THE NEW-YORIv CENTRAL RAILROAD COMPANY. 
 
 SYSTEM , | i i \ I 
 
 ^ P ' : £ [ \} \ * 
 
 OF 
 
 AUDITING THE ACCOUNTS, 
 
 AND OF 
 
 PURCHASING THE SUPPLIES OF THE COMPANY, 
 
 AND 
 
 PLAN FOR THE ORGANIZATION 
 
 WOOD DEPARTMENT. 
 
 ALBANY : 
 
 WEED, PARSONS AND COMPANY, PRINTERS. 
 
 1856 . 
 

 
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 THE NEW-YORK CENTRAL RAILROAD COMPANY. 
 
 At a meeting of the Board of Directors of 
 the New-York Central Railroad 
 Company, held at the Directors’ Room 
 in the Exchange, in the city of Albany, 
 on the twentieth day of May, 1856 : 
 
 The Standing Committee on Accounts sub- 
 mitted to the Board a Report in writing, relative 
 to defects stated by the said Committee to exist 
 in the present mode of auditing the accounts 
 and of purchasing the supplies of the Company, 
 and proposing certain changes in the system, 
 which Report was accepted and, ordered to be 
 placed on file : whereupon, it was 
 
 Resolved , That the said Report, together with Regolutior 
 he outlines of a plan for the organization of a oftheBoard 
 
 ^ 12,05 
 
 i 
 
2 
 
 wood department, as drafted by the Comptroller, 
 and heretofore submitted to the Executive Com- 
 mittee, be referred to a Select Committee, con- 
 sisting of the Standing Committee on Accounts, 
 and Messrs. Faile, Chedell and Schoolcraft, 
 with power to perfect and put in operation a 
 general system of auditing the accounts and 
 of purchasing the supplies of the Company, and 
 a plan for the organization of a wood depart- 
 ment, and that the said Committee be authorized 
 to make such appointments as the system adopt- 
 ed by them may require. 
 
 [A copy.] 
 
 Gilbert L. Wilson, 
 
 Secretary . 
 
REPORT. 
 
 In pursuance of the authority vested in the 
 Special Committee, appointed by the Board of 
 Directors of the New- York Central Railroad 
 Company, by a resolution passed on the 20th 
 day of May, 1856, of which annexed is a copy, 
 the said Committee met at the room of the 
 Directors of said Company, in the Exchange in 
 the city of Albany, on the 30th day of May, 
 
 1856, and agreed upon the following general 
 system of auditing the accounts and of pur- 
 chasing the supplies of the Company, and plan 
 for the organization of a wood department. 
 
 1. The office of Auditor is hereby abolished Office of 
 
 J Auditor 
 
 from and after the 1st day of July next. abolished. 
 
 2. In addition to the powers and duties of the Powers and 
 Comptroller, he shall possess all the powers and ferred on 1 
 perform all the duties now possessed and per- Comptloller - 
 formed by the Auditor. 
 
4 
 
 Money, 
 how paid by 
 Treasurer. 
 
 Exceptions. 
 
 Comptrol- 
 ler’s requisi- 
 tion, when 
 to be drawn. 
 
 Auditing of 
 accounts. 
 
 3. No money shall be paid or advanced by 
 the Treasurer, other than the expenses of the 
 Treasurer’s department, without the requisition 
 of the Comptroller therefor, except such as 
 may be required to meet the permanent obliga- 
 tions of the Company, and except also such 
 other payments as may be directed, from time 
 to time, by the Board of Directors or the Ex- 
 ecutive Committee. The Comptroller shall 
 not draw any requisition on the Treasurer, for 
 the payment of any money or the acceptance 
 of any draft, unless the bills, vouchers and ac- 
 counts therefor shall have been first audited 
 and allowed by the said Comptroller, in con- 
 juction with one or more members of the Com- 
 mittee on Accounts appointed by the Board, 
 which Committee shall meet with the said 
 Comptroller on the second Thursday of each 
 month for that purpose, and who shall make 
 out two certificates showing the amount of 
 money required by each Paymaster for the ex- 
 penditures of the previous month, one of which 
 shall be delivered to the Treasurer and another 
 to the Paymaster with a requisition upon the 
 Treasuier, to pay the amount thereof to the 
 said Paymaster. No requisition shall be made 
 by the Comptroller upon the Treasurer, with- 
 out being accompanied by a statement of the 
 names of the persons to whom the moneys 
 called for by the said requisition are to be paid, 
 
5 
 
 and the amount to be paid to each person 
 respectively. But requisitions may be made by Exception 
 the Comptroller upon the Treasurer for suffi- 
 cient monies to pay for contingencies, upon 
 estimates furnished to, and approved by the 
 Comptroller and one or more members of said 
 Committee on Accounts, and also for any pur- 
 chases made and duly certified by the Commit- 
 tee on Supplies, and for acceptances required 
 for such purchases. 
 
