The New York herald., 1875-11-02
Meeting of English BOndhOlderS---The
Report Of the Joint Committees.
TIE MATTER IN A NUTSHELL.
appointment Of a Committee OF Consultation
to ReOrganize the Company.
A BALANCE SHEET PROMISED.
From the London Times, oct q, 1851

shareholders preferred and ordinary OF the Erie Ra
way Company was held at the City Terminus Hotel to
and consider the report from the joint commit
tees, already referred in the Times Sir Edward
watkin NJ. p, presided and his statemouts and those
of Mr. Morris the legal adviser listened to with
che greatest interest
The CHAIRMAN, who received with loud cheers, in
the Of speech lasting hour and twenty
utes after reading the resolutions be submitted to
the meeting said twentyiour years had elapsed since
he first went over the Erie Railway, in 1851 and he
could remember, great the financial misfortunes
gross the financial irregularities had been any
undertaking which had existed during the whole Of
that period which had caused much loss
English holders and brought so much shame and
disgrace the United States the Erie Railway and
that backer affair, the Atlantic and Great
ern." C''Hear, hearl'9 When he remembered that
since 1867 the nominal capital OF the Erie Railway
had been augmented from under $50 600 70
$780, 100000 and that the capital Of the Atlantic and
Great Western, which was not to exceed S60,OO0O0
was considerably above 500 600 o00 and when he
believed this without increasing the value OF tho
undertakings, he bound TO TO the conclusion
that there had been in both large Of money squan
dered improperly spent, discounted, given away and
stolen 'Hear heari and loud cheers With the power
ful and Invaluable assistance Of Mr. Morris he had secured
for the shareholders and the bondhoders of the Eric
liked control them. They had obtained the approval
of the Chief Judge OF the Supreme Court of the
State OF New York to their doing so-cheers)-
and they had also secured the means OF honest and
capable management and the cooperation Of the Court
and now the question whether, Of business
respecting each others rights and feelings they could
unite in erecting machinery whereby plan could be
devised to make the concern financially sound; but
above all, there must be united action. Their object
he took IL, give every bondhoder his capital,
and TO leave reasonable chance Of dividends tor the
preference shareholders and the ordinary stockholders
l''Hear, hearrD
THE MArrER IN 4 NUTSHELL
The state Of the matter in nutshell They bad
m annual claim against them in round figures Of
81 600 900 for rent charges, &c, and "a, 900 OOO
for bonded interest They were now earn
was a deficiency of 100000 II the line
could be worked at sixty-hve per cent every bond
holder would be paid. In addition to what he had men
toned they had liabilities amounting 70 fS00, 900
There had been good deal OF confusion the float
ing debt the reduction Of which had been great
some persons imagined from the mere statements
published. II, however it only question Of
deficiency Of f250 900 year and question Of paying
on the fSOO,Ooo things would be very simple lie
thought he could get the ES00 600 If he considered it
discreet 70 the debt but he did not and 50 far
he concerned, be would not recommend it, {''Hear
hear l) The matter in which lay the difficulty Of COM
ing any decision that day was this:-In his report
he proposed that Mr.. Jewetl should send them home
with the years. accounts which due here the
end OF November the first week in December,
complete balance sheet lCheers) The Erie undertak
ing was not simple seemed for they had ferries
steamboats, manufactures surplus lands, and many nil
hons of dollars Of stock invested in other railroads and
before he committed himself to lay before them
a scheme of reorganization he wished to have every
thing brought before him. tHear, hearl He thought
they would all agree that till they had he proposed
10 have, independent and special audit on the
spot-Qoud cheers)-they would hardly be IN position
TO decide anything but general principles on this serious
and important matter. Part OF the probable assets OF
the company claims. They had claim against
the London Banking Association but II was only fair TO
those gentlemen TO state that hey could put IN FAR
answer TO the demand "A Voice-'What is the amount
of the claim Y' He did not think II would be advisable
10 state precisely but it large. There also
claims against Messrs Bischonshen, Mr.. McHenry and
the claim arising out of the celebrated Vanderbilt suit
the decision which had been gwen their favor by
two / in the Supreme Court Of New York Accord
ing Judge Donohue, Commodore Vanderbilt
liable refund the So 500 600 and to receive the equiv
alent In stock at the days prices He however had
appealed but hrs appeal could only be upon the aues
some complicated transactoDs Qt vast Importance
A PROBABLE SURPLUS.
