The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-04

lheht OF the payment OF interest on the seconu bohu
followed by default and the appointment OF receiver
sent home AZ the time memorandum on the subject
70 which copies Of all essential documents were at
tached IL is sufficient therefore, here 10 say that MT
Jewet ON the 9th May sent home expressly for pub
hcaton, and IN answer TO demand from England Tor
an explanation Tor purposes Of publication, complete
statement which has yet appeared IN print Had
pubic circulation been given 70 Il At the time all parties
would think, have been reassured by such mar
raVe clear frank and complete Ia its nature and pur-
port
Is Satisfied with Mr. Jewett's explanation upon this
question OF confidence confidence, discussions be-
ween US have proceeded, and have been able more
recently aided by the sound and mature advice Of Mr.
motifs, your legal adviser who, accompanied by Sir
Josepn heron, landed IN New York about ten days
aiter my own ARRIVAL TO to general understand
ing and agreement with the receiver terms which,
nope, may meet with general approval Mr.. Jewett
cordially adopts the principle that those who really
own the property should practically manage il through
their own representatives he himself being OF those
representatives, trustee, but master And ia
carrying out that principle Mr. Jewett has, with an
alacrity Tor which feel grateful, proposed or
adopted all the details which have appeared TO me
V DC Judlcous, just and necessary. For example,
your legal adviser, Mr.. Norris has been accepted
hs tue colleague Of and co-adviser with the
,, o. Inc company committee OF consui-
htlon, composed either OF yourselves of such
other representatives OF all the classes of securities
upon uenoerate vote TO be at once taken, the bond
and stock holders may select is all these pro-
ceedings and expenditures which the use Of net rove
nue. que or pond interests In the payment OF debt may
lead TO, and generally 70 be consulted by and
operate with the recover Three new directors,
OF high position and character are 70 be elected TO
seats at the board in place OF three tho present di
rectors who resign An Office is be opened In Lon
don, and every month statement OF the actual
ings and expenses of the undertaking together with
periodical reports from the President and receiver are
to be sent to that office for inspection. More npor.
tant than ALL efforts TO be made give the bond.
holders, whose interest is may be in default dis
tinct representation in all votes of the company and
the stockholders be invited to their
powers of attorney and their proxies the hands of
their chosen representatives,, so that the company,
bound together by distinct organization, shall no
longer be the mere victim OF adventurous specializing
proxies thereon. The memorandum signed between
Mr. Jewett and myself and which memorandum Mr.
Norris and Mr.. Mcfarland with the cooperation of
Mr. Eaton, will submit to the court is as follows
MEnoRAsDuM or uspERsrANpINo BETWEEN Nh, II J. JEw-
EFT AND SIN EDWARD WArSIN, FOR SUBMISSION TO THE
COMMITTEES or BoHD AsD STOCK HOLDERS
a. The Board Of the Erie Company having confirmed the
nominees 81 tie Bond ana stock Holders Committee proposed
by Sir Edward W. wakn aud who have been invited take
seats IN the Board 20 be elected ~ the Board Thurs
day next provided quorum OF the Board be present and
not, as soon thereafter MS quorum can be obaned and
them Ge selected ,hef ases = "'
& Mr. Morris associated with counsel for the receiver
and for the company and Is TO be regarded and treated
one OF the proess nj agents and advisers OF the undertake
81 While Mr.. Jewet that the final decision
as TO scheme Tor financial reorganization be postponed until
show to what he can develop the Of the
BY Increased business and reduced expenditure he
win nevertheless transmit without delay Sir Edward
William watkin memorandum showing his views OF such
80 y agreed that the retention and judicous expen
dure Of earnings for certain period Of time
ta that the bondholders well the preference
dnay stockholders IN proportion 70 the Just measure OF
pendtgre Of net earnings Otherwise applicable to the pay
under the charge OF the stock and bondhoders
IN London at the earliest possible period the consti
senatves each class Of bonds and Of the preference
