New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-04-25
THE GREAT ERIE WAR.

caused TO he published and submitted to his associates
eomprehensye yet concise review of the operations Of
the road during the time that he has been the chief
scutiye The document is well worthy the consideration
of the public who will be well pleased when practical
eet given TO the suggestions contained therein The
report embraces plain statement Of the questions which
present occupy much The attention Of the reading
aud travelling community, and which were brought to
the notice Of these by the proceedings in the Courts
The report is follows:
In the report Of the Executive Committee to the Board
on the yh Of March last they informed the Board that
they h2d under the powers conferred upon them the
th Of February last authorized the convertible bonds OF
sold Five million OF dollars Of these bonds were sold on
he 18th day 81 February last Very soon after the receipt
by the Treasurer ~ company Of the money for these
bonds they converted into the stock of the
company Feeling assured that our best interests required
the sale OF the additional which had been author
ice, the sale Of this P.ditio9a amount was completed
Used the sum Of $725oOO0 II the object in CREATING
this fund to cause 1t to be speedy e1PGnded qp" the
inc $50 ,',4 o M lTrt i attacked ; o 5ee d
Iccrate that long before the sales made the Ex
exutiye Committee and other officers of tho Company and
members Of the Board had contemplated thehecessity OF
such expenditures. unless proposed to abandon COM
petition for traffic at points where we had rivals AS
the r2ngc OF INQUIRIES IN 6ne STS Ts
of some years standing, deem proper TO myself ana
its Executive Committee connected with the Eric
Railway for the first time ON the eighth day of October
tons such members could lay claim if there were de-
and such they not
Justly ehargeAbe with them. Strangers 70 details the
members first occupied In learning the routine
business and the general working of the afninstra
1--we machinery on TIE corporation C0lslaSIlng tnt
there are nearly 10000 names ON the COmpanys
pay rolls, aud that the monthly expcn-
ditmes for operating expenses are about SNO.OeO,
II Will be conceded that We BAD work TO occupy
piShcd, ia to enable the Erie Railway to com
pete on even forms with its rivals common business pn
uCBcC required large OutaYs for construction on the line
" The road and at its NewYork terminus The Delaware
Division is as as been well said The narrow neck OF me
haff tNrlf f1p VIII Of
How. THIS. clear ought TO Ice tracked with
seeirals The average life OF an IRON rail- on me road Is
RbOEt fOur The average life Of steel rail Is Known
Ia Dc atas Eve tunes great aud as the difference in
cost is rather less than two 20 one II plain that econ
Omy demanded that renewals should beln STEEL 50 FAR rs
the limited manufacture OF tat article would permit IL
also clear that the other outlay in the
report OF M.c must be made sooB II we inend tnat
the ere shoHiu feiilt ttal LAS Iod., c9nIucnsS
invite the scrutiny VI re Stockh0dets 70 thc JuuclO9S
ness and economy ef an these proposed outlays and
they are not essential to tAe prosperity OF INC Ere KAN
way aad that prudent economy does not demand that
they sLall be NudC soon as possible. Accompanying
the report ol Ndlch . was report OF lt, halie,
showing TIC calamtous effect of the Winter upon
Our track. Mr. Riddle was before his apponunent rs
General superintendent, the Division Superintendent on
the Delaware division for many years and no officer in
he is s report though entitled from his high personal
nh'd,5yl az, AS i1 ~, y. a. t "
ment II is due 70 him thai should rcerate my eonyic
tons that IL entirely correct at that time and may
furthers y that also good believe that
the condition OF many other roads the that
March you gave the President power apply the funds
realized by the sale OF the convertible bonds TO the OBJ
tees askco Tor IN the report ol the ENecluve COM
lnitee, and you adjourned IN the confident eNpecta
that before the meeting steel rails would he
gradually taking the place OF IRON on the track that
The work would Dc forwarded up0u doubling the capacity
of the Delaware neck and that the plans for sorehouses
aud elevators which lao been 50 long ia the pigeon holes
Of the Executive Committee, would be IN the hands OF
tined disappointment the afternoon Of the very day
in which our last report was made or on The next day
cannot say from memory which. TWO iu1unctOnS were
served upon the Company identical in form, eJnanaug
irnn Two separate JadseS restraining ls IRON Gola'
II fVt uN q
mttec also restraining from further issues Of Con
vertihle Bonds, from converting any Convertible
Bonds already issued from increasing the amount Of
the capital stock, from leasing any new roads aud from
We secured tie right hold meetings OF the Board.
