The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-05-27

permit be paid any interest upon any OF the
order o. this eoGr The s and as ssq
also strictly commanded aud enjoned 10 deliver up
ana surrender 70 the SAID receiver when ne sna n@ye
enter upon his duties as receiver All and SINGULAR the
Ana i = further Ordered taat each o the SAID defend
s s rs M e 81 as e sS arc
seversly respectively enoincd from
H. commene,d or proseeusd any aeon against said
roS pr an w Ss s
Further s 6rSs ~ h hhsS court a.
VIEWS OF PRESIDENT JEwETT
\ President Jewett was called upon by HERALD
reporter for his views on the situation. Mr..
Jewett is a splendid type OF the rugged, large
framed, outspoken Westerner, and combines
courtesy or manners with great frankness and
honesty OF expression. What he said yesterday
was delivered WIN an earnestness Of tone ana
manner which showed that he spoke from pro-
found and honest conviction.
II have not yet seen the order Of the Court ap-
pointing me receiver he said, land hence am
not able 70 lell what powers Will be conferred
upon me, and what Will be enabled TO do IN pur-
saw snat All the Court autherizes me to do as re-
celyer Of the road " III oe done IN the interest OF
all parties concerned. Ny Judgment concerning
the present situation is simply that the Erie
Railway Company mas the means to amply secure
is entire indebtedness, and TO give value 70
ton that The stock, with It's existent indebt-
edness in view or tne incomplete condition
OF the road, Is too large and ought 70 be reduced.
TO operate the Erie Railway, Ia It's present In
complete and financially embarrassed condition,
FAR more expensive than It would DE II It's cond-
tIon physically and financially, were good In
the present condition OF the stock upon the mar
Ket subject as It IS to all sorts OF nuctuatons,
liable IL Is 10 be Influenced iavoraDly or unla-
voraDly as the one or the other interest may pre-
ponderate. effect upon the man agement, Its
operatives and all Its deparl menis, IL 10 produce
the same con uslon In winch It's stock IL found
owing To It's peculiar condition In the market.
The credit OF the company, Doth with It's en-
ployes ana those furnishing the materials, Is natu-
rally inJuriousy affected Dy the same dlsorganlzing
influence Hence the operation and IN inagement
operatives and 'material mem VIII know that
they have the first lien upon the company's prop
erty and be content with much more reasonable
compe asatlon. rhe receiver can deal Win tnem
In TINS state OF thugs upon cash basis and he0ce
can largely economze Anotner advantage OF our
new posltloni that the company enjoys the pro-
lection of ne law, aud can take time TO properly
adjust ourdensone contracts, unwise guarantees
and other obligations OF q doubtful character with
out fear OF Immediate molestatlon ana reduce
them To point wnlcn will enable II 10 meet all
sucn obligations without lmpalring the usefulness
the road depreciatng II as lar as It's physical
condition Is concerned. relterate that the Erie
stock basis Tne hest tong the stoc knolders and
creditors OF the road do Is to keep quiet Until
tue true condition OF their property snail nave
been ascertained."
Mr.. Jewett finally SAID that there was not the
slightest oanger or any OF the employees OF the
company remaining unpaid or being disappointed
In their expectation OF continued regular pay
ments.
COLONEL HENRY G. srEBBINs on THE SITUATION
Colonel Henry G. Stebbins prominent director
of the Erie Railway, who has distinguished him.
