Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-08-18
New York and Erie Railroad.

The heavy hand OF memorable law has at
last been laid upon the New York and Erie
Railroad Company. The Supreme Court of
New York has granted the application for the
appointment OF ii receiver under the fourth
mortgage, the bOndholders thereof being the
plaintiffs. For some years past the corpora
ton has been hOpelessly insolvent, aud only
by the most desperate financial shifts, have
the managers been able to meet their accru-
ing obligations President, Directors, Treas
urer and Secretary have all been absorbed in
one unceasing chase after cash, to pay debts
upon debts coming up daily by regiments.
As for making any actual Roadway, no one
has ever dreamed of that, the only possibility
being the stavirg off the evil day, and keep
ing possession of the road. The Company
has been overwhelmed by a mountain of debt,
reaching to several times the actual stock
capital, incurred first to finish and put the
road i'll operation, then TO build branches and
tributaries, next to aid in the construction of
extensions i'll Pennsylvania, Ohio, ETC., and
above all, to maintain such rivalry of the
other lines, as to make the Erie the ruling
road.
When Charles Moran was chosen president
it was supposed that his great financial skill
and the resources at his command, would en-
able him to bring order out OF chaos, and
give the company firm basis. But instead
of doing so he has managed to swamp the
concern irretrievably, so that his presidency
has been a lamentabe failure. 1t may well
be doubted whether any man could have
saved the Eric, but it 10 quite clear that Mr..
Moran's reckless proceedings have fastened
the calamity, and that, in fact, the company,
was worse off for having such great imam
cier at it's head than it would have been in
the hands of some plain, common-sense, mer-
chant.
The Erie did not earn enough money
IL a.. 4 A.
By the appointment ola receiver, the holders
OF the fourth mortgage bonds become the
custodians OF the road. and assume the re-
sponsibility OF its management. They must
now make ii earn enough money to pay its
own expenses. and the interest on the other
mortgages. We doubt the ability of the road
to do this, and hence we believe that this
bankruptcy will, at no distant day, be follow
ed by another. The company may stand on
its first and second mortgages, but that is
about as much capital as il can manage.
This road was built along a route which
was originally a competitor for the Erie
Canal. The northern line having been pre-
ferred, this southerly route was neglected
until railroad was projected TO be built
along it, Undertaken with inadequate means,
it struggled along doubtiully through many
tedious years, and the men who began and
pushed 1t formard were thrown aside by
others long before it reached completion.
All sorts of sacrifices were made to get ii
built, and these caused its career from the
start to be clumsy and disgraceiul. For
many years past, the shares have been consi-
der,d fancy article in the stock market
Spectators have showed it up or down to
suit themselves, and many Philadelphians
have been concerned i'll these operations
Whether any OF them have been caught, we
are unable 10 say. But undoubtedly there
utust ha Thousands Of sufferers nv this
calamity. especially those who have held the
shares in hopes of the stock ultimately be-
coming valuable Philadelphia North Ameri-
rim