The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-21
Attempt to Fastsn the Rotten Con-
raH cern on the Erie Road.
The English Loss Of $50, ZOO, 900
III To Be Made Up. ss
3 Are American Interests To Be Sacri-
ea feed to Foreign Jobbers?
OfIlcial Statement Of the Condition Of the
M Atlantic and Great Western.

81 eA CLEVELAND, Ohie, April 1e, 1873
As the Legislative committee, now In session in
the State OF New York, charged with investigating
the affairs OF the New York and Erie Railroad, APP
pears to have for one OF its objects the protection
Of the American people, in one Of their main arte-
RES OF commerce, against an alleged design Of GER
tam English spectators and capitalists to fasten
upon that corporation the non-paying Atlantic
and Great Western Railroad, 1t will probably be OF
interest to ascertain the exact condition OF the
latter concern. Having access to certain docu-
ments not heretofore laid In detail before the pub
lie, forward them, in the belief that they will
throw some light upon the proposed job.
HOW ENGLISH CAPITALISTS WERE LOADED WITH
.ts# VI ATLANTIC AND GREAT WESTERN.
1t Is very well known that the greater part Of
the Atlantic and Great western bonds and stock is
in the hands OF foreign holders. The STUFF was
loaded on to them by Mr.. James McHenry, now Of
London, during the time he held control or the
company. How this was done 1t is unnecessary
now to discuss. The victims bit readily, and it
was only when, after the overthrow OF the
McHenry management. the legality OF the issue OF
the watered stock was called in question that the
English spectators began to discover the true char
acter Of their investment. There Is ample evidence
t0shOw that they thoroughly understood the worth
lessness of the securities they had accepted. The
Master Of the Rolls in London, in giving decision
In re Barned's Banking Company alluded to the
Atlantic and Great western shares put upon the
English market as having been worth little or
nothing" and treated them as utterly valueless at
that time. In the Overend Quincy bankruptcy
case the worthlessness Of the securities was also
commented on, and all manner OF sharp practice
was attributed to those who had glutted the Lon
don market with them to the damage OF English
capitalists. Mr.. James Robb who was for short
time President Of the Atlantic and Great Western.
writing in 1885, alluded to the "skillu management
which, "aided by the influence and counsel OF Sir
Morton Peto," had Involved people in England
and on the Continent In the possible loss and for
fixture Of investments in the Atlantic and Great
Western Railway to the extent Of six million
pounds sterling"
TRYING TO CIR SQUARE WITH THE AMERICANS.
Among those who were interested In this then
worthless stock were Messrs. Bischoffsheim and
Goldschmidt, the London brokers who have re-
Gently figured so largely in Erie transactions
These gentlemen, in connection with McHenry,
some tive years since put upon the English market
the Reorganization scheme OF the Atlantic and
Great Western Railway Company. A desperate
case requires desperate remedies and the English
holders, who had on their hands some seventy or
eighty million dollars OF worthless stock resolved
to attempt to get some Of it back. Money was
raised through this reorganization scheme and then
commenced, with this capital a basis, the efforts
to obtain control OF the Erie Railway
HOW ERIE WAS TO BE MADE TO REDEEM ATLANTIC
AND GREAT WESTERN.
The plan OF the operators was to gain possession
OF the Erie direction, and then, by means of
friendly Board OF Directors, 10 lease the Atlantic
and Great western road to the Erie corporation
on a long lease, on the guarantee OF the payment
OF interest on the enormous bonded debt, or to
make, n possible, an actual consolidation of the
tive roads, In either event the Atlantic and Great
Western securities, which were refused place
on the New York Stock Exchange list year ago,
wOuld have obtained a value and enabled the Eng
lish spectators and capitalists to get rid OF their
dead and heavy burden This is = brief history OF
the plot, and the fact that McHenry and Bischofrs-
helm and GOldschmidt were the principals In
the late revolution in the Erie Railway
management and made the new Board OF Directors
is sufficient evidence that the real and most i'm
pOrtant object Of the change Is to enable the
foreigners to get rid Of their Atlantic and Great
Western losses by means OF the Erie road and at
the expense OF American interests.
tie CONDITION OF THE ATLANTIC AND GREAT
WESTERN ROAD.
In order that our people may properly under.
stand the burden sought TO be placed on Erie,
give the following statement OF the capacity and
estimated profits OF the Atlantic and Great Western
Railway for the year 1873, from the official figures
OF the Board OF Directors:-
ESTIMATES FOR 1873.
Earnings from all IS 100000
Running expenses, at seventy-two per cent OF
the earnngs.. osU1WU
Net earnings. ................s 81 100000
seven per cent 49,. 81, 10000
Interest on third mortgage bonds lS29,ooOoooj, at