The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-14
TINE ATLANTIC AND sas.r WESTERN RAILWAY.

TINE ATLANTIC AND s7EiT WESTERN RAILWAY.
To THE EDITOR OF THE HERALD
I read with lively interest the remarks which re-
Gently appeared In your editorial and financial cor
umns on the Atlantic and Great Western Railway.
The financial vicissltudes which have checked the
development of railway enterprise in England and
the United States for some two years past graphi
caly depicted and cannot fail to attract the general
reader. but far more those Who like myself, are pc
cunlarily Interested In the great railway discussed.
There are, however occasional inaccuracies here
and there which shall beg your permission to cor
rect the HERALD can have other object than "a
disseminate the best and most cOpous iniorma-
ton 1t can obtain on this as on all subjects.
The history OF the Atlantic and Great western road
has yet to be written It Is full OF strange details
and singular incidents that invest almost with the
interest OF romance. 1t is not my purpose. how
ever, to open this piqusnt volume My object Ia SIM
ply to narrate certain phases OF Its late struggles
that have been somewhat msrepresented both here
and abroad. This splendid railway, connecting tho
Erie with the OHIO and Mississippi and runaing for
over five hundred miles through portions Of Newly York.
Pennsylvania and Ohio, Is the creation Of a single
man-Mr. McHenry, native OF Philadelphia. BY
his energy and tact he raised In London the ncredi
BILE sum OF some sixty millions OF dollars, and
during the worst years OF the late civil war.
He had barely completed his prodigious task
when the panic Of 1868 broke over
London and Frustrated in q day some OF the great
banks and companies that had advanced none to
his railway. This was startling event. The rail-
way was happily, completed and perfectly organ
tied for the profitable trac that was destined 10
evoke. He was ready for every engagement he had
accepted; but how were the grim demands Of the
Official liqudators to be met who called for the
turn Of capital when interest alone had been pro-
miseds This was the stern problem Acilenry had
to face. Should he abandon the road to these I'M
looked for creditors and sacrifice all who had trusted
In himf There was little time for thought. He was
surrounded by assignees armed to the teeth with
legal process and clamoring for surrender. He
evaded the danger by throwing the road into the
hands OF receiver. Better far the temporary dis-
credit Of insolvency than the ruin of hundreds who
had put faith IN his pledges.
Let me say here that the fall OF Sir Morton PetO
had nothing to do with the Atlantic and Great wes-
tern. He was simply chairman Of the English
board of directors and had no pecunary connection
with it, Sir Morton brought down by the Dover
Railway and It's immense expenditure. Peace to his
ashes. Once the receiver appointed, Mr. McHenry
suggested to his bOndh0lders COMMITTEES OF nvesti
cation. One OF their number, Mr.. 7. Cave, men,
Der OF Parliament, was deputed to examine the
Atlantic and Great western III person, which ne did
In August OF last year. He stated on his
return that the road was in splendid con-
dition and promised better returns than any
railway in England, but he denounced in
strong terms the mismanagement of all concerned
, and demanded sweeping reform. Clearly the as
piring Cave thought the road GOlconda mine for he
set to work to oust McTIenry and install himself He
moderated his antagonist, and was consequently
crushed out. From last September to June of this
year mortal combat has been going on between
the indomtable McHenry and the aforesaid iquid9
tors OF London companies. He demanded time AMI
they demanded money. A deadlock ensued. Nc
Henry resorted to strategy He went to Paris thence
to Italy and finally threatened to return to New
York. sell the road and defy opposition His real OBJ
ject, however, was TO compromise. develop the road
and pay everybody full How the crisis would end
was doubtful when the now president Of the
Atlantic and Great Western, II. q. Steobns OF New
York, made his debut in the financial circles Of Lou
don where the struggle was raging The liquidators
were sustained by the Stock Exchange the banks
and the heavy CAPITALISTS for McIIenrys resolve not
To enter the Bankrupt Court was pronounced rebel
lion and must be suppressed. AT this juucture,
repeat, Stebbins made his bow. and his sefposses-
sion, earnest elocutiOn and marked ability gradually
paralyzed opposition and his propositions OF peace
were accepted. McHenry's Offers ~ he first made
them were subscribed unanimously, and a vote OF
commence restored him 10 MS pristine power. All
who had denounced now praised him. lie suggested
that dividends should be resumed forthwith and that
all unpaid coupons should be capitalized. He in-
duced Mr. LANG, M. p, late Chancellor Of tire
Exchequer for India to the presidency OF the
English board Of directors, and give his great
prestige to On enterprise so unjustly disparaced.
MICH ,nry will arrive here In few days to devote
his attention, In conjunction with its popular presi
dent, TO the administration OF the Atlantic and
Great Western, and the energetic efforts OF these
able men con hardly fail to accomplish results that
will eclipse the most sanguine calculations.
This brief summary will explain why the bonds
have risen In few months from eighteen ~ forty
two, and are daily In the ascendant. II will show
also that the recevershp Is at end, and that the
president and directors OF tho road succeed him.
The negotiations with the Erie have been mooted for
some time, you correctly stated and the joint in
terest Of the two roads will doubtless lead TO some
arrangement that will be mutually profitable.
BONDHOI.pER.