Morning journal and courier., 1893-07-27
ERIE,S RECEIVERSHIP.
A short Sketch of the Roads Check
cred E4tsfnrx.

"A Short Sketch of the Roads Check
cred History.
A sketch of the history of the Erie road,
for which receivership has been created,
as was announced EXCLUSIVELY in thie city
by the JOURNAL AND COURIER yesterday
morning, is as follows:
The story is one of the romantic chap
ters of American railway history.
For one reason or another the property
has always been in evidence, and except
within recent years has gained prominence
and notoristy on account of the doinRs
and misdoings of Its management.
The New York, Lake Erie and Western
Railroad company Is the old recognized
Erie Railroad company. On April "a,
1878, the old company was sold un&ar
foreclosure, and the new company was
| then organized.
The original charter, however, is over
| sixty years old, the original road, the New
York and Erie, having been chartered
| April "a, 1882.
The original line of road was between
Piedmont, on the Hudson river, to Dun
| kirk, N. Y, on Lake Erie. The company
| became embarrassed and became for the
| first time acquainted with receiverships on
| January 3, 1s43.
In 1S45 the state of New York, which
| was interested in the road to the extent of
| So, 000, 900, released the company upon con-
dition that the line should be extended to
| Lake Erie in six years. Under this plan
| the old stockholders then surrendered one
| half their stock. Construction was assured,
| and in 1851 the road finally reached Dun
kirk. The guage of the old road was six
| feet. In 1859 the New York and Erie
once more was placed in receivers hands.
| 1t was there again reorganized, taking
the name of the Erie railway. The feature
of this reorganization was the conversion
| of unsecured bonds amounting to S., 535,
| 700 into preferred stock.
Between 1859 and 1875 the road was con-
| trolled by it's stockholders, but In 1875 its
affairs became tangled again, and Its third
receiver was appointed. The property re-
manned in the hands of a receiver until
| 1878, when 1t was sold under foreclosure
and the present corporation was formed.
The original length of the road was 446
| miles. In 1878 the company owned and
| operated 525 miles and leased 400 miles
| more. Since then a number of lines have
been acquired, the most important of
| which was the New York, Pennsylvania
and Ohio, with milage of 572, which gives
| the Erie it's western connection.
The total mileage of the company now,
including Its owned, proprietary, leased
| and operated lines, is 1884, and with sid
| ings and second track it operates 2,9S2
miles of railroad.
The laying of third rail, giving the
| road standard guage between Jersey City
| and Buffalo, was not completed until 1878,
/ aud 1t was not until 1885 that the whole
road was changed to standard gusge.
The Erie's capital stock is ST., 359 200
common stock and IS, 536, 600 preferred
stock. Its funded debt is $77,759. Its
| floating debt, which has caused the ap-
| pointment of the receiver, is about &c.
| $1,000.
The late Jay Gould came into the Erie
| history during the war. The road was
| then very much run down, and its stock
was quoted at bottom figures. Mr.. Gould
bought and bought of It until he had all
he could pay for.
Commodore Vanderbilt and old Daniel
Drew we're then engaged in hot fight for
control of the road. Through Drews in
| fuence Gould was elected with the direc-
| tors, and when Commodore Vanderbilt
though he had the pair In corner Drew
and Gould issued as much of the COM
pany's stock as the printing presses could
| turn out, and in 1857 broke the corner and
| incidentally came near running the old
Commodore. This issue of stock was af-
| terward legslizsd by the legislature.
Later on Drew and Gould fell out and
Gould obtained full control of the proper
| ty. He and James Fisk then put in as d.
| rectors Peter B. Sweeney and William NJ
Tweed. Gould remained in control of the
road until 1872 when the historic election
of 1872, held at the Offices of the COM
pany, which at that time were in the
Grand Opera House, took place. A whole
platoon of policemen were on guard at
this election, for 1t was feared that great
violence was likely to occur between the
factions.
The opposition won, however, and Mr.
Gould and his associates were turned down
for good in the Erie affairs. These are on
ly few incidents in the Erie history It
would require page to tell of all the in
trigues and consptracies that have been
carried on by this company.
Its history in the 7Os is that of Jay
Gould and Jim Fisk. Its conduct then
latures, with small admixture of practi-
cal railroading.
Old Wall street men love to talk of the
old Erie days, for there were giants in
Wall street then.
There is lots of English money sunk In
the property. James McHenry of London
was once conspicuous figure in the COM
pany. He obtained money all over Europe |
to put into his pet property.
Among others he induced the Spanish |
Duke of Salamanca to invest, and 1t was in |
honor Of this nobleman that the town in
New York state is said to be named.
Go to silverthaus', jewelers., 79O Chapel