, 1873-10-31
+. CHICAGO AND THE ERIE RAILWAY.

Wo have before us copies Of tho Ral,cny
Nctcs, published in London, bearing the dates
sopt. 27 and Oct. 1 1aat. The flrgt contains All
account Of tho meeting hold by the English
shareholders Of tile Eric Railway to roeeiyc hIr.
P. Il. Watson, tho President Of the road. and
tho Hocond the report Of m interview with AEr.
Watson, setting forth moro fully the condition
Of tile rond since he assumed tho management.
Tho meeting of tho shareholders was
very largely attended, and represented
the bulk Of Eric stock owned iu
England. h1r. Watson Was received from tho
first with hearty oxpreasions Of approval md
confidence, and then mado III elaborate and de-
tailed ntatemont of tho progrosa TINT has been
made In tho way Of reform since the road WAS
Mr.. Watson accepted the position Of President,
ho did 30 on condition TINT tho money should bo
furnished to double-traok, na,row-gaugo, and
fully equip tho road to make it In every way
the equal of other trunk lines oompet-
| ing for tho through buaneaH Enst and
West. His purpose in visiting England
was to persuade Tho foreign shareholders that
| this policy is tho only ono that can insuro tie
profitable operation Of the road on q basis of it's
rcal value. 10 demonstrate this, Mr. Watson
explained what hnd been done with the 910, ,000,-
600 already invested for this purpoHo. Tho OBJ
| Btacles which ho encountered when he entered
upon tho management wero greater than lo Ind
anticipated. Though there had boon m intor-
regnum of three months under the Preai-
donoy Of Gen. Dix, tho Gould-system
of bookkeeping, tho Gould bookkeepcrs, md
tho Gould oftlcials generally wore retained, and
Nlr. Watson might aH vol have been the imme-
diate SUCCESSOR OF Gould. He found an organ
ization that had grown fat on corruption and
was hostile to oil projects Of reform. Tho books
Of the Company had boon iuaperfectly and irrogu-
larly kopt upon plan expressly designed to COIL
oeal tho disposition Of tho Company'a funds.
There had been fictitious roturna Of time aud
persons On tho payroll, which had enormously
swellod the expenses Of tho roRd. Large
sums Of money had been diverted tc
illegitimato useB. Mr.. Watson proceeded
to roorganizo the staff and draw about lin some
of tho most competent railroad men in tho coun'
try, He devoted most Of Ills attention, how.
eyer, to following out tho tracks which the
march Of tho corruptonists had left bolind, anG
aucceedcd in running down sovoral millions ol
dollars worth Of property which ho recovered
With tho aid Of efficient counsel. Ho has cluel
to other Interpretations of money for whiot
suita will bo instituted. Tho effect of this hon
cat md energetic management has boon notabl,
illustrated by tho hrlmuess with which Eri'
stock has held ta market value during the pall
to which nearly all tho Wall street secr1rittot
have succun,bcd. Ind sinlilur pnnio occurres
q ycer ago, Eric would hayo boon tho frat to sllf
- fer. Nom, In spite Of "boar" movements
| combinations agaipst the Watson management
aud tnleohooils that have boon frooly circulated
Ito facilities, Which will DO Increased by TUG con
4 tomplated improvements in d creator proportio
than tho additional Investment required. Th
improvements already malo and the lcakago
+ already stopped uplor tho now management OF
U abod tho Company to declare July dividend {
t 91I por cont OIL the preferred stock aud pt
. cont on the common stock, lowing
o balance OF unaprroprlatea earnings t
] e1,827,727, After llstoning to h1r. Watson
ptatomont, and asking questions which wo,
satisfactorily answered, tho Engli9h slarohol
passed q unanimous resolution thanking II
a Watson for tho good work which llo had alreat
: accomplished.
% Since tho raceipt Of theae accounts, ITO he'
y received further intorm.atlon that nIr. Watas
y has succeeded in securing the raquisito atnon
j. OF money to Change tue gaugo Of tho Krlo Ioa
o and make lilo other improvements which
+. contemplated from tho time lle assumed ita MAJ
g agement. IIo estimated tho amount necessary
10 this work ut aa0000,0oo; and, ithe has procure
f. t4iH aum In tue present financial strlngenoy, R'
unSor the lll-roputo Of American railroad socu
d tlea abroad, It IL the highest compliment th