The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-07
BOSTON, HARTFORD AND ERIE.

The directors of the Boston, Hartford ana Erie
Railroad have been in consultation for several days
for the purpose OF providing means for preventing
the foreclosure ofthe mortgage bonds which VIII fail
fully due during the month of March. The Presidents
paid visit to Europe to get help from capitalists
there but was unable to present the enterprise In
o satisfactory light. The amount In cash required
to settle the claims Of bondhoders u about four
million i've hundred thousand dollars, which, u
called up from the stockholders, could be raised
only by an assessment Of nearly twenty per cent on
the par value OF their shares.
The road Is now in the hands OF the trustees for
the bondbolders Of the Berden mortgage, who lest
possession nearly eighteen months ago In conse-
qience Of the default in paying the interest the
bonds and who filed the notice Of such taking pos
session in the oces Of the Secretaries o! State OF
the several States, required by the terms OF the
mortgage. As only few weeks intervene before
the expiration Of the eighteen months we quote
from the mortgage the manner Of foreclosure:-
And II the said default shall continue for the
space OF eighteen months after such notice
shall be filed the whole Of the mortgaged premises
and franchises shall vest absolutely and In Zee IN
without further assurance and without further
process OF law, and all right or equity OF redemp-
ton OF the party OF the first part 1.-THE stockhodersl
therein snail be forever barred and ioreclosed but
II the whole OF the principal and interest IN arrear
wd ana the iawai Claims disburse
ments and liabilities OF the said trustees made or
incurred as Aforesaid on account OF their truat,
shall be paid and satisfied within the said period OF
eighteen months after the said notice shall have
been led either by the said party OF the nrst part
(Which right they are to hayel or out OF the nee
earnings OF the property In the trustees posses-
sOn then the said parties Of the second part SHAH
surrender the said parties OF the nrst part the
said mortgaged property, franchises and estate
and all additions made BY them thereto, and the
said parties OF the nrst part shall thereupon ana
thereby become revested with the same, as Of their
former estate, without further assurance.
BY the foregoing clause from the mortgage 10
will be seen that unless the road and Its franchises
are redeemed from the possession OF the bond
holders by the payment OF the bonds, principal
and interest, within the eighteen months, which
have nearly expired, the whole property will vest
In the bondholders without further process Of law
In reference to the reported suit OF the Eric
Railway Company 10 make prior lien OF the nvo
millions Of Berdell bonds guaranteed by them. 10
may be stated that their interest 10 not control-
ing one az they hod by their statement, less than
one million, the majority being held by parties
interested In the bondhclders acquiring the nnal
possession OF the road and who also Interested
In the fifteen millions unguaranteed We have seen
Q written communication rom Q trustee OF the
bondnolders, in which Ia stated that the trustees
have no knowledge OF any such suit being orougnt,
and that they sec no reason to suppose tnat ANY
particular nve millions Of the bonds mas prefer
ence over the remaining fifteen millions.