New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-06-04
RAILROAD SCHEMES.

MP HcUFNRY ON BISCHOFFSHEIMS PLANS.
IIIEGKD INTENTION TO INITIATE GREATLY THE CAP
rrAL OF THE CLEVELAND, COLUMBUS, CINCINNATI
AND INDIANAPOLIS AND ERIE RAILRoADS-B0TH
LINES TO BIZ LEAsED-sTRoNG EFFORTS TO PRO-
cuRR ERIK PROXIES FROM EUROPEAN STOCK
HoIDERs-DIsAPPEARANCE OF THE LONDON PRO-
FRICTION COMMITTEE.
10 tAe Editor OF The TrtbWne.
SIR: An account of Messrs. Bischoffsheim
Oldschmdts plans Of finance with reference TO their
American railway transactions will doubtless bo inter
eating 10 the people OF the United States inasmuch
tbose plans are prejudcal to the credit American
railway enterprises in Europe. 1t be shown how
that London rn with small outlay at the beginning.
have obtained control they boast Of about 1000 miles
OF line OF American eminent domain, which control they
to keep they and 1t also be shown how
they have BEEN aud how they likely be, largely in
funds thereby. and how at the time they have
made. and intend 20 make enormous amount OF COM
mssions-a through the medium OF the most insoYent
corporation I'm Christ sndOm
Excepting outlay Of $4,000 for short time TO
float the Atlantic and Great Western scheme OF reorgan
lzton of MAY IS 1870 they have BEEN up the present
period in pocket though TO all appearances and so Tar
Is American eyes could the reverse was the case
But appearances ofteutlmes deceptive In the
Spring OF 1871 they issued without regard to the terms
the scheme ssOOOO Reorganization scrip and early
in 1872 a like amount OF Atlantic and Great western
bonds which they called surplus bonds" They like
wise issued s2OOOOOo Leased Lines Rental Trust bonds
and sOOOOO of United states Rolling Stock shares to
say nothing Of Oyeri issues OF all kinds OF At
Iantic and Great Western securities BY these issues
they were funds, their payments not having kept pace
with their recep.s-for the S2IOOOOO advanced 70
the Erie Company as we'll the money paid buy out
the old directors March, 1872, and for the further
advances made to that company, they were IN funds
from the proceeds Of the sales of Erie Consolidated
bonds put upon this market June q, In order
FOL fhp tn Keen I'm
and 70 cover up the insolvency OF the Atlantic and Great
Western Company and the fraud committed by ncreas
ing its bond and share capital from S65OOO0OO 1.-THE figures
named in the scheme OF reorganization to $O9OO)OCO it
necessary for them to lay violent hands on the
Cleveland, Columbus Cincinnati and Indianapolis line
the West and the Erie line in the East the corporate
titles which companies like their respective debts and
share capitals, make fair average. The intention 10
to augment the share capital of the former company
from 10 $40 100000 and TO increase its bonded
debt 100000 S2OOOOOOO and their intention is to
augment the ordinary share capital of the latter com
psny from S7sOOOOOO TO $lOOOOOOOO, and to create
second consolidated mortgage for S3OOOOOO TO embrace
the SOOOOOO unsecured convertible bonds" issued on
Feb 10 is73 leaving S2OOOOOO to be sold To out
these financial plans which will yield largo amount Of
commissions, it Is absolutely necessary for them 70
retain control OF the Cleveland Columbus, Cincinnati,
and indianapolis and Erie Companies and TO lease both
lines TO the Atlantic and Great Western Company,
making 1T, with its comprehensive title, the parent
company, aud then TO shake the Dag
They intend out of the sales OF the securities
Ofthe company the long and Of those iOf the
company with the short to pay dividends on the
shares we'll the interest the bonds OF the three
companies. They, therefore, preparing them
Solves trying TO do to meet the provisions OF the
recent act OF the Ohio Legislature which passed
with the view OF frustrating their movements in that
state No matter what COSTS il they able TO 'rase
the being, they intend that the lease
Of the Cleveland, Columbus, Cincinnati and indianapolis
the Atlantic and Great Western shall be perfected
their financial salvation depends upon that and
the complete conquest Of the Erie. Knowing by the
published testimony what the action Of the Select
Committee Of the New-York Assembly would probably
be- they also preparing meet the provisions
any that may be passed by the Newfork Legisa-
ure in opposition 10 their designs in that State. AS its
stand, majority Of the directors OF railroad
company can make and perfect leases; the event
Of a law being enacted requiring the consent of the
Shareholders as in States they hope by the
troll OF sufficient number Of European proxies TO meet
the provisions of such act. Hence they making
strong efforts through Mr.. Fred W. smith, who signs
London Secretary OF the Erie Railway Company" to
deooy shareholders in Europe into giving them IRE
vOcabe" and perpetual powers. Mr.. Smith has no
right 70 sign London Secretary Of the Erie Railway
Company" for such Office exists. Mr. Watson. the
President OF the Company, in his testimony before the
Legislative Committee March said that the London
Office which was merely committees Office, was only
temporary affair, and that 1T had been discontinued
In the absence however. OF any counter movement on
this Of the Atlantic they 70 be successful
10 far as obtaining European votes 70 large extent is
concerned The English people prOyerbially slow
and misunderstanding in pOley-and they do not con-
slider that the Eric Railway is not encircled by the
srreak Of Silver Sea-" Nor do they pay any regard to
the act Of March 90 1872 which introduced at their
instance into the NewYork Legislature and passed for
their benefit II is now too late TO get up
formidable opposition here to the Bischofshelm con-
spirators. Something should be done in America to
checkmate them. The London Protection Committee,
which was an honest but mbecle body, is deunct II
breathed its last on April a. 1873, having without the
consent OF the shareholders who contributed 10 its sup
port bequeathed to the London Hospital R22 IS. I'd
the balance OF money remaining In its hand-reserving
enough for its funeral expenses in the way of adyertis
ing During its lifetime it expended s3O,71O IS. 3D.,
but save indicate interference with American
politics and abuse OF Gov. Hoffman, it practi
cally did nothing: for both Gould and Lane
aver that it owing TO the withdrawal Of
their opposition that the Classification act repealed
after the had been bought" and the other let
Of" which act their anxious to have re-
yiyed In connection with this legislation, Mr. Lane.
had he not been "too sick" might have given some
valuable testimony concerning the item Legal E1-
penses." Ss427s7 charged to construction" in the
Erie accounts the first six months OF 1872. To re-
peat, the Erie Protection Committee practically did
nothing though prOfessed to do much. On March 49,
1871 they issued circular stating that it had long
been reseen that the parties interested in the Atlantic
and Great Western desired get control Of the Erie aud
that they had teegrapbed TO New-York to ascertain
the views Of the American Committee 10 the
proposed direction, and that the reply would be
communicated to the shareholders at the earliest posi-
blemoment" In another circular dated March 16 1872
they said: We have been and still in communica-
ton with powerful body Of shareholders In New York,
and it is extremely desirable that all interests should