 There shall be three officers known as Pay- Paymasters 
 masters, one on each of the following divisions 
 of the Company’s road : First Division. That 
 part of the road east of Syracuse ; Second Divi- 
 sion. That part of the road between Syracuse 
 and Rochester; Third Division. That part of 
 the road west of Rochester. Their appointment 
 shall be made by the Board of Directors or the 
 Executive Committee, and they shall possess 
 the powers and perform the duties mentioned in 
 the tenth by-law of the Company ; but the said 
 Paymasters shall pay no money, save for bills 
 or accounts which shall have first been audited 
 and allowed by the Comptroller, and one or 
 more members of the Committee on Accounts, 
 as herein provided, except in cases where the 
 Comptroller may give an order to the Paymaster 
 to pay the wages of employees leaving the ser- 
 vice of the Company, or discharged therefrom. 
 
6 
 
 Reports of 4. The foremen of all shops and of each sec- 
 
 necessary # # L 
 
 supplies. tion of track repairs, and of every department, 
 shall report monthly in writing, to their respec- 
 tive Assistant Superintendents, such supplies as 
 they will require for the ensuing month, speci- 
 fying, as near as may be, the purpose of such 
 supplies. The Assistant Superintendents shall 
 carefully examine into the necessity of such 
 supplies, and send such monthly reports, with 
 their respective certificates of approval or dis- 
 approval, in whole or in part, to the General 
 Superintendent, who shall examine the same, 
 and shall lay them all, with such comments and 
 suggestions as he may deem proper, before a 
 Committee on Supplies to be selected from the 
 Board of Directors. 
 
 Committee 5. The Committee on Supplies shall consist 
 on Supplies. r r 
 
 of three, by whom, or by whose authority all 
 
 supplies shall be purchased. The said Com- 
 mittee shall consist of Edward G. Faile, John 
 L. Schoolcraft and Joseph Field, who shall 
 hold their places during the pleasure of the 
 Board of Directors, and until their places are 
 supplied by others, and any vacancy in said 
 Committee shall be filled by the Board of Di- 
 rectors, by ballot. 
 
 Contracts for 6. All contracts for the supplies of articles to 
 supplies. . r r 
 
 be delivered in the future, shall be in writing, 
 
7 
 
 and no purchase shall be made without an in- 
 voice, or bill of sale being made, in detail, at the 
 time of the purchase, and stating the place of 
 delivery. 
 
 7. The Committee on Supplies shall keep Records and 
 
 r * 1 reports of 
 
 records of all their transactions, and shall, once Committee 
 
 on Supplies 
 
 in each quarter, place before the Board of Di- 
 rectors, a detailed report of all their purchases, 
 showing the amount of purchases, dates, places of 
 delivery, names of persons from whom they 
 have purchased, prices paid, the articles and 
 description of articles purchased. 
 
 8. The Committee on Supplies shall keep Oher duties 
 
 rr r of Commit- 
 
 their records in the office of the Comptroller, tee. 
 
 and shall also file with the Comptroller the fore- 
 mens’ monthly reports of necessary supplies, 
 mentioned in article fourth, together with the 
 Assistant Superintendents’ certificates of appro- 
 val or disapproval, all of which shall be sub- 
 mitted to the inspection of the Committee on 
 Accounts. 
 
 9. Whenever any emergency shall arise under Immediate 
 
 * . purchases. 
 
 which the Superintendent or Assistant Super- 
 intendent, or heads of other departments, shall 
 find it necessary to make immediate purchases 
 without awaiting the action of the Committee 
 on Supplies, they are authorized to make such 
 
8 
 
 Depot for 
 supplies. 
 
 purchases; but shall, as soon thereafter as pos- 
 sible, report the same to the Committee on 
 Supplies, together with a statement of the cir- 
 cumstances under which said purchases were 
 made, which purchases may be approved by 
 the said Committee, and be so certified by them 
 to the Comptroller. 
 
 10. The Committee on Supplies are authorized 
 to employ such assistance as they shall deem 
 necessary to carry out the objects of their ap- 
 pointment, and also to establish a depot for the 
 storage, care and delivery of supplies, for the 
 use of the Company. 
 
