New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-02-03

Road The new Company org.nized - caieu Tue
"BDfsyo Division New-YoIk ard Ere Railroad Iein-
psny." |; provides for rev issue OF Sl,oooVVo OF
ok the aour; Of detts and stock cut on oy the re-
cen. sale. Il Il proposed TO elect Mr. Henry MATTE
or Mr.. W. A. Bird President. They are both wen
known a. experienced ard successful railroad men,
che having hsd the management OF the Buffalo ana
Roches,er Road be fore the consolidation. and the
other Of the Buffalo and Niagara Falls koad. The
hopjbol6ers .re 70 usme two persons for Directors
The frs; mortgage deb; Of the Roads;
Fir,, Mor,z.se AtreA 70 Busslo psysSe ls6o'.'f ~ %
p a. cent interest due May ls5l.....'''''.'''' S
Fi-,- NortzaEe AtticaNo Horuelsviie. S
q 2 cen; interest due JAY l. lS57..'..'''''.'''. D
TotAi.................... $1,000
II is proposed that the rev Company shan issue
bonds to frd the interest shove stated payable Nov
/ 1880 with interest semi-snr ually-the old coupons
10 be held BY the Tr7Ntees as surety that the new
bonds and al interest is promptly paid when due
The old coupons being landed, the new Company
vii issue stock TO all such creditors and stockholders
as have been cut of by the recent sale, at such P7ce
as nav be agreed upon, taking care that sufficient
sInouIt shall be paid to insure the prompt payment OF
the interest for one year should the earnings OF the
Road fall short. A foreclosure suit, however s now
Going on Of the first mortgage bonds, and VIII prooa-
bly, be persisted in.
The LouisrlIe Journal Of Jan. 70 saws;
"A mos. en- bsrraseng disclosure wss msde AZ toe
needing OF the Henderson and Nashville Railroad Com
many on the Ith inst that threatens To enoarras snd
ipteruu' the progress Of the road AZ the meeting
wss divuged for the first time that nearly OF
the bonds Of the Company had been msaPphed oy Ioe
Coupspy's scent at London. The bonds we're Issued
~ years ago and carried by the then President OF
the Company to London for negotiation Not sue
ceeding 10 his wishes at that time they were le IN the
hands Of an sgent, the brother OF the cnei engineer OF
81 md cr fbo frppf on IN on
NH terms ga should first be approved by che Com
psny for iron for the r 81. 80
81" appears that this agent in gross violation OF his
t,ust used a part of the bonds in the purchase o
steamship or some other vessel for the avowed purpose
Of heiphing the iron that should be bought for the
Comnsny This vessel be chartered 10 90 10 the
Crines and she was lost on the voysge, AMI, a. It
would appear without insurance. When called to an
account ne alleged the vessel the C0npanys and
,be loss theirs What amount OF bonds used in
This trar sscton is known, what has become OF
the balance o. them hes not yet been discovered "a no
satisfactory account be obtained rom him OF their
deposition The correspondence with him has been
vefv unsatisfactory.
These facts had no, been msie public before, from
hope that by negotiation the bonds might be reooy.
cred and from conviction that disclosure wOuld
rather defeat than aid 10 their recovery. ne Drec-
tors have too been beguled by repeated pledges and
promises of satisfactory adjustment nom the agent
ihr ugh his brother the enlef engineer of the road
These promises often violated. II IL now believed,
have been made N dcluue the company on 10 pro-
CIastinate settlement.
a Committee of stockholders have been appointed
10 visit London and 10 take proper measures TO recover
the bonds and prosecute The agent The work on the
road will be suspended until the return of the commls
sion and full knowledge of the situation OF the bonds
is obtained Many Of the leading o'hholders coun.
seed entire Reputation of the bonds-others deemed
il advisable to wait and learn their present condition
before taking any definite steps
To the Fi Mortgage BonIhoidsr' Of me Buffalo and N'r
lO,k Cifv Rlitr0dd
The rapers announce that A. ID. Pstchn, esq, has
formed Board of Directors TO msnage the interests OF
the Buffalo and Newly City Railroad, under the
new name of the Byfalo Decision Of TIE Ner York
and Ere Railroad COnPany.' The condition on
which these Ditecf0Ts" have consented 10 act, u
that the First Mortgage bondhOders 20 fund the
interest due them, in bond. This Is certainly,
cor sdering all the antecedents OF the case rare pro-
position these bondhoidee. The bonds we're sold af
publc auction in this city at 90 . cent and upward.
In year or 90 the Company failed and the coupons
we've not paid. Shortly after the failure Patchn, by
some me ans obtained chat;el mortgage on the roll
ling stock OF the rosd Notwithstanding every pound OF
that rolling stock was clearly covered BY the hrst
mortgage Pstchin now procured a lease OF the ROAD
from the broken Company. The Irustees OF the First
Mortgage moved for a foreclosure ana the appointment
OF receiver. receiver Accordingly appointed,
and v no should be be but this same Patchin The
Trustees and bondholders not willing that he should
represent their interests az receiver tiled agan ana
ded in die placing him. and getting Mr. Palmer
of Buffalo in hs stead The euit for foreclosure
ime, went on, not, however, without vigorous opposi
ton by the defendants. Every art of delay was re-
sorted During the progress OF thb sa the second
tondhelde moved for foreclosure of their mortgage
In mercy 20 them the first bonde held back willing 70
let ihe road go sale under the second mortgage and
titus give the second bondholdels chance ~ save
s.meihiDg ii possible, from the wreck. At length
sitter three yeas delay the road sold under the
secopd mortgage iubject 10 the first But who bJuslt
il! Pstch.n, at the mt bid. L. was now thought by
some that as both stock and floating debt hal gone
oy, rboaYd the back interest the first bonds would
be speedilv paid and for the future, every thing would
90 on smoothly But no: dollar OF that three years
interest is forthcoming. On the contarv az the ns
peis announce, he proposes TO I'D these touoons
now grown yellow By age - another 5ood on thi.
neelons oSgS-O -rvis,0n Of lie Nee York and
Ere kGIr0aa. The proposition is direct insult to
The exhausted patience Of the bOndholder. No, no
L.; bsye done VITA thu Messrs Trustees OF the hrst
mortrSge II voc can sell thus road under the mort
gs re you hold 81. II Cor whAt will bring at the hands
Of purchaser ready to satisfy the claimants. The
whose interests you represent are weary OF tbs
in'Ininsble delay. We have had anxiety enough
We haye lost enough in interest on inerest due, and
the additional expense of prOtracted suit We have
dpg enough 10 the interests OF second bond
holders Patience ls DO longer virtue. Sell this
rad gentlemen for what il will bring and see that
tie 1ex sale brings the money or satisfactory equiv
aleni. boADhoLDAA.
Markets. CIRIFVLLr REPoBrED FOR rHE Tsrsvsr.
E-h