Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-26
FOR THE FOURTH TIME.
why the Erie Railway Has Gone Into Re-
ceiver's Hands.

NEW YORK, July 26-For the fourth
time in Its history the New York. Lake
Erie and Western railroad has gone into
the hands OF a receiver as announced last
night. The Erie's floating debt and the
inability of the road TO carry IL in the pre-
vailing financial stringency. have worried
Wall street greatly for some weeks. Esti-
mates OF 1t have ranged from sSeoo.oo CT
s60oo.OoO upward.
1t has been generally believed that conn
paratively little of this floating debt was
with the banks. Two or three Individual
capitalists have been credited with bolcing
the bulk of IL. but a large amount repre-
| sents. IL is said. obligations 10 men and
nrns VINO have furnished supplies e the
| 10 run on. Recently reports Of decreased
earnings have added TO the suspicion of
| the company's ability TO pull through with
out a receivership. The bears have used
| this as a basis of attack and Erie securi-
tes have yielded considerably under them.
| AL length the situation became SO alarm
| ing that the application was made, with a
| view TO avoiding possible attachments by
sreditors and the sacrifice OF collaterals
4 deposited TO secure loans, some of which
have matured and Others are maturing.
The receivership proceedings were brought
| before Judge Lacombe in the United States
circuit court. southern district Of New
| York, b. Trenor Luther Park, a son OF
the late Trenor w. Park, who Is a holder
Mr.. Psrke says in his complaint: The
| unsecured debts of the company now due
| amount 70 several millons OF dollars. and
| that Of the unsecured debt, a large amount
| Is due for wages. supplies. traffic balances
and other similar expenses of operating.
individuals as Il ase 70
made, the proceeds of which have been
used in conducting the business OF the
| company. and that certain OF said loans.
as complainant is informed and believes
\ are whollyunsecured. and certain Others OF
sald loans nd are rers sscurea by spost, Of Certain
| as collateral security, for the payment ol
said loan.
THAT In the present depressed condition
and the stringency of the money market
the securities which have been de-
posted collateral for the said loan are
BEING .nsuly ons s,Ss neiereo MEOW a she ,an rss
the company 20 furnish further collateral
security. 70 which calls II is unable 70 re-
| spond.
That the said loans are falling due from
time ID time, and that the said company
is and will be unable 20 arrange o. ex-
danger that the securities held as collaterai
! for said loan will be thrown upon the
market and sold at prices far below their
| real value, to the serious injury OF the said
| company and OF the complainant
That there is likewise great danger that
so.s VIII ee ,d,t ahs,tu,ea ast me, .ns sa,a ,,a
| property upon its failure to pay the amounts
of said loan, which may be called from
to u and sas i Is .ns sS s %
A public and OF the complainant thai the
l said securities should not be forfeited and
| sacrificed in consequence OF the non pay
/. | ment OF the respective debts to secure
! which the same were pledged"
| The receivers bonds are fixed at &<D 0oa
Mr. Welsh came over from Philadelphis
| yesterday and spent most of the day here
, 1t is stated at the Erie Office that Re
| ceiver King has left for Saratoga ana Re
ceiver Mccullough for the White noun
| tains.
1t is asserted positively that the ex.
ecutive committee consisting OF MessrA
! King. Walsh, Mccullough and Cook. did
not decide to put the road into the hende
| of a receiver until a late hour yesterday.
when IL was found that i'm order TO pre-
l'vent the sacrificing of securities In loana
| the company had to seek the protection
/ OF the court This explanation is given
| because of a rumor TO the effect thai the
directors had fully determined on the re-
| cefvership in the last week. 4
The company's floating debt IL sbou1
abro ad. but the holders are well secured
| ton, although Il Is likely that the control
| ing interest win cut down charges 20 9
J lower figure and perhaps the second mort.
| company. II remains to be seen whether
the bondholders viii assent to this pfopo-
| sition.
None Of the officials OF the road were IN
| clined to talk and the bill OF complaint was
| not forthcoming nor was IL on file IN the
4 United States circuit court
| Attorney SHOEMAKER said that II would
1 he given out as soon as tt was received
4 yrpnl the prfnterS