Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1880-02-05
SWORN STATEMENTS OF RAILROADS

George c. Gorham, in his Washington let
ter to she San Francisco Chronicle, shows VI
the true inwardness of the bogus sale of Cen
trail Pacific stock. He charges them with en-
deavoring to get rid of their worked out
bonanza, at high prices by means of state
ments that will not bear investigation if the
United States Auditors accounts of the re-
ceipts and expenditures be correct. For pur-
poses of making the Central Pacific stock mar
ketable the railroad people claim that it pays
dividends of six per cent. on S54, 000, 600,
which, if true, would make the stock cheap
At S72, and splendid buy at $50.
According to United States Auditor
French's report it shows that the road is
earning less than two per cent profit on a
capital stock of $45 ZOO, 600 Commenting
upon this rascaly method of doing business
the Stockton Herald pertnently remarks
One thing seems very plain. and that is, the
railroad system of keeping books double dis
counts the methods usually employed by de-
faulting bank cashiers, bank presidents and
other respectable thieves and swinders For
purposes to evade their Just debts to the Gov
trail Pacific pays less than two per cent. on the
capital stock, which would make the stock
worth about $50. For purposes of unloading
the stock, another showing Is made, which
makes appear to be worth near y It's par value.
The one that seems most plausible is the one
put forward by the managers TO secure the
sale of stock, and that Is the statement which
secured the passage of the Thurman Act, and
that will carry the Reagan Bill through. The
hacyon days of the Central Pacific Railroad
Company are over. The managers of it now
desire to dispose of their stock and apply their
we'll developed energies to the Southern Pa
ci6c. Taking all things into consideration one
may feel justified in saying that the recent al
legged sales stupid attempt te dispose of
their stock at twice It's value, transaction
that is equal in dishonesty of purpose, to the
Lady Bryan "salting" swndls or the recent
transactions in Wales mining stock.
The Virginia Chronicle of the 3rd publishes
the following
Below is given Superintendent Yerington's
official statement of the receipts, expenditures,
etc., of the Virginia and Truckes railroad for
she year 1879. ORe noteworthy feature is that
this sworn statement includes two items that
were omitted from Superintendent Yeringtons
s.cor~ statement made last year. These items
are (this year,
Bonds redeemed. SOL 900
Interest on bonds out
standing .......A .107 ,600-S20S, 600
Superintendent Yerington, when called be-
fore the famous Legislative Committee of
Fourteen last year, was asked by Judge !
Lewis if in addition to the S725, 900 sUorn to |
by him as the net earnings of the road for |
1878, there had not been further earning of
about 800, 900 which had been applied to the
redemption of bondSl Superintendent Yering-
ton confessed that there had. When asked,
however, whether the $50, 900 had not been
applied to the payment Of interest on bonds out
standing, he fatty refused to answer, and the
hired tools of the railroad who sat there, and
composed majority of that Legislative Com
mittee, made no effort to compel him to
answer. So far as public opinion was con-
cerned, however, it mattered nothing whether
YeringtoR answered or not
His refusal was sufficient answer.
Judging from this years report it is highly
probable that Judge Lewis was far below the
mark when he placed the sum used for the re- |
1emption of bonds and the payment of inter -.
est on outstanding bonds in 1878 at 500, 900.
Whatever the sum was, however, no mention
If it was made in Superintendent Yerington 5
sworn report.
This leaves Superintendent Yeringt0n in a
position of having sworn to a statement which
ae knew to be incomplete, and therefore false
The Groatcte directly charges perjury upon
Il. N. Yerington and the charge has been a
made before. Yet the Superintendent of the 9
Dad has taken legal steps to vlndicate his t
character.
The fIures furnished by the Central Pa t
life railroad and its Nevada offshoot are them i
elves accusing witnesses against them. It e
would seem that the officials of the road con. t.
ider themselves above the law above the peo-
lie and above the government. g