and OF the Executive Committee; but we are sim shut
ont from the exercise of the other rights conferred upon
10y che statutes OF the state Of Newly York, which
Appendix A. Hereto attached Won viii md the statutes
OF this State under which the Eric Railway Company de-
vert those bonds into stock The NewYork Central Rail
road Company and the Hudson River Railroad Company
have each repeatedly acted upon the construction
of these laws that We lave adopted, ana have
no doubt that tIey and their officers agree with
in construction. The power
been seriously Questioned until it became the interest
that we sal confidently Insist when the iue comes for
presenting our to the honorable justices who have
require that rights in these respects conferred upon
by the laws OF New York, ana by tho stockholders
vested IN YOU hu be restored Asto TIC restraint upon
leases. and the conversion OF the stock of leased roads
submit herewith, III Appendix b. the statutes under
which the power make such conversions is vested in
the company, adI SHAH direct Our counsel 1T proper
permit Us % exercise what conceive udoubted
rights under the statute And if We can secure
stock. feel confident thar stakeholder not inter
ested il stock peculaons will say that we have done
right On the day OF the last meeting Of the Board di
recty after the ADJOURNMENT an inquiry into the affairs
Of The Company was begun before committee OF rhe
Senate Of NewYOrS. TINS inquiry conducted parity
ia New-York and uaytly Albany. The Erie Railway
and the New York Central Railroad Companies each
represented att by COUNSEL aud several witnesses
examined, oi them at great length The inquiry
extended over the whole OF the late administration
well as my own IS the Whole Of this testimony has been
prlpteJ IN pamphlet foyp DO not think it worth Willie
mted the Senate with the testimony-tie orc con
dcmniug our action IN issuing the Sl06OO,OJO Con-
yertblc Bonds-tle other justilylng IT, The Senate
by decided majority rejected the cOndcnatoy resou-
tons reported with the irst report and have passed
act which has alsopassed the Assembly and has been
approved by Tic Governor copy Of which is herewith
mcnded on The report which justified our action Stimuli
against several members OF me Board were commenced
ia York for ale ged contempt OF thirst have
furnished the counsel on both sides with the opportunity
10 make INTO variety OF matters
About the time also steps taken ad-
the sale Of the Convertbie Boils An appeal IRON the
order granting the motion ha been argued NJ the Gen
are awaiting the decision. In consequence OF these
several proceedings, have not thought it prudent
deeply depore the necessity which has arrested this
money IN tie Treasury when IL IS 50 much wanted the
road IL is ny painful duty To report to you that the
most disastrous ana most affecting accident that has ever
Division The details, lar known 10 me, win be
found in the letter OF Nj Riddle. herewith
submitted in Appendix d. An accident. accom-
panied with so much loss Of life and suffering all
caused by the breaking OF iron rail the
part of our road most crowded by trains by reason OF
there being but single track painfully reminds that
cannot hasten too the completion Of the double
track OF that division with steel rails IL gives me pleas
ure able state that the officers and agents OF
road and the people OF Port Jeryls have been uremttng
IN their the sufferers, and that every thing that
skill and sympathy could do has been done for them
closing TINS report, beg particularly TO call the atei
ono the Board TO the iacl that the Company now pos
BesSed OF large fund which tie Legislature has directed