The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-15

Important Meeting Of the Board
of Directors.
Ten Millions in Convertible Bonds To Be Issued
Mr. w. P. Sherman Elected Treasurer

For the past few weeks, ever since the famous
Gould restitution, there have been numerous ru-
mors about Erie travelling round the street.
Everybody mad received some fresh point as to
what the new directors were going to do, and the
movements in the stock were eagerly watched.
One rumor, which limited that the directors were
In favor of putting several millions in bonds on the
English market for the purpose OF obtaining funds
with which to lay the long talked OF
THIRD RAIL,
has turned out to be true as such resolution was
passed yesterday morning at the meeting OF the
Board Of Directors. For the past few days 1t has
been apparent that there was something in the
wind, as Erie stock was manipulated In rather .
peculiar manner, and though it naturally exhibited
q certain amount of strength 1t was forced down
every now and then in order to give the clique @
chance of buying the stock. Yesterday morning IL
opened at 6sh, but was taken hold OF by the clique
and eventually closed at SIX, making rise of over
three per cent on the day.
Yesterday morning the Erie Board OF Directors
met at the Erie onices, on the corner of Twenty
third street and Eighth avenue, with President
Watson in the chair. There was full attendance:
Messrs 8. L. M. Barlow, W. Butler Duncan. william
r. Travers. Samuel D. Babcock, Charles Day, s. T.
Olyphant, W. W. Shipper, Frederick Schuchardt
John ]. Cisco, John v. L. Pruyn, Edwin d. Morgan,
Alexander s. Diven Homer Ramsdell and John T.
Johnson being present.
The President called the meeting to order, ana.
after disposing Of the usual routine business, the
directors went Immediately into the discussion Of
the new loan. After some talk on the subject
resolution was proposed and carried which author
ICES the company to issue seven per cent
CONVERTIBLE BONDS
for $10,O000oO. provided the same bonds can be
negotiated at par the proceeds to be used for th3
purpose OF laying third rail and double track
along the line frOad Part Of the proceeds of the
Ing steel rails the line. 1t is the intention Of
the directors to offer these bonds on the English
market, where they anticipate ready sale, a.
English Spectators appear to have recovered con-
fdence In Erie since the change OF management.
TIE RESOLUTION
defines very plainly that the bonds are not to be
sold lower than par, and also states that the In
terest on such bonds Will be payable IN both Lon
don and New York.
On motion the resignation of Mr. ]. b. Hodgskin.
william Pitt Sherman was unanimously elected in
his place. No other business OF Importance was
transacted.
In course of conversation with Mr.. s. L. NJ Bar
low the HERALD representative learned that he
anticipates the most beneficial results from tho
passage of the above resolution, as 1t will enable
them to make all the necessary improvements,
and equip the line In the most complete manner
throughout. The advantages of the third rail will
be immense. as it will save all the expense d
gauge cars. Mr.. Barlow also added that every
thing bore very encouraging aspect. and thas
now that the Jay Gould matter was regularly
settled, they had found chat the amount restored
proves If anything, OF more value than what they
anticipated. The report that the property re.
turned was all heavily mOrtgaged is without tho
slightest foundation, as there was not one mort
gage on the entire property.