New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-10
THE INVESTIGATION.

Mr.. kuttcr, on TAKING tue Chdii' S""ii''''' -
answers 20 a num,er OF interesting questions that had
been pat by Mr.. Stcue a fortnight ago lie Sald that
the Ncw-Y,rk Central had paid to the Merchants
Despatch TRANSFORMATION Company for ear mileage
dpring the wear SIS tho sum ~ G233,29l II. Inc
total number Of cars If the Merchants Despatch IN the
service Of the Central 319G; and tie Central also
paid the Merchants Despatch IN 1873 for COMMISSIONS
me SUN Of SI55,s14 Ii For the two years ending
Aprl 30 1879 tue commissions OF tho Merchants
Despatch amounted % S336.5GJ The amount oil
car earnings OF the Merchants Dapitch during
the same tim, was Sij5I1O 26 The elevator
Of the NeW-YOrk Central in TINS city co''
SjOiGOl o. Tue rent was percentage OF the re-
ccipts The tonnage Of freight from and Deyohi the
western terminus Of the Central TO NeW-1ofk
and beyond was l,j5i7S2 tons, exclusive OF I'VE
stock oil and coal in SIS; and the tonnage to and be-
yond Albany aud Troy 15S222l tons with the same
exclusions Tho total amount Of freight traffic for the
voar ending septepbsr 80 1873 from NewYOrk to aud
bevond the western terminus OF the road was 2lO5lZ
tons: aud from Albany aHd Troy, 2Jj.755 tons. Inc
total freight traic Of the road for 1873 was '4Z4o
tons In conclusion, Nj. Rutter read detailed STATE
mcnt OF the drawbacks ov rchafseS ana rebates At
lowed leading shippers Of petroleum during 1873 Dur
Ing that year the Standard Oh Company received
rebate OF $4,000
Cosr or RAILROADS TO THE STATE.
Mr. stcrne then said that the Chamber Of Commerce
had made inonres bv letter and otherwise regarding
the cost Of the railroads to the State The inquiries
showed that he counties and towns OF the state hau
furnished 900 70 he railroads and the STATE
itself J9I o. total - 1883 1915 g. The RAILROADS.
had not yet pad in return S@9JJJll7 OF the amount
lent them Nj sterne then argued that the contuDu-
tons Of the state the railroads showed that they were
not purely Or vate business enterprises as claimed
Mr. D,pcw-Yes, but You don't take into account the
bonds held by the cities through which these
derelc roads pass. That would of much OF the IN
dehtcdness.
Nv s,erue-That woul1 only he partial return for
the States investment. would Ike 10 know what MT
Dorew thinks Of The investment b. the city OF three
millions Of dollars in the improvements OF Fourth-aye
for the New-Y Central l. has never received one
cent in return for that Investment
Mr. Dapaw-That was the argument Of g lot Of land
spectators AZ Albany when the proposition TO sink The
track Of the NcvYork Central in FoUrth-lvc first
made They argued that the N.wYorl, Central should
bear the whole expense Of the undertaking aud they c.
,ua-ed privately that their property WOULD be in
creased in value one hundred millions o. dollars II the
improvements we're made. Tn LEGISLATURE did not ac-
cent the argument OF the land sprcU' but 1t IN
iustly IMPOSED upon the New-York ne cost OF
one-half Of tho IMPROVEMENT We derived a
ponuys worth advantage from sin rack. Now,
think, that if the question Of the ent OF the
state MP towns in railroad bonds is .r- IL should
also be stated what amount Of those arsnow held
against the system.
THE ERIE REPORTS.
