The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-15

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The market continues dull, as q general rule,
though prices are in some respects better than
they were last week. The traffic on the West
err roads has begun to increase, and additional
freight are required OF the lines August
will not Of course chow large Improvement Sep
seber and October but enough to show that the
autumn business will be large At this Of the yeM
stock speculation is unusual when the watering place
ends and business has resumed ts old channels
healthy active stock exchange may probably
be expected.
On Friday evening, Mr. Garrett Of the Baltimore and
Ohio concurred in the views Of the managers Of the other
roads TO the West, and TO freights will BIO ad
vaDced considerably.
The affairs of the Erie Railroad have made progress
during the week Mr Nathaniel March late secretary
been appointed receiver at the Of urh
gage bondholders he viii enter upon his admnis.ra
ton Of the property to morrow II ID expected that he
viii make the most of the concern and that the constant
quarreIs With ether lines which marked the late admins
aton will rot be renewed while he is at the head Of
affairs.
The scheme for redistribution Of the property viii h
ave published Monday has led to much discussion, and
other sshemes have been put forth All parties agreed
upon some points All argue that s25 o00, 900 are
much as the road be expected interest upon
roere are many who think our original estimate Of
'5ooo6co to that 6gure would be In stock and not ia
oonds, the mortgage creditors who safe-say
the first, secoad and third mortgages-would not OBJ
jet to it, and, as s25,ooC,Ooo would leave
more for the unsecured creditors and sockh than
s@, 600 it is likely that the reorganization will pre-
coed upon the basis of the former figure.
All parties seem TO think that attempt must be made
20 scale the three first mortgages If the third mortgage
bopdhodeys allowed par for their bonds the new dis
triouton they will make by than any Of the other
parties Interested They did give par their bonds
could they sell them at 90 cents on the dollar
sti seems to be generally considered that they ought
net to be asked TO sacrifice anything and dare say
that attempt TO scale their bonds might involve more
difficulty than advantage
Assuming, therefore, that the property reorganzsd
basis Of s25 900 and that the three srst mortgage
are preserved in their integrity as a mortgage DEBT
OF $13 900 900, the question which remains 10 be
decided Is, how are the remaining sl2, 600, 90
to be distributed among the $4 oo0 OF later ere
ditors and the $ll,o 600 Of stckholders9 IL
this sum Of S2 900 to be represented by stock OF
bondaS What arrangement is to be made with the fourth
mortgage creditors who consider themselves entitled A
the tame protection as the thrd These questions
being considered by committee of the Ere board, o,
which Mr. Daniel Drew and James Brown members
We have no means of ascertaning the present views
Il
plain that the advantage redistribution OF proper
ry will be materially diminished if any part Of this
$4,000 900 be represented in the new scheme In the
shape OF bonds The aim should now be to reduce the
debt on which the payment Of intereat 10 compulsory
az low figure az possible in order that when hard times
next befa the country the read may by suspending dv
bends, be enabled 10 its credit II needs no argu
nent to prove that the whole al the $l2 COO 900 be 70
presented by stock leaving only debt Of $l3 900
the property the road will be In sounuer position thar
the stock were less and tho bonded debt grea.er
This plan might not meet the views Of the fourth mort
gage bondholders, who now hold bonds occurred by a
pledge Of the property, but would under this scheme
merely become stockholders These creditors however
have their remedy they choose to take the road with
debt OF $l3 ooo to pay all the overdue coupons
settle with the holders Of the floating debit and discuss
the law Of 1858 with the stockholders clear that they
cannot be prevented. Whether do 30 would BIO more
Tor their interest than TO compromise with the stock
holders IL is for them to decide At the present price
assuming that the total Of fourth mortgage bonds
Issued only o0as stated by parties connected
With the companythe total market value of their pro-
perty about 100000 BY the time they could pur
chase the road under foreclosure the amount Of coupons
overdue would be probably nearly million Of dollars
which they would have to raise in hard cash. II is for
them To say whether is best them 10 do 3d. beside
lighting the stockholders
the fourth mortgage bondholders refuse 10 oompro
mte with later CREDITORS and resolve take the property
they will have to raise, besides the million above
TONED, oo0 in cash to pay of the second mortgage
now overdue. 1t 10 well known that the bulk OF the
holders OF the second mortgage refused accept the sup
Elementary sheet Of coupons rendered them by Mr. Moran
few months ance they claim the amount Of their bonds
In full principal and interest. And the fourth mortgage
creditors set their ces against compromise prefer to
let the law take M course their nrt proceeding must be
10 satisfy to the last dollar the claims of the holders Of the
second mortgage.
Ihese considerations the interesting at tho pre-
sent tne the principal holder OF the fourth mortgage
bonds Mr. Daniel Drew also tho surety Of the now TO-
ceiver and the active member Of the committee en-
trusted with the business Of framing plan Of restri
button.
the fourth mortgage bondh,ders prepared frankly
TO meet the stockholders unsecured bopdhoders in
spr. Of compromise, there ough, 70 be. no difficulty 10