New-York tribune., 1871-12-30
THE ERIE PROTECTION COMMITTEE.

new consolidated mortgage Of the Erie Railway TOM
pany contained clause making both principal ana IN
terest due In Of nonpaymcnt OF the lacr ana ~
scrting that there must have been some sinister moVe
In doing II the writer OF that article or the EdoS
Of THE TRIBUNE will examine any well considered mort
gace the consolidated mortgage OF tle Lake
Lake Shore and Michigan Southern Railroad COmpanyhe lie
will find similar provision and stands TO reason that
IL should otherwise upon each default OF interest,"
the holder would be compelled to bring new suit ana
thus he kept Of his money for An indefinite PERIOD ana
pu 10 an enormous expense in the collection O it, This
gage drawn strongly as possible 10 rs ~ In
durc the holders Of the prior mortgage bonds 70 exchange
their securities for the In order that the ROAD
might be represented by single mortgage OF &0Ooooo
The public will remark further that the trustees OF the
new mortgage the Farmers Loan and Trust Company
without whose active assistance ana cooperation no pro-
ccedngs for default of interest could take place. and
reliance may we'll be placed the Integrity OF the ocers
Of that institution especially "a upward OF ssO OF
the issue still remain by the very terms Of the mortgage
in their hands purposes OF the exchange above
mentioned The present Directors Of this Trust Company
are such men as Moses TavlOr. Mr.. Tallman. Mr..
RollstOn aud others and they should seize the Erie
Railway under the terms OF the mortgage. for any
default OF interest do not believe there w0hld result
any immense depreciation Of the stock The article In
question evidently instgaed by some person who
knew nothing Of the subject. and out Of simple malice
recently organized Committee Of Erie shareholders In
London under the especial supervision OF Mr. James
Mcliery. This gentleman has remarkable energy ana
q most sanguine disposition. He has bern largely COLI
nected with the Atlantic and Great Western Railway
Company and in this connection reference may be hah
to the decision given by the Master OF the Rolls at the
Rolls Court, London. in re Barncds Banking Com
pany:
"His Lordship in giving judgment. sail that. in the
year 1861 gentleman named Mcilenry arrived in Lon,
don tie nnsa G s %s Atlantis s"a 'rnt en
nently fitted office: for. without having much
curity to Ofrindsed the only securities ne coh o1rr
were shares OF the Atlantic and Great Western Railway
which seem to have been worth little or nothing. ami ms
constantly made to lodge securities II advances were
made, which promises were worth as much as tue
shares, &ey DC, &C.
Perhaps the readers will take sufficient interest in the
matter READ the whole Of hi, LordshpS deci'on where
they will lind much more to interest them AMI tending
to show how the promises Of Mr. McIIrnry have before
this been carried out.
There is an eminent banker Of this city, much known
and respected both in ts country and In Europe named
James Rohh whose word has ren questioned and
whose integrity has never been doubted. In the year
1884, this gentleman accepted The Presidency OF the At
antic and Great Western Railway Company and in De-
cenber year he resigned his Office subsequently,
In his resignation nS"Onstrued he addressed
to the public letter in which he speaks OF Mr. McHenry
in thing but comp language Take. for ill.,
stance, the following:
"The statement made to you that my resignation was
Involuntary overcomes all reluctance to longer postpone
placing the hands of my friends account VI the
orary In official reations with Mcssrs Mciicnry and
snS O by % Of STR af& SS s%
people in England and on the Continent IN the possible
Great Western Railway to the extent OF 36ocoo ster-
! ling"
In the same letter he states that he consented TO
cept the position upon tine representations made by this
| M.Ii ed by in
showing that the capital account amounted to &l0,2G)
S3l 97. and his resignation Immediately followed when
he discovered that this slOOcoOOO In reality u.s..
900 Accompanying this letter to his friends. Mr.
Robb copies Of his original letter to Messrs James
McIIenry ard Thomas W. Kennard. dated oct ?' 1894
and aso another dated Dec 80 1854 In the former Of
| these occurs the following:
"I regard as in every way unfortunate MT McIIcnry
should returned to England before In posi-
ton to understand the affairs Of the railway they
appear. which in respect different from what
! expected. Certainly had l sppre hended a state
Of affairs. financially and otherwise, as have found
them no inducemeut would have prevailed upon me to
accept the responsibilities of my present position"
In the latter Of Mr. Robhs occurs following
~ have received from James McTIenry sundry papers
relating to issue of debenre certificates In
London, with per cent per annum in 1857, for
sccnrcd by deposit Of bonds a. ana shares Of the three
former and twohrs Of the latter the whole amounting
at Il sod witt Be Of are @
the basis OF valuation In bonds and shares OF about 63
|
made in his in that Of the corporations
under the power Of attorney granted to him prior to
necessity loxeyer, Ienertain dea6i-Iut. .. Il has
Ss
pressing dissent ~ made
conflict with the affairs Of the railway, and g
repeatedly expressed IN my correspondence with
Crea hnt the as the Ssss
q the de6onture certificates and Sir Morton Peos
one the o
railway and leaving large surplus and the latter that
Of aoO per milc the price then cnrrest The errors
narrated in this report where 1t IL not only shown that
the deficit IN the coupon account OF the corporations
imposed upon the President Of the railway OF fulfilling
ton Or even ~ sppear to s"Ss.ce IN the sanction Of
their statements and promises and which my knowledge
OF AFFAIRS condemns as untrue and my judgment
CARDS impossible OF attainment, beg leave to tender
10 you my resignation" DC. DC.
20 much for Mr. McIIenry and his promises In 1864 In
this connection let not forget that the Mr. satter
thwae alluded to by Mr. RObb in such very very com.
pimentary terms the identical Mr. sstterhwa who
been scious and prominent In tho socalled Erie
Protection Committee. Ths james McHenry has ~.
Gently appeared before the public In character a.
the principal geterup and promoter Of the rcorganiza
ton scheme Of the Atlantic aud Great Western Railway
Company. Here we have second edition OF unfulfied
promises and worthless shares The original scheme Of
reorganization contemplated issue Of Of first
mortgage bonds second Issue Of u and third,
issue Of t250O0 It was found however. that certain
parties (eDnent counsel and Ohers) must he inter.
viewed and hence increase OF the various issues
necessary that all hands might be satisfied and make
good thing out Of it. OF course We have means Of
knowing at present the actual paid to all these dis
tnguished assistants but suffice II to soy that they did
not further ledge Of affairs resign their positions
like Mr. R0bb. for there found inducements
which prevailed them TO accept the responsibilities
OF their present positions" The corrected scheme has
made ifa Annearanca In London. and nrnnosed