New-York tribune., 1873-01-24
RAILROAD FORECLOSURE.
ERIE's CLAIMS AGAINST THE BOSTON, HART-
FORD AND ERIE.


FORECLOSURE PROCEEDINGS TO BE BROUGHT AZ
oNCE-THE CONTRACT OF 1907 CoNsiDEhIp
| AS A PRIOR LIEN.
Another chapter in the long history OF Enc
Railway litigation and speculation, so faithfully chroni'
cled In the columns Of The TRIBUNE, Is about TO De
opened. 1t will be remembed that in lscs when the
| famous Vanderbilt litigation with Erie occupied the
attention OF the courts judges by the ears and FUR
nished lucrative fees TO nearly all the promineni
LAWYERS I'm New-York, there also dispute OF tho
Erie Railway Company with the Boston, Hartford ana
Erie Railroad Company which was settled at the same
time by the Eres guaranteeing large quantity OF tho
Boston. Hartford and Erie bonds About ul'o,oU oi
these bonds were transferred 10 Commodore 'anderos
in part settlement of his claims, and the Ere kai"sy
Company Is now suing this amount and Tor the pal
ance OF the 100000 paid him.
Under the administration OF President John .. III
bridge, the Eric Railway Company ndorsed Aooceee OF
the Boston, Hartford and Erie Railroad, and az the set
tement with Gould, Fisk, Vanderbilt and Others IL
guaranteed g. making total of 100000 At the
present time the Erie Railway Company actually holds
s67so00 worth Of these bonds, and controls about
SOO0OOo or the amount guaranteed. The debt OF the
Boston. Hartford and Erie Is about as follows
| INDEBTEDNESS OF THE ROAD
Iynderliened or first lien bonds ......... s25o00M
Bonds ISSUED under the Presidency OF Berdel 20000c0
! A probable floating debt not exceedlng.... 40GoU
Total
The mortgages Of the road will fall due in about
month, and doubts have been entertained as to
the ability of the Company 10 meet large an ooliga-
ton foreclosure suit has been threatened by some OF
the bondholders which, IL carried into effect. VIII resns
In giving them control the road the expense OF the
stockholders.
The Eric Railway Company, I'm order to anticipate all
the creditors is about begin aorecosure suit IN Bos-
tom where office OF the Boston, Hartford and Erie
Railroad Company. The complaint has been prepared,
and ready for service. The Erie claims first
lien on the Boston, Hartford and Erie, under contract
which made with that road on Oct 1857 whereby
the Erie was receive the money derived from the
Boston, Hartford and Ee's transportation Of coal In
return for the guaranteeing Of the bonds
,THE CONTRACT WITH ERIE.
The Boston, Hartford, aud Erie Is road extending
from Boston, and designed to meet the Hudson River
point Fshkll 1t is TO be about 1853 miles long
76 Of which have been built At the time OF the con-
tract be connected with the Erie at New
bnreh The contract which makes special reference TO
this junction, stated in substance that as coon as any
part Of the Boston, Hartford, and Erie was IN opera
tion so as TO afford business connec-
ton with the Erie, all traffic, whether passengers OF
freight passing from one road to the other over any
portion of the two roads from Waterbury, and east OF
that point on the Boston. Hartford and Eric Railroad
and from Sus1uehanna and west Of that place on the
Erie Railroad should done on JOINT account and the
gross compensation for such joint business was 10 DO
divided between the two companies according TO tho
distance traversed by the passengers OF iregt lug
expenses were to be borne In like proportion ino
Boston, Hartford and Erie was to provide by JAM l.
1870 an equipment sufficient for the annual transpofta-
ton of 10000 tuns OF coal, and 1t agreed to receive aud
TRANSPORT all coal delivered by the Erie at or opposite
Newburgh.
The Rostop Hartford and Erie also agreed 10 pay to
Dudley s. Gregory and j. c. Bancroft DAVIS trustees
of the mortgage bonds, all received for the trans
potaon of coal its rails special und to secure
| of he
the E1e These Payments were 10 be made monthly,
and the Boston, Hartford and Erie was to make up the
amount necessary pay the interest on the bonds when
ever any deficiency existed.
IL was also agreed that all payments by the Erie Tor
the account OF Boston, Hartford and Erie were to be
valid hens on the property OF the latter The contract
was signed by John Eldridge President of the Eej
Henry n Farwell, VicePresdent Of the Boston, Hart
ford and Erie; Horato " OTIS Secretary of both ana
was witnessed by Henry Thompson. Mortimer smtb' u.
s. Gregory, and j. C. Bancroft Davis.
STATEMENTS OF RAILWAY OFFICERS
Efforts we re made to learn particulars Of the com.
plant in the foreclosure suit s. L. NJ Barrow connsei
for the Erie, absent, and the attaches OF MS oce
could give no information. President Watson OF tho
Erie said he had been too Ill to examine the papers.
He stated that the question OF bringing ss against
the Boston, Hartford aud Erie Railroad Company had
been discussed by the Erie officials but nothing positive
had vet been determined upon. The matter Is under ad'
visement and will be settled In a few days
Frederick A. Lane formerly director OF the Erie ana
now President of the Boston, Hartford and Ere at st
declined to express any opinion 10 the validity OF the
Ere's claim TO first lien the road but upon being
nressed replied that as President OF the Company
he thought that the Erie had preferred en but STOOD
ON a comon level with the rest Of the bondhoders he
gave brief sketch OF the road and its relations TO the
Erie.
He said that the yicisstudes Of the road had
been the occasion OF the appointment Oh sew
eral sets of receivers, sssignees in bankruptcy,
ETC. and the road now controlled by
the trustees of the Berdell mortgages. He affirmed
tna the Erie had not fulfilled it's obligations and Dt'
mated that If the poor facilities bad management OF
the Boston, Hartford and Erie prevented 1t from carry
ing out all that had intended there was no reason
why the Erie should have complied with the terms Ok
contract which had been declared legal by half dozen
OF the most eminent lawyers in New-lork.
The Erie had paid the coupons OF the bonds as had
been guaranteed, and Commodore Vanderbilt who was
holder of a large quantity OF the bouds had intended
70 attach the property of the Eric Railway In PeDnsy
vapia but had reraned the solicitation OF those who
expected TO make a satisfactory settlement. He viii
probably take some action relative TO the foreclosure
suit to protect his own interests
There was private meeting Of the directors OF tho
Boston Hartford and Erie Railroad Company yester-
ments have been made for conference meeting with
the shareholders early day to consider the con-
templated proceedings in foreclosure.