New-York tribune., 1880-01-14

mttee appointed by the bondholders board OF drec-
| tiOn TO the bOndhoders and shareholders August
| 10, 1876 in which it appears that Sl3lOOO OF hrst
mortgage bonds. $S2, 600 of second mortgage pre-
| ferred bonds, $3S, 900 of second mort gage income
bonds, S98 shares of preferred stock, and $500
shares of stock subsequently to the SETTLE
ment made by the purchasing committee. were
issued and made an active liability of the company
without any resulting pecuniary advantage or con-
sideraton to the company; and that these secnrl-
ties had come into the hands of the late Robert Bay
ard, as trustee Of the first mortgage bonds, and OF
Charles Butler, as trustee of the balance Mr.
Bayard, in 1870 divided the surplus S131, 900 In
his Misunderstanding first purchased one bond OF
$1,000, to secure equality of divlson-givlng
S33, 600 to Mr. Tilden, 1888, 600 to Charles Butler
$500 TO Russell Sage, and retaining $4,000 Tor
his own account, and also divided equally among
the parties the interest accrued on these bonds
from July 1862. to January 1870, inclusive making
total. with interest of about $20O,OOO And
Mr.. Bayard admitted to the committee that he
had likewise received certain dividends from the
surplus in the hands of Mr.. Charles Blu Ter,
but that he was nable TO state the exact amounts;
that he did not believe that he had received as
much as the others, and that he had tried in vain to
get an accounting from Mr.. Butler; and that he
(Bayard had expressed his readiness TO return all
that he received should 1t be deem ed that the prop
crty does not belong TO him, and when the proper
OwTcrS shall be isCertaineC:
"No Noaccountng could be obtained from Mr.. But
Ter OF the TuSt committed to Ei; and from recent
settlement the accounting for the securities so held
by hlm has not been made. Ii also appears from
this report that five shares of the preferred stock
were issued to John G.. Richardson and not ac-
ceptei by him. and that Mr. Butler cancelled this
cert fcate al though unendorsed by Richardson. and
issued five shares to hImsef,' which are included In
the sos shares of preferred stock the proceeds OF
which are not accounted for on the books OF the
company The apparTn ntly natural and legitimate
of common stock at the date OF QrganlzatIOn,
July /. 1862, was 201SJ shares. Then followed
two issues amounting 30 shares then an issue
1 2,7S2 shares, making total OF 23,OOZ
shares of common stock. subsequently 40
shares more were issued which carried
the total TO 230lS shares, which was 4S shares IN
ey cess of the authorized capital and to correct this
Over-issue Mr.. Butler gave to the company
4S shares; but why did he give this
OveTissue If these any other of the abOvestated
number of shares OF the preferred on common stock
were issued for the purposes of the company. The
committee further states that since the commence
meut Oi the suit recently settled. their attention
has been called to the fact thar sums of money have
been taken from the earnings of the ROAD 10 perfect
the tite Oi The property conveyed to tine company
By raiIfying claims for right OF way, land damages
ETC., existing before the date OF reorganization
bcse shOud have all been met from the surplus
assets in he hands of the purchasing committee
ne shareholders know of no statement 0t ana
demand for any such moneys having been male;
hut the committee under instruction of the bond
holders board of direction authorized tOsettle
all these unadjustcd and unasceTtamcd amounts |
which have become active liabilities of the COM
pany. The settlement which has been made with |
these trustees involves known loss to the com
pany of about $500 900, in addition to the claims
last above mention and their release from further
liability aud dIsc0ntuuance OF the suit by the PIES
ent movement of he stockholders, to recover fur
ther,'