The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-22

crued since the appointment Of the receiver,
has been voted. thus giving 10 the road breathing
spell equivalent 10 an actual cash advance OF many
millions oil dollars In the next place have already
stated. very large sum ~ cash has boon and VIII
be subscribed hy the stockholders which goes d.
rectiy into the treasury OF the new company
for us general purposes, and which will enable It to
complete the long talked OF narrow gauglng OF the
road ana the building OF elevators at the necessary
points Tor the transaction OF The great i0regn gram
Trade. And. finally, under the laws which govern
railroad foreclosures IN this State the
the real debtors--the persons who the money
upon the bonds OF the company instead OF losing un
der foreclosure all their rgus in the road as they
would be II they were similarly the owners OF
piece OF real estate IN New York upon which
they had large mortgage, the interest
upon which they could not pay, are upon payment OF
S. share, to be paid INTO The new company at any
time within SIX months from the date OF the forecos
erty-namely, us stockholders of the company.
THIS feature, under our laws, is not only
as Without '' it~as is constantly seen IN the
foreclosure OF real estae-ihe owners would be
utterly deprived of all interest in their property,
which Is sold at unfortunate times aud the savings
OF m,ny lie times are IN our Real Estate Exchange
sacrlhc every day, rs you Will see by looking at
the HERALD Under the ulan OF winch speak, by a
small pay ment within the reach of all tne stocknod-
ers, all original Interests In This company are pre-
served"
MR. M'nKSRY's CLAIMS.
'What are the differences between the Erie road
and Mr. McHenry?"
This Is substantially but one question Of differ
enee between them that know Of In 1852 ne under
took to purchase controlling interest in the st OK OF
Railroad ana he did purchase In all about 81 0000 900
OF That stock He claims that the losses growing out
of that purchase should be borne by the Erie Com
pany. The latter claims. on he other hand, that
the purchase was made by him without It's
knowledge consent In any form; that II
was not for the company's benefit; tina. 1t was con-
trary to the law at that time and now Tor the Erie
company to own this stock, and that, IN fact they
never knew Of thus purchase by Mr. MoHenry
until about TWO years alter II was CONSUME
mated, and not until the investment hnd
resulted in very serious loss But In the year 1874,
having In mis- hands large amount OF the funds of
the Erie road, he undertook TO settle the of
his loss by charging 1t TO the Erie Company
and paying himself out OF the funds IN
his hands. Mr.. Jewet', under the orders OF
the Court as receiver commenced his suit in the
High Court of Justice, IN England, TO recover this
amount whlch SUIT IS still pending. II Is believed
that the sole object of the institution of the various
suits now brought under his direction courts
this state Is 10 so embarrass the present committee
OF reorgan eaton as TO defeat their schemes and TO
give to himself aud his anes the control OF the road
wien 1t would probably not be difficult matter tor
him to settle the claims which pressed upon
him by Mr. Jewett | know of no other substantial
cause OF difference between Mr. McHenry ana the
COMPANY.