The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-05
THE ERIE RAILWAY
Report of the Referee on the
Receivers Accounts.
The COMPANY'S COAL LANDS.
Receipts and Expenditures Since Mr.
Jewetts Appointment

others against the Erie Railway Company, filed his
report on the examinations OF the receivers ac-
counts for the year 1875 aud the month OF January,
1875
gErEgEEs FINDINGS
The following the substance Of the findings OF tho
referee the report Of and tho testimony offered by
me receiver, Mr. Hugh J. Jewett from May 81, 1878,
December 81 1875 both dates inclusive, filed yes
Icrday In the Office of the County Clerk
Frst-Thc referee reports that the receiver Mr..
Hugh J. Jewct has received from all OF the
Erie Railway Company's estate for the term OF his
recevership, commencing May 81, 1875. to December
81 1875, the aggregate amount of S16 ISL, 900 81.
Second-rhat tho receiver during the same period,
dsbursed SIC, $50, ga %
Third-That the balance of moneys In the possession
of the receiver on December 81 1875, 1891 567 25
ACCOUNTS VOUCHERS.
The referee then goes to say:-.'And do further
report to tho following findings OF fact opinion
regard to the and vouchers of the
Tor payments and advances made By him during the
laid tmo to the Northwestern Mining and Exchange
Company and tho Hillside Coal and Iron Company
aud in regard real estate and other property Of said
companies and the interest and property o. the
Of the Eric Railway Company therein and thereto, and
IN regard TO the necessity and proprioy OF future ad
vances to SAID companies by the said receiver, which
findings OF fact are based upon said accounts and youc
ers aud the proofs taken by ana before me and trans
mitted to This court
y
Jcwett rs receiver OF the estate OF the Erie Railway
Company the said company had purchased large
amounts OF coal bearing lands portions OF which
OF anthracite coal and the OF I.u-
Eerne susquehanna and Wayne state OF Pennsy lvana
amounting to 600 OF land in fee and several
hundred in leasehold. and in several hundred
acres the company Lad purchased mining rights The
original aggregate cost Of the anthracite coalbcaring
lands was the sum OF 81, 236 tG3 ~
COAL MINES OF THE COMPANY.
'Anothcr portion OF these ands OF bitumnous coal,
md situate in the counties of Elk and Jefferson tho
State OF Pennsylvania, amount to IA, 900
OF land in fec and in about Is COO land the said
company had purchased inning rights and the original
aggregate cost OF these bitunnous boarng lands
VAS Il, 0a4, 029 OF.
.'That these lands had been purchased by the Erie
Railway Company upon evidence satisfactory to the
officers thereof at the time of such purchase that 1t
was making valuable Investment Tor said company,
and deemed by them to essential and necessary
for the present and future interests Of said company
The report, alter referring 10 the manner OF opcrat-
ing these mining lands, goes say, THAT prior
the appointment OF Hugh j. Jeweit receiver there
had been paid account purchase OF the lands
and rights held and owned by the Hillside Coal and
Iron Company 1.-THE anthracite coal landsl
there VAS balance rcmo,nna vnna,d an NJ
about $500 U00 and there had been paid account Of
by the Northwestern Mining and Exchange Company
thc btuminons coal landsl aggregate amount OF
$780, 600 and there renamed unpaid balance of less
Than 100000 That portions OF said amount
naming unpaid and interest thereon were due, and
other portions were nearly due; and the persons TO
whom the same were due required payments DO
made on account of principal and interest and lore
closure of the mortgages and sale OF said lands and
mands not satisfied and discharged and tho said
companies VINO held said lands not in condition
TO pay such claims and unless the estate OF the Erie
Railway Company made advances TO said companies to
enable them 10 meet and pay such demands account
would probably suffer BY the loss OF SAID lands
leases and mining rights, and the loss OF the moneys
heretofore paid on account of same.
