Sir Edward Watkin's report on the financial condition of the
Erie Railway Company, which he went out to the United States on the part of the Bondholders and Shareholders' Committee to inquire into, appears to be a very frank one. He reports the net profit,—i.e., the balance of receipts over working expenses,—as $3,715,609, and the fixed claims on that profit, in the shape of annual interest on the Bond Debt and the annual burden of rents, rent-charge and leases, as $5,174,018, showing a deficiency in the last year's accounts of $1,458,409, before a dividend to ordinary shareholders comes even to be considered. The loss, however, is -chiefly on the branch lines, the three principal trunks giving a _good profit. Sir E. Watkin speaks respectfully of Mr. Jewett, the president and official " receiver " of the income of the line, and of his efforts to reduce the cost; and he recommends confidence in Mr. Jewett, of whose honour, great devotion, and high abilities he has formed the highest possible estimate. In short, his advice appears to be in effect the proper advice to give to a man in difficulties,—i.e., attempt no new expenditure, study the most zealous economy in what is essential, trust to the honest though not flattering advice of those who have mastered the full extent of your difficulties, and hope that by strict frugality and improv- ing trade, you will pull through at last.'
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