The New York herald., 1877-02-16

Total. SO s24,sa7
the io.s The s" ." hs sa wke
barre stock which we consider al useless as an
Also loss of wks.Sarra bonds ali Of which have
barre Company. 100000
loaned to The WEesbarrs Company. Ll4aooo
Total. $50 4aa .s1l5
In conclusion your committee beg to state that they
tered upon the dsnarss Of their aa,ss w,s a. de-
the company, to recommend she stockholders
tho
made recommend you 70 DO So but have preferred 10 sub
J3iiS 81 IS, II il BaoSKMHNI ]: S1,iN;I Chairman.
GEURGE il. POTTS.
MR.. JoHxsroN's REPLY
During the reading OF these serious accusations Mr..
Johnston turned very red IN the lace and became
IDLY excited, moving uneasily in his char twisting
his fingers together nervously. When Mr. Brooknan
sat down vote of thanks instantancousy ten
dereu HIM aud his colleagues Tor their labors Then
Mr. Johnston was invited to reply 10 ,he
person ia the OF tho He had not, he SAID,
the report oil the committee, and therefore
couid not answer 1t, as 10 do so would involve
animation OF tho books IN ordor that he might tho
referred TO and consider the results which had
been arrived at No doubt the figures taken from tho
books had been taken properly but at the same time
those present knew that figures might be tell
very different siories. II depended very much
how they were put together On the day the commit.
tee appointed ho had met them and given all tho
information no could Since then there had been
rumors that committee were going to make a very
uniavorable report He had applied TO them 10 see
the document that he might prepare answer, but
was told that be could make his answer to the stock
holders when The paper should be read the meeting
Veil I'm a soft and winning yoce that hardly the
place make replies TO statements which doubted4
ltwas matter which would require time He admittod
that the committee mad nformed kim day through
a note from It's chairman that II would call
ing and show him It's report. He found the note at
his house his return from Trenton one night, and
q wrote Mr. Potts that he would be obliged 10
return TO Trenton in the morning, and could not
tho committee
sNow." continued he ''let state what the policy
has been with regard to the reports OF the company
aud then you may judge whether anybody connected
with the company ever gave himself any opportunity
to steal very much from the stockholders"
NO END oy REPORTS.
Mr. Johnston proceeded to that for the first
Ave years there were no reports, but that the whole
i've years were aiterward embodied in report,
which, at his suggestion, was made NJ time
when many IN the company were opposed to making
reports, saying:-"A report gives too many people
cvcr insisted upon being made, and they were
issued annually thereafter During year aLd half
his return he had them issued. These could. be DIS
t,ngushed, MS they were not made "by ORDER" aud
signed by HIM. In addition to this, for
time quarterly reports were issued, semannual re-
ports had bccn issued, and also reports stock
and bond holders, showing condition OF the company
from time time. Besides all this, at each meeting Of
the Board monthly presented detailing
the receipts disbursements and earnings Of the road.
All these tb ngs were entered in the treasurers state
ment, which generally lay open for stockholders and
others to examine Nothing Mr. Johnston claimed,
could be more opposed TO fraud than that system.
he commended, evidence OF the hopefulness OF the o
for the future oi the company and OF their good
several years. In 1875 had occurred disastrous
strike. and tor the past two years tho coal trade
every ono -, knew, had been Improbable.
ter results. Great expectations had been
based upon the trado OF the centennial year,
but hey had proved i'll founded. II the coming year
should see revival OF trade and the company were
kept aoat " would richly repay Its shareholders II,
on the olncr hand trade should remain depressed its
fa vyns
company might have gono aong because Its business
constantly increasing, but just when It was ut tho
weakest regular concerted attack IN the news
papers which unfortunately had proved successful
In breaking down the stock II then became
support, support He resigned and Mr. knight came in.
The stock raised for time, but soon tell again. IL
was necessary then for the sockholders to ase some
decisive action but instead OF dong they had ap
pointed the committee whose report had just been
read. '.whcn committee OF investigation is ap-
pointed, said Mr. Johnston in conclusion, ''what be-
comes Of actionf The result was that three days ago
1t became necessary to put the Lchigh and Wkesbarre
Company into the hands OF a receiver and Yesterday
is your position. don't want TO take any moro Of
your time"
lenge the statements OF the committee.
Mr.. Johnson-l challenge the conclusions 30 lar MS
they differ IRON the published reports OF the company.
COULD NOT EXPLAIN.
After some discussion 1t was proposed 10 bring in
the books and have NJ, Johnston show wherever tho
committee was mistaken.
''Genticmen," " SAID he, ~ don't think that can bo
done. You may bring IN the books as much you
please could 20 TO work and explain that state.
mcnt l would have 10 examine everything" On tho
invitation of tho meeting Mr.. Johnston subsequently
stated a. length what he thought Of the condition OF
hopes Of many TO the future. They had, he said,
the finest coal lands in the country and unequaIlcd
means OF transportation through their various
connections 1t was OF the utmost Importance
that these connections should be maintained II they
the Lehish and wilkesbarre stock was worthless.
Colonc George Hope, who Is Iamiliar with the lands
IN question, declared them to be of uncquacd rich
ness, and he was corroboratcd BY another gentleman
present Tho meeting finally became calm and
II was decided 70 appoint the committee as related
above. The committee OF three, however, seemed TO
take stock'' in this proceeding
THE wiLKEsBARRE COMPANY.
Mr. rBrookman, who asoa asoCkholdcr IN the Central
New Jersey Land Improvement Company, renamed
after the meeting ha adjourned and tried TO induce
some other shareholders in the same corporation to
directors removed. II they did promptly
what little there was LETT from the wreck he argued
they would wake up one morning soon and ind tho
whole swallowed up by some unheard OF mortgage.
DUTIES OF THE NEW JERSEY CENTGALs RE.
CEIvER DEFINED BY CHANCELLOR RUNYoS--
RELATIONS OF THE VARIOUS CORPORATIONS.
TRENTON Feb 10, 1877.
Chancellor Runyon has made few important alter
ations In the order granting an injunction and ap-
pointing receiver for the New Jersey Central Rail-
road Company issued by him yesterday After pro-
vidng for his taking possession OF tho company's
IN tavor Of It's creditors the order rcads
And until tho further order Of this Court the contrary.
he tho said receiver shall have ull and authority ad
the SAID aeiendant n the said bill Of compliant.
owned controlled by IT, particularly the railroad prop
OF the defendant from the Hudson River in the
OF Hudson, to Phillipsburg in the of Warren;
the Newark and New iors Railroad. the Longwood VAL
Icy Railroad, Iighbrdge Railroad the New York ard
Long Branch Railroad, New Egypt and rsrmingdae Rail
road, Long Branch and Sea Girt Raroad Perth Amboy
and Ezabethport Railroad running from Elizabeth to
Perth AmDoy rs those situate. lying and being in this
state, those connected Herewith and leased
defendants Of the said complainant sitnato lying and
being In the state OF Pennsylvania and also the
the csery terminus OF the Central Railroad Jersey
Jersey civ in the of mdson tn