N.-In regard to the capital stock of the Lackawanna and Susquehanna Coal and Iron Company, the only facts that appear concerning the same are as follows: This stock, amounting in par value to $40,000, was acquired by the Erie Company in 1873 from Gould, as a part of what is known as the restitution fund; that it is or was a coal corporation of the State of Pennsylvania, and with no particular relations to the Erie Company beyond the fact that the Erie Company has transported its coal to market; that in 1875 the Erie Company was offered about $6,000 for this stock, and that at the time of this reference it was estimated as valueless. Fifth.—And I do further find that the following material facts are established of and concerning the capital stock and bonds of certain corporations described in said schedule (Exhibit M), as also the material facts and circumstances attending the acquisition of the stock and bonds of the said companies above named by the Erie Company, or by the Receiver, or concerning the disposal of the same, namely: 1. The Long Dock Company. The Paterson, Newark and New York Railroad Company. 2. The Newark and Hudson Railroad Company. 3. The Pavonia Horse Railroad Company. 4. The Northern Railroad Company of New Jersey. 5. The Montclair and Greenwood Lake Railroad Company. 6. The National Stock Yard Company. 7. The Newburgh and New York Railroad Company. 8. The Jefferson Railroad Company. 9. The Buffalo, New York and Erie Railroad Company. The Avon, Geneseo and Mt. Morris Railroad Company. The Rochester and Genesee Valley Railroad Company. 10. The Buffalo, Bradford and Pittsburgh Railroad Company. 11. The Suspension Bridge and Erie Junction Railroad Company. 12. The Erie International Railway Company. 13. The Union Steamboat Company. The Union Dry Dock Company. 14. The Erie and Atlantic Sleeping Coach Company. 15. The Hoboken and Jersey City Horse Car Railroad Company. 16. The Monticello and Port Jervis Railroad Company. 17. Walkill Valley Railroad Company. 18. Bergen County Railroad Company. 19. New Jersey and New York Railroad Company. 20. 31. Harbor Wrecking Company. 32. Reno Company. 33. New York and Boston Express Company. 34. Mariposa Company. 35. New York and Pennsylvania Blue Stone Company. 36. Lamont Mining and Railroad Company. 37. Cleveland, Colorado, Cincinnati and Indianapolis Railroad Company. 38. New York and New Jersey Provision Dealers' Association. 39. Atlantic and Great Western Railroad Company. The following statement of fact relates to all of said stocks and bonds that were acquired from Jay Gould or from the estate of James Fisk, Junior: In December, 1872, there were several actions pending in the Court that had been instituted by the Erie Company against divers persons, for the purpose and with the object of recovering and obtaining restitution of capital stock and bonds, and other securities, assets and property that said Erie Company claimed belonged to it, and should be restored to its possession. One of these actions had been instituted and was then pending against Jay Gould, and on the 18th day of December, 1872, an agreement was entered into by and between The Erie Company and said Jay Gould, a copy of which appears in said Appendix, being No. 21 of Exhibit L, commencing on page 183 of the same, and to which reference is hereby made. That, among other things, this agreement provided that said Gould should assign, transfer, and deliver to said Erie Company certain securities and property in said agreement specifically described. Said agreement was not fulfilled in all its terms and conditions for some time after the same was executed, but the greater part of the capital stocks and securities were assigned and transferred to said Erie Company before the appointment of said Receiver, and the last of the same were transferred to said Receiver as late as February, 1876. All of this property received under this agree ment by the Erie Company, or by the Receiver, was entered upon the books of the Erie Company in an account or statement called the restitution account or the restitution fund, and the same has always been known by that designation ever since. The securities thus received were entered at their par value, without any reference to their real or actual value. The ownership of the said securities and property, the possession of which the Erie Company acquired under said agreement, have been considered and treated by me as acquired by the Erie Company before the execution of said mortgage. The legal title and possession of the real estate known as the Opera House property, in New York City, was acquired by the Erie Company under this agreement and settlement with Mr. Gould, and a large portion of the following capital stocks and bonds specifically described: 1. The capital stock and bonds of the Long Dock Company. This is a corporation of the State of New Jersey, formed in 1856, by the action of the prominent stockholders and Directors of the Erie Company, for the purpose of obtaining and giving terminal facilities to the Erie Railway on the Hudson River, near and opposite to New York City, the termination of the Erie Railway being at that time at Piermont, on the Hudson River, about thirty miles above New York City. The lands now owned by the said Long Dock Company were acquired in the first instance by Homer Ramsdell, Esq., a prominent Director in the Erie Company, then known as the New York and Erie Railroad Company, who purchased the same, after consultation and agreement with the Directors of the said New York and Erie Railroad Company, for the use and occupation of the Erie Company, as soon as its friends and Directors could get the necessary legislation in the State of New Jersey, and form a company for utilizing it. These purchases were made by Mr. Ramsdell virtually for the Erie Company, at the instance and request of, its officers and Directors. At that time the Erie corporation had no legal power to purchase, hold and use these lands in the State of New Jersey, and it was proposed by the friends and Directors of the Erie Company to form an independent company in New Jersey that would secure to and for the use of the Erie Company, what it could not obtain in any other way. After the acquirement of the lands by Mr. Ramsdell, the necessary legislation was obtained in New Jersey, and Mr. Ramsdell, Daniel Drew, Samuel Marsh, Cornelius Smith, and others, directors and officers of the Erie Company, became stockholders in and organized the Long Dock Company. The latter company issued its stock and bonds, and the Erie Company provided the means to pay for both stock and bonds, thus enabling the Long Dock Company to make the necessary improvements on its property, including the tunnel through the hill on the Western portion of its lands, and to pay the money that had been expended in the purchase of its lands by Mr. Ramsdell and others. This company was, to all intents and purposes, at the time of its organization, and has been ever since, simply an auxiliary to the Erie Company, and it was formed simply for the purpose of giving the Erie Company a terminus at New York, and all the proceedings were made and taken to that end, and for the benefit of the Erie Company. Mr. Ramsdell transferred these lands so purchased by him to the Long Dock Company, at the instance and request of the officers and Directors of the Erie Company, and in conformity with a note from its Board of Directors, and in consideration of being paid the moneys he had expended for the same, and being relieved from the unmatured obligations he had assumed in regard to the said purchase, (the whole amounting to something over $800,000). The Erie Company paid him, or provided for the payment of the said moneys actually advanced by him for said lands, and relieved him from the said unmatured obligations; and afterwards the Erie Company purchased all of the capital stock of said Long Dock Company, and guaranteed the bonds of said company, and has ever since owned the said stock. It also entered into a contract or lease with the Long |