The New York herald., 1879-08-29

had not been drawn to the fact that through bIld
less from Chicago to Liverpool via Roston
or New York. than the combined ocean and raiiroau
rates separate bills He thought this was iacs
only in the exceptional when they were IN CON-
petition with the Grand Trunk road: He thought
this was about two years ago; there was then
much excitement in New York about it and New
York Central and Erie lowered their rates, witnous
discriminating between New York and Boston. he
did not know that IL done now.
CENTRAL AND HUDSON RIVER CONSOLIDATION.
Regarding the consolidation of the New York
Central and the Hudson River Railroad in lsG9 MIR.
Vanderbilt testified that he remembered the con-
solidaton. He was shown statement of the in
crease OF the capital stock of each of these roads,
from 1854 to 1869. He said this is q matter in the
hands of Mr.. Clark and others have no knowledge
OF it; was Vice President of the Hudson River
road. and was afterwards connected with the Gen.
tral; OF his own knowledge he knew nothing about
the details of the matter; did not remember that
the 80 per cent stock dividend was declared upon
the combined capital; the combined capital
was based 70 apo@s s @ a aa not Know
want to speculate about the matter" said Mr.. Van
derbilt. NOR to give the impression that know.
but don't want to tell; don't really know any
thing about the matter" it generally under.
stood that this of stock surplus
earnings; upon being asked whether not such
the fact he repeated that he did not know any
thing about il.
Mr. Sterne referred to q joint latter in which Mr.
Vanderbilt stated that the charge the Chamber Of
Commerce that the stock of his road watered to
tie extent of s45 900 900 and represented nothing
was untrue. and that fact that increase stock
was issued for moneys actually expended in
structon. and asked him If he read that portion be-
Mr.. Vanderbilt replied:-"why. Mr.. Sterne did
just as you do when that young man hands you one
of your papers. took 1t for true. What do you
suppose keep one hundred or five hundred sm.
ployes for If am to do the work myself 2"
REGARDLESS DIVIDENDS
When asked whether. when old rail or loco
motive is replaced by one. it should go 70 the
expense account or construction account. Mr.. YAM
derbilt thought there difference of opinion
the subject-he did not know. Questioned rs to
dividends, he said:-"We try to keep the road in
first class condition; the eight per cent dividend Is
secondary matter. IT, at the end of the year, there
is a surplus. it is paid His attention was never
called to the law of 1850 requiring . railroad COM
pany to show the surplus Of the road in the annual
report to the State Engineer; he did not know
whether that provision was violated by Mr. worces-
ter; If there really a surplus for which this In
creased capital stock was issued. he never knew OF
inventory of the road with the valuation At.
tached thought 1t could not be replaced for what It
cost; never paid any attention to the construction
account; knew any OF the requisites of the re-
port to be made; only knew that blanks were sent
for such reports thought the bonded indebtedness
represented new construction and extra tracks; hs
York Central ana Hudson River Railroad should
have been charged the construction account; in.
stead OF this 1t has been charged annually 70 thas
count unpaid dividends are charged; thought they
did not amount to much; he understood elevatoa
charges were higher in New York than in Balti'
more Philadelphia; never allowed man who
leased elevator from his company to have
any interest in grain; he did not know that any
plants to the cattle yard had been made against
the persons who had charge of 1t and who inter-
ested III cattle business; he referred In.
stance but that he said occurred before the pres
ent arrangement doing away with eveners was made;
annual issued to stockholders well u.
to the State Engineer; he did not know under what
head legal or Legislative expenses are entered.
RELATIONS WITH ERIE.
Mr.. Vanderbilt questioned as to the settle
ment with Erie. He said the settlement was made
with Mr.. Jewett last winter Of the claims Of his
fathers estate against the Erie. amounting to
$500 900; he considered that it favored them the
Boston, Hartford and Erie bonds guaranteed to
him by the Erie; these bonds were released by him
Judge CONS tock that this guarantee OF the Erie was
worthless. and he thought his private counsel ad-
vised settlement; Judge Comstock was cou:s el for
Mr. Jewett ut the same time. Mr.. Vanderbilt said
he had share of Erie in his life. Tho Chair.
man here questioned him with regard to through
and local rates.
Q. Do you. as a railroad manager. think moro
ought to be charged for short haul than long one.
all other circumstances being equal? A. No.
The chairman put the same questions to Mr..
Vanderbilt that had been asked Mr.. Jewett in regard
to whether he should be allowed to charge more
than his percentage on haul from Chicago. for
transportation from Rochester. and other similar
Mr. vanderbilt said that through competition he
might be and had been compelled to haul forty car
loads from Chicago at loss; he said there was no
reason why he should do the same from Rochester;
1t was all controlled by competitions: he did NOS
to do so. but they we're compelled to do IL; IL the
Legislature for instance should say the roads should
not do anything OF that kind 1t would necessarily
drive them out of the through business; the road
must do business rough and tumble on through busi-
and do it at frequent oes; he thought this
rough aud tumble system might at times place tho
people OF this State ut disadvantage this difference
In through and local business the difference In
handling; terminal charges in way diferents
Buffalo being point from which there IL much
where there is great competition
by canals and other roads, prices from there to New
YORK very nearly rs low as from Chicago. He
said IL the Legislature compelled them to carry New
York freight for their proportion on similar freight
from Chicago 1t should simply compel the roads to
lose money on all their business--it would
drive them out of the business; they could
not live on local business. He thought
IL the Legislature took action in the direction indt-
Gated disadvantages to the State would accrue
than benefits; he had transported freight from
Chicago to New York within year vt . loss; the
road carried while he in Europe, 1000 car loads
of cattle at 81 per and has carried hour for
eleven cents per hundred pounds and out of that
eleven cents paid nine cents for nghterage; he
thought u general law regulating transportation
over all roads would be beneficial.
L POINT.
Mr.. Vanderbilt was asked by member Of the com.
mittee the following questions:-
Q. have instance in mind where man ship
ping from Toledo to New York was charged $40 so
$50, oil circumstances being alike Do you consider
that a discrimination against the citizens Of Syra-
cuse? A. don't know. That Is two locsls-one
to Syracuse and one to New York. The cars pass
Syracuse. The tor making these rates Ii due
to competition.
Mr. Sierne asked II the Boston and Albany Railroad,
which runs through Massachusetts. was controlled
in its by the Railroad Com.
mission.
Mr.. Vanderbilt thought IL was not controlled
now though IL had been. he had previously heard
complaints from that road. He has NO interest IN
that road and never had