The New York herald., 1879-07-10
RAILROAD INVESTIGATION.


INQUIRINa INTO THE MANAGEMENT OF THE
NEW YORK CENTRAL AND THE ERIE ROADS
A TRAFPIc MANAGER WHO CANNOT TELL THE
AMOUNT OF LOCAL TRAFFIc-A LIVELY SEES
SION
The Assembly committee for the investigation OF
freight discrimination and other alleged abuses and
defects in railroad management in this State re-
sumed its inquiry yesterday in the Supreme Court,
General Term, room. Mr.. Simon Stern, who ap-
peared for the Chamber OF Commerce and the mer-
camille interests generally. asked Mr.. Rutter. who
is general traffic manager of the New York Central
Railroad. "How much have you paid the Merchants
Despatch Transportation Company for the year 1878
earnings on one of their cars per month"; Mr..
Rutter replied. 1--WE paid them for mileage
during the year 1873 S233. 800 Al" In answer TO
further questions he said 1.-THE total number of cars
in service during 1878 1856. and the amount
paid for the of the $233 29O Al. There
paid for commission s155sl4 IA the commissions
paid to the Merchants Despatch Company for two
years ending April 3O 1879. were s336.569 70; the
amount of car earnings during the same time were
s455 ITO 26 The elevator that is leased the New
York Central Railroad Company cost $5Ol.GO1 90.
The rent lis percentage OF the receipts of the ele-
vator for elevatng and varies according to the busi
ness done. The total amount of freight traffic for
the year ending September &c. 1878. from Now York
to and beyond the western termini Of the road
24O S12 TONS and from Albany and Troy 1855 tons.
The total freight traffic or the road for 1878
7,424 218 tons.
Q. Can you tell how many passengers travelled on
sleeping cars as compared with others? A. can
not.
Q. Mr.. wagner's contract with the railroad COM
pany provides that he shall pay to the company
twenty five per cent OF his receipts-does he not
then make return in details of the number of
gers? A. He does not.
under the contract? A. / have not said there is
twenty-five per cent contract; do not know whether
Wagner paid any money under the contract at all
HOW THE RAILROADS WERE TosTERED
Mr.. Stern here submitted figures showing the
generous manner IN which the railroads had been
fostered by the State. counties and cities OF New
York. The total amount OF such aid to the 1st Of
June, 1876 was $40.O39.496 80. or this amount
there remains unpaid by the railroad companies,
$299 1l5. He then spoke at length on the corre-
spending avarice and greed Of many of these COM
panies and their indifference and disregard to pub
lie wants and interests.
Mr.. Depew and Judge Shipman wanted to know
what they had to do with this matter. Mr.. Stern
said that he offered the Facts in evidence to show
that the railways of this State not private
porations in that they have been assisted to the
above amount by the taxpayers. and that the
amount has not been paid back.
Mr Depew objected on the ground that the evidence
was incomplete in that it did not show the amount
of stocks or bonds given to the several towns In
return for the loans or Investments. 10 which Mr..
Stern replied that they gifts in many cases.
Do you call it an investment. he asked. where the
city Of New York paid to the Harlem Railroad
SIS. .5O0. 900 for sinking their tracks Fourth
nue.?
Railroad Company had q contract which has been in
for forty with the city for surface
Precisely retorted Mr.. Stern sharply, "exe-
cuted by Thomas Adds Emmett as Corporation
Counsel for the city, on condition that the company
should sink the tracks anu arch them over when
ever they might become a nuisance.
Mr.. Depew. resuming. launched into denuncia-
ton OF the Gland sharks thieves, and real estate
speculators who went to Albany for the purpose Of
conhscating the New York Central Railroad"
ERIE's DECEPTIVE REPORTS.
Mr.. George L. Balch next examined. He said
he was connected with the Erie Hallway Company
from the 1st October. 1872 to 1s OF May 187S in
charge of repairs and construction and general store
keeper; 1t was q part of his duty to prepare the
statutory reports of the company for New York. New
O. DO these reports as to the financial condition Of
the company state that condition truly? A. The first
reports prepared by me in 1874 to the State Engineer
OF this State, under Mr.. Jewett's instruction,
misleading to the debt the cost of the road and
the cash receipts and payments; the report is mis-
leading in combining the floating debt to 'loans and
bills payable" the amount of the floating debt, as
understood it, properly was $52i6S90 g. instead Of
the amount which appears in the report. the differ
ence being the amount Of the bills audited
1864. $50 81.
recess was here taken. after which Mr.. Balch
resumed:-I don't recollect what the floating
debt up to November l. 1876 the total floating debt
up to September 30 1876 according to Mr.. Jewett's
report to the Board of Directors, figured up to
OS0 H. whereas in the State Engineers report
for the year the debt Is given 81 159 060 A.
the report OF the State Engineer for 1877 also mis-
leading in the way, the total floating debt being
stated at 81 PIG H. whereas the actual debt
$3474, 041 reported by Mr.. Little. auditor of the
company, for the fiscal year ending September 3O
1877; the report of the company for 1877
and 1873 he did not believe was made up pre-
sented the State of Pennsylvania; the debt refer
red to in Mr.. Jewetts report for 1876 shows q
ducton in the debt for that year of $42S 094 55
that the floating debt on September 80. 1875. would
appear to be $4277.075 80 against $1,42l.641 IS
as given i'll the report to the stockholders.
u difference Of $2s55. .43j So; the debt in 1876
shown to be ST. 060 0G. thus giving reduction of
S974 621 A during the rst year of Mr.. Jewetts adj
ministration receiver; the report for 1877 shows
that there paid in interest. the funded debt
of $13. 900, embracing five mortgages. gold.
S2S79067 so; currency, SS23. 697 making total Of
S3S077 764 50 the fact is that only portion of this
interest paid the expenses for four years for
purposes other than construction fol-
ows:-1s74. S1S,554.763 l6; 1875. $19.030.9l1 2G;
1876, 395 52 1877, SIC, 643 IA the entire
cost of of tue Erie Railway up to 1875
somewhat over s117 200 900; the entire valua-
ton of the road ut the present time is about
sos OOO 00O and might uctuate low $50 900 000
legal expenses were always charged under the lead
OF construct IN.
Several lively tilts between counsel followed, Mr..
Stern declaring that the past few years there has
been reckcssness and extravaganza in the manage
ment OF the Erie exceeding the worst period the
lie to have been closed to the fact. owing to
the garb of respectablity in which the administra
ton clothed.
1t,.u.