New-York tribune., 1886-02-24
Cha running penses OF the road and the bonds ana
xher proceeds had been kept intact

beeD taken from the vault. Mr. FOshay reerated us
former xpanaton that tne company had expected to
use the money once they thought that The Surface
franchise would be got Within two and the money
would then be needed to build the road and Increase
facilities"
Mr. seward-If you and Mr.. Kerr had happened to die
meanwhile what record yOud there have been 10 snow
that OF money belonging To the road was IN CA
istence
Mr. Foshay had his on his lips: There was a
memorandum of it kept in the company's SAFE. Mr.
Seward at once "respOudei 10 the caIi as ioio"s'
"Have you got that memOrdndum u
Mr. Sc Tar.l- Wat has beco ne of 1t Z"
Mr. FoShaY-It OeGu Il 'StrOyel; IL WAS destroyed
when money was taken fro n tue vault ,
MIR Seward-Wel as tna is tae case. Will you please
state It's rOhtents. so iar AS l'n cdh recall ue
The indum stated tuat 100000 as the proceeds
of 500 bonds had been deposited In the Sae Deposit
Compai y OF New-ftk.
MIR. se ward gaLod adoctiourtely at Mr. Fo'hay. and
then In an appealing vein asked him he could not fur
ther explain the deposit OF ali tina money In bills where
It would draw interest. SIR. Foshay gave the same
explanation As for entry of bonds" or proceeds
OF bonds" In straDg' pice, he gave the Information
that bookkcepsr Beatty was Ill and 80 his assist
ant Ramsey, topk us vi .ce.
Q-Was he i from August 2. 1884. TO June 30. 1888
Ale and has not been a"e To resume HIS duties
O. CfasnC up the bUoIl-Nh0 male the entry OF ne
sale Ar Prentss All. townsend; he Is an e&peTt
accountant
Mr.. Foshay examined the hook 10 dud the first entry
Seward made a stiettO thrust IS follows: "What was
there peculiar ptrtcuI entry that Mr. Ram
sey could not enter / aud Mr.. T'wnsend could I"
Mr. Fosbay promptly exp! Iaed his view Of the case as
follows:
We we're obliged TO change our form OF bookkeeping
MT this time 20 dOuble-entry 10 view OF the form our
branches assumed heca9Se "l ne oniiSee rTa r. S
and also 10 comply WIN the aenahus oi the hulro.i ~
Commis ion. Mr. kam'eF ia not unIrrsIan now 10
keep books ia the way ana 80 Mr. Townsend an ex
pert accountant. was called IN ,
does
Q-what is his first nsme' Al DO not know.
Mr. Seward-Wil. you kD ~ see II there Is an entry
OF salary being pail; lat may SlVe us MS Iull
name.
Mr. II hay looked aud found the full name as Charles
f. Townsend "Wo gvehIm S45 amonth regular salary
said Mr. Fosbay, "aud pty nim extra when we want
extra work done. lie squares the BOOKS up once
month"
Mr. Seward had sought In vain once more to IND
additional Tor pdtnS the SoOOOOO In vault
new subject aSen he receipts Tor services Tor
wIch Mr.. FOSnar had spoken OF as IN icatnS
payments made by him. Three Of these were those OF
Commissioners Vance, Harris and Lord who reported In
favor OF the Surface ROD NJ Foshay could remen-
ber wha three eved fOr their services save
that the fixed SUM was $40 day.
