The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-05-27
A RECEIVER APPOINTED.
The Cause Of the Crisis and
the Probable End.
THE ORDER OF THE COURT
Views Of President Jewett, Colonel Steb-
bins, Jay Gould and Others.
The ATTORNEY GENERALS COMPLAINT.

The varied ana contradictory rumors tnat nave
-een anoat In financial circles during the past
week or two concerning an impending revolution
OF some kind 10 the a1airs Of the Erie Railway
Cook tangible shape yesterday by the appointment
o. President Jewett as receiver Of the road on
application OF the Attorney General and petition
ueclaring tue road Insovent The news would
undoubtedly have created quite a hurry in Wall
street nad II not been thoroughly discounted the
day before; yet when the appointment was made
known as an accomplished ac, the excitement
among the bulls and bears for a time was intense.
II was at the company's once more taan any
place else that me intelligence seemed to
have the greatest eject The idea, appar-
emily, prevailed among the officers and
employees that a receivership m ant nothing more
nor less than complete revolution and
that general cnanQe or the active working force
would be one or tne arst ugly results mat would
make itself mani est. 1nls feeling 81 distrust was
rendered ali the more bitter BY the fact that many
or them have not been paid FOR upward OF Two
months, ana pay day for tnem under tae circum-
stances seemed ar or n the dim future indeed.
When 10 was anany ascertained that Mr.. Jewett
was the receiver, the employees appeared u re-
gam confidence, probably because, as one OF them
remarked when ne heard mr.. Jewett's name men
toned ia connection with the position, the major
ily Of the employees believed that 'tne road was
yet in the iamny,n meaning, doubtless, that
reason OF the necessity whicn dictated the APP
pointment OF a receiver for the company's good,
everything was sale, SO far as the employees were
concerned.
THE FEELING IN WALL STREET
was one OF dependency and distrust. TIE de-
cline IN Erie stock seemed 70 depress all secur-
ties and they were pressed for sale irrespective or
value- Many OF the lea ers OF the stock market
who questioned by HERALD reporter as 10
-tKw.sn . rfa
expressed the opinion that the liquidation which
had beer going on 50 steadily 10 commercial
circles mad at last reached the railroads and that
those which were upon an unsuosIantial basis
would have to go TO the wal.
The circumstances which brought about the ap-
pointment OF a receiver Tor me road rather
peculiar. II appears that some time ago Mr.. Jew
stt, to meet the June interest, found that ne
would have 70 borrow 5000, 900. and he informed
the Board, at a meeung held two weeks ago, that
he had made an arrangement with the Delaware,
Lackawanna ana Western aud the Delaware ana
Hudson companies by wlicn be could secure a
loan OF 100000 on the coal stocks held by the
Erie Railway Company coal lands In Pennsyl-
vania.
M. Jewett told the Board that he could
s4oo, 600 OF the current expenses or the road,
and this vita he loan expected OF $500 900 would,
Of course, make up the $4,000 needed TO pay on
the interest on satuid aY and Monday
THE ORDINARY LOANS
q the company, secured ~ good collaterals on
the street, were suddenly called in 50 what had
already been saved out Or the current expenses 10
20 toward the payment OF the interest had TO be
used 70 meet the unexpected demands 70 prevent
q sacrifice or tae colaterals. on Tuesday tue
Delaware and Hudson company notified the Erie.
Tor reasons which were not given, the Erie
people say that they had determined not TO make
ina nan If "
without to meet the interest.
1ae falling OF OF the receipts dur
ing the past twelve DAYS ABOUT one
half the usual figure also stopped the way,
according 70 one Of toe directors. Simultane-
oasly with the fact becoming apparent tnat tie
company was likely 10 De unable 70 meet the In
terest Mr.. Jewett received notice Of the intention
of various partles-sOme in New YORK, some Ia
New Jersey an some ia Pennsylvania-to move for
the appointment or a receiver of the road. In case
tue proceedings took place m New Jersey or Penn
sylyanla aud a receiver should Dc appointed In
either state the portions Of the road In those
states would be, ne understood natural result,
10 De totally dlsorganized AID the EHdIe would be
toe breaking up Of the whole business Of the road.
There was great danger, too the directors be-
heved. In q receiver vas appointed at the in
stance Of some unlmportant creditor or o. some
person seeking 10 influence the stock market, nat
tue interests OF al parties whose property shouli
BE preserved would be sacrificed. On Tuesday
evening, therefore, a meeting Or the Board was
called AZ the residence OF Mr. ;. L. u. Barlow, one
OF the directors, waese there was q fun attend
ance. Nj. Jewett there ana then laid all
TIE FAcTs BEFORE rHE BOARD
70 determine what, n anything could be done 70
save me appointment Of receiver II seems that
the sen tlmeut Of the Board vas unanimous, and
me general desire was expressed shat the indl-
udual members OF the Board sBouId lend me COM
pany all the money necessary 70 meet the June
interest," provided, In the opinion 81 Mr.. Jewetr,
iurtner assstance Of such character would not
be necessary 10 meet the Jug interest Ia view
OF the excessively low rates IA force, growing out
o. the competition between the great trunk lines.
81 the fact that the payr0lls or the company we're
two months IN arrears. making nearly si,OO0,OOO
Que 70 tue employees and or me general de-
probation or tue business or the road be-
fore referred 70. MI Jewett was unable 70
cav tnat such temporary assistance would be sur
ncIent TO 90 more than 10 postpone the insolven-
cy Or the company anu 20 i va finally deter
mined ~ tue Board that Il would be unwise 70
t1ke any measures 70 apply Tor TIE appointment
81 receiver. but Simply, IA case receiver was
asked fJr, ~ the Board vas led 10 believe ~ tue
Attorney General Of the srate Or New YORK would
be she case, that he aud the courts should be re-
quested to name Kr. Jewett, the President Of tHe
road, as suca receiver. Beyond tbs the Board
took no action. Early yesterday morning the
ATTORNEY General appued before Judge Donohue
aud the supreme Court iOt the appointment u
receiver, naming Mr. Jewett, md inc Court
granted ths notion; aud On aInE nls bond 10 the
sum 81 taO0.oUO. uis DUndsmen being ;. l. Al. Bar
low, Homer kamsdeh ana h. u. Morgan, he TOOK
possession 81 tne Wn0ie ROAD AZ receiver and Otn-
Ger " the COurt. Ii u understnO1 mat similar
proceedings wIil % taken New jersey and
PennsylvanIa ~ secure toe appointment OF Mr..
5ewett a. receiver In those states.
me l0h0wing afe tue papers ~ DO case -
IhE PETITION FOR tbs KECEIvERsnIP.
Supreme Court CitU 4ad Gsaff Ntr People
81 tie state q sew YORK, pAa MAO Tue Ere Railway
S0mpauyY HuKn y 4ewNtt Ih0naR a. Scott John Taylor
yOhnston, Marshall " Roserts. rtderck scAuchar4t
" Butler Duncan. Ndwln y. MORAN. Hiram Halfxer.
samuel n BARLOW, ~ ". Meyer heury q. slebDlns
n buydam Grant LuciuM H0ainson. John a. n. Gray.
oertand Parker aud nomar EaAt4el greet u Tie
hallway Oompnugg det@nuantss william HOOKER,
laaaDh WA-knr Lriah j. smith, Janea Br0wn, J. C. IS.
nmVia w. 4. 0reg0ry. arMexs aad rvuel COM
umuv. Earle william o. 0Gu1, q. II Muner.
#llnam Rnfler lgzncau. horaao N. Ola Niaam O