The New York herald., 1875-09-16
REORGANIZING ERIE.
English Bond and Share Holders
Advocate Initiation.
The Capital Stock To Be Watered by a
New Issue of Fifty Per Cent.
PRESIDENT JEWETT INVALIDED

To President JEwErr, Erie Railway, New York.
DEAR Sm-On behalf of the large holders Of your
shares and bonds, we beg TO submit plan of recon
structon which appears them be advantageous to
all classes while practicable efficient for the object
all have in viewyiz, the placing Of the finances of
the company a sound footing aud at the time
putting the Erie Railway in the highest OF Ameri
railroads for traffic. carrying cheap working and
satisfactory results TO its proprietors.
1t would pity IL the present crisis in its affairs
we're not result in thoroughly efficient scheme,
and you satisfy the shareholders by the appoint
of trustworthy committee to to the applica
lon the funds the amount necessary will certainly
be forthcoming when wanted.
1t has proposed that the ordinary shareholders
should be assessed many dollars per share, and
although there are many grounds which such
assessment may be Justified still the arbitrarness Of
the proceeding is Objectionable and will undoubtedly
excite bitter opposition.
The same object can be attained by Issuing fifty per
sent common stock-one share for every
existing-by which means supposing the price Of
b25 be obtained, amount OF $40 900 900 in cash
will be secured.
This price may certainly now be considered too high,
by the time to legaze 1t shall be obtained
will probably be valuable privilege the present
shareholders have the FIRST right subscribe the
capital
In consideration of the ordinary shareholders raising
this amount of money to be employed in vastly increas-
ing the security of the bond and preference holders
these latter agree to capitalize their interest for
years in bonds shares bearing their present prior
hes
The question of the priority claimed by the prefer
shareholders be settled by arbitration Of com
petent parties
The rentals OF leased lines to be reduced wherever
practicable.
The amount that would be available from the new
Iharcs and funding OF coupons would be about
$4,000, 000 assuming the net earnings beyond the
rentals at only 81, OoO, 900 year.
ofthis the floating debt will absorb, understand
about 81, 600 oOo
To gauge the line, including the purchase of
nrge amount of new locomotive stock, the gauge Of
which be altered, will absorb q further
$4,000, OOo
The completion of steel railing the main line in addI-
lion to the charge for renewals may absorb
$4,000 Ooo
On branch lines to open up the coal lines and upon
coal wagon stock there could be expended advantage
busy s., OOO O00
On completion of the double track on the main line
Improvements in sidings stations, &C. recommended
BY Captain Tyler, 81 900. 900.
On alteration of gradients and to such ex-
tent would be attended with real economical advan
lage, 81, 000, 000
lrafHc 50 oooOOO
Total to be expended, SIS 900 600; the whole to be
expended over tho two years during which period
the shares would be paid up by yearly install
ments.
The capital of the company would then consist Of
ST. 900 Of bonds preferences and s117 600
of ordinary shares.
The prior interest charge per cent would be
s5oOoOoo and the rentals at most ST. 900; total
100000
With the line finished and equipped as proposed the
working expenses would be brought down sixty per
cent and traffic within three years from now
would be least s24 600 900 per annum, afiording
net OF SO GOO 900 per annum meeting all bond
and preference liabilities and leaving three per cent for
the ordinary shares.
The amount Of traffic if worked at the reduced rate
requisite meet all the rentals bonds and preference
interest is only SIS 600 600 greatly under what is
being earned during the present extreme depression
Thus nothing but judcious outlay required to place
the finances of the concern a sound footing
and doubt that produce such a result the
would be eagerly subscribed at s25 currency
per s1Oo
We recommend this proposal to your careful consider
alton, and presuming that you daily engaged
upon the scheme settled with Sir Edward watkin we
take the liberty Of addressing you by cable We are
lear sir, yours respectfully,
BOND AND SHARE HOLDERS
LONDON Sept 15 1875.
J. NJ. BELL of Messrs wilkinson & Son. So
icitors, ~ Lincon's Inn
TALK
Last evening HERALD reporter paid visit to Pres
ldent Jewett's handsome villa, situated Caseton
Heights. Staten Island and commanding a noble Of
land and water. Nobody to be around the
house the piazza and air of sadness seemed TO
reign in the place After sending in word to the invalid
President that HERALD reporter wished to speak
HIM his brother the front door, when the fol-
lowing conversation took place.
REPoRrER-Can | see your brother, Mr. Jewett?
Mr.. JEwErr-No sir; he is sick, sorry to
ray, to anybody.
REPoRrER-Can you tell me II he has received cable
telegram from London sent behalf OF large number
Of Erie Railway stockholders, suggesting reorganiza-
tion Of the company
Mr. JEwETT-No, sir lie has not We give him no
kilograms, nor is he at present strong enough talk
about business any shape or form The truth 49, he
has been for four mortal hours to-day the hands OF
the DOCTORS who have been taking the bandages OF
broken leg, and tomorrow he hopes be able
little, but told you just now he is at the present
moment very much prostratcd, and his medical advs
given orders that he to be disturbed
any account or to transact any business and therefore
the family permit Of his being troubled or talk
ing with anybody about anything which could tire him.
The reporter here gave Mr.. Jewets brother copy Of
the leegraphc despatch in question, and which he
glanced at with interest, apparently not having seen
the original As the reporter leaving the house
Mr. Jewett said -
''li my brother we're strong enough, and had any
ppnons TO express the subject Of the telegram, he
would willingly have given them 10 tho HERALD, feel
certain"
This ended the interview