New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-14
RIILWAY ACCOUNTS.

THE ASSEMBLY COMMITTEES REPORT
THE ANNUAL REPORTS or TIE ERE AND NEW
YORK CENTRAL CRITICISED - TESTIMONY OF
WILLIAM PITT sHlARMAN.
The accounts Of railroads occupied the at
toutiDn oI the Assembly CCmn4iee IN SATURDAY; VII
ue,, te-tyInc especially regard TO tho reports Of
tie Eri. Runway, although slight examination was
made oI those OF Tie Ncw-Iork Central.
william Pr, shearmsu tue treasurer Of the Eric Rail
way from So tin the reorganization OF the company
In 1878 testified thai lie advised President JoWett 10
have net re for transporting goods instead OF grant
iu special On AiJ 10, 1875 lac wrote letter to
Mr. Jcwctt cilinE hun taat ho could no. obtain loan
Oh certain coaters unie-, he was assured continu-
auce oi employment treasurer by tnc company The
letter referred specific lOan oil 100000. He had
inst brfolr tuat obtained another loan OF 100000 and
tho persons from whom he wished to obtain the
second loan DESTROYS, If it were iaade that
be should remain IA tue employment OF the
COMPANY lie rendered his resignation on May
-. 1873, a. be felt that M Jewett had lost
conf fence nIn somewhat. Toe bank which refused
Inc loan was the Imyortol7 aud Traders BauK O.Aer
ban - did not decline toe ioan specifically the
ground. LONG letter read from Mr.. Jewett ch3rg-
ing the witness VITA having been engaged WEE the
sfcHenry parry in thor assault IN the courts upon
Ns JaHctt'5 administration. Tho witness denied hay
ing Dron an ally Of McHenry, and said tlat he gave
NJ. Jewet. 10 understand that If the integrity OF the
finance department was assaied lie should 10 the
frpnt ia the matter
Alexander Robertson, accountant, was tho next
witness lie said he h8d nad twenty-five years o1-
prrieucc IN bis profession and had examined Mr..
Jcpets report the result Of his eceyershp. There
wss about 900 900 interest charged upon the books
OF the company tue OF profit and loss. This
had the effect Of producing the receivers ledger
a credit balance to the profit and loss
count of S6.3G3,OI AZ, when the actual Gehcit in
October. 1877. between S20OO,o0O aud $3OoO,OOO
The witness criticised the annual report OF the
pany 70 the Engineer, contrasting It With he
nual report OF Mr Jewctt to ths styckholdorsequa
public lie said he though. the State law detective
Ia IL. requirement, these reports to the State En-
gIueer The interest due July |, S7J, $780,
coo, and II thas amount had been raised she company
need noG have becn declared insolyent. There
then ony $500 900 available for sec purpose in the
treasury although the company held securities thought
10 be- worth 5l2oO 900, which the witness salI might
have been usrd 10 raise a From 1863 20 1863 the
funded debt increased from $50 O03OO0 10 $500
from 1868 To 1872, 53OOo,OJO Increases fIom 1872 10
1879, SISOOOO0J increase. Tue Increase Of tho
construction account was as follows: From 1868
10 1868 Il was Sl75OoO0O; from 1865 20 1872
IL WAS -, 900. OO0 from 1872 to 1879 1t was
$4,000 900. The Increase in the capital stock ac-
count from 1903 tn 1858 WAS 526 OOD 600 Tho
from 1858 1872 ia the capital stock aud tho funded
debt accounts was Si3OOOVO0; increase In she con
sfructoa account proper was = OGOO0 tu the same
period, leaving S3S 900, 900 difference which did
no. 20 MO construction. From 1872 1873 the H.
in the capital stock aud funded debt accounts
$25CUU,OOO, aud tne construction account
creased nearly 30 OOo, 900 from May l. ls72 10 May l.
1878. The witness said 80 could not account for tina
difference the capital stock ana funded debt accounts
winch WerO In 1862. on the organization UG the com
paUy. S30 900, aud 10 OOOOOO IA 1873
and the sum or 7733,60O. ~ winch appears M the
IUIt 1878. Gnls Was apparent discrepancy OF
about $50, 100000.
MIR Serne-In what respect Il any. tho reports OF
the Hew-IorK Central Railroad TO the State Engineer
incorrect
Mir Robertson I believe that they Incorrect 10
Eiyeu from year 10 under the head uf
construction account :" Il the reports ay
pears that in period OF ten years TIA Newlork Central
paid for construction 81 100000 than II
Ceycd. In Poo = Manual IA the financial statement
ur the year ending ptcubrr 30 1870 Of the items
on tnc debit side l. stated rs G33.O1736 H. an amount
equal 10 the watering OF I.c rtOch assn ne mat
Wneu they RatCrrd the stock 10 tho rNcut Of eiAOOO
900 they made fictitious debit account against tue
credit OF tue stock wAerei and called II reserve fund ?
cue diminutOu ~ tie und COrrcbponued very
clos j. with the difference between the receipts aud
earnings, and payments for cNpcusys-.DOut SILL
900 900. / kuO. that the earnings oil tue company
have been enough TO warrant iut rrase of
strucon ACCOUNT and there h.s been vrng OH yearly
fictitious account into tno
vi III 100000 10 S2OOO.OOO year, can't state toe
amoant eKa,dy. 1 nave written up "a set Oh bOoSs
against ascertain whether thCro is a
fuUd and have come 10 the conclusion that 10 hc-
ton. Ny attention WAS nrst drawn tO 10 by observing
amUlgui OF the items and figures IN the manual.
Chauuccy NJ Doyew, counsel Tor the New YORK Crutra
asked that tuat part OF the witness testimony be
stricken out the ground that the company I'd not
such statements to "lrJT's Manual" The
witness said tdtt Mr. Poor had informed HIM mat the
cncuts we're Obtained Om tie annual reports To the
stale Engineer OF nom the companies direct
The cvmmitJc here adjourned t.ll to-day.