Speaking under reserve Of what the balance sheet
might show, he would be greatly disappointed If, when
ali these matters were wound and settled there
considerable surplus. Referring the coal lands
belonging 10 the company he said there were, IL
suggested two Weaknesses They had given too much
for the properties-he did not know whom but he
was determined this should out-and some of
them away from the railroad, and IL would be
necessary to bring them TO the man line. They
be allowed time SO TO make complete JOB of this
concern, and not be hurried into some arrangement
which would lead to further misfortunes and further
Illusions ('Hear hearl He believed they would here
and there be able make certain recoveres. He
strongly advised them TO support him in insisting,
whatever IL and however long IL might take that
the capital account from 1867 10 the present time should
be submitted to audit and that everybody should be
held responsible for his malfeasance If malfeasance
could be traced ("Hear, hear" and loud cheers.)
He knew his task surrounded with difficult
ties, and he expected much hostile criticism from va
rious quarters There were Two curious and in
teresting facts which he desired 70 mention In 1865
the total nominal capital Of the Erie Railway was
SAT 600 in 1867 S5 600 1874 Sl35 600 600
being an increase OF 100 per cent In 1857 there
459 miles OF main line, 3l4 Of branches and 379 OF
double track and sidngs, making total oil lJ2 miles;
In 1874 there were 459 miles Of main hnc-no change
over 1So7-500 miles Of branches and an increase as
compared with 1867, of 1876 miles Or double track max
ing total increase OF track Of Ssl miles only thirty
five per cent OF mileage as against l6O per cent of
capital The f500 600 OF debt TO which he had referred
wis owing TO his having insisted that everything should
FRAUDULENT DIVIDENDS
The main reason for things being IN Their present
condition was that Mr. Watson declared ii his time
what he had no hesitation in calling fraudulent div
dends- Hear hear!" and cheers-and by other rregu
larties the part Of Mr. Watson the affair had into
much needless debt Quoting from a statement pre-.
pared by Mr. Grant he said the present Erie capital
S141 600 600 about f2S, 900, 600 sterling This
selling IN the market TOR ony IS hcO 900, making
the price Of their secmiSest exclusive Of leased
lines, about fS, 100 per mile-a less price than
that for which they could construct H. He
thought however, that II was hopeful affair for there
much for improvement Abiding 10 tile
Atlantic and Great Western he said for all traiuc pur
poses that line and the Ere were one and there ought
70 be the closest union between them, which would in
duce considerable development and great improve
ment line having It's particular advantages.
gHear hear ~ II they we're honestly worked together
he believed they could b. worked at increased and
increasing profit After referring u the lGsory prom
misses which had been held out respecting the dividend
70 b. expected from the Atlantic aud Grcat Western, he
read letter from sr Mcienry, who had written TO
MT NORRIS questioning certain parts o the Charmans
report, and charging Mr. Jowcu with very great i'm.
proprety; but said the Chairman, Mr. Jewett Ike
Mr watson, was the creation oi Mr.. McIIenry
himself Alter q brief allus0n 10 another com
mittee Of Erie bondholdcrs aud shareholders-
which was composed oi Mcssrs q Homnn r.
IL Green aud W ". Crydcr-and commsntpg
on Their CONDUCT, he said he believed Mr.
Jewett was an honest and capable man (sHcar hear
and "No no - He should always maintain tl,,, stata
ment iii he found he was wrong Ia his judgment
i'Hear heart y He then read telegram which M Icvg
EFT had sent the 18th Of May last 10 Mesers Mcc
ioch Co for publication IN reference to the navment
Of the interest due the lst OF June "a me econd
consolidated bonds, and said he believed II the tcie
gram had been published the 9th OF Nav tbera
would not have been the disastrous fail 10 ali The stock
nnn hilh arrnl h HDnr -.