New-York tribune., 1868-04-29
TIIE EKIE WAX,
Ts N, E,iifor Of II, Ty,gau,

THE ERIE WAR.
10 h> Editor Of TAs T1saH.
SIR: The report from Mr.. John l.. Eldrdce.
President ~ fho Erie Railway Co, published IN yonr i'm
pressoh OF Saturday Is mol plain, nnyarushcd tale ~
everybody knows Mr.. Edrdcr. however furnishes
copies Of the statutes Of the State Of Newlork under
which he and his co4irectors clam 10 act and 1t is With
reference 10 these statutes that ask spare ~ few
words The statute Of April 2, 1870 permits railway
companies" (meaung by vote al The s"ckhodersl
completing and finishing or Opcraiing their roads, mud
the directors" inay make the bonds issued against the
mortgages convertible into shares within ~ years OF their
dhte The same statute fxc" the nerIol for Finishing
plcted aud finished within the required tmc pOwOr
OF borrowing money upon mortgage ceases except for
Opcrntlng the road Ah The lime hNcd Tor " "fni-iUg'
the Erie hne expired some years ago. the time for
Ing mortgages has also ceased long tbs receipts
snlceIt to operate" the road The ouy legal method.
under the act OF 1880, Is under SrctOn OF the act
@ %heh provides ihat IA the event Of tho capital ,toek
pany may with the concurrence OF TIVE ohrds IN amount
Of a It's stockholders, increase us captalstUcK from
To time To any amount required for the purposes aiore
SAID IL IN not possible under Section ~ paragraph 10,
which Mr. Eldrldgo quotes Tor tho Erie halfway Com,
atng mortgage one hour and the next hour converting
the bonds Issued against that mortgage IL Illegal In
ways than aud the socalled Rehe Of the Legs
ture OF April a. 1899 does not mend matters. for the
pass any taeto law, law impaing the obligation
Of contracts" The Act Of April 1851 concerning leased
lines s at tins Juneture OF much Significance II the Erie
directors avail themselves Of paragraph TO- Section
2s OF the Act OF April 1850, they can, with esen loss
straning, avail themselves Of the Act Of
April 3, 1867. That Act empowers any com
paDy controlling leased lines to exchange ihe
shares OF the leased companies lines for W shares at
par The Ere directors then may HoOd the market with
Ee shares issued against the cancelled shareB Of all the
leased lines know whether the AtlaDtc and Groat
western line has been leased by the Erie directors Bus
y rs =, Importance to the pa6e to EpoS whether thst
outstanding shares Of the Atlantic and Great Western
Company reach nearly S00OO0O0 IL that Company 10
bo swallowed up by the Erie line, TO complete tho broad
gauge sysem ana It's shares exchanged for Erie sares
sSO0OO0 OF resh Erie shares, nom that source alone
viii be thrown upon the market. Most OF the Atlantic
and Great Western shares arc ypotheoated Ia England
Mr. Elddge is beside being Presdent OF the Erie line,
director In the Atlantic and Great western line. lie s
therefore, douby oompeteDt 10 explain the poston OF
the two lines other aud lie should have done
30 IN bis report Tho exchanging Of worthless Atlantic
aud Great Western shares which never had n market
value for Erie shares wOud only be good operation
Tor parties securing the Atlantis aud Great Western sares
for mere song but a the same time t would assist tho
"beafs" I'm Wallst, and enable the possessors OF the
Atlantic and Great Western shares converted INTO Eric
shares, from their enormous amount 10 Outvote Mr.
Vanderbilt and hts friends and reflect Mr. Eldridge aud
his friends at the election for Erie Directors To be held
next October That having been accomplished the
parties WHO haYe purchased W Elglsld recently, sul