Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1873-04-30
From the New York Herald-l
THE ATLANTIC AND GREAT
WESTERN,
CLEVELAND, o., April is

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,
appears to have one Of its objects the
protection Of the American people, in
one OF their main arteries of CON-
merce, against an alleged design OF
certain English spectators and capt.
talists to fasten upon that corporation
the nom paying Atlantic and Great
I Western Railroad, it will probably be
of interest to ascertain the exact con-
dition of the latter concern. Having
access to certain documents not here
tofore laid in detail before the public,
1 forward them, in the belief that
they will throw some light upon the
proposed job.
HOW ENGLISH CAPTTALIsTs WERE
LOADED WITH ATLANTIC & GREAT
WESTERN.
It 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
McHenfy, now Of London, during the
time be held control of 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 man
agement, the legality OF the issue OF
the watered stock was called IN ques-
ton, that the English spectators be-
gan TO discover the true character Of
their investment. There is ample
evidence to show that they thorough
ly understood the worthlessness Of
the securities they had accepted. The
master of the rolls in London, in Civ
ing a decision IN re Barned's Banking
Company, alluded to the Auantieand
Great Western shares put upon the
English market as having been worth
little or nothing" and treated them
as utterly worthless at that time. In
the Overend & Gurney bankruptcy
case the wOrthlessness of the securi-
ties was also commented on, and all
manner OF sharp practice was attribu-
ted to those who had glutted the Lon
don market with them to the damage
OF English capitalists. Mr.. James
Robb, who was for a short time Presi-
dent Of the Atlantic and Great West
ern, writing In 1866, alluded 70 the
"skillful management" which. "aided
by the influence and counsel Of Sir
Morton Peto,f had involved, people
in England and on the Continent in
the possible loss and forfeiture Of in
yestment IN the, Atlantic and Great
Western Railway to the extent OF
&c, 900, ,0OO."
TRYINe 10 GET SQUADS WITH THE
AMERICANS.
Among those who were interested
in this then worthless stock were
Messns. Bischo hoffsheim & Goldschmidt.
the London brokers, who have recent
" figured so largely in Erie. These
gentlemen, in connection with Nc.
Henry, some two years since put on
the English market the reorganiza-
tion scheme OF the Atlantic and Great
Western Railway Company. A des-
perste case requires desperate reme-
dies, and the Engllsh holdeFsS 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 reorganizatlOn scheme and then
with this capital as q
basis, the efforts to obtain control OF
the Erie Railway.
Haew 1aw FRrR WAS no BE MADE TO RE.
DEEM ATLANTIC AND GREAT WEST
ERN.
The plan OF the operators was to
gain possession of the Erie direction,
and then BY means Of & friendly Board
of Directors, to lease the Atlantic and
Great Western road to the Erie cor
poration on q long lease, on the guar
antee of the payment Of interest on
the enormous bonded debt, or to
make. if possible, an actual consoli-
dation OF the two roads. In either
event the Atlantic and Great Western
securities, which were refused q place
on the New York Stock Exchange
list year ago, would have obtained q
value and enabled the English specu-
lators and capitalists to get rid Of
their dead and heavy burden. This
is q brief history of the plot, and the
fact that McHenry and Bischofsheim
and Goldschmidt were the principals
in the late revolution in the Erie
Railway management, and made the
new Board of Directors is sumeient
evidence that the real and most i'm.
portant object Of the change il to eDa,i
Bile the foreigners to get rid Of their
Atlantic and Great Western losses by
means of the Erie road and at the ex-
pense Of American -interests-soo -
THE CONDITION OF THE ATLANTIC
AND GREAT WESTERN.
In order that our people may prop
eriy understand the burden sought to
be placed on Erie, I give the follow
ings tatement Of the capacity and esd-
mated profits of the Atlantic and
Great Western Railway for the year
1873, from the official figures OF the
Board Of Directors. .5N
ESTIMATES FOR 1873.