The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-12-19

the LIST Of January 1s4o. These bonds certncaes
liz whatever the company choose to call them, reach
Maturity the 1st proximo and should then be paid
IL not paid, satisfactory srrAn cement should
pe made with the holders Instead Of pursuing this
honorable straightforward course the company plac's
creditors in the position Of petitioners pay tell
ng them that but the resuscitaton Of the affairs of
The company by the new issue Of stock these bonds
Irould have been valueless The company have waited
bonds reach maturity before has proposed
Inv arrangement; and then 1t takes advantage Of a
hubble discredtable and disgraceful to the manage
ment to avoid the payment of these claims. Before
he 20 any further 1t would be we'll to what the
psny proposs to do with this class Of creditors The
committee, to whom the subject referred, recon-
me nded the annexed arrangement
INrv YonK AND ERIE RALRoAp-NoN. PAYMENT OF
/ BONDS.
l. That the issue of certificates be authorized by
the Board of Directors not exceeding In amount five
hundred thousand dollars, payable in dve years from
lst of January next, bearing seven per cent interest
able ssm nually convertible into stock at par
at any time before their matury not to be issued
sums Of less than hundred dollars, and only
even hundreds, and not for any fractional part
dreds which are to b. ufed In payment
exchange for the above described old certificates.
g That the semi annual interest the six per cent
certificates be paid to the holders thereof in cash.
Gates which will not amount in the aggregate to
one hundred dollars, will be paid in cash. When
they amount to one or more hundreds, they will be
paid in the above described certificates and the
fractional parts Of hundreds.will be paid in cash.
g. The holders of the per cents, with years
accumulated interest will have the privilege taking
their pay principal and interest in the new certi.
Gates hundreds and cash for the
part will have the privilege OF taking the notes
of the treasurer for the interest," when
amounts hundred dollars ard pa yable on
the LIST Of October next with interest at per
per annum and take the certificates for the prin-
cpal alone Whenever the interest on the seven per
cents falls short Of hundred dollars it will be- paid
in cash.
The committee say in their report that in the pre-
sent condition Of the affairs Of the company these bonds
cannot be paid when due that circumstances abso-
lutely forbid 1T that they hoped there would have
been surplus Of cash hand, after exte nding the
road to Binghampton to provide for the payment of
these certificates but the difficult aud expensive
character of the work prevented it. This is an ad-
mission which have been long looking for from this
company, as the directors were aware, many months
ago. that the Of the would be com.
pletey exhausted before the first of January and they
knew these claims would not be paid in cash. It would
have been much better to have said then than to
have waited and finally tell their creditors that the
right reserved by tie company to exchange the GER
tfcstes for bonds as coed on the 1ss January
1S49, as at any time previous This the holders of
the certificates deny and able counsel have given It as
their opinion that the right only existed to the
maturity of these evidences of debit that when thew
became due, the right ceased This is clear enough
TO the comprehen sion of any man of common sense.
Of tho holders of these certificates int con-
testing this point. They have waited five years for
their money and, just previous to the time appointed
by the company for payment the company coolly tells
them that they have no money, and cannot pay them
ash I,rt 10 1ad 20
served rights and give the holders bonds payable five
years hence for the certificates when DUE Instead Of
receiving money, dollar for dollar, bonds are Offer
ed, which, If put upon the market, would not bring
seventy cents the dollar, particularly when the
mortgage bonds, secured by all the property of the
concern, sellin at seven per cent below par Ia
that any equivalent for the long and large OUTLAY or
money by the holders Of there certificates or
Of debt? If the Erie Railroad Company pay all its |
debts in this way the evidence Of its
will find . very low level in the market In cor
nection with this matter it may be well for those
to bear in mind the Acknowledgement Of
The company, that it has hand no money that the
extension of the road to Binghampton has exhausted
Ito resources This Is an admission that one hundred
and six miles of road have cost in cash to con-
tractors six millions Of dollars independent OF the
ssue Of stock beyond the three millions subscribed
hampton, including little grading west Of Bingham
ton, Is as follows
New YoRK AND ERIE RAIrnoip-PaEsENr Cosr,
Amount of subscription stock. 900 00o |
Amount of stock issued to contractors. 100000
Amount Of mortgage bonds issued. 5000 900
mount Of old debt, with interest. 65OOO0
Amount of consolidated stock. ......... 100000
Cost to present .tock holders SO, 400 900
hnquished. 3,750000
Total cost of road up to January 1st 1S4o
yr raturs for this immense amount expended this
company have two hundred miles Of road single
track completed, which 1t intends putting into
operation on the LIST Of January. On this 200 miles
of road the company must 900 gross give
them net revenue of $3.50 AN amou Mt necessary
to nav tho interest on the aggregate indebtedness
In the addresses which the present company have from
time TO time made within the past three years it has
been stated that only six millions Of dollars
necessary to complete the road from the Hudson
rter to Lake Erie When the books for the three mil
lions, subscription opened the company. in an
address to the public, showed-no doubt to the salts
factieu Of those who became subscribers-that the
road could be completed for six millions Of dollars
of which was to be raised by issue of STOCK
and one. half by an issue ST bonds. The six millions
vera raised in the manner proposed; but it has oil
he's spept and less than half the road finished II
there statements can be disproved, the company Is
hound to do So If they are facts, those interested
should not be kept in ignorance. The company have
kent the public entirely in the dark relative to its
actual condition. No report has been made to the
stockholders during the three years and half
the present management have been in power and
auy impression heretofore formed opinion expressed
has been upon verbal statements made by some
of the company. Every thing had been done to en-
courage the completion of this work. it has been fos
tered by people Of this city and State and the con-
fdence placed in the present direction has been
abused. We have deep interest in this work, and
nave done everything in power to aid and support
H. and when we the work upon the eve OF another
hreak down, It becomes our duty to point QUE the