New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-13

panies between ex-President Franklin b. Gowen aud
Thomas W. well. the representative OF Lord Cairnss
London Committee, made public this afternoon
Mr.. Powell, letter to Mr. Gowen. dated yesterday
says that, OF the impression of the American
Committee Yesterday that they would have nothing TO
do pending deferred bond scheme. he is
compell, 10 make prompt statement He says:
when you were IN LONDON iu 1877 IN one OF the con-
before day Of the puDc meeting an IN
made OF you. because OF some suggestions IN
the newspapers as 10 the uerfect purity OF the directors
GOA lands You replied tnat there WAS one case
in which a director had been Interested in tie
any hnproprety coHduct in tha case, because the
property IN question ~as such an ceent purchase
and had proven profitable To the company ON the
strength OF that Wa enabled. IN my op mig speech ~
the meeting 10 use very strong lnsuase IN test yng 20
the entire freedom NJ the directors ana oeerS io 'ne
possibility OF any lmfutailOn
MrPowcl refers to his precise words used at the time,
and continues:
Now am oonred TO tell you thar. witnin the last
week days. have heard in Pniladelph'a thnts
quite contrary tns and that reel tt absolutely
necessary 10 ascertain the truth of tne rumors mat
have heard respecting tine lamaqua lands
Mr.. Powell then says that the explanation OF Mr
Gowen concerning the innocence OF a director is incon
sistent with what he hrar', and continues
Nr Bjcie and Mr.. McKeIn (nrotners-n.law and part
Lite schuyiku company. joined sIndlcate oI seven
which bought he " Iamlqua tract Tor bonds hetWerh
S6OOO0O and 500 600 tlat tney aso hought auotler
trdc adjoining e. the Tuscdr0rI") for about S2oOOOO
years ana spent cons drrin- money upon them, but
wllh dlsaup upOtuug, PROBABLY with consld
erbe ss TINT the dsappon nent IN the result Of
purchase was pretty widely known Philadelphia ana
tnat the tract was called Waite Eep1au " tine
name | heard having been gwen 20 by 0le OF the
syudcacJ that the syDGicate stlll including those gen
temcu sold both tracts to tue Read NJ Company, OF
yThia tb.v fv, yer directors for - 900 and made
large profit VITA interest at yer cent compounded at
per cent the cost TO the company al t"s dAie amounts
to S3,5OO.OOO
MI Powell says further that the lands have been
demned as not worth the eucumbrances. and valued at
about $4,000 and re concludes by asking two ques
tions OF Mr wen first. whether not there IL any
msstatemcnt in the foregoing summary, and, second
II Mr. Gowen Of that state Of adAirs wnen be
tGowen)was IN England IN 1877.
MIR. GowEN's REPLY.
Mr. Gowen's reply dated to-day. He says;
Ftrst-ThaJ Mr.. McKean and Mr.. A. L. Bore had to-
thrr, believe Oue--lXtI interest III the RAM qua
lands: that neither tne gentlemen had part wLat
ever I'M fhe SAFE o The lands 10 the company; that he
large Outy interest IN the lands was heli Dy ne gen
trmcn witn whom negotiated the purchase nearly AL
Of whom had affiliations with rival line OF railway
that 10 WAS important To keep out OF our territory
OF $40 per acre the time when rival corporation
bought tioniug trace 40 $1,000 to @l2OO per acre
That the maqua tract. according even To- Mr. HARRIS
report (whct estimates TIE amount oi coal To be sent TO
market from any tract a. 6u q z per cent OF tRe total
contentsl contains 6sOOOOoO iOn' Whch can oe sent
10 market more than 90 per cent III excess o. lhe
amount contained II he Philadelphia aud Mananoy
tract winch after Mr. Harrs estimates 10 De worm at
present S3Is9 s77 That the real Intrinsic value OF The
quantity OF conf dined IN Them, and the iact Inat
they are 10 market tban any OF the MahanOy
| IL "A lea
That 1t would the height Of suicidal folly
for the com pany through any sentiment due the fact
that of It's directors were Interested 10 nae per-
uitted these lands drt adverse ownership aud
thus open the entire schuylAil Valley coal field OF
| That low va given to the TamaGua lands by Mr.
Harris due his novel theory ot charging ali lands
which company does work with per cent COM
p1unS b - mi Jb compsnvis cdnveucnce TO WORK
them and thus accumulate enormous and over
Whelmng load Of bOok-keeDlng debt against tract
wh ch NAV not be worked Tor len or twenty years.
