The sun., 1879-02-22
ERIE'S NEW FUTURE
The Proposed Lease OF the Atlantic and Great
Western and its Branehes.

On the 18th u private despatch from Lon
don 10 Kiernan's Wall street News Agency an
nounced that lease OF the Atlantic and Great
Western Railway property to the Erie had been
effected there. /, was impossible to get a con-
nrmation OF the news here. Hence Il was treated
by many as n stock-iobbing telegram. Yester-
day. however. n trustee OF the Erie said that the
news was undoubtedly true as far as the in
itlatory steps were concerned. He was advised
that the English trustees Of the Atlantic and
Great Western mortgages met in London on
the llth and agreed upon scheme for leasing
the property 70 the Erie company. President
and Receiver Jewett OF the Erie said yesterday
that be. too. had been advised OF the action of
the English trustees and OF the main details
of the plnns and TINT he thought they would as
Mhol. meet the approval oi the Erie trustees.
The English trustees have in the courts a suit
OF foreclosure upon the threr mortgages. name
j.. a first mortgage OF fl4,922.2oO. second of
ti0173.G .G79.69. and n third of s2s. .784 900.
making a total OF $50 29G 1859 aud with ac-
crued interest since December 1874 when the
bonds driuulted. a total of nearly $50 0OO. 900.
The foreclosure will wipe ont the capital stock
Of the company. OF which about f34 900 .0OO poth
common aud preferred has been issued. and
floating and other Indebtedness 20 the amount
OF about s20OOO00O. The obligations Of the
road Will thus Do reduced from SllO 900 900 10
sG6.0OJ.OO0. The difference between this bal
nnce and the three mortgages upon which the
iore.loSurg proceedings are based consists OF
$2,4l6.3OO bonds secured by what is known as
the ONO first mortgage, and receivers certin-
Gates OF sl 100000 The proposal OF the Eng
lish trustees IL that the Erie shall guarantee
the interest on these two obligations. which are
not affected by the foreclosure proceeding. on
taking ease Of the property for ninety-nino
years The trustees. or the new company
which they will form. will bear the expense OF
foreclosure and reorganization, put the prop
erty in good running order. and lay n third rail.
narrow gauge. AMI fully equip the road. For
this purpose, bonds secured by a new second
mortgage will Dc issued TO the estimated amount
OF perhaps So 500. 600. the Erie To guarantee the
interest on the same. max ing the total guar
nntee ~ the Erie something less than SO. 10000
The net earnings Of the road are 10 be divided.
two-thirds 10 the Atlantic and Great Western.
and one-thrd 10 the Erie.
BY this lease D" the trustee said. we will obtain
possession of the property 10y Il guarantee ~
less than one-th rd 81 the price at which Fisk
and Gould tried to purchase the road twelve
years ago. The net earnings OF the road last
year nearly fl000.0Oo. The property has
been in the hands OF a receiver. j. II. Deversux
OF Cleveland. since 1874. lelse to Erie wns
made u few months before the appointment ~
u receiver. but II was n"vrr carried into effect.
BY this lease which the uiil-er~ OF Erie seem 10
think is only II question OF tim" ~ to the exc
rution. Erie comes into the p secession ~
through route from Jersey C,ty tn Cincinnati"
Tn hrnu'hc- ~ the AtlGntic AMI Great West
ern are also valuable. The entire line is COS