New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-24
THE ERIE WAR.
Jay GOLD IN DEFENSE OF THE ERIE MANAGE
MENT.

A
Bur,s srgumen, for the repeal Of the socaled Erie
bill:
GENTLEMEN: In replying TO the charges made against
the present management OF the Ere fawsy oy one VINO
a,ms 10 represent large majority OF stockholders resi-
dent IN Eugisnd shall state only such facts as are
sapssc 81 Ss ne OF truth and Justice and
carry conviction 10 the minds OF all who hear me- o, ,a
nv associates so boldly made before THIS Commute Tee
Jgrsf: claim that the real clients OF N.Y. BUR- are W.
jewish on she eroceedns was oBaned by and
fraud and that Mr.. Burt represents 9ny s P,rt o
issth loo shares Heath o EspA nss rS S;I
.ioe,a Letters from London stockholders err.
nave been received, protesting aga .an,,r ,'e
m,uons OF Ere stock which are carrying
,n Iondon was compelled by resolution OF .he Lon,
don stock Sare 70 Mr. Burts Committee TO fight my
u Now this Committee propose 70 go s'ep IurIeI,
nd compel n az the Londe Stock Exchange
~ register that stock IN the name OF heath s No
sre atc Of Erie stock shall be good delivery except
IL is registered in the name OF these gentlemen nom
Ddense in hands OF two gentlemen the entire
powe, Of the Erie Rn ,SYey 'GG ndvaas Of this
STOCK Messrs. Heath Raphael nee eo roi not
wS s BoSrd Of Directors TO the affairs and ad
tho wants Of this great oo5PUrrao5 10 p9
london Ii seems that such condition OF things
y conclusive argument o. tne TG91 N, ro ,ns
- nryented from passing into the hands OF
aud irresponsible parties and i Is ssc dea,Ts or ss
NewYork Central Companies either OF when could wen
Iocaze the Erie. much for the origin ana OBJECT Oh
the London movement .. a, ~, Mr.
Hnrt before your Committee. can only say tnat IneS
eonhct with expressions used both IN conversation W
i anu Mr. II. Burt had arrived in NewYork took
Immediate steps afford him every iaeiy ior an -
Services OF an influential gentleman, who called on MT
Mr. my interest aud made 10 nm at ny ns,Ips To-
the most friendly and coneiDatory advances ~
Jake him over the line and show HIM the aclus 10 ,T
81 the GompaSh r B SSp hoyeveS refused to any
intercourse with Erie Directors until tle Genauus y.
es S,S, ~ .Sch 1de and uncourteous treatment and
Determined allow matters 10 take thelr c9ure "i,ou
apparently ashamed Of the position he had at
hrst taken. sent d message 70 me TSquestlnk d
personal interview and asking me 90 call upon Liin
Il seemed to that TINS was lttle more than ne de-
served considering the spirit IN when ne nu eT
differences between US, and willing 10 10 All III my power
Go assist in arriving at settlement Of tine question at
ssne an the controversy compiled with his request and
suT interview took place accordingly 40 relate Az tnab
sry and your patience more than would be either
pleasant profitable Some observations ana admls
ons of Mr. Burt's may however he repeated here He
S and remarked that similar provision
Gss in force on many English railroads He spoke ~
very nsering terms OF myself aud Mr. Fisk going 50 lar
tv and stating his wish that we should remain in
lhe Board Of Directors Hedemanded, on behalf of those
ae represented he should have the nomination and
selection Of u of the II directors, aud binted
at his appointment as Treasurer asked hun
name the parties whom he wished TO include IN the list Of
IreetOrs would influence 10 have them subst
Iued equal number row III the Board also ohered
resign my place as Treasurer saylnE should DC siad
20 have some good responsible man 10 carry on the
Of the road as had been dong hrst. however
alrinG my of Office To these propositions, how
ryer could get Ineligible reply and soon afterward
the interview was closed IL Feualhs LOT Mr. burt 10
reconcile as best he the statements made TO Inc and
TSsr IA 10 the classification bill the repeal which
Mr Burt 80 loudly demands, would that 1t as.
- A.efa- nv 4ftl fN.It
England The principle OF classifying railroad directors
80 thatonly small proportion OF the whole number
would renquish Office each year, first introduced IN
he United States the Illinois Central Railroad. IL
been gradually extended and is now the law IN most
tendency being 20 furnish an experienced ana compe-
tent management beyOud the control OF speculative
influences The only objection made 10 the Law that's
It did in the first instance allow the stockholders TO
Previous 10 the last annual election, however the old
Board of Directors voted 10 invite an expression of
opinion by the stockholders, TO the eHpedlency Of
adopting the classification. meeting was accordingly
held u all or large majority Q, the sI0eoaOdeis ana
meubers accordance with the provisions OF the ll
sde 70 hs enactment by the press either Of this conn
try or OF England has been removed MI Burt does not
III ms TN When the law passed only small mi.
uory OF the stock Of the Enc Railway Company was
Ied m Iugland. Messrs. Raphael & Co. purchased
their stock since the passage OF the law. with
a t9owsdse Of M s1sTee and sppISy D OF
3oriiy stock by an ownership acquired IN few
ITO roih or Establishment Of tins country Whose man
lnotorIes and great In direct autdgon.
IsysEly spent in their National Legislature cripple
aud desoy the manufactures Of this country what more
nal method could they employ than to send over
batch Engshmen 10 run the Erie Road under import
.r restrictions ibat wo9ia crush OUT every % G
gu the Hue OF the Roadf In thlsW oow conlu DC
struck which would do rreparable injury before the mis-
Po,s ~: With regard Encouragement and extrava
GAUGE Il the Erie Railway NOW gentlemen, MT Burt
coOse poiut ont any particular department III which
sacre want Of economy lie does no furnish e'tner
Ntsprp does q
angle practical railroad man 10 sustain tins charge
Tie has not visited the line where he
.nts aud sscertained their opinions as to the
ems becsnse MI ID conversation with my self and
another Funtcman expressed entirely different views as
toSk charge OF the Erie Railway in July, 1885,
s tsan becoming wG os a 6e gross earnings Ti had
ecned from tei2G,coo in 1855 to slisi6gO IN 1901
Hp 10 siG00.too the past year. Mheh We assumed con
Iro OF he road the property had been allowed to deser
r aud the travelling public had lost confidence In the
road Now the me condoh Vi Tue me IS me theme OF
universal comment while the luxury OF our cars Is spOlen
mailer ~ economy say that there are three great
Clements which enter into the operating expenses OF
regard 20 INST the l616 for fuel mile ruu
tie Eue Railway was a cents and at the present time
ear iue costs Only about l. cents per mile run.
& e M, aboTi eight millions OF miles Annually Tins
saving result Of using coal instead OF wood, the
Company owning mines from which they can obtain their
supply for many years come, thus saving all erme
,Itc profits As the second item OF expenditure, we
Iuauaoure iron and steel rails at our own mills,
under riga pecOn as 10 strength and quail
ay believing that in this department especially the best
J, Vays the cheapest. We have reduced the
cost Of manufacture since We took tile road
$40 per tan steel aud q per tun on iron,
beside securing rails that will twice the
length of time that those originally used would
remains 10Y special notice the item OF Labor.
which enters largely into all calculations OF the
a operating railroads; and thinking that reliable
a'i-tics would fnOt ftI to interest You, have had
.eHimates prepared showing the amount of the gross
earnings U tue past three months together with the
s'nOunt paid Tor labor dfug She period. com
pared with the three corresponding months Of the pre-