New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-30
ANGLO-AMERICAN FINANCE.

ANSJLO-AM ChlChN I4NANNEs
A CHAPTER OF RAILROAD HISTORY.
BIsCHOFFsHEIM's PLAN OF FORMING AN kAsrxRN
CONNECTION FOR TIE ERIE-THE LOAN FOR THE
NEw-YoRK. BOSTON AND MONTREAL THAT WAS
NOT FLOATED-IIENS PRIOR TO HIS 0WN--Nokr'
CAGES TO BE FoRECLOsED UNDER HIM.
Soon after the revolution in the Erie Railway
Company when the Gould administration was forced 70
RETRO, Bischosheim Godschmidt, bankers OF London
England, became noted for their connection Nish the
reorganization Of the Company and the management Of
its financial sfairs The fru, which really includes
Bschotshem alone, became DESTROYS OF extending 10
reputation credit, &C., 10 connection with the railroads
and financial enterprises Of this county, ana began 70
operate moro boldly 10 railroad loans Tho firm had
deeply involved itself In tho Affairs Of the Ataoe and
Great Western Railroad. and Of the Erie, dtnsuRh
II subsequently Reimbursed itself from the latter Afes
Peter II. Watson had been installer President or sns
Erie o New.England connection for that road Wa
deemed desirable IL thought that business would
follow and she road would aided just - the HewYork
Central Is assisted by the Boston and Albany Railroad
A corporation known as the New.York. Boston and
Montreal Railroad was In existence and was aimlneto
form through line from Ncw.York to Montreal TIC
road consisted Of scattered lines Of track which was
proposed to unite By building connecting inHs.
u.,s corporations embraced IN the general eonsoida
ton OF the New.York, Boston and M"ntrea' rosa "s
the Duchess and COlumbi, the Pine Plains and Albany.
and the Harlem Extension Railroads. Toe total length
OF the main line ana branches $50 miles. OF WHOM
there are 10 operation 1s miles. viz, from Mlerton 70
Duchess Junction. " 80 miles, and from Chatham
N " to Rutland, w. 1I6 miles, It vas proposed That
the lie should assist tho construction OF this road
By giving either moral material aid. English cap
itasts interested Erie consulted. and BischOn-
sheim, whose great ambition was to DO the
promoter Of American railroad oans readily undertooH
TO float tho loan. Arrangements were mace whereo1
sl2 were to be by the Eaglisb capital
lists for tho completion OF the road. Bonds TO the
amount OF ON were sent TO London Bschon'hen'
seeure IN bis presge concluded that Il would be be-
meath hi, dignity SILL the bOuds at par and therefore
undertook up premium. Some of those Inter-
ested in enterprise said that Bischohsheim actually
received bids Of l01 for the bonds bat In the nope OF
making better bargain with the men on this
side who were Interested 10 the enterprise. and
getting more stock better commission for tho sae
of the bonds he failed avail himself OF the opportr
nifty losing his market, for an equally favorabe
chance never came again. Bischo'neim never sold Liz
bonds tails day they are understood TO DO locked
I'D in his strong box.
Discussions sprung up in the Erie camp. and Peter
Watson having testified before an investigating com
mttee that Bschoff.hem a strange mixture OF ava
rice and something ei>e The latter Immediately sent
word By cablo that II Mr.. Watson bad taid what had
been reported. no mnst be sued Immediately
for SANDER. This difference was settled. bus
other breaches were wideued. and when the time
came for the payment Of the Remaining
90 o0O Bsrhohcim, who had no desire TO increase
his load Of unprodutye securtics refused to advance
f. and sent over an agent naned Cas'e 10 see wbat
advisable Tor the recovery OF tue money
already advanced. improving tns lien upon the
franchises ud properly Of the Nrw-YOrl, Boston and
Douds when he held. aud which known a, conso
dated %orSaSe bonds were s,a a9ss and e0 mann on
s ss r0n Ss TO- 'hs psd
dated bonds would b. b asss ,as en Tn. ate.
ers roads in the consolidation ut the time of the con.
structon had created mortgages which took preceence
that he had been cheated but for all that sent his
agent what he could do In the shape OF conpro
rpsnit Cassel who was Bschof h.ms Bismarck, could
NOT convince the Americans ioterestei and no would
H. Brown was largely interested In the road and also
prominent banking firm. hs ought TO belp them our;
claimed thar ne should something. Both msu. how
refuse 70 put ~ anu more money ana MT b pGs
and was replaced oy alother financial diplomat
named K,tkia,n. w1o failed 70 i H,cco%pi,n tn. any.
I ess tho s0' money was iorthcO@ios tho con:
soiiation would pieces aud the bondhoiters OF
offered some OF the houdhoders As cers in cash and So
cents IN consolidated second mortgages II they would
orego priority OF lien Tbs they. however refused
Go aud measures 10 bring aoout foreclosure navo
Az aojou,ned meering Of the bondhoders OF the New
Ya aHH he % Nav ws k meg az Me-
Lewis May presiding. g. h. Garrison, A. b. Stout W.
;a onSa g. L. soiono@, My. B. K,"r. &M
Selisniau and Others, representing N,Soo3 Ut tue
SoIS peeses ws.
a committee with full power TO !oreclose The road
nnS ali as 1 result Of it had
been harmoDzng Of the interests OF the hr.t and
relative lien-. It Is expect that BscloH,nem VIII
take measures to oOstruct thus foreclosure.