WI he IanaQuu
DEVELOPED Dy three four cUleres and had the COM
panv contued to work these coneries ana in addition
thereto expended upon the T5mIquI Lands the same
amount OF money expended upon the MahdnOy ian d.
the former would be producing such tonnage
would according 10 Nj Harrs's sYstem OF cOmputatiO
of value, make tnem worth many m lions or d0llarsn
we're necessary upoy II with tonnage for some y arm
to come. and demand for coal was not sum lens
to take thing Ike the production even oi he 60 uer
existing NJ tue time OF the purchase Dec"e heces
for the company TO dsmantle ana close up grlt
mauy cOlleries tnat the question Vi which suouu 80
closed and which continued one entirely FOR me
company to decidei lhat IN making ths decision lne
former owners were III no mInheI cohsuii li, ~
and nothing therefore be more UNJUST
and prepost-rous taan 10 make one tract containing
double the quantity OF cOal ~heh anotner d0es wor.h
than latter BECAUSE since the date OF purchase
and without any consultation with or control by tue
former owners. the company for IT. purposes has
chosen TO et one rrmain Idle and to e1pend large
amount OF money III developing and WORKING the cthrF
Mr.. Gowen's letter concludes with a number OF per-
sonal statements. in effect as follows:
That Powell "a incompetent to form any correct
Judgment ON tue question at iss tnat bs Ieal Ppson
ration that # Mr.. POwels statement implies that Mr.
Gowen al any time gave any IMPRESSION ano9t tnese
IA IN famonsY raise; mat Mr. Mexican Il lYng anG aole
70 defend himself out that Mr. BorIe is dead although
mis- reputation as man of non'r is absolutely safe
from the meudacty and maiSny OF any SUCH ptrsoh aa
yourself"
lie says. finally, that any other communication from
Mr.. Powell win be returned to hm unopened
Mr. POwELLs RTJoNDEI
Mr. Powell mas written a rejonder, O. be published
tomorrow, IN when he says:
The publication by Mr. Gowen Of the letters Of the
11th ahd 10Th INST in todays papers renders 1t proper
ibar should make the following statement: Ia the
summer OF 1877 Mr. GOwen came u London Tor the
purpose Of procuring IOm the holders OF the genera
mortgage I'd Otner bonds OF the Philadelphia and Read
pg RIroa l. and the PcrkiOmeu Company an exclusion
OF the maturing interest. Al MS earnest request
agreed 70 chairman OF th meeting OF Dondnoiders
which held AZ the nnon street Hotel Loncon, on
the 9th day OF June. 1877 Statements, involving sis
picOns respect To the purchase OF coa LANDS lad
IA peared OF the papers OF the day Iu con-e-
quence OF these publications were naoe AZ soule
az ne meetings the c0Inmiec which had been formed
The day Of the general meeting IL releence 10
In reny Mr. iowen made explanations fully denying
the mputatons OF these statements and exoneratmg IN
inc fue. manner the members Of the Reading branch
from any -uch charges He took the opportunity to ex
PLAIN that there was one case IN which director hau
beep interested IN the lands Sold but there could ne no
possible imputatiou Of any Improperly OF conduct IN
ceent purchase ami had proved very profitable To the
company. Ths understood to have mad reSrehce 70
tne M.ianOy Iauds and, this excluded the
idea beng any other case That required eipsna
Having entire confidence iu a Iowgh Nv ih .t ~ a
| ing OF bondhOlders: A., nj, . =.
| The statement OF both Mr Gowen anu Mr. fo"eh Ut
,ne meeting are here quoted. Mr. Powell continues:
From that time up TO within ten days prior 70 my le
Ter 10 Mr. GOwen had no knowledge ot the facs us 10
me Iamaaua lands When this information was nrst
racoived Iook the trouble investigate t because
.nnnosed II the had heard ere true tLen had
been msled by Mr. Gowen INTO naEing a stateuie @ m
wbtcb sucerely believed To be true IL was not ;" IN
noinr OF fAcs In this was used as The means OF
ving the bJndnOliers which woula not
haya gwen n had the TRUTH and this was done
non Inc assurance upon which at be time relied with
htrktn fhaT ng
aantIv heard were true had nIisled Others
T 1dres1ed my letter Of the llth 10 hr Gowen, In
s,na IN ne governed the course should pursue
@ , rsult OF his reply. He has cnoscn TO publish th Ia
orrespondrnce aud Il IL FOR the pubic 70 judge now Tar