.sThat the receiver informed and believed that
the original purchase of these coal lands and the
made by The Erie Railway Company was made from the
proceeds of the bonds OF that company secured by the
mortgages described, and the interests OF those bond
holders be considered and protected II tho pay
ment OF the remaining portion OF the purchase money
on those lands was necessary to protect and advance
those INTERESTS and beyond those bondholders were
other bondholdcrs and also creditors and stockholders
OF said Erie Railway Company whose interests
in like manner TO be considered aud projected by the
said receiver
Il further find that said coal lands were and arc
vauable that their present value Is equal TO, If IL docs
not exceed the amount originally paid for the same;
that ii they worked and developed they will not
only pay the of working 9pd developing the same
but also clear net gam or profit beyond the interest
Of the moneys invested In the same will also pro-
duce revenue 10 the estate of the Ere Railway Com
pany by the transportation OF the products of SAID
lands TO market over the main line OF its railroadr
The report here gives Illustrations Of the benefit
showing saving Of nearly 81 ton on every ton
used by the company and that not only can the lands
and mines supply all the needs OF the company, but n
large additional amount of coal can be produced and
transported by the Erie Railroad TO market at fair
compensation and he sold AT profit OF 81
per ton If tho companies aud said lanas continue to he
controlled and worked under the direction OF in the
interests OF the Erie Railway Company.
The report here further shows that since May %,
1875, to and including the ls day OF March 1876, the
Northwestern Mining and Exchange Company has paid
from its funds OF the principal and
ierest of the purchase OF tho lands and rights
held by them the OF $40. 557 0S and that during
the time the receiver has advan ced tho said
company SIS, s51 93 on account OF the principal and
interest of said purchase money Of said lands and
mining rights, leaving yet unpaid Of principal and
tcrest about 600, some portion OF which is over
due and the greater portion Of the remainder will fall
due in the month OF july 1876, and the balance in De-
cembcr 1876
l. 1876 the Hillside Coal and Iron Company has paid
from funds on account of purchase money OF
its and leases, &C. the sum of $780, POS Is, and
during the same period the receiver has advanced on
the same account the sum of sl75 i54 80, which
also been paid by said company upon account OF
principal and interest OF SAID purchase money, leaving
yet unpaid about $500. 0o0
The referee then continues ;-''l further ind that tho
present aud future control Of the production and
transportation OF coal by these companies and will
be matter Of much Importance and benefit TO the
estate of the Eric Railway Company in many ways in
directly yet connected with the control CT the traffic
and transportation OF coal over the railroads OF sad
estate, which traffic and transportation amount an
nually 81 100 600 in the way of frcights tho
sAnd do further report that upon these facts have
adjusted allowed and passed in the accounts OF the
ceiver, and payments aud disbursements made by
him account OF the said estate the several items of
payments and disbursements appearing 10 have been
these coal companies 10 pay the said lands,
and decide such payments to have been made by him
in good faith and With good judgment and within his
powers and duties such and In further
pf the Interests Of all parties interested in tho estate,
and am OF opinion that II Is Tor the interest OF all
concerned that the should continue control
and direct this property and II necessary. the iuli
due or TO become due thee lands bc PAID
by the receiver and he DO specially authorized
and directed to mako such payments IN o. need
and make temporary loans his Official certificate
for that purpose and also that he be authorized sell
and dis pose OF said capital stock OF said companies
and interest said lands to ohcr parties but under
that will secure TO the the purchase
Of fuel reasonable rates and the transportation OF
the products OF It's lands its railroad"
RECEIPTS DISBURSEMENTS.
The following Is detailed statement OF the receipts
and expenditures by the IRON May % ls75 TO
December 81, $50
Erie Railway Company balance trans
ferrcd May %, 1873. ................ siI5 5o3 a
Passengers ASA SO l6
Freights. u,2lIS3S 81
Nails ACKNOWLEDGEMENTS. 200 Cos %
Telegraph OBSERVATION-DISCLOSURES. lSss9 ST
Train service OBSERVATION-DISCLOSURES. oO3 6S3 q
Ola material sold. 130545 70