Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-06-22
THURSDAY, JUNE az, 1871.
Hartford and Erie.


The Boston Traveller finds new phase" in
the Hartford and Erie ENHANCEMENT, and points
it ont to explain why the Berdell bondholders
have not foreclosed their mortgage. There
has been a difficulty in the way" says the
Traveller " of which the public had no knowl-
edge" there are "claims upon the road under
lying even the Berdell mortgage" These
claims are older than the Hartford and Erie
company, and the Traveller estimates their
amount at 100000. Wecannot say how much
attention the public has actually given to this
underlying claim, but it was very fully brought
to view in the discussion of the last attempt Of
Hartford and Erie to get money from our state
treasury. 1t consists of old first mortgage
bonds, which, with the unpaid interest, may, at
the present time, amount to 100000. We
learn from the Traveller that a compromise, OF
an arrangement of some kind, between the two
interests, is likely to be effected, which will re-
move the difficulty, and open the way to fore
closure. 1t is, however, nowise likely that the
holders of the old bonds will part with the Sc
curity which makes these bonds good.
But on that part of the road which runs from
Providence to Waterbury, there is another un-
DERIVING claim amounting to 81 100000; and
this must be paid before the Berdell bondholders
can get possession of that important portion of
the property, which is now in the hands of
trustees who can scarcely make the business pay
interest on the bonds. The Berdell bonds, be
ing preceded by these two claims, are, practi-
cally, second mortgage bonds; and foreclos-
ure under the arrangement now attempted, can
not touch any portion of the road between
Providence and Waterbury, until the first mort
gage on that part of the road is fully satisfied
1t will reach only the road between Boston and
Southbridge, and the unfinished work between
Putnam and Wlman:ic. Something has been
doneIbeyond Waterbury, which will be included
so far as it has value. The property has been
1earfully mismanaged, else the astounding
amount of debt in which it is involved, would
have been impossible.
If the desperate attempt to get more money
from the state treasury, could have been sue
cessful, the taxpayers of the state would have
been robbed, and another chapter would have
been added to the peculiar history of bankrupt
Hartford and Erie. Spectators and the lobby
lists might have gained something; and it was
the hope of this gain that gave vigor to the
lobby, and moved certain members of the legis-
lature to defy their constituents and disregard
their duty to the state. Certain members of
the legislature were among the most active in
preparing to take advantage of an expected
rise in the stock and bonds of the bankrupt cor
poration. AS for the lobbyists, their pay depend
ed chiefly on their success in getting the state
to adopt the corporation and its notorious man
ayers. Their attempt failed at the very moment
when they believed it successful. The same
lobbyists were at the state house during the ses-
sion of the legislature just closed; and, this
time, through the aid of Hartford and Erie SEN
ators, they were allowed to succeed TO a certain
extent, in order to get their pay. For instance,
in no other way is it possible to explain the
course of the senators in question, on the bill to
authorize an extension of the Worcester and
Gardner railroad The men who were democrat
lied by association with these lobbyists during
the Hartford and Erie raid, are unfit to have
places in the legislature.