New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-26
ERIE'S INSOLVENCY.
THE OFFICERS RESOLVE TO APPLY FOB
A RECEIVER.

THE OFFICERS RESOLVE TO APPLY FOB
A RECEIVER.
| CAUSES OF THE PRESENT STRAITS or TIE ROAD
PRESIDENT DICKSON OF THE DELAWARE AND
HUDSON CANAL COMPANY REFUSES TO ADVANCE
MONEY ON THE COAL LANDs-PREaDEST JKWETT
TO BIZ THE NEUTRALITY-SUSPICIOUS. o. DE-
RRCrORs.
The Erie Railway Company to-day or To- morrow
most probably to-day, will pass into the hands Of .
Receiver Il is well known that the pressure OF
debt both floating and bonded, has weighed
it down for considerable time, that the manage
ment Of Mcclellan and Watson Barlow and the rest,
has been unprecedentedly extravaganza, and thas
when the trunk lines began their war the Erie road
badly equipped, with the disadvantages OF broad
gauge inferior resources and with heavy liabilities,
unable to cope with the other great Lines to the
West. The consequence has been that the Com
panys affairs have gone from bad to worse, until,
after the publication Of President Jewetts,
it was generally acknowledged that bankruptcy,
although it might be deferred for
brief time, was inevitable. The Company has been
engaged in endeavoring to place o mortgage on ITS
coal lands by which it was to receive $oOO,OoO
from the Delaware, Lackawanna and Western
Railroad and the Delaware and Hudson Canal
Company This money, with about $3OOoOo
which had been b. ,ught together and put into the
Golfers Of the Company was intended to meet tho
June interest on the bonds. Yesterday, however,
President Dickson Of the Delaware and Hud-
son Canal Company arrived in the city and
terminated the negotiations by refusing 70
advance the money. In view or anticipated
hostile litigation the officers Of the Company deemed
it advisable that the courts should be appealed to fos
receiver. The Attorney-General was consulted,
and that officials I"w partner, Mr.. Brown,
and exJudge Shipman of the firm OK
Shipman, Barlow, Larocque a. Macfar-
Land, attorneys for the Erie Railway Company have
been in consultation for several days in this city
preparing the necessary papers One of the Judges
of the Supreme Court in this county will be asked
to grant the ORDER and Hugh J. Jewett the present
President will be appointed receiver without oppo-
sition.
One of the principal persons interested said yester-
day that not only was Ere's legitimate debt very
great, but the judgments entered against the COM
pany on account of the guarantees OF Atlantic and
Great Western, and Boston. Hartford and Erie and
other bonds were so numerous that they wond have
eaten up everything.
meeting of tho directors of the Company was
held last evening the residence Of 8. l.. NJ Bar
low, at No. Madison-ave. Among those presens
were President Jewett Mr. Barlow, William Butler
Duncan, John A. c. Gray. and Others The consuita-
ton was regard the best course 20 pursue with
respect to the receyership and the finances Of tho
Company
The conference lasted for several hours and at its
close a reporter Of THE TRIBUNE applied to one OF
the directors for the details Of the discussion The
director, however, politely but firmly declined To
impart any information to the results OF the meet
ing but when application was made for facts
regarding the steps be taken for the appointments
of Receiver he said: "The Erie Railway Conf
pany will probably default on rs June interest IN
consequence of the failure to obtain the expected
money from the Delaware. LackawanIia ard Western
and Delaware and Hudson Companies. In view of
this fact there will probably be an application for
Receiver on Wednesday to-day on tho ground OF
the insolvency not bankruptcy, of tho corporation.
This action will be taken under the State law ans
will be designed to protect all interests concerned
The application will recte the insolvency Of tho
Company, and be supported by alidavits OF Presi-
dent Jewett and others Ere opened yesterday
morning on the Stock Exchange at 1884, sold up to
2O5s and down to ls closing Mt ISL TO 1873.