ss 's e.
which :os on the quantity Of coal mar
keted during the three years Of ~ cents per ton.
the statement OF the Central Railroad Com
Ssm ss Also
addition floating debt they had ndorscd the Of
the Iehiyh Wilkesbarre Company to tho extent OF
$I4i 500 10 and that tney had rs asset against
claim against that company mnsecurcdl OF SeiL2zl o.
That bonded debt OF the has seriously in
creased and stated amounts to beside the
"bIankct' mortgage OF $5UODUOO (o which greater
part has been issued ss collateral Tor loans OBJ
ss1iS q Ss Lssss and 'sIS Company
ON the bonds the Dock and Improvement Com
many for on
Yard Market Company for 5OooJ also OF Interest Of
e2OOUOu0 the stock Of the Lang Banch Railroad Com
pany of which the company the greater part also
intee,t Sl5SOO of the South Branch Rail-
road Company. We the annual statement OF Dc-
81 1875 down large amount for the value Of
the rolling sock mud In the books any allow.
ance depreciation and obstruction for the past
seven years. except follows: On engines S6o3l 36:
cars 4j 81 freight IS 235 52 coal
SISO5ll 80; boats, SjOOO0
The annual. inventory estimates their value ~
stated in the uAl