The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-26
BOSTON, HARTFORD AND ERIE.

To THE EDITOR or THE HERALD
There seems to be some Misrepresentation as to
the position OF the stockholders foating debt
holders and bondholders since the recent move
ment by the trustees. or course the trustees
were obliged at tie expiration OF the eighteen
months from the time they took possession, to
call meeting of the bondholders and form a new
corporation; but this act Of itself gave no
title to any property or franchises OF the old
corporation. There still pending various suits
on behalf OF floating debt holders and Others with
ont the settlement of which title can be given
to the new corporation, even supposng all the acts
OF the present quasi trustees and the various other
sets OF trustees have been strictly legal. 1t must
be remembered that the appointment of the pres
ent trustees was not made under the provisions of
the mortgage but by DEGREES in only three States
through which the road passes, upon statement
OF facts agreed TO by certain nominal plaintiffs,
and without proper argument and hearing by the
Court
AS to the property in New York, no decree OF any
kind was entered by which these trustees could
have the shadow of claim, and a suit has already
brought in the Circuit Court testing especially
the right OF these trustees to interfere in any way
with any of the rights OF the corporation.
There is, however, q point OF much graver
Importance, which 1t behooves the bond
holders to look alter, and which eventually may
necessitate much more favorable compromise
with the junior encumbrancers and the stock
holders in order to place the new corporation IN
will induce European capitalists to look upon it
as sound security for the moneys absolutely
the road and pay of the mortgages which We're
given before the Berden mortgage, amounting
to about two and half millions Of dollars
The point we aude to is that the assignees two
| Of whom are among the foremost counsel In the
United s s) have fled bills in the different
| passes, claiming that very large portions OF the
entire property are to be taken for the general
other property they have laid Claim to i the enre
stock OF the Hartford, Providence and Fishklll
road, the Norwich and Worcester lease, and the
/ entire property in Boston, covered by the present
stations and water front.
It is evident that these assignees would not
success as they are too well known to be even
suspected OF bringing fictitious suits and without
proper cause; o the property they have claimed is
Hartford Providence and Fishkin stock, which
covers over one hundred and twenty miles
gage Of about two millions or dollars. The
amount OF the debts proved in bankruptcy
is comparatively very small indeed-only a few
hundred thousand doars-and 1t is perfectly clear
that alter the payment OF these debts Should the
assignees succeed In recovering what they claim
and appear to be entitled toy, the surplus must go
to the old stockholders the Berdell bondholders
have relinquished all right to 1t by taking posses
sion OF their security under their mortgage it
being well settled in bankruptcy that no party
holding any security can participate in the bank
security which he had for the benefit Of the
general creditors. 1t certainly would be q
great pity that this intrinsically fine property
should be jeopardized in its early completion
by numerous and intricate suits at law and
IN equity-a property which every one must ac-
knowledge will be immensely profitable both to
the public and private interests If once completed
to the Hudson River. Cannot some plan be de-
vised for reorganization, so as TO harmonic all
classes OF securities similar to the Pittsburg, Fort
Wayne and Chicago, Atlantic and Great Western
and other great reorganized roads
II this could be accomplished 1t would ensure the
speedy completion of the entire line and the aug
mentation In value OF all classes of the old securi
ties so that the bonds which are now dragging at
forty per cent would, no doubt, on completion OF
the road be interest paying and worth par in the
market. Certainly in such work as this conces-
sion and not obstinacy should govern. Let the
Berdell bondholders before they surrender their
bonds TO the new corporation consider well what
is their best policy. STOCKH0LDER.