New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-05-02
A GERMAN FINANCIER's MISSION.

II. osTERBRRG ON AMERICAN RAILROADS AND CREDIT
PROBABLE EARLY FORECLOSURE OF THE ROCK
FORD, ROCK ISLAND, AND ST. LOUIS RAILROAD.
H. Osterberg editor of the German mertcan
Economist whose arrival here as the representative or
large number OF German holders OF American railroad
bonds announced in yesterdays TRIBUNE, has al
ready entered upon the work which brought him TO this
country. Mr. Osterberg said yesterday that the imme-
date OF his visit the interest which his con-
stituents had the Rockford Rock Island and St. Louis
Railroad. OF this line which was originally intended
to be 40 miles long, extending from Beloit Wi&, 10
East St. Louis Ill., with branches from the main line ~
Cleveland, Perrys and East Burlington, only about 800
miles constructed. The road had been bonded 70
the extent OF t00o00O, OF which 7T500O was held IN
Germany. The road had defaulted SOME time since on
its interest and although arrangement was effected,
1t again deaulted the rst Of last February. As con-
sequence, the bondhoders who had bought the bonds
for investment purposes had met TO consider their posi-
ton and TO protect their interests. The result was tho
appointments Of committee to take necessary
measures for the latter end; but owing TO
the fact that Mr. Osterber9 was nsturalisod
American citizen, and well acquainted with the Amer-
can system Of railways and lave, he was deputed by
power attorney for them so clear did the case
that he did not think that 1t admitted OF much
elaboration. The present managers OF the road having
failed to accomplish tho end in view, namely, the sue
cessful and solvent working OF the road. he would
appeal TO them to rellnQush the road 10 the eRlate
owners-the bondholders, who had invested their
money in it, and who according to law and equity, were
the rghtful propretors Of IT. He had teesrdphed TO
L. r. Gable, the President, requesting an interview
In this city aud he hoped and expected that the
result OF the conference would be the institution OF
friendly suit for the foreclosure OF the mortgage on
the road He hoped and expected that there would DC
no trouble as the amcable adjustment Of these matters
would 90 far toward redeemlnK and eeVating Amerl-
can credit abroad. Referring TO the manner III Whch
American enterprises had been regarded abroad, MT
Osterberg said that tho long list OF defaults and failures
had materially impaired confidence IN Germany where
IL was essentially q maxim that all honorable op4a-
lions should be met. The character OF some OF the
Judiciary was well known abroad, and there was
O hearty fear and dislike OF having any
connection with litigation In the United
States There was an impression that all the
courts and all the judiciary corrupt and that the
men W no had the most money and the most influence
would be the vctors without regard for truth and JUS
tce This feeling had Increased. He hlc defended
American honor and enterprise in his Journal ana hau
succeeded in counteracng to extent the evil hu
ence which had parayzed American enterprises Ia the
German markets The impeachment OF corrupt judges
aud the Presidents veto OF the financial Imitation meas
ure, had shown chat the mass Of the American peo-
pie favored honesty and honest business dealings, aud
favorable reaction was the result.
As there was such an enormous moneyed interest 10
American railway securities he would make careIul
personal tour Of inspection the principal western
roads and would probably as far as California he
expected remain about SIX weeks and would either
make known by letter the results OF his observations OF
wait until his return to Germany.