The New York herald., 1867-04-02

cts between the different classes Interested In the At
order to provide for unity Of action committee should
be appointed authorized TO represent the divisional bond
holders the consolidated bondholde the holders Of the
certificates Of debentures and the general creditors
Mr. Cave, N. r, in seconding the motion, said II
would be necessary for him to explain why he did 60
he asked by the divisional bondh0lder 70 sit at that
COMMITTEES and 10 report to them their present and M
ture prospects He undertook the duty with some
anxiety and he had read and possessed himself OF all tho
necessary information In connection with the company
from the day Of is formation down 20 the present mo-
men Some OF the gentlemen In attendance must have
had experience In reference to railways that had got into
trouble, and they knew that such companies generally
other There had been great held out to the
hst bondhoders TO seize the line and possess s once
Hs oouS S that %
desire they had learned By investigation in Amer.
authority in both countries, that the other
parties interested in the railway could from the fact
also the fact that the line passed through different States
impose such impedments that Il was considered the
wiser policy OF the divisional bondholders TO work with
all classes Of shareholders for the purpose Of advancing
the general interests Of the undertaking. Such being
the opinion OF the first bondhodes, he felt satisfied IL
would be the opinion Of the other classes Of claimants
Mr. Mosx asked whether the unsecured and common
rSus not s nsy s the
New York bonds wero not sterling bonds and TO be paid
in sterling?
to the very root Of the matter Before going into any
details and before committee was appointed, IL would
be well 10 know what power that committee would have
over the directors the American board and the con-
tractor; because IL the committee had no such power
would be OF no use whatever.
Mr. THoRp, while he fully agreed with the spirit in
which the chairman had approached the subject and the
mode Of selecting the committee would have liked to
know something In detail to the of the
plan which had been shadowed forth by the chairman
well as the names OF the gentlemen proposed the
committee. II they had committee composed Of men
hnCna nfE Eip nj nnGd danra m
all classes Of credtors
Mr.. J. CUSsScroS suggested that instead OF having
representative only OF each class of claimants 1t
would be desirable to bave three (Cries OF sTwo ~
The matters into which the committee would have TO
inquire were vast IN extent complicated in their nature
business to deal with them satisfactorily.
Mr. RDsDALs said he had been studying with the ut-
most the huge and unprecedented report for bulk
and weight which had been presented to them and he
almost aghast at It's discrepancies Misrepresentation
and mystlncationa (Checrs.) AT the last meeting OF
the company 1885, they told that the OIL Creek
Company was made by the money OF the Atlantic and
Great Western Railway Company, and that il belonged
to the company. Now that line 1t appeared had passed
indther hands, and though IL was paying thirty per
cent upon the cost of construction and rolling stock Mr.
of profit from IT, He wished TO know whether Mr. Nc
Henry held interest in that line by lease or other.
wise which last year they were told belonged TO the
company.
The CHAIRMAN suggested that If they wero 10 20 into
these details they would hardly accomplish the OBJ
ject Of the meeting, which was to appoint an ndepen
to investigate these matters but to act upon the results
Of that investigation.
tails but he wanted 70 know how it was that the
10th Of January, 1885, lease for ninety years OF
that railway was granted TO Mr. McHenry.
Mr. McHEsRY said that lease referred the line from
FRANKLIN to the on Creek line. A d
Mr RpspAs said all events the Oil Creek line formed
part Of the five hundred and miles OF railway said
been made BY the money ientin England tho company
way and bad hsn been @ hs
company at rent Of xl0. 600 year.
~ s sac sh .ns nppnso % y me sranxn line
surprised 1t II himself He bad not received far
T Mr. RSDspAlr-rhen where does sioooo paid by tho
company 60 tof Who gets the money!
The CHAIRMAN said that far he concerned he
had boon engaged only about ten days In looking into
these matters and was simply impossible for him TO
give answer TO such questions but one Of the first
., s1e m n Ss 80 h S @
Perhaps Mr. Bird would tell them.
Mr. BIRD said the rent Of $4,000 year payable
TO Mr. M'Henry and Mr.. Kinnard. Immediately he saw
the agreement he ordered tho money not TO be paid
Mr.. MHESRY said he had received one farthing
two Oil Creek lines The Arst ro.errcd to BY Mr. Rds
dale, with respect 70 statement made ON tho 10th of
of which the lease granted 9th Of May 1885,
nearly six months afterwards, was the Franklin and Oil
Alter some further observations from Mr.. RIdsdac.
Mr. GREEN proposed an amendment 10 the elect that
the committee should consist Of nve and proceeded to
tt.
namely proceed by negotiation with the authorities
in America TO appoint receiver 10 allow extensions
M % o ., M"
the bondholders In the way specified in the amendment
The amendment having been seconded,
Mr. LAME said that debenture holder he was
quite that the interest upon the thirty millions OF
dollars included under the heads mentioned In the re-
port, could be easily paid from current 1t
would have been go before, but expenses had been
incurred which were wholly unnecessary, and be
was quite sure they did not receive the money
fhcv n pyp ditnra In
department had been excessive, and he hoped tue
miice II appointed, would look carefully into these
spent upon the line, which he felt from his
knowledge Of u, as compared with other American
lines would, when In full working rim yield an ample
dividend TO every class OF investors.
Mr. FiLpEs, n. r., thanked Mr.. Lance, who 30
high authority the subject OF American railways
for the statement he had Just made, and
similar suggestion woud be made TO the meeting by
resolution which would bc subsequently proposed, he
trusted Mr.. Green would withdraw his amendment
Mr. DARvEr said IL TO be regretted that the com.
mtee had not announced before what they intended 70
% Ss position an
from the committee and rest on their legal rights in
America The American law certain TO protect their
rights and II thcy assisted the committee could
say VINO would bc benefited. There was such a
helpless set OF creditors they oil appeared be at
present. but be supposed there powers somewhere
rney hardly Enew who ives the manager. tExciama.
tons THE contractor" "The mortgage decd gives
A Caspnoa wished 70 know whether, II a committee
were appointed, Mr. McHenry and the directors IN
America would retain voting power regarded the
management
Mr. sAvIlIE advocated the representation OF all the
different classes Interested. He wished TO know who
elected the directors and what power the stockholders
had In America
Mr. RicHsRp l3rRy maintained that In such gigantic
affair instead OF only four the committee should consss
OF at least seven members
ANOTHER CfEprroR having urged the claims Of the d.
visonsl bondhoderr,
Mr. T. CAVE N. r., remarked that the committee had
never contemplated the Divisional bondhoIders being
asked TO orego single days Interest, and in hs opn
ion their securities were worth par.
CREDITOR inquired whether American creditors hav-
ing charges the stock were to be represented the
committee.
Tho CHAIRMAN, in replying said that II the unsecured
creditors 70 seize the limo they would seize II
legally, subject 10 all the mortgages which they must
pay or Whether the committee would have any power
depended on the creditors. Il should not be mere
committee OF investigation but OF management and
control and machinery might be used which would place
them in that position. tCbeerR) No interest should bo
nut aside neglected but ali should be dealt with fairly,
according their rights He dsliksd large committees
because numbers did not conduce busnesske action
NJ IN with Ma nd Tna