The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-04-14
COTTON SUPPLY AT LIVERPOOL
THE ERIE RAILWAY.

REPORT OF THE DUNDEE COMMITTEE COMMITS
sIoNERs--CoNDITIoN AND PROSPECTS OF THE
ExTERPRIsE-THE FLOATING DEBT-wHAT
SHOULD BE DONE FOR PROFIT AND EFFICIENT
WORKING.
LONDON April IL, 1876
Mcssrs Fleming and Miller. the members Of tho
Dundee ommttce who sent 10 the United States
10 investigate tho Erie Railway have submitted their
report which, after reviewing tho past history and
present financial condition OF the Fro Railroad prop
er,y they say the essential conditions Of successful
reorganization are
First-Encctivo control OF tho management Of tho
road by the real owncrs-the bondholders.
.Second-rhc restoration OF the equilibrium between
the compulsory interest charge on the mortgage debt
u nd the minimum net earnings.
Third-A provision for narrow gauging the line.
THE FLOATING DEBT.
The net floating debt is s2,SO0,000
now TO EARN
II part OF tho net revenue Tor sufficient period
could be applied 10 paying of the floating debt and
narrow gaus the line there could with capable
agcmcn,, be no question as to tho capabilty OF the
property in,ercsfon all its mortgage debt with
out the necessity Tor foreclosure and assessment
the shares
These results could he substantially accomplish ed by
funding the september coupons the nrst consoli-
dated mortgage years tho March coupons being
paid cash, and all the coupons OF tho second
consolidated mortgage; but the bondhodcrs would not
consent 10 such an arrangement unless the stock
holders voluntarily surrendered majority OF the
stock trustees receiving negotiable certificates in
exchange. A draft OF agreement has been pro-
pared cmbodying these proposals, and will be sub.
miticd TO meeting OF the stock and bondholdcrs at
early day. With this condition as 10 srustccng tho
all they could gam by foreclosure, they would have
the entire management OF tho property to make the
best they could out OF IT,
FORECLOSURES.
In vicw however OF tho difficulty OF securing this
action OF tho bondholdcrs doubts about whether
the co operation OF tho stockholders be secured
and the necessity for amicabe settlement with all
claimants they think foreclosure is the soundcst plan,
would doubtless be preferred by those sharchod-
crs who really caro- for the welfare OF their properly.
Mr. Jcwcit has frequently expressed the opinion that
foreclosure is ultimately inevitable.
With certain not very important notifications VIC
sec reason to doubt that the committees scheme
Of by foreclosure may DO successfully
carried out and result placing tho road IN thor
oughiy sound financial position.
COMMITTEE
The scheme referred 10 is that published heretofore
by the committee, OF which sir Edward wntkin was
chairman, and Mcssrs. Fleming and Miller recommend
It's with notifications and urge all interested
10 give IL support, saying, In conclusion I'VE must
content ourselves with suggesting that the committee
proceed with veor in tho direction OF foreclosure A.
tho same time inviting the stockholders 10 signify
their Willingness 10 yes, their shares in trustees as
above mentioned.
''whencvcr enough Of them have done so II will be
right for to consult constituents the choice
oil plan"
Mr.. Jgwgrr's LETTER
Tho report Is accompanied by q letter from Prcsi-
den; Jcwcti, bearing date OF New York, March ~
and addressed 10 Sir Edward W. watkin. Mp The
extracts appcn show Tie OF the whole
''Mcssrs Miller and Fleming will also bear with
them a proposition or agreement Tor the funding OF
coupons and Improvement Of the property, adopted
by them and Committee OF the Board OF Directors.
have very strong hopes that under tho proposed
arrangement The properly can DO put m condition
10 render unnecessary any further sacr
ncc CT delay on the part OF the hondhoders.
II would be better " tho bondhoidcrs would
funding OF two years longer, with the proysc,
however, that the the work upon the road had
proceeded TO satisfactory end or tho earnings or tho
company would justify II, tho interest should be
promptly resumed, without regard to the time for
which the funding was 10 be continued.
II think u viii be very safo 10 assume 81 eco, 900
as Tho min mum OF an average earning. II tho road
terms with It's two great competitors whou: a
material increase OF irafc the net earnings should
DO excess Of the amount named. It's indeed mort