New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-10-15
THE ERIE RAILROAD.
MEETING OF STOCK AND BoNDHoLDERs


assembled in response TO cal signed by the President
and Secretary of the Company 10 take measures for
tbe relief Of the Company from its embarrassment
xrowipg out Of the prOtes. Of its psper, announced
some days since.
In the absence Of the President, Mr.. Mor,n, who
wss kept away from the meeting by the death OF
member Of bis family, Mr. Cbas. A. Davis was called
10 the chair.
On taking the chair Mr.. Davis said tha. he should
no, attempt TO occupy their time by giving details OF
The business Of the Company, and Of the measures
psopssed for s relief he would merely state the fact
that be considered the Erie Railroad was Of the most
vast Importance TO the State Of NewYork, and were
he 10 choose between tho stopping OF navigation al
Sandy Hook .and through the Sound on the one hand
or the escrifce and destruction Of the Enc Railroad
90 the other he would, regarding the interests OF tois
city sacrifice the advantages to accrue from the two
hrst rather than those accruing from the last. We
could get along without banks aud without foreign
commerce but II would be very difficult without tue
Erie RAILROAD IN all seasons OF the year 70 convey Inc
necessary supplies OF breadstus from the West to the
hungry stomachs here. He had seen and heard the
Erie Canal auded at the time Of its construction but he
regarded il of inferior importance, when compare
g the Erie Railroad and he thought that stockholders
and bondholders seeing the importance and value of
the road should not stand by and see 80 valuable
piece Of property sacrificed. Three weeks hence the
canal would be closed and then their only dependence
Tor supplies would be upon the Erie Railroad. Inc
Central Railroad they could not depend upon, because
L was the natural channel for communication with
New-EDgand and not with New-York. Its natural
terminus was in Boston rather than here.
MIR. Lsthers, the Chairman of the Finance Commit
see then took the stand. He compared the positions
Of the directors and bondhodes, at the present time
70 those Of the Sybn and Tarqun, in the history of
Rome when the former for the third time presente
hsrse before Tarquin with bat the third of the books
she had originally offered him. Pie question was
whether they should allow twenty two millions OF
dollars Of property TO be sacrificed when 1t was IN ther
power to prevent it. With everything else, the Erie
Railroad had gone protest, though the property was
to-day earning an income which this year would be
ak and a hall millions. The running expenses Of the
road were but three anda half mill ms, which would
leave net income of three millions OF dollars. Inc
interest thirteen millions mortgage bonds was
500 900, leaving two million and ninety thousand
dollars. OF this amount four hundred and twenty
thousand dollars went into the Sinking F1nd The in
ferest six millions fourth mortgage bonds was
hike amount and the interest on eight millions other
bonds amounted to five hundred and sixty thousand,
and these deducted from two million and ninety
thousand would leave for dividend in stock now SELL
ing at from seven 10 ten, six hundred and ninety
thousand dollars the net income. ADD TO that
amount the four hundred aud twenty thousand paid ibto
the Sinking Fund, and they bad 81 ITO QUO which was
10 Der cent earnings TO stockholders But allowing
that he had over estimated the receipts five hundred
thousand dollars, there would still be five per cent
after paying interest upon the unsecured bonds which
were now selling for 70.
The speaker then gave his reasons why the read
was involved, road while il was making sucn earnings
He said the increase IF travel and transportation had
been gfea. that it overtaxed the roads means to
render It's usefulness commensurate with the demaod
for il az of transportation The affairs OF the
road, he said were Lot at all understood, and there
was q willfu ignorance upon which were based
al the misrepresentation Of men as to the
true facts. The value Of property was in proper
ton to its usefulness to the pubic. Whenever
it usefulness ceased and no income resulted, tire
capital invested in that property was sunk II the
Ere Railroad had cost but three Millions and did not
make an income, 1t would be to attempt to
sustain il. But it had been demonstrated that the in
the road had increased yearly sioce 1t reached
Lake Erie, and its usefulness was only circu nscr6ed
by its present wants and conveniences. double
track would double its business. The completion OF
the improvements at jersey City would increase their
business million of dollars. The value OF property
increased with the permanency Of its income. The
National debt of England was valuable to its credl.
tors because the income sure though the capital
was all gone-spent long ago IN powder and ball.
But the Erie Road silt had its capital in existence lts
property was tangible, and its income was large ana
Increasing. There was 10 parallel road to II, ana
never would be, so long Erie bonds sell for 20.
MIR. Lathers then proceeded TO state the manner IN
which the Directors proposed relief If person pur'
chased two Of the proposed six million bonds they
would take in payment for it one of the unsecured
Dor DE- for OOO which could be purchased for 5000,
and 81 600 in cash making Fl 200; ana the payment
OF this thousand made 10 spread over series OF
months, and the aggregate cost Of the two bonds
would be at the rate of 5000 EACH The bonded debt,
secured by mortgage, which would come In as prior
ben TO this six millions, would be thirteen millions.
Ihis SIX millions would increase the amount OF mort
gage 10 nineteen millions and if the road paid an IN,
come on the investment of nearly forty millions, ana
made an Income OF ten per cent on its capital AFTER
paying all the Indebtedness was it absurd TO say that
they would be able to pay income OF nineteen mil
Mons, and, even If the road should 90 into the
hands OF receiver, the debt, he commended, would
be perfectly secure. The first payments of the thou
SAND dollars would not be required until December,
and the instalments would continue for a course OF
sveral mouths and the payments were perfectly easy
70 those who subscribed. They had only to subscribe
me amount requisite, and tn stock would treble in
Ssue' Nothing kept them down but the want of con-
naenee shown IN the stock by the holders themselves.
ihS temporary rise IN the stock which had taken place
to-day on W all street not attributed as many sup
poeed, 70 the suspension Of the banks but on the
contrary 70 belief engendeIed in Wall street that
this meeting would amount TO something, and that
there would be liberal substitution toward the
1akirg up the ak millions.
The Speaker in the remaining portion of his remarks
alluded 10 the Importance ana value of railroads. he
said had just passed through the ordeal which the
railroads Of England experienced under the raos sd
kn e. where now railroad stocks We're regarded the
most profitable and best investments in the country
Railroads having good locations could not fail TO be
excellent investments, and it only wanted the stock
holders 10 show sufficient inte gence TO protect the To-
tsrests which they had now imperlled to place them
in short space Of time in as good footing as any
Mr.. Murray, of the Seventh Ward, asked if relief
might not be afforded by bondholiers giving their
coupons Tor the coming four years.
Mi; LatneIs said that they would rot be available
SI lno Ieuei OF the company. Tney wanted lmme-
.Aie renei. The suggestion, however, was valuable
10 CERTAIN extent. The coupons coming due this
ard that would aid. ~
Mr.. Murphy ssid he did not make the sncye.tion n
be exclusion OF The other, but so additional means
% aid them IN securing the sraoult wanted.
Judge Rugges next made "a iateres,iny soaa,h
He alluded 70 his connection with he mad fSnr
yeais ago, when be contributed the sum Of ,Ssl TO-
ward procuring survey OF the route, and subse-
cuentIy when he became q s.OekhoIdar 81 a,,
and his fian0ssl ofh -