The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-25
THE ERIE RAILROAD.

kept it up until daylight.
THE ERIE RAILROAD.
~~->->->->~~-~~~-~.S~~~
Report Of the President Of the Company
Touching the Litigation and the Accident.
Mr.. John S. Eldridge, President Of the Erie Rail-
road Corporation, has addressed special report TO
the Board Of Directors recitng the leading to
the recent complicated litigation and their share of
responsibility for the late deplorabe accident. Mr..
Eldridge says
In the report OF the Executive Committee to the
Board on the 9th OF March last, they informed the
upon them on the 10th Of February last, author
lied the convertible bonds Of the company to the
millions Of dollars of these bonds were sold on
the 10th day OF February last. Very soon after the
oT these benSs they % were into
common stock OF the company. Feeling assured
that best interests required the sale OF the ad
ditiOnal $4,000, 900 which had been authorized, the
sale Of this additional amount was completed on the
Sd day Of March last. These bonds all have realized
the sum OF $725O,O00. 1t the object In creating
this fund TO 1t to be speedily expended upon
the road in the manner pointed out In the report OF
March o which was to lay double track along the
Of traffic must ow, OF steel rails The accomplishment
OF this however, with other much needed improve
says:-"On the afternoon OF the very day in which
our last report was made or on the next day. can
served upon the Company Identical in form, emanat.
Ing from two separate judges, restraining US from
holding meetings Of the Board or OF the Executive
Committee, also restraining US from the fur
Their issues OF convertible bonds, from con-
verting. any convertible bonds already issued,
stock, from leasing any new roads and from capital
izing any existing. leases by exchange OF stock"
Board has since been secured, but the exercise OF
other rights conferred by the Statutes OF u State Of
New York Is still unjustly withheld. &c report
flrth fha IF tho HI p1vap
and New York Central Railroad companies under the
same law appended to the report, in issuing con-
evidence OF the right Of the Erie corporation to act
as 1t has. The report further submits the act respect
Ing the conversion OF stock on leased roads, refers to
the Investigations which have been made into the az
fairs Of the company both at Albany, and In the
course Of the complex litigation here the bill Of relief
just passed, and closes as follows -
1t is my painful duty to report to you that the
most disastrous and most alicting accident that has
Delaware division The details, as far as known to
me- will be found In the letter of Mr. Riddle, here
with submitted An accident accompanied with SO
much loss Of life and suffering, all caused by the
breaking of an iron rail on the part Of our road most
crowded by trains by Of there being but single
track, painfully reminds that we cannot hasten
the completion OF the double track of that
division with steel rails. 1t gives me pleasure TO be
able to state that the Officers and agents OF the road
In their care for the sufferers and that everything that
skill and sympathy could do has been done for Them
attention Of the Board to the fact that the company
is now possessed Of large fund, which the Legsla-
their roa ana in o
way. The judicious and speedy expenditure OF
this fund in the manner pointed out by the
report OF the 9th March, is undoubtedly called for by
the best interests Of the Erie Railway Company. And
when the storms OF the present dispute are blown
financial step which got for the Erie Railway over
seven millions of dollars to be expended IN double
tracks, steel rails, equipment and proper ternni,
revenues, was not only wisely taken, but has pro-
duced results Of which every gentleman who sane
Appended to the report are the following acts and
parts OF acts granting certain powers to the Erie cor
poration and the report OF the General Superntend
ent regarding the late accident at Port Jervis -
THE POWER TO ISSUE CoNvERrIBLE BONDS.
Extract from IAN act to authorize the formation OF
railroad corporations and to regulate the same"
SECTION %. Every corporation formed under this
porations In the third title or the eighteenth chapter
| Of the Revised Statutes, have power
| money as may be necessary for completing and
finishing operating their railroad, and TO issue
and dispose OF their bonds for any amount 80 bor-
r0wed, and to mortgage their corporate property
and franchises to secure the payment of any debt
contracted by the company for the purposes afore-
said, and the directors of the company may confer
| on any holder of any bond issued for money Dor.
rowed as aforesaid the right to convert the principal
any time not exceeding ten years from the GATE OF
the bond, under such regulations az the directors
SEC. AZ. All existing railroad corporations within
this State shall respectively have and possess all the
powers and privileges contained in this act; and
and provisions not inconsistent with the
provisions OF their charter contained in sections
teen, eighteen, nineteen, twenty, twenty one,
twenty-tnree. twentyiour, twenty-five TWEEN, TWEEN
division nine), thirty thrty-one, thiry-tw0, thirty
three, thrty-four thirty five, thirty-sx. thirty
seven, thirty-eight thirty nine, forty, fortyone,
forytwo, fortythree, fory-our, fortydve, iorysix,
An act in relation to railroads held under lease.
Passed April 3, 1867, three-nftlls being present.:
SECTION !. Any railroad corporation created by
the laws of this State or its Successors being
the lessee OF the road of any other railroad corpora
stock OF the stockholders, or any Of them,
| In the corporation whose road IL held I'm
ae se NJ o ~ ow nercCa rn
stock at par or on such other terms and condi-
tons as may be agreed upon between the two corp0-
rations; and whenever the greater part Of the capt.
tai stock OF any such corporation shall have been
surrendered or transferred the directors OF the corpo
ration taking such surrender OF transfer shall there
ncr on resolution clccting so to do TO be entered
on their minutes, become er 0cct0 the directors OF
| the corporation whose road Is 80 held under
lease, and shall manage and conduct the AZ
| fairs thereof as provided by law; and whenever
| the whole Of the said capital stock shall
have been so surrendered or transferred, and
ticate thereof lied In the Office OF Secretary Of State
under the common seal OF the corporation to whom
such surrender or transfer shall have been made the
/ the said corporation whose stock shall have been
surrendered or transferred shall thereupon vest in
| and be held and enjoyed by the said cor
| poratlon to whom such surrender trans
| fer shall have been made, az fully and
| entirely, and without charge or Elimination o.
| the same we're before held and enjoyed, and be
managed and controlled by the board OF directors Of
l the SAID corporation to whom such surrender OF
transfer Of the said stock shall have been made, and
1 In the corporate name OF such corporation. Tho
/ rights OF any stakeholder not 80 surrendering or
transferring his stock shall not he in way affected
hereby, shall existing liabilities or the rights OF
creditors of the corporation, where stock shall have
been 80 surrendered transferred, be In any way
| affected or impaired by this act.
| SEC. 2. This act shall take effect Immediately.
| RESTRICTING THE USE OF THE CoNvERTED BONDS.
| An act in relation 20 the Eric, New York Central,
| Hudson River ami Harlem Railway companies