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THE STORY OF ERIE
3°5
March 1st, Mr. Morrison, from the Assembly Committee
on Railroads, reported in favor of the resolution referring to
the change of route of the railroad. March nth, Mr. Van
Valkenburg, of the same committee, reported a bill entitled
"An Act in relation to the construction of the New York and
Erie Railroad."
(Abstracts of Enabling Acts of 1845.)
April %th.—Authorizing the Company to construct a branch of its
road in Orange County, with single or double track, from the main
line at a point not to exceed one and a half miles east of the village
of Chester, and extending to the village of Newburgh, at such point
as may be agreed upon between the Company and the trustees of that
village, running through Front Street to the north part of the village,
under direction of the trustees ; to purchase all the rights and privileges
that the Hudson and Delaware Railroad Company held under
its charter ; the Company not to connect its branch with any railroad
leading into Pennsylvania or New Jersey, west of the Shawangunk
Ridge, by virtue of any power contained in the charter of the Hudson
and Delaware Railroad Company. (Chapter 50, Laws of New York,
1845.)
May 14th.—Authorizing the Company, after obtaining bona fide
subscriptions to the amount of $3,000,000, 25 per cent, paid in, and
discharging all liens and incumbrances on its real estate, except the
State lien, or satisfying the Attorney-General that owners of such
20
This was to meet the conditions of Pennsylvania legislation liens have consented to the priority of the bonds to be issued over
granting the railroad right of way through that State. Its such liens, to issue to the State, in liquidation of the debt due the
purpose was covered by one of the provisions of the act State, $3,000,000 in bonds of not less than $1,000 each, at not more
subsequently passed.
than 7 nor less than 5 per cent, interest, payable in not less
than six nor more than twenty years, the bonds to be numbered and
February 6th, the remonstrance and papers relative to the
registered in the Secretary of State's office, and become mortgages to
locating of the road in the Delaware Valley or out of the the Stale on all the Company's property, and to have priority of lien
State, made in 1843, were ordered from the files and referred over all previous obligations ; an agent appointed and paid by the
to the Committee on Railroads. February 21st, Thornton Company, and approved by the Governor, to apply the bonds in the
M. Niven, of Orange County, offered a resolution to the purchase of materials for the construction of the road, or to negotiate
effect that " the ability of the Delaware and Hudson Canal
the sale at not less than par, and to apply the proceeds in payment
for materials and labor; the Comptroller to assign all bonds, the purchase
of which has been contracted for through the agent, on ap­
Company to meet its obligations to the State depends on its
ability to carry on its regular business undisturbed by the proval of the board of Directors, to the purchasers, the assignment
operations of the New York and Erie Railroad Company, and
that the Comptroller be requested to furnish to the Assembly
being endorsed upon the bonds, with no recourse to the State, but not
more than $750,000 to be assigned until it shall be satisfactorily
a statement showing the amount of the indebtedness of these shown that the Company has expended $1,500,000 in actual construction
of the road since the passage of this act ; after which, assignments
shall be made of bonds upon the showing of the Company that
companies to the State, and also whether they, or either of
them, have paid the interest on their indebtedness to the an additional sum equal to the amount of the bonds to be assigned
State."
has been paid in on the subscriptions to the capital stock and expended
in the construction of the railroad, and equal in amount to
the aggregate amount of bonds already assigned and the amount desired
to be assigned at any one time, but none of these subsequent
assignments to be for more than $500,000 ; the Company, at the time
of each and even- assignment of bonds, to deposit with the Comptroller
a sum sufficient to meet the annual interest, such amount to be
invested by the Comptroller in the stock of the State, and the interest
on the bonds to be paid by him when due out of such funds, all funds
remaining in his hands, in case the railroad should be completed before
they are all expended, to be delivered to the Company; no materials
purchased by proceeds of the bonds to be liable to seizure for
any debt of the Company until permanently fixed in or upon the road,
and all moneys obtained by sale of bonds to remain in the custody of
the agent and be paid out by him for material or wages, on estimates
In the Senate, March 20th, Mr. Faulkner introduced a bill
entitled " An Act to authorize the New York and 'Erie Railroad
Company to construct a branch terminating at Newburgh."
This was passed March 28th, by a vote of 22 to
2, Carlos P. Scovill, of the Fifth, and Albert Lester, of
the Seventh District, voting against it. The Assembly concurred
in the bill April 5 th.
for the one or certificates for the other.
April 29th, the Van Valkenburg bill of March nth
passed the Assembly by a vote of 92 to 20, and May 14th,
on motion of Mr. Faulkner, it was concurred in by the Senate
by a vote of 24 to 4.
This act amended the bonding act of 1843 an