The sun., 1895-02-06

Expenses. He says. Were Cut Down to Pay
"A Dividend on $50, 900 900 OF Paper stock.

Supreme Court Justice William j. Gaynor
wrote a letter yesterday to the State Board of
Mediation and Arbitration in which he gave his
idea OF what caused the strike. 1t was an an.
swer to a request made by the State Board, and
1t will be presented to the Legislature along
with the report of the Board. In the course OF
the letter the Judge says that the cause of the
strike lies in state of disquiet and moral pro-
test. not confined to the employees of the COM
pany, which was caused by. recent speculative
uses and manipulations which the companies
have been subjected to by certain individuals
who have come into control of them. He then
discusses the Brooklyn City Railroad Company.
Until three years ago he says. it had 81. 900 900
in stocks and S3,000,000 in bonds and paid big
dividends. Then its bonded indebtedness was
increased to S6.000.000 and its stock capital to
Sl2,000,000.
1T is true" says tho Judge, that change
was made from horses to electricity at this time.
Whether the cost was equal to the actual in
crease is question for railroad builders"
Tho two steps after this. the Judge says. are
what accuse the public conscience Those in
control OF the company leased it for 900 years to
the Brooklyn Heights Company, which they got
control of. by tho terms OF the lease. tho
Heights Company agreed to pay m the oha interest on
SO, 600 900 in bonds and SlO,OOO,OOO in stock.
II was to keep all the overplus.
Thus this little company was made the alb
FOrDpT OF all the earnings OI tne brooklyn Nly
Company over and above what would have to
he taken to pay the interest and dividends but
this did not satisfy those who had gone that lar.
Traction Company was organized in West Vir.
ginia, with a capital Of S3O,000,000. u need
days work or a dollar back Of it, II did not
own steel rail, stick OF wood, or anything in
Per. Ii was not a railroad company, but a btsl-
s name srnEE aG S'seSos tSoss
Nybo and a owned and POutrOllpl
the little Brooklyn Heights Company, turned
over to il the certificates Of stock ls.O0,OO0l Of
these two links TO the Brooklyn CITY Company,
this West Virginia Company, with IT'S paper
through the little Brooklyn Heights Company
of all the earnings Of the Brooklyn City COM
pany over the interest on bonds and the ten per
The object OF this. the Judge goes on to say,
was 10 absorb surplus out of the BROOKLYN
city Company large enough to pay dividend
on tho $30,O0O.00O OF paper stock OF the West
Virginia company, thereby to make that stock
worth par and enrich the holders thereof out Of
the industry OF others. To do this II was neCes-
sary 10 cut down expenses TO the lowest point.
The history OF tho Atlantic Avenue Company,
Thus with this just apprehension on the
part OF the smployees, & ana tns iinbnlss pulse on the
natural that even small dispute should be
healthy conditions"
Next the Judge says that all the transactions
were lawful; but he asks Is the law always
right In what II permits, and he answers that IL
il were we would never need a change. A
little later he says that the transactions not
singular 10 Brooklyn, and that In place of being
checked by laws they are often tostered by
laws.
- III this condition were to continue" he says,
what the end would be no one who has studied
over causes and effects IN history can fail TO
perceive with clear vision. The prime object OF
Government is to promote distrihutiVe justice
aud thereby make the governed stable and CON
tent, and no Government which does not do this
may In the nature of things long endure"
The Judge concludes by saying that the i'm
mediate dispute which led 10 the strike didn't
deserve serious attention, and under healtAy