The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-04-14
THE ERIE RAILWAY.
The Dundee Committees Report Recon-.
mendins n Foreclosure.

mcndiuH foreclosure.
LONDON, April 13.-Messrs Fleming and
Miller, Of the Dundee Committee who were
sent to America to investigate the affairs OF the
Erie Railway, have submitted their report, in
which, after reviewing the past history ana the
present financial condition OF the Erie property,
they say the essential conditions Of successful
reorganization are:
First Al effective control Of the management by the
resl lvners-the bondhold-rs.
Second The restoration OF the eQui1 between
.nc 80 n,r.s, vharse on the mortgage oeot
Thrd-A provision for narrow ssuging the line
The net floating debt Is s2.sOO.OO0 II part Of
the net revenue for a sufficient period could he
applied to paying OF the floating debt and mar
row gaueing the line there could, with car, BILE
M naeelnent. be no question az to the capability
gage debt without the necessity OF foreclosure
and assessment on the shares. In conclusion
they say:
In view, however Of the difficulty of securing the
the eooverauon Of the stockholders can be secured
ciaimaLis hey think force osure Is the soGntesi pan
hosers Who really care for tne efarc " er property
wa ssT, Z, sdnS vSs we see
org4nz ton o. foreclosure may be successful carried
out. AMI resut IN placins the road in thoroughly
sound financial position.
The scheme referred 10 Is that published here
tofofe 10y tho committee, of which sir Edward
Whtkin was Chairman and Messrs Fleming
ana miller recommend us reissue with modin-
cations, and urge all Interested 10 give II sup
port, saving IN conclusion:
We must content ourselves with suggest Ing that the
commit pruCte vita IN the direction
closure, At The same tine Inviting the stockholders TO
enfN their Willingness To vest their shares Ia trustee.
IS atoNc mentioned. Whenever enough Of then Ia We
donc 80. Il Will De right ior consult our consu
eats as TO the choice OF plan
The report Is ACCOMPANIED by letter from
Prcsttent Jewett, bearing date OF New York,
March ~, aud addressed to SIR Edward W. Wat
Kin, NJ. i. The extracts appended show the
general tenor Il the whole;
NJ ssrs. Miller and Fieminy viii also bear with Their,
pronosion or agreement, for the fuudl u coupons
anu Improvement 81 tho property, as adopted by
them md committee u the Board Of Directors
have very stroug h1pcs that under The pr posed ar
rangcmeni Tie property can De put In condition o
to essary further s1crnce or delay on
DuuGholders would nseut 10 fund Of one or tw
years longer, with the IroNisp, however that
urn the WORK upon the road mad procrele to salts
factory end, or the srnings Of the com.
p.ni would Justify II, the interest sh'ull
be promptly resumed. without regard to the tims
for which the funding was 20 De continued
think Il viii be verI safe - assume A20O 900 tie
minimum an average ung. II the road IL once
IN conni ion TO compete on thing Ike equal terms
win IL two grrat cumpeut r. Wit tout eria IN.
crease OF trac the net earnings saoud he excess
M smouut Lacd II l., Indeed, morfytng have he
het earnl X ~ the company in the present conuion
OF s property, Gud IN view OF the circumstance IN
with the prrceutage Of net earnings Of lines tree from
all the emharmssmen's under which II has continually
70 lsbor Win Nlur kpowledgo and experience on eau
up eciite aud auderetand these dincultIes hut 10
those not familiar with railroad managenit "a ami rail-
road property II 10 somewhat dacui. 10 explain.