The New York herald., 1879-10-11
s14o a3O aG5 S3

Total. S142 230.3 .3G5 SO Ines SAG. ISL 154 81
or this second imitation of the Erie debts of nearly
S27 100000 only 81, 1SS 250 81 represented
the construction accounts the little balance was not
saual stock of the road had been swcied by an nd
dtion SCI. .425 TOO; tho funding debt had been in
creased by s3l.s4l .so4 and the floating debt de-
creased by S2103 III 40 showing total increase of
s9ll64422 go; OF this sum over s70OOo.0OO was un-
accounted for.
Mr. Guppy next gave the committee some statistics
concerning the number of miles OF track in opera
ton. The earnings of the road during the eight
years mentioned s13s.305. .O91 l0-enough. wit
raid TO maintain the road and pay all its OK
penses IL it had been properly managed.
cHEMUSa. cANANDAIeuA AND EIMIRA ROADS.
Among the branches OF the Erie was the Chemung
Hallway. Mr. Gould. said the Witness purchased
the controlling interest in this road and in tho Can
andagua and Elmira road; they had been leased TO
the Erie the lease terminating on the non-paymont
Of rental by the Erie; Mr.. Gould then president
OF the Erie; the contracts with these roads were
pany: they werc maao January /. 1859.
at very low rates, for twenty years;
the capital stock OF the Chcmung road
$3.50. o.ooo and of the Canandaigua and Emra road.
S5OO.O00; the rental paid to the Chemung was
S3O,O0 and to the other S25.OOO; Mr.. Gould. after
becoming OF these roads failed TO pay the
rental OF the lease by the Erie: it was thus tcrmi-
mated, and he sold tho two roais to tho Northern
Central OF Pennsylvania for $4,000 900; In that WY
tho Erie lost the of these roads: aftorward Mr..
Gould turned to the Erie S3s000O of the bonds
of the Northern Central. retaining tho balance of
the 3,OO0.OOO tor hmsc: the stock o the Northern
Railway of New Jersey had been inflated.
q. What was the object OF the increase A. For a
Witness said that generally companies never
report the business of their leased lines; the div.
half vc per cent on the capital stock aud scvsn
per cent tho bonds prior to tho lease by the Erie
it paid dividend on its capital.
THE NATIONAL STOCK YARD.
The National stock Yard Company next came in
for its share of legislative attention. Wtrcss said
il was organized in 1890 during the Fisk Gould ad-
ministration; the land was purchased. the improve
monts made and the money virtually paid by tho
Erie Railway; then the managers of Erie were reim
Yard Company; the bonds were FOR $10UO.0O0, and
there sl000.0OO of stock issued and distributed
to various parties who paid nothing TOR IT. among
them Messrs. Gould, Fisk. John sherman. OF
Chicago. and Guppy himself. who got 100 shares in
lieu of an increase on salary he had applied for;
Judge Barnard got 500 shares.
Mr.. Sternc ncxt exhibited table OF the assets.
turned by Mr.. Jay Gould in settlement of suit
by tho Erie Hallway. Tho action was begun, hc
said, to recover money received by Gould through
an issue of stock TO the amount of $4,000 OOD
IL had bccn sold for about sll VuO aud that was
tho amount sued for. II compromise by Mr..
Gould turning over to tho company assets nominally
worth S90O0.OOO. but ultimately proving to bc
worth about SGOOO.O0O These very assets, however.
Mr.. Sterue concndcd were actually the property of
the Eric already In this manner tho 81 1O00.OOO paid
for the National Stock Yard Company, already ap-
pearina on the construction account was again
placed on their books when Mr.. Gould handed over
their securities, being counted twice as am asset
This Mr. Stcrnc said. was violation of the plain
provision of law that trustee shall not deal with
his owp trust
A recess was then takcn until two o'clock
At the afternoon session MIR. Stcrnc first inquired
q to the Blue stone Company. Its stock, said
witness, given awayr-ffty cents n share being
paid, and then bonds were ISSUED to pay back to
them these hfty cents; II figured among the assets
the Erie at the par value of SsG.OO0: among the
stockholders were Gould. Fisk. Tweed aud Swocny;
tho Glonwood Coal Company was placed among the
assets ut 81 100000 for stock issued without con-
sidcration; the Suspension Bridge Company was
down tor sS00O0. that being its par value; the sub
scribers bought the stock at sixty per cont. and
$780, 900 in stock issued bonus; among its
owners and organizers Gould. Fisk. q. q. Hail.
II. a. Buck, OF Buffalo; W. H. Barr, and u. W.
blanchard; the New York aud llackensack Railroad,
put down ut $i7O 600. cost the original managers
nothing: IL was purchased with the proceeds oi the
sale of tho locomotives and OF the Erie Railroad;