New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-06
RAILWAY COMPLICATIONS.

A SIGNIFICANT CORRESPONDENCE IN REFERENCE TO
THE ERIE RAILWAY
Considerable interest has been excited in
financial and railway circles by the alleged exposure OF
an organized conspiracy" to ruin the Erie Railway
Company The following correspondence explains itself;
ERIE RAILWAY COMPANY. PREsIDENT's OFFICE,
NEW YORK, Oct. "a, 1873.
TIE Hon. EDWARDS IrERREroST-sIR: au instructed
by the Board of Directors OF tins Company 10 lay peoIo
you the following facts: $3.50 -
For time past the directors of this Company
have been aware OF the persistent and unscrupuous
efforts OF the friends OF Its late administration IT, inlre
the credit OF the Company and TO detalne the
of it's officer The principal means through when
thesa results have been sought nave Dceh Nv oIuI.S
CLERKS In this Office TO proeur, Tor puohcon s' ht
which pretended statements nave heen Whoiy uctAous
glrhll ard incomplete intended 10 lha so rt
nnilic so,re of the prominent leaders IN this
fpiracy as an additional motive, are acuated Dy re-
yencc krowinc that they will compelled by legal pro
cooi;,,s Va mike restitution for frauds committed by
them while they the service OF tue company,
The Company has recently learned that wltnn d 10"
dnys ty5n ~ re clerks had complied u vOumnous ac-
co1nt osensihy from the hooks OF the Company Whcn
they had agreed 20 sell u the conspraois ol Irs
OF thousand d1iarsi n ba manner the great.
est damage could he done TO TINS C1ihp,uS anv
nate deoction Inc original account, thus invented is
now in the possession OF thus Company ny lnv SWUI
confession Of these clerks, the Company Tor inc i.
time understands in full detail the ranlbca'lohs Oh tIs
conspiracy and the plans OF these unprlhepie1 s1o
iurers and spectators upon the good i2o VI tlO -
many and It's present administration. NOT ohIv WIS ~
proposed that Simultaneous publication o uiiS sa
should be made in New-York ana IN honGon' .nI
AZ most TO inure the credit OF this company a,o
enable the perpetrators to Teap Ich we ~ seems
markets by short sales OF Ere STOCK DuI ai p mo-
10 have been seriously questioned whether esi D.
ceedings IN bankrup!cl or ny an Ia bpeln TO still
further assist tins stock jObbing speculation by n1
statement was IN every part. ia eaeh lsti I'D eros ia
in detail fiction, not taken rom, ot oo,nPrI t
from any books accounts Or vouchers Whatever; puV
was invented out Of the mere Imagination U lts
to suit the taste aud purposes OF me prop ~ t5o
fact (tnd this point speak from persona Cnnanv
and knowledge that the accounts o. t occnrate
and trne accounts they appear on the oooAs VI ts
cn,nany and that the statements OF estimated weekly
ornin furnished 10 the press have III every instance
been less i'll amount than the actua earnings IoI tnS
periods named as finally returned. Tho accounts OF
ithis Company are and always have been, open to
the inspection Of any honest seeker aiteF ruin VINO
has ans proper interest III thclr examination but
this Company will not longer permit "a continuance
of these attempts TO seduce ana DEGRADE l's e-
ploy6s destructive OF all discipline so Injurious 10 ls
credit TO 90 unpunshed If by appeal 10 the law the
conspiratOrs can be restrained from further crimes OF
this character. IT there were no other reason LOT so
doing The public duty of preserving the just crealt OF
this Company, at lnis peculiar time OF pane anu as
trust, the interest OF every merchant ana OF every
great corporation the country, would alone coHptl
the adoption of the course indicated am directed 10
send this statement OF facts to you as TINS company Is
Informed that the proposed legal proceedngs 10 DC
based upon tins fictitious account were 10 M IaGt
fully cooperate III any proper measures necessary 70
prevent the effect of such attempted fraud upon The
public, wrong the stockholders OF this Company
am, sir, yours very respectfully
LUCIUs ROBINsoN.
Acting President Erie Railway Company.
No IS WAIL-sT.. Nov. 3, 1873.
