New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-27

"
nothing at first hand Of this lease, some Of
the directors must have been acquainted with
the facts. What were the facts
President Jewett tells the shareholders Of
the Erie in his report of the 18th inst. that
the lease contained covenant on the part of
tho Atlantic and Great Western Company that
on or before Jan. 1. 1875, it would purchase,
or procure to be purchased, in addition to the
stock it then owned, an amount equal to ut
least onc-half the entire capital stock of the
Cleveland, Columbus, Cincinnati and Indian
apOlis road, and that by means OF proxies and
powers of attorney the control of the latter
road should be secured to the Erie during the
continuance of tho lease. This promise, based
on q stock speculation. the Atlantic and Great
Western Company was wholly unable to per-
form. Upon further inquiries Mr.. Jcwett
found that the accounts of the earnings and ex-
ponses of the Atlantic and Great Western for
the year ended Sept. 80, 1878, on which the
lease was based, were disgracefully Cooked"
the real net earnings on a gross business of
S5,315,4S9 13 being but $4S6,961 20, instead
of 81 1886, 957 10, as the accounts had been
made to show. BY the terms of the lease the
Erie was to pay % per cent Of the gross earn
amount of net earnings realized that year by
the Great Western Company! When fraud
like this is attempted on the capitalists of two
great cities some one should be held to an &C
count.
The Erie Railway ia the only one of the four
Western trunk lines which has its main ter
minus at Newly TwO-thirds of the through
freight from Buffalo to Albany over the New
York Central road passes into New-Engand.
The completion of the HOOsac Tunnel and the
formation of an Independent line from Boston
to the Hudson River cannot but increase the
attraction of grain and provisions toward
Massachusetts Bay. The four track improve
mcnt of the Central road does not extend to
the $50 miles between Albany and NewYork
a circumstance of some significance On the
services rendered by tho Baltimore and Ohio
and PENNSYLVANIA lines to the trade of Balti-
more and Philadelphia we need not enlarge.
The Eric Canal is still left to US, but the total
business Of the Canal bears every year a smaller
percentage to the total business of the railroads,
and during five months of the year ii is closed to
navigation. The great want of the Erie Rail
way is honest and efficient management. 1t
needs to be changed to the narrow gauge and
TO DE improved Ill VdIlOus -Aittl W ii.it
has taken place for number of years past it
is idle to expect the capital to be raised and
these improvements to be made under the
management of the spectators who have hith-
erto operated in its worthless common stock.
The wiping out of the stock will be benefit
to the true interests of the road, which are
identical with those of the trade and COM
merce of New-YOrk City. Under proper en-
couragement the local business of the Erie
might be greatly increased, but, if we mis-
take not, tho lesson which other railroads be-
sides the Erie have to learn is that their
rates must be adjusted with reference to
fostering the business upon which they are
dependent, and not to the earning of dividends
on watcrcd stock and spurious capital, without
regard to the suflerings Of their patrons. The
Erie Railroad in competent hands and enjoy
ing the confidence of the community, and freed
| from some of its oppressive debt and leases,
would be the natural protector of the trade OF
| New-York. The work of reorganizing the con-
Germ on a solid basis will be one of great deli
cacy, and will require good deal OF time.
The appointment of Mr. Jewett as receiver is
the first step. 1t was unavoidable, and under
the circumstances it should be regarded rather
as a fortunate event than a mishap.