 Assistant H. The Assistant Superintendent upon each 
 dents^o^re- division shall make a report monthly to the 
 port * Comptroller, in such form as may be prescribed 
 by him, of the employees upon his di\ision, the 
 nature of their services, and their compensation 
 respectively. 
 
 WOOD DEPARTMENT. 
 
 Wood Agent 1 . There shall be a department for the pur- 
 
 and Inspec- . _ . . n 
 
 tor and Mea- chase, measurement and inspection of wood, 
 
 Wood. which shall be under the charge of two persons, 
 
 both of whom shall be appointed by the Board 
 
 of Directors, one of whom shall be designated 
 
 the Wood Agent, and the other the Inspector 
 
 and Measurer of Wood. 
 
9 
 
 2. The Wood Agent shall have authority to Powers and 
 make and to cause to be made all purchases of 
 wood required by the Company for fuel. The 
 Inspector and Measurer of Wood shall inspect 
 all wood purchased for fuel, and shall measure 
 or cause the same to be measured. The said 
 Wood Agent and Inspector and Measurer of 
 Wood may employ such assistance as the per- 
 formance of their respective duties may render 
 necessary. 
 
 3. All contracts for the purchase of wood Contracts to 
 
 r be in writing 
 
 shall be in writing, and be approved by the recor- 
 Wood Agent, and when made shall be forward- 
 ed or delivered to the Comptroller, to be re- 
 corded by him in books, on the margin of which 
 shall be minuted and carried forward the 
 amount of wood purchased up to that date in 
 that fiscal year. 
 
 4* At the time of the making of such record, Evidence of 
 
 ° 5 * 7 record to be 
 
 the contract itself shall have endorsed thereon endorsed on 
 
 contracts. 
 
 the page and date of its record, and as soon 
 thereafter as conveniently may be, shall be 
 delivered to the Inspector and Measurer of 
 Wood. 
 
 5. No wood shall be inspected or measured, inspection 
 
 r and mea- 
 
 unless the Measurer or his assistant shall have, surement. 
 at the time, in his possession, a written contract 
 therefor, duly recorded in the Wood Book, with 
 
10 
 
 the date arid page of the record endorsed there- 
 on. » 
 
 Accounts, 6- No bill for wood shall be audited until the 
 howjmdi- or jgi na ] contract therefor shall have been re- 
 turned, with a certificate of inspection and mea- 
 surement, by the Inspector and Measurer, to 
 the Comptroller, unless said contract shall have 
 been only partially fulfilled, in which case the 
 Inspector may send to the Comptroller a copy 
 thereof, stating the page and date of the record 
 of the original, and also the amount of wood 
 delivered and paid for, on the original contract, 
 up to that date. 
 
 Restrictions 7. No wood shall be bought as mixed. No 
 onpurcim contraet s h a ]] ma de for wood in the tree; and 
 
 no payments on wood contracts by way of esti- 
 mates or advances shall be made without the 
 permission of the Board. 
 
 Measure- 8. All the wood, sawed and unsawed, which 
 woodon belongs to the Company, shall be measured in 
 the month of September in each year, and the 
 amount thereof, together with the amount found 
 at each station, shall be submitted to the 
 Board, on the first Tuesday of October in each 
 year. 
 
 Return of 9. Whenever any contract, or copy of con- 
 Comptroller, tract, shall be returned by the Measurer to the 
 Comptroller, the Comptroller shall note on the 
 
11 
 
 Record Book the extent to which said contract 
 has been fulfilled. 
 
 10, The Comptroller shall, on the first Tues- Report by 
 
 r , . Comptroller. 
 
 day of October, January and April, in each 
 year, make out a full written statement giving 
 the name of each Wood Contractor, his resi- 
 dence, the date of his contract, the number of 
 cords and kind of wood contracted for, its price 
 and place of delivery, which statement shall be 
 submitted to the Directors of the Company at 
 their next meeting held thereafter. 
 
 11. All vouchers for wood must be accom- Vouchers - 
 earned by the certificate of the Measurer who 
 
 has superintended the delivery and measurement 
 thereof, as to the actual measurement, delivery, 
 quality and kind of wood included in the 
 voucher, and under what contract, and when 
 and where the same was delivered. 
 
 [Signed.] 
 
 RUSSELL SAGE, 
 
 JOHN F. SEYMOUR, 
 
 SCHUYLER LIVINGSTON, 
 
 JOHN L. SCHOOLCRAFT, 
 
 JOHN H. CHEDELL, 
 
 EDWARD G. FAILE. 
 
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