p Chairman Low wished knoY when the change or
dered by the omnissoners IN SespnE books was made
Mr. Foshay SAID that 1t w's IA 1884 He did not know
whether the blanks were OF the year. Tue
quarterly report In ob-r. 1884, and the change
was made in the accounts from that date
Mr. LoS-why did yod MAKE this IA entry. Con;
tract under resolution - jay z. 1881, lhStcad OF
/" cash - or " cash IN Vault
Mr. Foshay flushed at the affective used and replied
warmly: Idon't know that Gnat is false entry do
not so regard IT,"
o.-who gave the Information for that entry Al
Q-Coud you not given the correct facts for en-
try as w-li what you drti Al don't know "a any
body gave any Incorrect fac's
Senator Low ooke NJ F,shay ali over ant then asked
distinctly: Mr. Fosaav, what was the reason that
YOU pus this money bills In the vaults instead Of on
depositl"
Mr.. Foshay heheraely-We chose to put 1t there ana
oYon dId mai change your regular deposit. in other
banks did YOU for fear OF their being unstable A-NO
O-You could have placed the sum with trust CON-
pany, could you not Al presume So
"wen," said Mr. Low with decision, the committee
do not feel satisfied with this explanation and II you
have ythiug further saw they would like " hear IT.
Mr. Foshay- do not see that have anything to add
THE SALE To THE PHILADELPHIA Pt oPLE.
Mr. Seward then turned the recent sale of Seventh
Avenue road stock 10y Mes>rs sharp Foshay Hays,
Law @. n. Curtis, w8gstsf aud s. Sidney smith TO
Messrs. widener. Elkins and Kembe.
Q-NOw, Mr.. Foshay, have yon made transfer OF
Broadway and seventh Avenue kalo oad sI%cn recently
stands Just where it was. IN my name
Mr. Seward wished to II Que frature Of tho agree
men the $500 shares of Surface stock held
in trust by Fosbay not to TO the Philadelphia
men, with their controlling interest In the Seventh Avenue
road.
Mr. Foshay-The Surface stock will go to the next
president Of the Seventh Avenue road In trust as
must remain IN his hands. according 10 the original
agreement for the benefit OF the stockholders of the
road.
moi say somewhere aUout the time the Investigation
began.
Q-By whom was 1t executed
Mr.. Foshay gave the names as already stated
Q-Arc all the selling parties connected with the
Seventh Avenue road ! A.-fes SIR.
I'D tn nuu n
ment which he supposed was in the hands Of bis eoun-
sei
Q-How much stock did they agree to SELL A.-The
'ONDid they own it all A.-They to sell all
their own and 70 get the rest OF others.
Q.-Nas the sale absolute or conditional A.-Condl-
o~when is 1t to become absolutei AIN July or
August next. think.
o-Is 1t Dot January A.-Wel yes, somewhere
around there. mo.
Q-wha' are the terms A They agree to pay S2S5
for 500 shares $500 cash and give certificates for
the $S5. take the stock at certain time or me
stock taken 10 To be returned. The second 300
on the agreement at 800. .
O-Assuming that you still have the 10000 shares,
then the agreement s that the three are 70 pay ZOO
share with the pip be, ween now and July or August
Of taking up the stock aud payiug $50 or 800 more-
Mr.. seward-We. in January; ana ,he stock is to be
taken II not wanted by the three and yon are
TO pay back the amount deposited A-Ihars aDoutit
Mr. Foshay said that the shares had been placed with
Drexel Morgan Co. Those who had contributed to
make up besides those already named. were
Mr. Jacobs the Law the Benedict estate.
Mr Brokaw. Charles. Geogr and Jeremiah Curtis The
highest price paid the stock before the lease OF the
Surface Road $50 since thon 800 had been paid
it had speculated in and up beyond what Mr.
Foshay thOnght II worth.
Q-who first spoke to you Of the sale A.-Mr.
Bright He said ho under the Impression that II
could be made He consulted with the counsel OF the
other parties aud was satisfied.
Q-rhere were counsel for tho other parties wishing
to purchases Ayes, SIR .
-You understood that those lawyers had approached
Mr. Btghtf Al don't know whether he approached
them or they him. ad Estd that II the arraDgeInent
could be made, for the benefit OF the stock
holders. No. knew nOthing Uf anybody behind II.
hal seen was acting A.-rhOss Philadelphia people ;
no one else OF whom know do not know that any one
beside three gentlemen had any interest IN H.
JOHN KEENAN, COMES 10 THE SURFACE.
Iran hnMa