The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-16

Grant but to all who were acquainted with the
family.
FAILURE OF JAMES M'HENRY.
FISK AND GoULD's OLD OPPONENT FAILS FOR
FIVE MILLION poLLARs-GREAT EXCITEMENT
IN VICTORIA STREET.
[BY CABLE TO THE HERALD
LONDON, August 10, 1879.
James McIIenry, the well known financial
agent is unable to meet his liabilities. Much
excitement prevails around his office in Victoria
street, Westminster, where tremendous run
has taken place. His liabilities are estimated
at So, OOO, 900, and his assets are believed to
be very poor. The Daily Ne,rs, in its financial
article, places the liabilities Of Mr. James
McHenry, whose failure is announced, at
100000.
A FINANCIERS CAREER--HOW HE ATTRACTED
BRITISH CAPITAL TO THE UNITED STATES.
Mr.. j. McHenry we'll known in this COM
munity for his many and lengthy litigations with
the Erie Railway Company. His birthplace is q
matter Of doubt, but it is claimed by his friendA
that he always boosted OF being an American.
He is sixty years of age, and about that
distance back his father to this country from
the North of Ireland and settled in Philadelphia
where he became well known as practising phys-
clan. At his death he left handsome fortune
Young McHenry received q good education. His
FIRST appearance a business man q a COM
mission merchant in Liverpool. He dealt princ-
pally in American dairy products, and it was owing
to him that the trade in American cheese was deyel
oped in the English market. 1t no strange sight
to see thirty ships containing American goods
70 him, at TINA
however. did not last long with him, and
he was to fail. He called his creditors to-
gether and compromised with them for small per.
centage of their claims. This wa about twenty
years ago. and then Mr.. McHenry began to be inter-
esed in railroad affairs. He took contract for the
building of the Atlantic and Great Western Railway
which lie completed. thereby filling his Golfers again
and obtaining large amount of its stock. At this
time he called his former creditors together and
paid up the balance them. pound for pound
with six per cent interest 1t is said OF Mr. McHenry
that he put more English capital in this country
than any man living. He was also noted for his own
and afterward to hospital and educational ;nstitu-
tons in the city of Philadelphia In this he fol-
lowed the example of his sister. Miss Mary Mcenry
who is well known in the City OF Brotherly Love
her generosity to the poor.
THE CAUSE OF HIS TROUBLES
1t is singular fact that the Atlantic and Great
Western road which he built has been the cause In
indirect way, OF all his troubles. As is well
known. the managers OF the Erie Railway have been
for many years trying to get through route to the
West, as to compete with the Pennsylvania and
New York Central railroads To accomplish this it
necessary for the Erie to obtain control Of the
Atlantic and Great Western and the Cleveland, Co
luinbus. CINCINNATI and Indianapolis Railroad COM
panies. NcHenry was of the opinion that connec-
ton with Erie would be of benefit to the Atlantic
and Great Western Railway, of which he was the
largest stakeholder, and he was heart and soul
in the plan. Finally lease of the Atlantic
and Great Western Railway made to the Erie
the latter road being under the management OF Fisk
Il Gould. but those gentlemen subsequently repu-
dated it, McHeury appealed to nd
won and it will be remembered how he appeared
with squad OF deputy sheriffs at the Twentythird
street offices of the Erie Railway, and how Fisk and
Gould locked themselves in their private. offices
that they could not be served with the docu-
ments. at the same time having army OF rougns
at call in a collision occurred. McHenry
however was victorious. and Fisk and Gould had to
the shoulders OF Peter II. Watson. Under this last
gentlemans administration another lease OF the
Atlantic and Great Western Railway to Erie was
consummated, and for a second time repudiatcd.
DEFEATS HIM.
Mcfienry's real troubles. however. occurred after
Hugh J. Jewett, the present president Of the Erie,
had taken control. THIS in 1875 aud Mr. Jewett
says that at that time he found that bonds
of the Erie company had been issued and placed in
the hands of the London Banking Association and of
Mr.. Mciicnry for SALE and that account had been
rendered of small part only After vanly endeavor-
ing TO get an accounting Mr. Jewett placed the mat
ter IN the hands OF MIR. Hugh Mccullough. of Lon
con. who had better success and suits were then
brought--one against McHcnry and the other
against the London Banking Association. In the
suit against Mclienry he up as an Offset to the
clam OF Erie certain purchases OF c., c., G. and l.
Railroad stock. which he claimed TO have been made
by the authority OF the Erie Company. The claim
rejected by Erie. and the argued in the
Court OF Chancery before SIR George Josse Master of
the Rolls, who found against McHenry for So 600 0nO
on the ground that he had no contract with Fries
corporate seal attached. McHenry was given thirty
days by the court to satisfy this judgment. and this
the cause Of his failure.
MHENgY's CASE.
McHenry's friends state that had claim against
the Erie Railway Company for the purchase OF this
G., C.,lC. and L. stock and also for raising loans
Erie and for commissions. After the suit they said
that McIenry had In his possession letter from
President Watson. of Erie, dated August Z, 1872, ana
other documents authorizing him to buy the shares
and to raise tho loans all OF which the Master OF
Rolls refused to admit in evidence. 1t also said
that the stock was purchased in New York by MIR.
Travors, director of the Erie Company. under the
advice OF Mr. Barlow, the counsel to the road that
McHenry found the money and that IL delivered
to the Erie Company and Is nov In their posses
All these last statements are denied by Mr. T. l..
NJ barlow, the counsel of Eric who has stated that
McHcnry's letters were fully discussed In court and
had their due weight, ana also that only a small
quantity OF the c.. c., c. and l. stock was in
possession OF Erie. According to MIR. Barlow.
Mciienry bought the stock to benefit the Atlantic
and Great Western hallway, and when he found that
II had deprecated in value some $4,000 900 he sug-
gested that the purchase for the of the
Erie Company and refused to turn over the same
Amount of Lric's then in his handa.