The Hon LUCIUs ROBINSON: Yours OF Oct. 81 Is ro-
ceiycd gentleman of very high standing IN this com
munity brought several gentlemen al time to see
me and TO get my Judgment upon tie facts which they
and il is enough to say did and shall not adj
wise any "''''" EDWARDS PIERREroII.
THE KANSAS PACIFIC DEFAULT.
The Kansas Pacific Railroad Company having
detaued on he se1nisnnua interest the directors have
issued tine following circular TO the boDdhoders, ex-
planning the condition of affairs:
Tho directors Of the Kansas Pacific Railway Company
regret exceedingly that the crisis III the money markets
az he country and the impOssiby OF realizing on the
securIties of the COMPANY compel heniO stop payment
on coupons Of their bonded debt Tor me present
Thcv look upon this as great hardship 10 Inc
bondholder and have used every cort 10 aYou IL; Du
even tho proposition OF the undersigned directors aud
other large stockholders loan the Company S40Oa0J,
in securities 10 be used as bonus 10 raise the necessary
lens IN meet tine interest on the bonded debt, and %
audate greater part OF the floating debt was % no
avail the money could not DC Procurei curing tne
present pressu The Company has large assets. be
sides land grant OF more than 10000 acres of land
the proceeds OF which, when realized, VIII pay me
the same natures and by which II is provided with
sinking fund that IN proportion TO lts bonded deb,
probably larger than that of other railroad III the
limited States But the construction OF the road aud its
equipments, well rs the aid gwen to the binding OF
two branch roads, viz:
cG The Arkansas Valley from Kit Carson 10 Las Ami
mas on the Arkansas River, $50 miles.
(b The Junction City and Fort kcarney ROAD, rom
Junction City Clay Centre 3Jl miles tboh OF winch
were necessary 10 secure permanently 20 the man
line the business OF tue country reached ~ thcn has
cost more the capital received IN proceeds OF bouds
and stock aud thus a floating debt has a:eumnated'
which the present monetary condition OIL the country
cannot DC carried ana must DO Hquldaied as soon as
possible. .
The road must be and kept in good order 10 meet
the demands of its increasing business, ana we can
assure you that il is in excellent condition. and has
suicency OF rolling STOCK ana locomotives Inc earn
g> Of che road over operating expenses Tor the ia't
year. were sl.l9i7 Al and although the gross earn
pgs OF the present year are not OF those OF 81
the expenses have been less and we believe tnat earn
ngs OF $l,GO1W0 over enc operating expenses, can he
nua interest the bonded debt which amounts TO
s,O7Si7 So in gold exclusive OF income bonds, which
by the terms OF inc mortgage, are hot yer On
titled 10 ntercSt II rs, therefore, without counting
almost certain that tine floating debt OF the
Company he eXunguished Ill about Two years ~ s
earnings and II the Company shOudsbe successful IN
placing their securities now ~ hand consisting Oh INST
mortgage bonds upon branch lines aud real estate Sc
curites the floating debt could lie paid ~ once and the
coupons The Company therefore invites the holders OF
OF Directors. personally, 10y letter. 10 examine the
condition and effects OF the Company and decide upon
the wsest course To be pursued III the premises Inc
security OF tue bOuds undoubted, and the floating debt
tiuguisbed, the regular payment OF Interest IN
earnings only upon the present business OF the
road, and without calculating upon any increase OF
population Colorado and Kansas increases FAST and
as the connecting line built 10 the Arkansas River now
New Mexico and the Upper Arkansas valley We Aope
that the bndholders will not sacrifice the securities
Directors will use every effort III their power 10 bring
about speedy resumption of payment OF interest and
run road economically be done. They feel
deeply mortified by this calamity which it was not IN
their power TO avert. aud which could not nave hap
pened extraordinary condition OF the
market, lime when the semanuual interest had 10
be provided for. ROBT l.. CARR. President.
ADOLPHUs MEIER, Wee President.
CARLOS s. GREELEY, TIeasurer
l.. W. LEWIS. jr.
:. NJ. EDGELL, Directors in st.
T. NJ. MEIsTER. Louis
JOHN d. PERRY,
PROPOSED REoKGANIZATION or A RAILROAD.
1t is proposed to Ieorganize the Wilmington
and Western Railroad Company Of Delaware by forming
A company, with capital stock OF 100000 and