The New York herald., 1879-10-11
ERIE E'S FIN AN CES.
An EX-0flicial's Story of How They
Were Mismanaged.
FACTS AND FIGURES
Testimony Before the Legislative Com
mittee Of Investigation.

Tho Legislative Committee appointed to investi-
gate the management of the railroads in this State
continued their session yesterday morning. They
held their meeting first at the Fifth Avenue Hotoi.
and then adjourned to the rooms of the Chamber OF
Commerce. The gentlemen of the committee pres
ent were:-Chares S. Baker. of Monroe county; H.
l.. Duguid. of Onondaga; A. b. Hepburn. of st.
Lawrence; w. L. Noyes. of Cayusa and George L.
Terry of Washington. As examining counsel.
Messrs Simon srerne and Charles Meyer inter-
rogatcd the witnesses. while ex-Judge Shipman
represented the interest of tho Erie Iailroad and
cross examined the witness who testhed concerning
that company. The entire day was taken up with
hearing Mr.. Joseph W. Guppy testimony concerning
Erie management. In the afternoon Judge Shipman
took the witness in hand and some laughablc legal
sparrng was indulged in.
PAPERS CALLED FOR.
Chairman Hepburn opened tho proceedings by
stating that OF the subp1nas issned to wit
nesses had made returnable at the Fifth Avenue
Hotel and n meeting had. therefore. been held there
in order to make regular tho subsequent proceed
ings at the Chamber of Commerce. Mr.. Sterne then
called for the production of the following papers,
which given with Judge Shipman's answers-
The rebate account of the Standard Oil Company:
will be produced shortly. The business of one
month of of the fast freight lines: to be pro-
duced. condensed balance sheet and copies OF the
Mcucnry and the Il. W. Smith account: to be handed
in The Hillside Coal and Iron Company accounts
with regard to this Judge Shipman said
that there nothing wrong involved in the
transactions tho company purchased by the
Eric according to the laws OF tho State of Pcnnsyl
vania it being policy Of that State to allow of
purchases Of coal companies by railways in order to
have more active competition between them, and
that by being prevented from falling into hand
no monopoly could be established. Mr. Storne said
appeared that the Erie Railway steamship
company, dry dock company, coal company and
an iron company. He next called for the contract
with tho Northwest Mining and Exchange Company.
Judge Shpnan said that the contract made to
obtain supply of bituminous coal by getting pos
session of Of the anthracite coal lands in JEFF
ferson county Next was tho accounts OF Mcpherson.
These counsel said were in England and could not
be obtained. Mr.. blanchard would testify as fully
us possible these points. Some OF tho papers
asked for were produced by Judge Shipman
Office. Among them was the condensed balance
sheet of the road.
VANISHING MILLIONS.
Mr.. Joseph w. Guppy was the first witness called
He resides at No. 81 East Sxty-seventh street and
was an officer OF the Erie Railway Company from
himself pretty well posted the affairs of the road
and gave astonishing account OF the sums OF
money that disappeared and were unaccountcd for.
The following is tabular statement of tho facts
elected him relating to the finances OF the rail-
road in 1868 and 1874
Capital stock. $25 ll.2lO 90 ss6536.9lo 90
laI