eiai l n1 b - appontea Snal
pova shall be taken by Mr. Jewett in the payment and
penditure Of all derived from the earnings Of
the undertaking Otherwise applicable 70 the payment Of
suen bondhodes or their may permit 70 be
dealt with to deay such past debts as the Court may
such retention Of net earnings not 70 exceed from
to have ahe a so IN ss o po
era Of business and for place meeting for such
Herewith to be betrayed of the funds Of the company
being understood that all things herein contemplated
be performed under and subject 30 such judicial orders
have heretofore been hereafter be made in the
90 Monthly statements Of actual earnings and expenses
together with report from the president and receiver be
90 II is essential the future prosperity of the under
be strength and stability in the the company
i t y used to ds is d ' the
designs q outside parties 70 The prejudice OF 6qaq & in
just in principle that bondhoder whose interest is in
aear should participate in the voting power Therefore the
stock and Dondholders abroad, and also In the
United states, are TO be invited and urged to
Edward ". Tatkn, whom falling to such other person
the II and oes 90
that the voting power may be USED solely in the interest of
the administrator d The company. ~ ''U'''e'
interest requisite authority can he
obtained or orsuch OF the voting power
in the stockholders will parties
s sn ~ns Of % ds as' - e gsas wv PSon
foreign stockholders from the Board Of Directors be If
a. On above basis Mr. Jewett president and re-
for himself and for his Board under the Board
ton I'd Of September, 1870 generality and Sir
EDWARD watkin, behalf Of the Committee Of Bond
restoring undertaking credit Of putting an
sda y .se bam baa m @ as WIZ
modifying by legal process OF by arrangement the
forced upon the undertaking by past misman
SSigned +. !. JEwETT,
H. Whatever course decided on by the English and
foreign bond and stock holders WILL | believe, be
adopted In the United States in the full spirit OF CO.
operation for a common object The bond and stock
holders that side oil the Atlantic equally sensitive
the point Of dishonor involved IN the past Erie man
agement, and the organization ia New York OF Mr.
Hooper and others has been dissolved with a view to
avoid the slightest appearance Of antagonism. The
three directors first proposed are men not known
as railway men, probably but holding high and hon.
orable position. They were the Hon David A. Wells,
who ia critical time filed the Office Of Secretary Of the
Treasury; the Hon William Brown. of Portland and
the Hon. William Spauiding, Of Buffalo As Mr. Wells
public engagements stood IN the way Of his accepting
the Office OF director, and Mr. Spauldng pleaded his
age and varied occupation, Mr.. Welsh and Mr.. Talman
have been chosen in their stead. Mr. Wells has, how
ever very kindly offered to act on any committee APP
pointed and Mr. Spaudng has expressed his readiness
to cooperate in any way ia his power
10 Your legal adviser, Mr, Morris is engaged in pre-
parng full report OF very important character upon
the legal and judicial position Of AFFAIRS and that report
will be laia before you by m his England
] need say that the preparation Of thai report
important in calculating the facts Of the case has
VOWED great pains and labor and viii require time to
complete II for future reference.
Id When you have this report there will be ample
materials before you for the preparation o carefully
considered plan OF Encouragement TO DC submitted
the bond and stock holders; but ia the mealaime,
preliminary 10 general meeting Of the bond stock
holders, who will be anxious for detailed expla
nation Of their affairs and upon whom the responsible
ity of selecting "A representation which they have
aFnIg nQ 0EpA kgtu Hrir
culate this report
H. As respects the usually heavy fees and charges
attaching TO a receivershlp have the pleasure TO state
that Mr.. Jewett does not contemplate intend to
ceve any other remuneration than that Of his salary
president OF the company
Ia. An inventory OF the whole property of the com
pany is in course OF preparation IN the form which l
here attach.
beg to remain very faithfully yours,
+, w. WATKIN
p ST. have since arrival here received telegram to
the effect that Messrs Brown, Welsh and Ialman have
been elected directors, Mr. Barlow and Mr. Roberts
having retired.