The sun., 1893-07-26
RECEIVERS FOR ERIR.
President King and J. G. Nc
CuIIOugh the Men.
NO SURPRISE FOR WALL STREET.
Mitchell's Bank Biggest in the List
Of Yesterdays Failures

| Strength Falls with n StnrtiIne Crash
Senator Mitchell Had Chased n rsIiias
Market Down in EGort TO Unlosa
stocks and save HIs Bank--Two Indian.
apoiis and Three 1.ouisviIle Installations
Suspend - Smaller Failures Elsewhere.
The following statement was furnished 10
the newspapers late last evening:
Under the resolutions OF the Board OF d.
rectors, adopted at its last meeting. held July
20. tho Executive Committee Of the Erie Rail.
road Company. after full nsideration. yes-
terday adopted resolutions placing tho road In
the hands OF receivers.
The receivers appointed by the Court are
John King and j. G.. Mccullough. This meas.
ure was taken purely In the interests Of the
road and its credltors Within the last few
weeks. during the severe money strlngency.
the floating debt OF tho Erie. which
every one knows hos existed for the past few
years. became impossible OF renewal. and in
order not to sacrifice the best interests Of the
company. 1t was decided to place the road In
receivers hands to preserve the system In.
tact and to preserve and develop the trans.
portation business Of the com pany.
The owners Of It's securities should not sao-
riice their holdings because Of this step. The
names OF the directorate Of the Erie Company
are sufficient guarantee OF tho honest and
lntelllGent management OF tne interests com.
mtted to their hands.
The order was granted by judge Lacombe
OF the United States Circuit Court. Tho 70.
ceivers' bond was given in $500. 900 with D. o.
Mills and J. Lowber Welsh OF Philadelphia 40
sureties.
This is the fourth time that the Erie Com.
pauy has been placed In tho hands Of 70.
ceivers. Tho event will hardly surprise Wall
street or the railroad world. since every one
having to do with financial affairs and tho
transportation industry has known for weeks
that the CONF pany was hard up.
Its floating debt is understood to he about
S6.5O0.O00. large nart OF 1t consists Of
loans secured by collateral made by largo in
stitutlons banks. and private bankers. 70
also has outstanding q large amount Of
paper given for supplies and to meet obliga-
tions incurred In operating the road. 1t is
understood also that the company is In ar.
rears on q number Of routine payments. such
Us Its pay rolls.
The obligations last named. or. rather. the
inability OF the company to borrow money to
meet them. precipitated tho recsivership- It
has been rumored in Wall street for several
days that q receivershp was imminent and
sharp declines in the prices Of all OF the com.
pany's securities have. to an extent corrobo.
rated the reports.
Oflate years the company has constantly
been In a precarious condition financially. and
this fact. together with the recent decline IN
its securities to recsivership prices. and the
belief in Wall street that tho company Is In
solvent will doubtless go q great way toward
lessening tho effect Of the announcement made
above.
The directors OF the company arc: John
King. ]. G. Mccullough. J. Lowber Welsh.
Cortlandt Parker. Henry H. Cook, William Lib
boy. William A. Wheelock. William White
wright. George W. Quintard. Ogden Mills. vii.
liam L. Strong. NJ +. Reynolds. Morris Z.
Jesup. James J. Goodman VIM. N. Gllchrtst
The total mileage OF the Erie system at
present is l .008 miles. This includes the New
York. Pennsylvania and Ohio Railroad. but not
the Chicago and Erie Railway operated by It
which Is 26S miles long. According to o re-
port for It's last fiscal year. ending Sept 80.
the company earned surplus over all
charges OF S733.250. and according 10
statements recently made by its directors. 1t
has been earning SO far this year enough to
amount has. OF course. been Insignificant for
the purpose Of financing tho company.
The bottom facts about the property are that
1t has been handicapped for years by the 70.
suits OF tho Gould-Flsk regime. and BY
the subsequent administration OF Hugh J.
Jewett. 1t has been almost constantly In tho
money market as a seller Of bonds, partly to
acquire now property and mako improve
ments. and also to fund maturing issues. OF
late It's ability to borrow has been restricted.
owing to tho liens already placed upon its
asseea