, 1875-05-28

once.
THE ERIE RAILWAY.
disappointment Of a h1seceiverto take ehsrgs
OF the nfrairs Of so colossal corporation as the
Eric Nailway is Nh event Of moro than paRa-
ing interest. Tho stop Bcen,s to hare beon
inevitable. Tho road, according to tho state
ulent of tho Financial Committee recently
appointed to investigate 1t, III on the verge Of
bankruptcy. This condition ia tho result of
a sorica OF oxtravagances, errors, and frauds
in its management, tho rclativo responsibility
for which it ia not cur duty to fix. But TINT
ons of tho Oldest RAILWAY corporations in tho
country, possessing natural advantages rarely
oqualcd, should bo brought low, after many
yenrs Of prosperous business, Is Of itself suf-
ticiont evidence Of the general allegation TO
lnve 1nalo.
The Eric Railway Company In the suceee-
sor Of tho New York i Eric Company,
which was incorporated In 1892. In 1856 its
aggregate debt and capital stock did not ex-
coed S37, 900, 900; It's operating expenses
wore but a little moro than 52 per cent Of its
gross earnings, and II pail an equivalent Of 8
1EE CGuk Uu I'LL A&lOult49h &lllA CAFlk1A bkoCA+
Had the Eric Road been private property,
aud managed With the same cnro, economy,
md honesty Of q weli-conluctod rriyate
business, thero IL no question but Tint ita
condition to-dny would have been relatively
rs good as It was then, Il not better. In
1859 the Now York i Eric Railroad waa put
in the hands Of a Receiver, owing
to internal dissensionB among the
stockholders, the result Of which
waa compromise and tho reorganization Of
tho Company undor tho name Of Eric. In
1869 tho aggregate stock aud dobt amounted
to $3o,Gs0,G75. In 1863 the policy was In
augurnted Of acquiring new connections by
leasing limos, mud for the next tavo years tho
operating o1pcnscs wero increased constantly,
until, in 1SG7-'G8, they amounted to 30 por
cent Of tho gross earuiugs. Then came the
Goutp and F1sK management, tho character
OF whoso operations is very familiar, and
whot in four years, added S4O,ooo,0oo to tho
capital stock. Tho totnl liabilities Of tho
Company, Us gathered from b1r. JEwEr7's
statement Of It's affairB, are as follows:
Dsbt {fuudei md aoaausi.. sso0oo03
Total. $40
The Eric Company owns 537 miles Of road,
so TINT It's liabilities represent a nominal cost
Of over $2Go, 600 milo and to pay the in
terest on it's debt and reasonable dividend
on it's stock 1t would have to carn about
SIC, ,o0O, 900 year. 1nstaad Of this, which
is Of course out Of tho question, its earnings
for tho last ton years, less e1penaea, hnso run
as low as 81, COL lin 1869, and have not
exceeded $4,740,1 ,121, which wore tho earn.
inga Of l872-7s. The troubles Of Eric have
been aggravated, Of course, by the hard
squeczs aines the panic, aud tho actiye
| competition sA up by the Baltimore
j. Ohio Railroad Hinco its extension to Chi.
cago; but the figures wo havo given are suf
! fcient to show that It's roal troubles dah
much further back, and that, even without q
| panic and without such competition, tho day
Of settlement could not have been postponed
very long.
The ei7ect Of appointing Receiver at this
timo Is to enable tho operating Of tho roat
without reference to the liabilities Of ht
past. The interesta Of the public, ~ von a,
tho stockholders and bondholders, doman6
this procedure. OF course it only af
foris temporary relief; but 1t gives time ane
| opportunity TO settle up paat complication,
without sacrificing tbs property owned b.
the Company. But thorough roorganiza
tion Of tho Company will be necessary to it'
future existence, and tho sooner this IL undor
tahon tho better for all parties- Reorganiza
ton, on basis Of actual worth, will Of courss