New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-01-10
THE NETWORK CENTRAL DIVIDEND.
ALLEGATIONS IN JOHN NEwToN's SUIT TO ENJofN
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ALLEGATIONS IN JOHN NEwToNs SUIT 10 AN'oi"
THE PAYMENT or IT.
John Newton's application for an 1njunctlon
restraining the New-York Central and Hudson hiver
Railroad Company from paying dividend OF Pee
cent on Its stock, which has been declared ana pay!
able ON January Is. will como up for argument LII.
morning before Judge Ingraham In the Special Term VI
the Superior Court In the complaint William fuier.oh
depo,es that Drexel Morgan Co. have issued circu-
lar Offering public 100000 of debenture oonds
which ara part of the authorized to DO Issued
by the Central Company The resolution autnorLes up
70 that sum and provides that $500 shall be re.
tanned with which to retire 600 Hudspse 90 no.
GOO New YorR Central bonds, due in december, 1887 It
i, stated between 1871 and 1888 the company eI
R Rsd SnS: OF sG WINS the
bonded debt Is increased ssS552.9l3. leaving S an
$50 sarpin. earnings over and beyond ,. the
holders in ci hat perod together with
other spuroes aggregatng So 2525 So Leaving balance
Sens. noa Mr. tho
report Of tho company for the year ending s
braced in the consolidation Of the two roads have
% snre S0ps an the
share annually paid" The number Of shares OF the cap
fore thea the Of excess profits referred to- 81
ssnts a year Sr ssen ysaTs on also says
he applied to the Secretary Of the Board
the quarterly report Of the road, and
told that 1t had not been flied with the comhis-
sioners.
H. c. Wood an accountant deposes that the reports OF
the road for the ending September 30 last snow
an excess charges against earnings over earnings OF
ss3 i3 andthat in the Charges against earnings
is included $3.50 ~ OF dvidends There were div-
dends of per cent each October TO- 1855 ana jan
nary and April 10, 1884. amounting TO az
while the earnings were S3.66Is4o 45. an
excess payments receipts Of Sl.7oo,S92 &C. Ac-
cordng the reports OF June 80 1884 company then
owed 50 600 for loans exclusive OF funded aud
other debts but this stated In the report for the
borrowed the between March 81 and June 30 1854
Another dividend OF S7s09093 was paid on July 10,
1854 receipts OF -6999I2 o. Inc iunueu
debt had increased for the quarter ending Septe
1884, with showing for corresponding loans There
FORE Mr.. Wood concludes the loan OF S3.Op0Oo0 must
have been paid from the proceeds or the increase
in the funded debt and the S2.4JO,s33
the The interest the funded debt Tor
the last fiscal year 1850 a. and WAS charged 10
the profit and loss account instead of against the earn
ings should have been so that the deficiency should
have appeared 80 iOi 1873 80 instead Ol i9OSo3 a.
as given IN tho report hr. Wood charges that the
81 sO3,i0i 20 put down income and earnings Tor
not Indicate such balance OF cash on hand or readily
available cash assets that while tie total assets are
given $iG2 523 500 o. among these put In the re-
port cash hand" station badncos,' con.
and simdry open accounts" a. cash assets but the
two items making the cost OF road and equipment arc
nearly Offset by the capital stock and funded dcnt aud
therefore the balance of tho profit end loss account
paid Tor Invested IN items claimed as astes
other than that mentioned. such rs " real estate HUI
River bridges" fuel aud supplies on hand. etc.
Mr. Wood says that any excess OF pIout or the com
Included IN the profit and loss account and disposed OF
IN the manner before mentioned.