The New York herald., 1879-12-18
INVESTIGATING THE II ROADS.

INTERESTING TESTIMONY BEFORE THE LEGIs-
LATIvE coMMIrrEK AS TO THE FORMATION OF
THE DIFFERENT COMPANIES.
The investigation of the al" roads was begun yes
terday by tho subcommittee appointed to in
vcstigate the management of railroads in this State.
The Assembly committee appointed for that purpose
at its last session. when the investigation Of the New
York Central and Erie railroads was concluded, ap
pointed Mr.. Charles s. Baker, chairman. Mr.. Fl. L.
Duguid and Mr.. William l.. Noyes a subcommittee
of three to continue that branch Of the inquiry
lating to the ''L rosds Ex-Judge r. J. Fithian
sisted as counsel in conducting the examination Of
witnesses. Mr.. Charles Meyer acted as associate
counsel. Mr.. John J. McCook represented the al"
roads for the defence. The session hold at the
rooms of the Chamber OF Commerce. whore the COM
mittee will hold all their sitings while In New York.
Mr.. Lewis NJ. Brown. secretary of the New York
Loan and Improvement Company. was the first wit
ness called On taking his office in January. 1876,
witness received certain papers from, Messrs. Alex
ander l. Green. counsel for the company; these
papers were the minute book and the subscription
book to the capital stock tine minute book con-
taned records of the original incorporators of the
company and their meetings from January. 1871;
various formal meetings were held until April S,
1872 when the directors met at No. 20 Nassau street.
and proceeded to organize appointing various COM
to by witness and the OF the subscribers read
he received $25.0O0 when he became secretary for
moneys paid in for stock subscriptions; it was
money in possession OF the company and deposited
to their credit; Mr.. Pullman was president of the
company, and it was in his Office that the money
books and papers were handed to witness: at
meeting of directors held August "a. 1876 eight OF
the old directors resigned and eight new ones
elected In their places.
On mir uatinn hv Mr. vvifn
stated that subscription books were regularly opened
the s25000 paid in represented twenty-five per cent
Of no book entry showing by whom the $25.000
paid in the books showed that stock issued,
show that the subscribers paid in the s25 OOO the
original subscribers were G. B. Smith, Smith NJ.
Weed. M 8 Bromley. J. F. Pierce, g; 6. Minon. j. D;
Charles Tuttle. each for 100 shares at 500 each.
After an hours recess Mr.. John E. Body secretary
and treasurer of the Metropolitan al" road since
July. 1878. was sworn. Judge Fithian read the
Of incorporation of the Metropolitan Gilbert road
ns Gssr Foster J and
teen others were named incorporators, with
a capital stock of ss,Sooooo. divided into $4,000
read. Witness. referring to the minute book. said
that the Gilbert road nrst organized the Sth
The minute book showed that by resolution Of
December 10. 1872 DIR. Gilbert received 5000 shares
of stock for the OF his patents relating to "L"
railways; witness believed that the first issue of
stock; there was no payment of money for that
stock. stock. the only consideration era being Dr. Gil
ward transferred follows:-To Mr.. Foster.
before 1876. 3400 shares; after that time the
remainder was divided among other parties one OF
whom the New York Loan and Improvement
Company. which received 96O shares; down the
year 1875 there were shares issued except these
5.000 great part of the shares transferred to Mr.
Foster were afterward transferred to the other di
rectors.
Mr. william Foster. Jr.. was next called and gave
his testimony standing He testified that he was
elected hrst president Of the Gilbert company; he
ukrv 1ar I'M fha
agement of the road; from 1872 to 1876 efforts
made to enlist capital in the enterprise. to get cap
out any substantial result; Mr.. Navarro was the
first to make = subscription for the Gilbert road
stock.
Q. Did he obtain any stock from Your A. That is
private matter. about which am not willing to
OWNED AND CONTROLLED THE ROAD.
Mr.. McCook said. "This IL an attempt to retry the
old New England IRON suit" Judge Fithian replied.
II propose to show that Mr. Navarro had interest
with Mr.. Foster in the Gilbert Elevated Railway
Company" After some hesitation witness admitted
that himself and Mr. Navarro substantial owned
and ntrolled the Gilbert road st the time spoken
of-in 1873 and 1874
Q. What was the agreement between yourself and
Mr. Navarro. representing the Gilbert road, and Mr..
Pullman aud Mr. Garrison. representing the Loan
aud improvements Company A. We Thought the
best thing to do was to get the road built. and
wanted them TO build it.
Q. Do you know why Alr. Pullman and Mr. Gar.
rison did not subscribe for the stock and bonds of
the road and let the company build it themselves?
A. These gentlemen did not put in their own money
individually. but through the New York Loan and
improvements Company. Of which they were direc-
tors.
Loan and Improvement Company. Judge Fithan
said he proposed to show that Mr. Foster presi-
dent Of the Gilbcyt road aud stockholder of the
other making contract with himself. Mr..
Navarro also, witness said interested the New
York Loan aud Improvement Company.
Witness president Ut the Metropolitan at the
time of its lease to the Manhattan; the latter
pany was organized 80 that in either OF the two
81" road companies failed to complete their work
Iuks1 tr,