New-York tribune., 1878-04-26
RAILW4Y CHANGES AND PLANS.
EFFECTS OF THE ERIE SALE.

OPPOSING VIEWS OF THE RESULTS TO THE STOCK
UOLDFRs-OPINIONS OF TIE TWO HOSTILE
PARTIES.
w. w. Mcfarland, of counsel for the !Erle
Railway sad yesterday that the reconstruction scheme
would be carried out speedily possible The foTma-
ton Of company would, however, require eonsld-
erabe time. One OF the first matters TO be considered
the selection of name for the company which would
he formed. Mr.. Macfarland believed that the name
selected would offer little possible nom that OF the
presen company lie also expressed his belief that the
formation of new company would MAKE no material
changes in the present management OF tue rOau MI
Jewett he said, had worked In harmony with the
English bondholdcrs. the scheme Or recOnstrucng the
IL was understood that Mr. Jewett would he made the
president Of the new company ut its formation. -
Thomas T. Fowler, or counsel for persons who have
ne, Iii Tb" sale OF the road viii NOT stop tGe
efforts the stockholders to get control OF their pro-"
eIty The reconstruction scheme which II Is now pro-
posed 10 cnrry out, is manifesty unjust that the
courts will not allow it TO proceed This provides
Onehaf OF the shares OF the new company shall be
trustees who shall hold them until dividend has been
uaid preferred shares OF the stock for three cOnseC
dividend ON the Peierred Stock Tor three con secavs
years the trustees retain control Of the road as they
bound 10 do II the scheme succeeds Heretofore the
road has been unable to pay dividends. and there Is little
hope that IT can be made to pay dividends unGer the
control Of the rccOnstruc0niSts is proposed to n-
the capital stock Of the road by or
der 10 narrow the gauge II the ROAD has OcenuuaDe on
account OF It's great debt to pay dNdend5 on capital OF
$50 100000 IL ia hard 10 see how Will pay dividends
on a capital of 800 100000 The reconstruction scheme
was planned TO put the road into the hands OF clique,
and take entirely beyond the control OF the original
stockholders" "The Erie suits which have been
going in the courts" Mr. Fowler continued,
will not stop because OF the sale OF the road: %
The nght Will go harder than ever. The
suit of McHenry, Brown and others, against the Eric
Railroad Company, the Farmers Loan and Trust Com
many and Receiver Jewett 10 open the decree or fore
closure and set aside sale Of the road still bending
and Will he urged forward with vigOr. There
also pending two suits against Receiver Jewett Tor
alleged mlsmauagement of tile road and alleged perjury
and suit brought by McHomy against the Erie Ral-
f..n INF e. &.
shares In the hands OF Receiver Jewett"
Receiver Jewetts accounts of his receipts and dis
bursements for February were hed yesterday. His
cash balance February l. S449l2 30 aud on Feb
rIary 2S S66 li9 81. Deductiug these cash balances
and inc moneys received and paid out for receivers GER
tcates and loans the receipts are stated at Sls9O-
5S3 25 and the disbursements At SlO2OsO0 10 Or the
expenditures, 900 went for new locomotives, ana
Sl5 G9l for payments purchase OF coal lands Tie
reduction in the receivers certificates was S2177O2 29
leaving outstanding II 020,360 81. The loans were IN
creased $1,000.