Year: 1869

yet.


q. Am to understand you that during your connec
ton with the road net earnings hae not been applied 10
construction A. No. II they wanted any repairs they
hand and at the end of the year would arrange it.


q. Am | TO understand that you have not used the
money of the stockholders for construction A. No;
did not want you to understand that We any money
that in the treasury TO keep road liked When we
We might have spent consderable OF that money but
had enough TO DO all our Business with besides.


YOU nd the road was Of more value than it at the
beginning OF he year you interest 10
represent ht increase A. No; that Is not the theory


O. What Is the theory theni A. If you have been run
ming road ana you spend nine of ten millions to run IT,
II cannot TO do it for eight and do WELL am ready
To go from tle road. That profit enough Tor me- lha
has been my principle with steamships never na1
any advantage OF anybody running steamships, Dut II
could not run steamship along side OF another man
ana 90 II as wen as he for 20 per cent less tDah coS's
him. would leave the ship


@. am speaking OF the application of net earnings to
construction ana what you mean by the eXpIeSsO r on
during your connection with the road, have you OF not
applied any earnings To construction A. III they had
any construction TO make they have made 1t.


that


Mr. Vanderbilt said he was disposed TO answer as far
he could and far he knew but he did not want
To 30 into what he did know IL is, said he mon
strous sight Of labor TO do this thing We have got rs
they were at work for months My Instructions were
these 81 want you TO see how much money that legi
matey belonged to the stockholders you have used in
construction and ia enlargement Of the rolling stock
&c, from such time" They were very long while In
making that up. When they did make it up they made
report and from that repOrirom what they stated 0or
did not even read IT, as l have every confidence in the
pcOpc-they made up this statement, and 1t Is from tlat
statement that we have made this report


The idea of thus dealing with the property OF the roah
lie had apDed hc same rule TO every road he had He
had not issued certificates for the Harlem or HUDSON
River Road.


O. Why issue certificates TO tho stockholders Of the
Harlem road rs well as to the Cenrat not so pig
road; IT. small thing with little capital OF only about
sGOOOO0 O. But the property of the stockholders 1t
Just as valuable to them A. Yes; but we dd nov 90
road could injured by 10. The stockholders
must not lie in hurry There will be day when they
will get the benefit of all the other property We do not
want cramp the real estate in any manner. We arc
buying real estate every day. use the Harlem road
Just though 1t all belonged to aud that is the


shall control every other road long as control any
though 1t all belonged to me. 1t IL our intention
10 deal i'm the same way with the Harlem and the Hudson
River roads whenever they will bear It, There have been
net earnings applied to construction IN both the ROADS


O. Why was the intention OF the Directors to issue
such certificates made known TO the publlct A. Made
aud robbers in Wallst.! That is the reason.


@ Upto what period did you keep the secretf a. All
the time. until was done II was done at night because
we could do 10 in the day. the people were not here


number Of directors were not here we never maze ul
our minds to this until very late Friday, think 1t
before we made up orr minds exactly how 1t should he
done and then some Of our principal directors Were up
but could not get here and did not get them here
II exccnt Mr. Clark Mr. Chaplin and myself do no,
know that ANYBODY else did 1t was because would not
trust many OF them they would have specuated OH 'he
stock. . :,


O. viii you state whether you did not Intentionally
conceal this from the other drcctorsf a. We dld mol
know ourselves what going to do we were
making UP the figures TO what 1t would work to- and
when came TO that point we decided TO call our dl
rcctors together. .


Mr. Clark goes somewhat more In detail into the plans
aud proposed method for distributing this surplus IL
denied IN IL adavs OF any OF the three tnat lnter
est on investments cases included III the cs
Innate. Mr.. Field said they expected To nave ah3the
a0idayit showing that Mr. Vanderbilt had been "a large
purchaser OF stock In view OF this issue.


Mr. Fairchld, for Defendants said lie had been prom
lseJ comics of the adayts already read. but they had
not been given him. lie did not complain OF that as '
knew the substance OF the but must olJect 10 TINS ne"
affidavit until IL was served After some discussion, tit
further hearing Of the motion was Adjourned TO IhuTs
4.