George T. Bach testified that no was connected with
the Ere Railway Hrou lS72 1879 in the supply de-
pariment lie had made reports 70 the stat" Engineer
under Mr.. Jewetts administration. The reports wer"
misleading regarding the debt Of the road the cost Of
the rood and ITS equipment tho cash receipts and the
payments Tho floating debt was reported $685.
s67 o. loss in 1873 than it actually He asked Au-
dtor Little what he meant BIZ the 'rl DO ting debt"
Mr. Little said that H. thon- ht the loans and bills pGva
BILE were the floating debit" The witness replied that
he believed that all debts beyond the funded debt should
he regarded "a floating debt" Mr.. Little dssencd
Mr. Somewhat was the proper amount Of the debt
Mr. Balch-Ine amount ~ The floating debt, rs un-
amount which appears in the report. the IT no
ing the amount Of the bills andited. - G6i,6s o..
Mr.. J,wetTs attention to the fact that toe
comuanv's report had formerly been severely
criticised and that our report OF that year should De
correct | understood it. IN January. 1875, took
this balance sheet 10 him. and said T. desirable 70
have understanding 70 wat was the floating debt
lie said lie thought IL sted OF loans and bills pay
able. told him that differed from hln, and that in
funding debt, covered everything else that tho
books Of the comDlny Acknowledged to he an obligation
cusson DOint. and then suggested 10 him the
form OF EXPRESSION used in the report, floating debt
page 456 Of the OF the Ssc Engineer 1870
He finally asscntcd 10 my suggestion that there should
amount Of The bills audited and prepared the report
with that note and submitted 1t to HIM and he directed
me- and said the note should he put in that he
thought il was right and three DAYS aftcrward he sent
again. and told me take ont the note, and it
was taken ont, and IN It's present form
was seat TO the state Engineer Tie report for
The statement Jewett his report for 1870
shows tnat the floating deb from January l. 1870, to
been reduced according the report, during
year, sl23,90l %. Adding these two together the
f.f nI.er( 1--E ha
S4,277O75 &c. although in the report Of the state En-
gineer for the some time was given a. ,64l 10
report for the ending september 30. 1876 the float
ing deht given at $l159,060 40; whereas. accord
inc % Receiver Jcwet Ia his report 20 the Board OF d.
TectOrs for the same Rod the total floating debt
reduced to 1858 $50 IL The report Of tho state En-
gncor for the year ending September 30 1877 also
misleading The total floating debt for that
porled be ss72lG II whereas the actual debt
e3A7I,O4I "a reported by Mr.. Little the Auditor OF
the road, 10 Mr. Jewet The reports are misleading IN
other respects Lsga expenses nave been lucuded IN
the construction account IN one they amounted
FFx,Tndce shlpman-The legal EXPENSES never ran up
to 800. OOO except during Fsks administration. But
the construction account has such item now
Mr.. Steruo-We, we snail show that the state Fnci-
neors report 1875 in the construction ac-
count the legal expenses from 1874 To 1873.
FOLLOWING PRECEDENTs.
Mr. BlaucharI-We deny that since 1874, since our
administration began have put legal expenses IN the
construction account We merely continued giving the
statements Of our predecessors.
Mr. sterne-Yes, yor continue the misstatements Of
your predecessors. SHAH show that all the legal ex-
penses transferring the old corporation into the pres
eut were put inso the construction account
Mr. Balch--From March 20. 1870 10 August, 1877 an
inventory Of the Erie Railways property Was being
made The inventory fills 900 volumes. There Is a sum
mary Of these volumes consisting OF nineteen volumes
having altogether 1000 pages. summarized the re-
port m two volumes for the supreme Court.
LN-Judgc SApIuan-Nc SHAH show lAat the actual
cost 0f tine road was Sll7,OOO,OOO.
Mr. Balch-rhe road could he built now thek for
100000 900 and intending the stocks and bonds OF
other roads owned bv H. THINK the road is not
worth over $50 100000
EN-Judge ShIpman-i would Ike 10 inform the Com
mitfcU That tus discharged cmpOye Of The Erie
RAILWAY Company, and has been doing every thing no
could since discharge ujufe the road. Ills adg-
meut about the value Of the road h worthless.