The New York herald., 1879-08-23
any evidence in his power. but objected to being
questioned in the manner others had been.

any eNiuence In MS power. but opJecteu W ocih6
questioned in the manner others had been.
COLOR.
The Chairman said the constitution required p2p-
the committees appointment. and stated that the
committee wanted to conduct the proceedings SO
that when they got through the people wonld know
that there had been an investigation. The dfculty
OF obtaining counsel was felt anu discussed by the
committee. The Chamber of Commerce had been
told by the committee they must furnish able coun-
sci to develop matters. Two names were mentioned.
but both men connected with railroads. Mr..
sternes name was mentioned. and. upon consulta.
tio he was engaged, and was acting entire accord
with the COMMITTEES. The committee doing
nothing in tho interest Of private parties.
Judge Shipman thought ii the committee were in
accord with Mr.. Sternes idea railroads the Erie
might as well withdraw from the proceedings.
The chairman stated that the committee was
simply in u judicial position Mr. Sterne would not
be permitted to investigate any subject the commit
tee disapproved Of. The committee must have lati
tude.
To the question (rereated). Why did not the
ceivership end with the reorganization of the Erie?
Mr. Jewet explained that 1t was because OF the pen
dency of suits against the Erie. For tho
son Large amount of property of the Erie is still
in the hands of the recever-not turned to the
New York. Lake Erie and Western-waiting for the
court TO decide to whom it belongs The
bonded indebtedness of the New York, Lake
Erie and Western road III 1875 was about
$55. .000.O00 The road sold subject to all
this Indebtedness. with the exception OF s25 900 000
This s25O00Oo0 is to be replaced by another series
OF bonds, the same in amount but of reduced rate
OF interest. The debt of the Erie road largely
diminished when the property was sold and passed
into the hands OF the new company by order OF the
Court. The capital stock Of the ropd is the
that of the Erie Under the plan of Reorganization
there were two classes OF assessments-a sx-dollar
assessment and u four-dollar sment. But few
stockholders availed themselves of the SO
ment BY the terms OF tte reorganization those who
paid that assessment were entitled to income bonds
the earnings during his receivership much than
paid the indebtedness incurred by the receiver
Of the old Indebtedness paid.
QUESTION FROM WALL STREET.
The question as to whether Mr. Jewett had any
expectation OF dng enabled to pay out or the earn
chairman decided noed not be answered II Dir. jew
EFT thought such answer would have any effect on
the stock market.
Mr. Jewett said -.Since this reorganization, il
have been troubled once have been thousand
times by spectators in bonds stocks OF the Erie
company to getasome assurance from me as to the
value Of these certificates its stock; have al
ways declined to express any opinion except tina.
which is expressed in the report to the public
man insisted Oh the question he would answer it;
but ho thought it might affect the stock market to
the extent that it was his opinion.
RECONSTRUCTED.
"He said the Erie road when he took charge of
1t was an incomplete concern; its track discon
nected ut points its line: it had few terminal
improvements. defective machinery and many
wooden bridges; 1t was in no condition to be worked
with economy; to make it pay under its then ex-
listing indebtedness involved large improvements;
went to the work OF improving 1t then and am i'm
proving it still; If permitted to complete the i'm
petitors and its connections with the Improvement
OF the country and the business of the
country, with economy 1t shall give value to the
stock Ut no distant day: mean actual value; it
may be small. but it will be value. The double
track is not complete; shops aud depots being
constructed; we are trying to improve the equip
mont; there have been eighty different patterns
OF engines on the road. We are reducing them down
to standard engines. There has not been
day since have been connected with
the road that there has not boen
tax Of ono kind or another made upon
it, II our business is not seriously interfered with.
If our relations with the other roads remain uif-
changed. and II there is no adverse legislation. We
might be enabled to the interest the bonds
dividends on the stock at some future day. Mr..
his first railroad experience in 1857 from 1857 was
connected with various roads, the Pan Handle
among Others never knew of Tom Scott's connec-
ton with the Erie; when first connected with the
Erie tried to harmonize conflicting interests.
ANCIENT HISTORY.
Mr.. Sterne examined Mr.. Jewett ut some length as
to the administration Of Gould and Fisk, during
which time large amounts OF discounts Of bonds.
old expenses law EXPENSE &c.. were carried to the
construction account in the reports made to the
State Engineer. aggregating S45.oOo.OO0
ME-. Jewett admitted seeing many items OF that
character in the reports. but took up the
structon account for the purpose OF examining
to itons did not think it his duty to make report
not called for by the blanks OF the State Engineer;
those blanks call for report OF one years opera
the duty Of railroad men to 60 back
ten. twenty or thirty years. II frauds wero commit
ted the time tho report made tho time for
explanation and correction; did not think he had
authority to strike out itcms known'by him to be
fraud.
not be held the crimes OF their predecessors.
and should not be- punished for not making cor
rections in former reports.
hec0mmittce here adjourned till tomorrow.