New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-27

bilt, and was the means Of Bringing Jay Gouio ana
Jim Fisk into their greatest prominence rs
battles were fought in the courts ana LEGISLATURES
of two States, and involved vast sums OF money
invested by foreigners. and its present conoitioh
is the OF the load of debt incurred IN those
stirring times.
The New-York and Erie Railroad Company was
chartered on Apri, "a, 1882. TO build road from
Piermont TO Dunkrk. 446 miles, at an esumateu
expense OF 100000 Construction was begun in
1896 A little experience showed that the COM
pany did not have capital enough to carry on the
work and a loan of 100000 made to 1t by
the State In September. 1871, the FIRST secuoh'
from Permont to Goshen. was opened to franc
The company then found itself bankrupt. the state
refused TO advance any more money. and the prop
erty went into the hands Of assignees, VINO IN
January ls4s cot the road into operation as far as
Middletown. BY February. 1874. the cost had
reached $4,79s9i9. of which s2,59954 had been de-
rived from the State loan.
In the following year reorganization was Ell
fected. The State released It's claims on the prop
erty on condition that the road should be COM
Melted to Lake Erie in six years. The agreement
wa. kept and on April %. 1851 the first train was
run into Dunkirk Entrance into Jersey City was
obtained by leases In perpetuty made with the
Land Dock Company, the Paterson ana Hunsoh
River Railroad Company, the Paterson and Ram
apo Railroad Company and the Union Ralirodu
Company.
In 1859 the company once more found itsen III
financial straits default made on the interest
on the funded debt, and receiver was appointed
Reorganization as the Erie Railway Company fol-
lowed in 1861. BY this time the outlay had reached
go 400 900 IL was during this stage of the ROAD
career that its most interesting history was maze
Daniel Drew treasurer of the road ana also
large creditor. the amount due to him IN 1880 pes
$5Nno He took as security bonds 10 'hdt
amount convertible into unssued shares linen nc
went short Of the market, and when all was
ready converted his collateral The stock fell from
IS to So and Mr.. Drew reaped fortune
Shortly after this performance Commodore van
derbilt sought to corner Erie, a little amptioh
which after months of effort cost him millions OF
dollars but left him rich in experience MI ORE"
was aided in this fight by Messrs Gould ana FISH
Mr. Vanderbilt secured the backing of an Enghsh
syndicate with f60oo.OOo He bought STOCK as las.
as It was offered to him. but before long dscoVeIe
that the supply seemed TO be inexhaustlpe. risN
and Gould had secured a printing press and were
issuing the stock against convertible pohus anu '
stock of branch roads as fast Vanderbilt couid
buy it. As Fisk expressed 1t: III TINS prhths press
aor,, braak down I'll be - II l don't give the
old hog all he wants OF Erie
Intinctions and counter-injunctons were oo-
tained in the courts and the fight was carried
m the LEGISLATURE At last things got so hot that
Fisk and Gould had to fly to Jersey City In the
night to get out of Jurisdiction. Drew went with
them bsb In he had Ds reeey reased at the
expense of the Commodore. But there were
81 fn sosk Pdd not until
dered and paid up his losses. . -
Later Mr.. Drew himself was squeezed out or
Erie by his two pupils Fisk and Gould. after ne
had lost nearly 100000 in hghtng them In 1858
jaw Gould became president Of Erie For four
years he remained in control until he was turned
out by physical force in 1872 by the t'ngnsn
stockholders. who elected General John A. DIX
to succeed him. $500 o
of a struggle to rise from the mass of debts left
by the wreck. In 1875 the company defaulied on
the interest Of bonds, and receivershp took con-
troll and in 1878 the road and franchise were sod
A REORGANIZATION was effected and the present
New-York Lake Erie and Western Railroad COM
pany was the result. John King, the present Sis
president Of the road, the receiver. ana ms
policy was one Of improvement and the develop
inent of the operating facilities In 1854 the re
ceivership was dismissed. and Mr.. King became
the president of the road. 49,
When the new company took possession on June
l. 1875 the total mileage owned and leased was was
sas miles. 1t has since been increased 10 l'soS
miles. -, ..ro
The old Erie was famous as the broad gauge
road third rail- giving also standard gauge
was laid in the seventies but in 1885 the whole
system was brought down to the standard gauge