The New York herald., 1879-10-16

cents to the Harlem River was poor compensation.
considering the risk rum in advancing the enter.
magnitude in the United States that had been capi
taized at so low rate.
wATERED STOCK.
O. That is, there is more water in the other roads
than in your enterprise? A. Emphatically.l great
deal more. great deal more Qaughterl there Is no
enterprise thar has done good to the city OF
New York.
O. You did not enter into IL on philanthropic mo-
tives9 A. Well. can't say did not; take great
interest in the city Of New York aud its welfare.
Q4aughter.)
O. Well don't you think the public should get
some compensation for the gratuitous of its
streets! A. Yes. and they have; have increased
the assessed valuation OF the city at least
ana In hve years believe 1t will be Increased
900; there was great risk in embarking in
the enterprise. and many capitalists refused to have
consideration as q fair for their increased
profits; Mr.. William H. Vanderbilt had told witness
that he did not believe the people would over 90 up
@. by the Chairman-Has not property in some
localities depreciated! A. Yes but think that is
Witness further testified that it would cost at
least forty per cent more to replace the roads now
than they originally cost. A great deal had been
done to decrease the noise and smoke.
Q. BY the Chairman-It is not pretended but that
those sls0 900 fictitious. is it? a. Yes
paid s6.000.000. and besides gave the Manhattan
road the advantage OF the capacity Of the roads to
more.
The construction of the road cost about 900
mile to this were charged lawsuits and hush
money paid to keep people from suing the com
to construction worry properly. u.aughter.)
Mr.. Duguid of Onandaga one OF the members
$4,000, 900 do not represent fictitious stock. Why
notY' A. Because We have paid $6,000000 in money,
and the stocks of the leased roads have been reduced
in their values 1t is not like adding stock to prop
erty that is already completed.
Q. MIR. Garrison stated that not cent was paid?
A. Perhaps he forgot those $6,O000O0.
O. The fact remains that $150o0.U00 covers the
cost Of the Metropolitan road? a. Yes. sir.
J. The capital and bonded indebtedness are
Ia he adj
is it water? A. Well don't know what you call
water; don't call 1t so we considered the rest suf
clent to mako up for the depreciation Of the stock
OF the two roads; you put down the Manhattan
stock as if it were worth lOo while it is selling at A
or As.
Q. You pay ten per cent on the Sl3.OOOO0O of
stock? A. Yes but it is all in the future; now,
other road that has ever existed in the United States
laughter); don't see why you should single us
out; we have more than any other corporation been
benefit to the city OF New York.
Mr.. Sterne-It is the most recent illustration Of
stock watering
THE NEW YORK Road.
benjamin Brewster. stockholder in the New York
"L" road was next called. He testified that the
tual cash payment by the road was s1o,oo0ooo; the
stock taken at par and the bonds were taken at
121 cents. subject to further assessment to com
plete the road: as matter of fact this assessment
So 900 cost and the S15 900 capital made
up by the discount on the bonds; the New York
Rapid Transit Commissioners, py making the routes
in part coincident, hac rendered consolidation
necessary; the dividends on the stock were to be
ten per cent; in there were earnings over and
above the ten per cent the balance to come from
the stock Of the Manhattan Company.
@. What induced you to limit the dividend to ten
per cent? A. don't know.
Q. Was it not the limitation Of the general railway
act limiting you to ten per centY A. don't know
that it
The Chairman-You not entitled to more than
per cent any way That is the State railway law
Mr.. Duguid-Perhaps that was one OF the reasons
that the Manhattan Company formed.
Witness then handed the committee a comparative
table of the traffic and rates OF tho IL" roads for the
quarter ending Septeber 80. In brief it is as fol-
1ows:-
Average