The New York herald., 1870-08-19
ANOTHER CHAPTER OF Erie.
A Shadow of Great Strategic
Movement.
Threatening Consolidation Of The Mortgage
Debt-startling News for Stockholders
Burt Flanked-The Present Manage
ment Entrenching Themselves.

Financial circles have been somewhat stirred re-
Gently by a rumor that the Erie management in.
tended some grand coup. With view to deter
mine the importance OF such q rumor HERALD re-
porter called at the gilded palace OF King Corpora
ton, Twenry-third street. yesterday ascertain
what the meditated manGuyre amounted TO- Every
body however, showed an alacnty OF ignorance on
the subject, and the main spring, Mr. Gould, went
under cover on hearing HERALD reporter wanted
10 review him, and declined giving an audience
The employees, taking their cue from the manager
puifed off all questions, and seemed to move about
as my steriously scouts a picker line. Failing
10 acquire information in tnat quarter Wall street
was next tried with more satisfactory result There
Il was learned that II was the intention OF the Erie
management 10 create O consolidated mortgage on
the property Of the company. The following Is
WHAT Is FEARED.
The genius Of Fish and Could has never been
more perfectly demonstrated than In the successful
way IN which they have succeeded in getting through
the Legislature acts to perpetuate their control OF
Erie. The famous Classification bll which has al
most become political issue, does not need refer
ence here. Again, at the last Legislature, bill was
introduced granting them the privilege OF availing
themselves OF the legislation OF other States into
which their franchise extends the effect OF which
would have been If AIR. Burt had succeeded
this State the present Erie management could have
continued their tenure Of Office by CLASSIFYING under
the law OF Pennsylvania.
During the same session bill was introduced but
not passed, whereby majority OF the mortgage
creditors OF any railroad in tins State could obtain
control of the road by summary process of fore
closure to be followed by the organization Of new
corporation under their direction. The HERALD
financial article called attention to this bill at the
time OF ITS introduction, and suggested that II might
be intended TO subserve the interests OF the present
Erie management In enabling them to strengthen
their hold upon the road. This notice, however,
failed at the time to excite more than the ordinary
daily comment in financial circles the general i'm
preston then being that the bonded debt Of Erie
was mostly held by outsiders. Interest in the sub.
,ect has, however, been revived by the publication
In weekly journal OF the following advertise.
ment:-
Notice hereby given, required BY law that the 10
tention of the Erie Railway Company to create consol
NJ SMITH, Assistant Secretary
This important notice has since appeared In other
journals; but the circumstance OF It's nrst pubca-
tion in weekly paper, and not particularly ad-
dressing Itself to the financial world has increased
the curiosity felt as TO It's precise meaning.
THE FUNDED DEBT
The present funded debt OF the road is as FOL
lows
Cgasses-Due Amount
FIRST mortgage bonds, May !, 1S77...... $30O0,O00
Second mortgage bonds, convertible,
March l, 1879. ........................ 1000 600
Ihlrd mortgage bonds, March /, lSS5... o,o00,0 600
Fourth mortgage bonds, convertible, 0c-
tober l, 1850. 4441, coo
Fifth mortgage bonds, convertible JLne ],
1885 Observation-Disclosures. e2e, 500
Buffalo Branch bonds, January l, 189l... lst, 400
Real estate. Observation-Disclosures. 800
Sterling bonds, fsoo, 900, convertible, Sep
tem5er, .....................,.. Asa, 400
Total. $23, ,3es 800
THE MORTGAGE DEBT