The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-01
The Classification Act, Registry and Transfer
Of Shares, Transatlantic "RingS"
and Other Grievances.
Erie Has Disgraced America in the
Financial World.
WHAT WOULD FOLLOW FROM REFORM.
Honesty, Punctuality and Econ
omy to the Public.
No Sacrifice of Erie Interests to the
Atlantic and Great Western.
TELEGRAM TO THE NEW YORK HERALD.

Atlantic ana Great western.
TELEGRAM TO THE NEW YORK HERALD.
The following despatch to the HERALD has
been received from our correspondent in the
capital of Great Britain:-
LONDON, Feb. 90, 1872.
an interview which have had with a leading
English director of the Erie Railroad -
Prominent English holders of stock in the
Erie Railroad Company assert that they never
will accept any arrangement in the nature of
a bargain with Gould, and that they will not
accept the responsibility of Erie affairs adj
ministration with Gould included.
The Classification Act legislation attracts
attention among them. 1t is regarded as the
greatest piece Of roguery ever attempted in
America, and excites the severest Reproduction.
But this is not the worst point. While under
many circumstances the repeal would be I'M
wise, impolitic and unnecessary, it is clearly
seen that such repeal Is the only way of
reaching the citadel of the Erie bandits. The
clamor against it is. the friends of the ''Rng"
here would have us believe, piece of strategy
of Gould for the purpose of diverting attention
elsewhere.
The strong point in the act is that it is
copy of the act which is in force in England
governing railways of similar incorporation,
and that under it the companies contrived to
prevent sudden and complete changes in the
direction and the seizure of their property by
financial coup de main. In this instance it
has been employed by rogues, and railroad
men doubt if It possesses efficient provisions
of security for owners, even if worked in the
hands Of honest men.
The grandest iniquity of all is that bona Jide
owners of shares cannot get them registered
in their own names on the books of the COM
pany, and, therefore, cannot vote at the cleo
tons held for the choosing of directors, who
will have plsnary powers over their property.
have no authority. A man buys shares and
finds on them the name of Gould or of some
creature of his. The buyer can change this
only by changing the books of the company.
Until they are changed the bearer of another
name votes. The actual holder of the shares
has no rights over the management of his own
property.
This point is the one most reprobated in
Europe.
The essence of all the enormous vii
lany of Erie is, that Of capital of eighty
millions Of dollars sixty millions of dollars
have been added by Gould. This nominal
increase of capital is not an evil under one
form Of expression as to the increased value
of the property but the increase must 20 to
the owners in case the Erie increase is d.
verted to enrich scoundres and demoraizs
the financial world in America.
CHEERING PRosPECT-THR OTHER SIDE.
Should the Erie Railroad come into the
hands of an English direction by the stock
holders it will be worked on legitimate princi-
pies, with the view to develop its great capa-
bilites in the interest of the owners of shares
and the people from whom It received its
corporate franchise. All ''rings" will be cut
away. Forty ingeniously organized ''rings"
now absorb the earnings, and the road is
practically worked by contract and not by
the company's men. These ''rngs'" con-
tractors are parasites, who flourish on what |
should 60 the shareholders.
The first result of rightful management of
the Erie, with an economical reduction in the
administration of its finances, will be the re-
iucton of the rates Of maintenance in Amer
lea to fixed figure, so that farmers and grain
will know what TO count on. A
reduction In fares will enable workingmen to
90 from New York to st. Louis for six dollars. |
The statement which has been put forth,
that the Erie will be sacrificed to the interests
Of the Atlantic and Great Western Railway, is
nonsense. Their interests asa identical, as