The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-15

ing tho debt SO 0o 10 tho holders Of these Zen
and half millions Of bonds which were claims against
the company, subject 10 oil tho fluctuations Of greater or
less prosperity and all Of they would
ne thought, be offering very valuable privilege u giving
the position of other morSsSees might be- objected
that the unsecured bondhoders had not anticipated that
another series Of bonds would be placed before their
claims But that fault Of the managers. The
blame rested with the bondholders Themselves FOR when
they purchased the bonds knowing that they were Sc
cured bonds they should have satisfied themselves Of the
conditions upon which they advanced the money, and
that no new mortgage debt could be contracted Inc
law did not recognise ignorance as plea, unless
ever ample trafac to pay the interest upon every
class Of bonds, together with those which were
propretcrs - would raise 5000 and e1tnsush
% 900 900 in bonds, and what most important
would entirely extlpguish the floating debt, which had
always operated to the prejudice Of the company, while
would enable them 10 complete the works and the ter
minus opposite New York. II might not be sufficient for
the erection Of all the buildings necessary TO accommo
date the trafhc in addition but would give them what
they much needed the terminus and To develope the re-
sources OF the line He had no doubt that the
bonds, which standing at 10c 10 Soc the dol
lar, would IF this arrangement were confirmed, take
jump few days OF I5c TO 2oc, 80 that would bene-
1T the holders of those bonds as well as the company
generally.
In reply to questions
The CHAIRMAN explained that it proposed TO take
one unsecured bond Of 81 600 and $1,000 in
cash for the issue of two Of tho bonds which now
bonds would form fifth MORTGAGE
\ SHAREHOLDER suggested that II the new bonds were
issued at discount il - be an inducement 10 sub
scribe but while the exciting bonds stood at discount It
not likely that the new bonds would be taken up at
par. He thong ht they should be issued at 70.
The CHAIRMAN remarked that as the unsecured bonds
At 40 in the market the effect would practically
be that the bonds would 90 issued at TO- The unse
cured holders in estimating the value Of their bonds must
take them at what they cost, but at their present
valve.
After long and desutory conversation in the course
Of which variety Of suggestions were made for raising
the money in some other form, but which were met by
the chairman and Mr. Moran with the objection That there
SHAREHOLDER observed that as they were now about
practically per cent mortgage, should not
be limited 10 the s. 900 which IL proposed 10 raise
in cash bu should embrace the amount which the mana
ger thought necessary for all purposes
Mr.. HAIIET fully endorsed all that his friend Mr..
Moran had stated Indeed he thou Int he hal placed
before the meeting the worst side OF the pc.ure Of the
New York and Erie Railroad. (Iear, bear They IN
New York looked upon il the great continental trunk
line and when the facilities as to the future development
of traffic became known ard the character o. the ente'
prise clearly understood he could assure them they
would go begging for capital out Of the city OF New
York. There one important point which b. wished
10 impress upon the meeting America looSed upon tho
New YORK and Erie Railroad a national line OF
nicatiop. II xood 60 from New YORK, il5 miles 10 the
commencement OF the Allegheny river; rom thence II
would dverc TO Cincinnati 343 miles farther; and from
thence there line which would goon 70 u Louis, 81
miles in addition In four months from the present time
would be six feet line Of railroad without Of
gauge, all the way from New York to ST. Louis There
but one lick OF this hae II communication 10 be
comp eted and that was the link through the central
part Of Ohio which under contract, aud would be
compietedwhin the tine be mad mentioned. had been
remarked by Mr. Moran that the difficulties 10 the water
communication for three months in the year would equal
Use the traffic the rpiroats, and il important
point u value Of this und aakiog that from the point
wbere the New YORK aud Erie AIS miles above New
York the Allegheny river and reached the level
between that and the mountains II had noS more u IN
forty feet gradient Within four months from the prelent
day there would ne uDo-osen me from New York to
ST. 1us without any break Of gauge. Tie mentioned this
to show the value Of this property. (Cheers.)
A SHAREHOLDER asked when the money would be re
CURED ID be paid.
The CHAIRMAN said they about submit resolu.