New-York tribune., 1870-04-19
FISK-BURT-ERIE.
COL. FISK. JR., AS A CONTRIBUTOR.
HIS TEST ESSAY on ERIE.
m. Edtlor Of FRe Tribune.

xaT N'@N~f-~NN
sse Erie Corporation through the medium Of your col
80. and while correcting the false impressions which
sve hitherto prevailed in certain quarters, viii endeavor
socouorm to your rules for contributors and oOnne my
M to the space 80 literally allotted In order TO save as
pch room as possible for myself shall not repeat your
uestiOns You require "dreet and thorough answers
lere they are ~.
have been one OF the Ieading Directors O. 'he Ie
spafroad%ince July, 1868.
The common stock Of the road on the day became
% AZ the chosen s35OOO OoO and the capital stock
-1,be Hudson River and NewYork iCentral Roads was
ut slo OOO0 To-day, the capital stock Of the Erie Is
~ naeo while the stock and scrip OF the Hudson River
"a Nev-York Central amount TO fully S900o0OoO. The
.oso on Erie has been devoted to renewing rolling
- rerecting equipment, aud improving facilities for
,lvrr New-York Buffalo, and other large cities, with
r upply Of Coal al greatly reduced prices; lay
el rails etc, and repairing the ruin brought about
- criminal mismanagement Of our predecessors; !;
- ,,e vanderbilt lines have not a single additional
.n,ne or anything in the way Of increased equip
-. a. show for the increase in their stock.
sn. total indebtedness Of the Erie Company az the
,.asss date was about s37,OOOOO0 of which all but
a. oo ,o was unfunded, floating liabilities The present
,,sbtedness is $SOOO0O or, deductng securities now
m hand 10 the amount Of SooO00O, there is net indebt
sspess Of about t17,OOO.OoO
The earnings since July, 1868, have been s2oOO0OOO
m road has not earned any dividends and consequently
been palQ. ldu we not Dccn ODgeQ 10 elcuu
the enormous sums have in order TO make the road
safe for public travel, could have paid dividends
The last Erie dividend paid at the price Of the Carrs
Rock disaster which, you will please bear in mind hap
pened under the administration OF President Edredge
although the expense of II about SOOOOO has been paid
under ours Better that stockholders should be required
70 wait until dividend is fairly earned, than that the
Ives Of the patrons Of the road should be sacrificed TO
satisfy their unreasonable demands. What do you think,
III Editor
Not much as single cent has been devoted 10 the
rrhase Of the opera house. &C. the Of Eighth
sye and Twenty thirdst, for any other than the
,egtinate purposes OF the corporation.
G Such Of legislators as have not been rewarded
according TO their desertf in this world Will be in tie
next AT least it is to be hoped No money has been
paid to chose connected with legislation" by this corpO
don, in Albany or elsewhere, as insinuated in your
query
lam delighted at the opportunity you so kindly afford
ne ventatng the chief for the depreciation
q Erie stock. Principal among them is the folowing
rnder the Drew-yanderbIt dynasty the Erie was in
lcted with Of the most outrageous swindles ever
prpetrated any cOrporatiOn-the guaranteeing and
purchase Of stock Of Vanderbilt and the purchase Of the
Boston, Hartford and Erie bonds together with the large
snOnn paid to Vanderbilt, sche, and Work, for their
bsss In stock gambling operations Having published
Tey full and accurate reports Of the testimony in the
I have instituted for the recovery Of the puroined
money, you do not require any further posting this
Ld The result Of these swindles perpetrated by Drew
Ei Vanderbilt by the advice and with the sanction Of
Essns d. B. Eaton and Wm. NJ Evarts, as counsel, de-
psted tie Erie Treasury to the exent Of upward #
E&eaOOo Having received enormous fees coun Oh
M the Company-Teceipts for which file, and can
reproduced al any tme-and having assisted in plunder
agte treasury Of the bottom dollar Messrs Eaton and
ITus have now entered the service Of Vanderbilt and
sLOndOn stock obbers, and at present paid 10 DO
ain their power to deprecate the stock and damage
tic credit Of this corporation Are not the above alone
sod and sufficient for the decline in the stock
Tie only wonder is that Mr. Gould has been able to
teate the Company from ruin and save it from total
bankruptcy.
slam happy 70 inform you, however, that in spite of
stha has been done by the enemies OF Erie the affairs
Of ce Company in a very prosperous condition, and
lis credit rests upon more substantial basis than at
asypeTiOa perod-Burt Co. TO the contrary notwith
standing.
II must be borne in mind, however. that we com
hating gigantic combination, representing the Oldest
and berest antagonists Of the Company, and the oppO
Gon OF parties in the interest OF rival lines who are
SOus Of growing prosperity and popularity; and
that our enemies on this side tare making strenuous
tsor through clique OFF London stockholders TO use
G English interest a catspaw; and ii yet remains to
b seen whether the Vaccinations nd conspracies of
lis hungry horde OF spectators and monopOlists can
ed before we can answer confidently as to whether
TIE rOsd is likely to pay its stockholders any dividend
L l5Oi and. il not, why not"
50 far a. myself and my associates are concerned, Mt
LdtOr. we have single purpose TO accomplish; ana
tat by managing the road well and economically, and
fy developing its resources to put 1t In condition TO
perform obligations TO the public as the great nigh
way OF this continent and 70 pay dividends to its stock
holders az they can be fairly ana honestly 90
Jared No greater more disastrous, or more criminal
rlgtake can be made in rGto0y management H0h u'e
freae Of q diviGend at the eypense Of the road
There is no law TO prevent stockholders from electing
directors annually; and i, for one should object TO the
passage OF any such law. Stockholders can elect direct
On annually or classify them in accordance with the law
rstnc the rotation Of directors. This same Classih-
taou bin which has been abused by one of your eoem-
prses without rhyme or reason is of English origin,
d was found TO be so beneficial in its operation on the
oer sde that il was introduced into this country by
humber Of English capitalists, who owned controulhS
Interest in the Illinois Central Applied ITO that Hne' II
ut with the approval Of our principal practical railroad
Esl and It's application is fast becoming general
Is for such law are obvious, its main OBJECT
bng TO furnish an experienced and competent manage
usnt beyond the control of speculative influences The
ks ss adopted in Pennsylvania Ohio, Illinois, Iowa,
E.eOnsin and New-York is modelled onthe English orig
La, Of which the following is the pith
ls ya Cap lsAa Act for consolidating one act eerta.
-gu ineoporass earring undertaking. Of public ns
sls-Msy 8. lS45
And with respect TO the appointment and rotation Of
Directors. he it enacted as follows;
ROTATION OF DIRECTORS.
The Directors appointed b. the special act and continued N
~ sad TIE Directors elected to supply tbe ps9ss o. icC
rrg arsd shall, subject 70 the provnon herenbeio con
We bi neaang reducing the number Of DreoFs IeIe ron m
80 tbc AID proportions following the 70
g each determined By ballot among the Droors w
- @,g klal ottsryis. sgree-ttat s 70 say; a. -
a. e e o. the fr year se the rs election OF Directors te ps
auuri anu no number be presSnbe one nc o. nen %
% - BE- determined By ballot bemseiVe unless lhy shs'i
'-srE'S sgee, shall 90 out Of Office
h act then goes on 70 provide that at the end Of the
second year oRehaf of the remaining Directors shall go