The New York herald., 1879-12-19
THE IL" ROADS.
Continuation of the Legislative Inquiry
Into Their Management.
MIXING UP" COMPANIES.
How the Loan and Improvement Company
Got Control Of the Gilbert Concern.

The Legislative committee yesterday continued
their investigation OF the management of the IL"
roads at the Chamber of Commerce building. No. cs
William street. The organization and afhliations OF
the Gilbert the Metropolitan the Loan and Improve
ment the New York Elevated and the Manhattan
companies the subject Of the days inquiry.
Judge Fithian in conducting it led the committee
through o most intricate and labyrnthine path.
and agreements and bonds and issues of stock
and changes of dictatorship explained and re-
explained by the different witnesses. almost every
part of the testimony being connected with every
other part until at last things seemed as badly
smixed up" as the children that Little Buttercup
''nussed."
On the meeting of the committee Chairman Baker
asked Mr.. McCook to produce from the company
statement showing Tho total receipts from passen-
ger traffic on elevated roads during the three months
ending December l. 1879; the total number OF pas
sengers carried at each rate of fare; the greatest
number OF any day Of that period and the least
number in any one day; what were the aggregate
operating expenses for those three months; what
was the aggregate train mileage; the maintenance
and structure of way separated into labor
and materially tho train expenses divided into labor
and material; the repairs of equipment. .yshowng
labor and material separatey total of the organiza
ton, including salaries of officers.
Mr.. Foster recalled and testified that in addi-
ton the original 900 shares of the Metropolitan
1000 more issued to pay for Indebtedness by
the company to various parties, Of whom witness
was one; he could not state when the first issue
of stock was made to the New York Loan and Inn
provement Company.
Mr.. L. NJ. Brown. the secretary and treasurer Of
the Loan and Improvement Company, then
called gave the Of the directors elected
1876. They were G. NJ. Pullman. J. F. Navarro H.
n z
Baird. Horace Porter. A. M. Billings and
in 1877 and in 1878; but In 1879 George J.
Forest, John J. McCook and William Adams
were elected In place OF H. NJ Alexander G. f. Stone
and c. K. Garrison. On January 25. 1876 Messrs.
Porter Baird and Garrison. together with the presi
dent and vicepresident eS c6cio. were elected men,
bers Of the Executive Committee. BY resolution oil
matters pertaining to the Gilbert road referred
to this committee On January 49, 1876. the capital
stock of the Loan and Improvement Company. for
merly $100 900, increased to 81 800 000 two and
one-ha per cent Of this increase to be paid In
the amount subscribed before February /. and 10
per cent moro later; 12H and 25 per cent more
afterward paid. making so per cent in all; on Octo-
Der 2, 1877, it was decided that the Loan and I'M
provement Company should take up the $3.50 shares
issued by the Gilbert Company and issue for them
equal number of shares, and, in order to
hoSd tne be- nereased to which se
used to take mp the $3.50 shares of the Gilbert
WAS TIE CAPITAL STOCK PAID IN?
Judge Fthiau stated that his purpose was to
ascertain whether all the capital stock Of the com
pany had been paid in. Mr.. Brown stated that every
dollar subscribed had been paid in, but Judge
Fithiar said he desired documentary evidence on
that point.
The Loan and Improvement Company. witness
said, received any stock from the Gilbert for
900 900 stock of the Gilbert Company but witness
knew of no account showing that ownership. On
crossexamnation witness said that c. 900 shares Of
fbo ifau irf v,cf
the Loan and Improvement after the lease of the
Metropolitan to the Manhattan Company, in con-
sideration of surrender or Q second mortgage on
| the Gilbert Company.
After the usual recess Mr.. Brown resumed the
witness stand ana testified that the New York Loan
| and Improvement Company had made two cash
dividends in January and July Of this year; the lat
stock and in addition 1000 shares Of the Metropolis
| tan Company were divided among the stockholders
OF the Loan and Improvement at the rate Of two
ing to the tripartite agreement between the Metro
| polian, the New York Elevated and the Manhattan
bond OF the latter company was executed for
| $3.50 900; stock to that amount was issued and
came into possession of the Now York Loan and I'm
provement Company as the sole stockholders of the
Metropolitan. with the exception Of about hfty-ave
shares.
| Mr.. John E. Body was next recalled and questioned
as to the elections of directors of the Metropolitan
| Company At the election OF 1873 Messrs. Pullman,
| Navarro aud others. of the Loan ana improv
| Company elected directors of the metropolitan;
! Mr.. w. II. Garrison was elected president and Mr..
John Baird wee president; on July 8. 1878. witness
| there were then outstanding $3.50 shares Of the
Metropolitan; May 10 OF this year there was
| $650O,O 900, allotted to the Loan and Improvement
Company: there was no issue OF stock since then;
| dividend of two and o half per cent had been do
cared on December Is yesterday payable on Janu-
airy Q: the Metropolitan Company. as agents Of the
Manhattan had dine the work of the road since
January 81 last the road had been mortgaged to se-
cur bonds for 5000 1000 mile; the trpartite agree
ment provided for the payment BY the Metropolitan
in cash. the latter to be paid for In money spent
in continuing the construction Of the road it was
not actually paid in full in cash no bonds had been
| issued for the other $3.O00.000
Mr.. McCook stated that the bonds referred TO were
only issued as completed sections OF miles Of road
built with stations. tracks and ell tho necessary
parts Judge Fithian asserted that the statement
was not borne out by the agreements in question.
THE MANHATrAN's MANAGEMENT.
Mr.. +. 4. Wooster. secretary OF the Manhattan
Company ny since august 10: 1879 was the next wit.
Manhattan Company. The first directors of the.
company were chosen on November 10. 1875; they
Horace Porter, ]. +. Navarro Milton Courtright W.
L. Scott, John +. Tracey. David Dows aud John
directors the same day and elected Nj. Court
| right president and Jose +. Navarro secretary and
treasuror j. +. Tracey resigned from the director
ship; the next meeting was held November s. 1877;
| Mr.. Scott resigned, and in his place was elected
president and Colonel Peton was elected in his
place; Mr.. Courtright resigned as director and Mr..
Cyrus W. Field was elected; Mr.. John Ross resigned
| ing was ON April %. 1875 Nathan Guilford was
elected director to l the vacancy caused by Colonel
| Peltons having ceased to be stockholder;
| G. X. Garrison resigned and W. Il. Garri-
son took his place; Mr.. Navarro resigned
| as secretary. and In his place Mr.. Nathan
Guford was elected Mr.. W. X. Garrison was elected
president; on the meeting OF April "a. 1875 Mr.. A.
ii. Barney and Mr.. David Dows resigned directors
| and Messrs. J. M. Fiske and Heber II. Bishop were
elected in their paces after that the tiparte agree
ment entered into.
Judge Fthan--Now we have got down to where
| the thing began to grind.
Witness continuing, said that at that time there
| were outstanding OF Manhattan Company 10000
shares, OF which Ave per cent paid 100000;
In consideration OF the lease of the roads to the
Manhattan $6,500.000 ia bonds were issued to each
| Of the two "L' roads; the 10000 shares had pre-
viously been transferred to two hands and they had
paid in the balance OF ninety-fve per cent of the
| s20O0,000; this was then punched In with the
| $13,000,000.
| WHAT INCREASE?
q. Then you mean to testify that instead OF the
| increase OF $13O00.000 the actual increase
| $11.00O.000? A. Eleven millions the old hxed