New-York tribune., 1908-04-09
SAVES ERIE NOTE PLAN
H4RRIMAN OFFERS CASH.
Viii Buy Enough of Nezr Issue to
Enable Redemption of Old.

~ III b09 1ttOUSb ~ ~NCI ISSuC ~
Enable Redemption of old.
Edward H. Hartman loomed up yesterday as
q power in the affairs of the Erie Railroad Com
pany when il was announced al the office of J.
P Morgan & Co. the roads bankers that the
company had accepted offer from Mr. Harri-
man to purchase at % enough of the new 6 per
cent collateral trust three-year notes TO enable
the company to pay off in cash the s. 100000 Of
discount notes which fell due yesterday and for
which the directors had asked holders to accept
Jhe new notes in lieu of cash. AS result of Mr.
Hsrrtmsn's offer and its acceptance by the Erie
directors, J. P Morgan & Co. announced that they
were now prepared TO pay to any note holder
presenting notes or our receipts for notes al
ready deposited par for the said notes"
For those who do not wish to accept par in
cash for the old notes Mr.. Harriu7an's offer pro
vides alternative. The holder of the old notes
may. at his option, until and including April -
have the privilege of receiving for>his notes at
par new per cent collateral trust notes. and, in
addition thereto. cash to an amount equal to 5
Per cent Of the new notes. less interest accrued
thereon. This alternative offer is apparently
made TO give all the holders of the old discount
notes attractive bonus if they elect to take
the new collateral trust notes in lieu of all cash.
Mr. HARRIMAN's LETTER.
Mr.. Harrimans offer was made in the follow
ing letter. under date of yesterday TO the Erie
Railroad Company:
For the purpose Of enabling your company to pay
ts 8 200 notes maturing this day offer pur
gold notes. payable on Apr1 S 1911. authorized by
sSSh rioe to be paid by me When and as, but only
when snd as the same shall Be required for and
eept u the new per cent coiiaGerai gold notes
heretofore proposed. n
derrure 10 ne substantially as considered and ap-
Immediately upon your acceptance Of this offer
holders Of your said notes maturing to-day that
Trey may receive payment thereof at par in cash;
tH=ir option. they viii have the privilege Of re-
rs-a trust notes a. nar and ID also s5 cash per fo
rae amount Of ; Ter cent Of the new notes. less
You may cause s'sch payments and deliveries 70
or NJ The new notes receivable by ne under this
C-er and its acceptance.
r =. Underwood. president Of the Erie Rail
road Company, by order Of the roads. board Of
directors. who met at once to act on Mr Harri-
mans Offer. accepted the offer in the following
letter.
- A. & meeting Of he board Of directors of the
of date to purchase $500 600 Of the new per
Sops3g PzSabe April s 1911 10 enable te eom
notes PAYABLE This date was accepted upon the
terms OF your offer. and this board has authorized
5 deliver MS 9ab ar and to cdeers 5fefTs aRa for h2a bd
purposes OF your offer and this acceptance.
MANY OLD NOTES NOT TURNED IN.
A. z result Of the action OF Mr Hartman
the additional sum of 100000 in cash, a block
Of the new collateral trust notes of this amount
having been underwritten at par on condition
rhat all the old discount notes were deposited
for exchange into the new notes, becomes at
once available 10 the company for use as u
rhorized by the order Of March 81 Of the up
state Public Service Commission. MR Harri-
mans offer probably saved the original plan
from failure, as, according 10 the admission Of
: ? Morgan. il, considerable part Of the
Cd discount notes had not been turned in TO the
Morgan hrm for exchange when the time limit
expired yesterday at ?.
NJ Morgan. jr. said he did not know
whether Nr- Hartman acting indi-
--5usI or for 4 syndicate. You will have to ask
Nr. Hartman about that" was his remark.
No Information was forthcoming at the Harri-
man Offices.
Wall Street had & number of explanations
Tor rne action Of Mr.. Hartman. One was that
r vas so heavily committed TO Erie stocks and
bonds that he felt forced 10 protect the COM
Tarv. Another was that he wanted the Erie
for the eastern end of his transcontinentaI sys-
TEN and took this method OF tightening his
grasp on the property. third explanation was
that. as he owned personally 100000 Of the
cd Erie discount notes and Wells, Fargo &
Co. Hartman concern, owned an additional
100000 Of the notes, IL was greatly 70 his
advantage 70 tide the company over until he
obtained some security for his advances. The
Cd notes were unsecured.
HOSTILE MOTIVE SUGGESTED.
Others professed 10 find an explanation in the
fact thar Mr.. Hartman desired 10 maintain the
present status IN the Erie. which is al present
supposed 10 be controlled by its enemies, f. e. the
o'he- coal roads. The Union Pacific owns heavily
~ The New York Central and the Baltimore &
61io. The New York Central controls the Lake
Shore & Michigan Southern, which with the
Baltimore & Ohio. controls the Reading and
through the Reading the Jersey Central The
New York Central also owns largely Of the Le-
hE1 Valley. II viii thus be seen that the
tr-Hn Pacific has 4 large indirect influence in
fhs coal carving territory The Erie has for
some -ears been kept down by IT'S powerful
rivals. and some people professed to see in Mr..
Farrinans s action move 10 continue the dom
inat0n Of TIA bigger roads.
Fr1e securities were strong yesterday on the
S-p-@ Exchange, and the old notes sold UP TO
- a. me close Of business in the curb market
Slter going begging 81 around Sc earlier in the
1sy- he common stock sold up a point 70 61z.
-s nrst preferred closed half point up at 321z,
IH-e the second preferred gained II points
- The convertible A bonds sold up 70 81
'- NE genera as advanced TO 6Siz.
ANOTHER VANDERBILT GIFT TO YALE,