New-York tribune., 1875-02-24
THE EEMBARRASSMENTS OF THE ATLANTIC
AMI GREAT WESTERN LINE.


RELATIONS OF ERIE WITH THE INVOLVED RAILWAY
THE REPUTATION OF THE lLAsE-EFFoKls
AT RKoRG ANIzATIoN.
Fresh complications have arisen between
the Erie and Atlantic and Great western Railroad CON-
panie and now the former refuses to carry out the
terms OF the lease made about year ago. Ever since
she completion OF the Atlantic and Great western iine
the primary object of owners has been 10 secure the
smalgamation OF that enterprise with Erie Dur
ipg the GouldFisk administration OF Erie long
and bitter litigation ended by the action OF that
Co,nnanv In leasing the Atlantic and Great Western
The latter Company which had been In financial trouble
ever since it's formation foreclosed sold under the
second mortgage in July. 1871 and the Erie lease termn
sted in September of the same year, the Erie Company
surreuderng the property. In December 1t was reor
rapzed, and was under the present mansgement until
short time ago, when J. H. DeVereuA, inc rresuen'
was appointed receiver
After the revolution In Erie. when BiscboTsheim
Goldschmidt obtained coUtrol and the reform ad
niuistration had gone fairly 10 work. james McHenry
came 70 this country aud believing that the only prac
fea settlement OF the troubles Of the Atlantic and Great
Western Railway in its consolidation with Erie ne
sndeayored to effect such union. After remaining
here considerable time. he went away with the assur
snce that some arrangement looking TO the end he had
In view should be made. But the public outery made at
she time prevented the cOnsummaon OF the plan until
last year. when McHenry again came TO this country
ana literally forced lease which pro-
y1ded that . percentage Of the earnings
Of the road beginning at 2s cent and ending at So
should be devoted to the Atlantic and Great Western
rental This lease signed sealed and delivered, and
ratified by the stockholders Of both companies 1t was
made against wishes Of the erie managers, but on
account OF their relations with Bischofsheim Gold
sehmidt and McHenry and the urgent necessity for
more mosey they compelled 10 acquiesce 10 the
arrangement Now that the relations with Biscbosheim
Ama haV
lentv severed and their several interests are DIVERSE
she managers, indifferent TO the wishes OF tue En
Esh capitalists interested In the several enterprises
kaye repudiated the lease OF the Atlantic and Great
Western decline to carry out ats terms Ihls has
created great deal OF bitterness OF FEELING among the
holders OF Atlantic and Great Western securities
Efforts arc making 10 reorganiZe the embarrassed
Atlantic and Great Western Railroad and once more
A. nut IL on O firm basis free from the incubus OF
fhe enormous debt which hangs over It, Numerous
schemes been proposed but thus lar NO one OF te
wbo reside abroad The financial affairs OF the rail
road are supervised abroad by an English Board
NJ elected by the Company The capital stock
g. S24 35s7Ol The funded debt is *2eoO6s! and the
oapc and other Indebtedness ranges from S30O0o0 TO
a. 0OOCOo The total liabilities, II will be seen. amount
10 about s9OOCO,OO0. 1t is understoOd that
the plan of reorganization when favored
by the American managers is to eXtinguish all the
stock and funded debt, and start anew with
= bonded debt Of $5.0OO0O0, and an amount OF COM
mon and preferred. This proposition Is not likely
20 be acceptable &c the English 0ondholders, VINO
insst upon a better return for the money which they
have sunk in the enterprise. Advces received here
from London 10 The eject that the Dondhoders In
that city begun measures which look 10 the lore
whole first issue must be controlled before anything
can be done twenty per cent additional required
by the Committee ForeelosqEe before tue lpe can be
.oia ts Aans'y tls mortgages. .E-.i