sell IN It's FINANCIAL department ana Is Also wen
knoan 10 tue public ty mis- admirable service as
President OF tine PARK Department, gave the toll
lowing succlnct account OF the causes leading 10
"Presi lent Jewett came here with the under
standing tnat prominent capitalists In Europe
were ready To loan sufficient money to place the
company upon Sound financial basis. shared
MS belief in this regard. Very soon. however It
appeared that these promises were not TO be tut
/ filled. and tnat he would be lett TO carry on the
arrairs OF the company without any AID beyond
the usual earnings, greater economy In tue adj
mlnistration ana studious conservation OF the
revenues and powers OF the roaG. The contests
between the great trunk lines diminished the busl
ness IN the country generally, and. with the ool-
cations pressing upon US, would have rendered
tnIs very diiicuit year 10 get along, even ior
company In good credit. SIN more potent in
! bFinglng about the present result was manifest
Combination on the part OF the old enemies OF the
road and OF stock spectators in London
/ ana Wall street. enected for the purpose OF
feelings OF egenge and 0y others In expectation
I oi prs1ts from neayy bear sales. Within the
last month all that human ingenuity could DO
toward destroying this company mas been &C
com pished, and this spirit has even been carried
lar as to institute movement along the nne OF
TO create strikes ana lnsurrectionary agitation
tnat would paralyze tae operative power OF the
, ana or 50 potent q character the company found
Itself so embarrassed that they have not oeen able
10 make the necessary provision Tor the accrulng
interest," Knowing or the hostile proceedings
that were contemplated We nad to accept the
Inc yitaOle ana allow = receiver TO be appointed.
"Tne appointment OF q receiver was IN tue inter-
est or ali the creditors OF the company. The
PRACTICAL enect OF the Will De
TO blng about calmer aud wiser state Of pubic
opinion In relat on 10 the whole work. Specula-
tors win hencefortn not enjoy the opportunities
for circulating damaging rumors. Instead OF
causing regret tue proceeding Will eventuate
largely 10 tue benent OF all the creditors " the
road and tend toward restoring the value Of Its
securities aud placing IL on sond and healthy
foundation. NY confidence IS stlll unsnaken that
tue Erie Railway Company will yet Vindicate itself
completely, pay all Its deots, earn money enough
10 pay the interest on the bonded aent aud leave
something Tor the stockholders. Wen managed,
tne Erie Railway Is one Of the grandest and best
RAILWAYS IN tue country.'
Colonel Steoolns then expressed his full conf
dence in the ability OF President Jewett to bring
about the favorable results ne had indicated
IMPORTANT STATEMENT By A DIRECTOR
Another prominent director Of the road, with
wnon the HERALD reporter had long conyersa-
tion relative TO Mr.. Jewetts appointment AFTER
secure the loan OF s50000 from the Delaware and
Hudson company, aud tue embarrassment ne was
waited by the calling IN OF the ordinary loans, there
by taxing out OF his hands toe $30OOoo ne mad saved
"Tne appointment OF Mr.. Jewett as receiver
places tue wnoie power or the com pany IN his
rected 10 pay ali sums due FOR iaoor 70 EN-
ployes and Tor supplies furnlsned within lou
win the stockholders. If tney are prepared
within a reasonable time 10 raise cOmparasively
to exceed 5000 OoO-~itn which 70 pay OF me
floating debt OF tue company, tue recelyership
could De discharged and tue road returned 70
them. Meanwhile all the property VI tne company
so essential 10 ITS future usefulness and 70 give
value to us stock will De preserved intact
through the receIvershlO. II for want ol power 10
assess the STOCK, OF rom inability 10 uni Q on
some common basis OF action for tue purpose VI
raising tnls money the stockholders remain inert
ii /, Iar 10 presume that road Will eventually
be forecosed upon some one or all the mortgages,
and will be reorganized on more substaut Ial
basis without reference TO its present STOCK cap
/ lIaLu
he added that ne did not believe the calling In
OF the ordinary loans was toe result OF any CON-
btns tIon tue street.
JAY GoULDis KNOWLEDGE.
u Mr. las VII no n "a ~ a A
reporter said suDstan italy that he knew nothing
aDout Ere; ne had stood asi1e or apart from that
doomed r0ad,u ana looked Al tse catastrophe
wnlcn was certain " arrive vita the eye VI
philosopher. Mr. GOuld's eyes, when ne made
tnls remark, mad a malgn expression and II there
was any pity ia MS heart Ior tue danger that be-
sets a great American corporation his eyes aid
not express It.
/ VIEWS WALL STREET MEN.
The reporter, during mis- ram yies Ia wall street,
conversed With several bankers and brokers on
tue situation Erie placed In. few we're
ratner dlslnelnel 70 talk about the matter. While