The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-19
AFFAIRS OF TIE RAILWAYS
Shit of McHenry to Set Aside the
Lease of the N. Y, p. & o.
Colonel Bennett Young Resigns the Presi
dency of the L., N. A. & C.-Villard's
Resignation Handed Him.
M'HENRY's SUIT.


yrbe Euelishman's Effort to Set Aside the
N. ", P. & O. Lease to the Erie.
CLEVELAND, o, Dec. 1S.-The fight of Nc
Henry and the present trustees OF the New YORK,
Pennsylvania & Ohio railroad is now in full blast
here MeHenry is being heard by deposition by
Nudge Boynton, while in the United States Court
the representatives of the trustees are replying
TO McHenry's statements. McHenry testified
that he owned S2O,oo0,oo0 of the old Atlantic u
Great Western stock, and that he had paid At
aorney Barlow, of the Erie road, $1,000 for
,4iraw wing up the main plan Of the present scheme
of reorganization, which had been distorted.
8feHenry gave history of his connection with
the road, narrating it's financial straits. which
Terminated in the road being put in the hands
of q receiver. From the time he gave his stock
to the trustees until the present he had never
a,een consulted in matters connected with the
road, and the terms of reorganization had not
been carried out as he had projected them. The
trustees equally as positive in their denial
of McienrY's right to interfere with the present
man agement of the road. They say that the ex-
ira issues of stocks and bonds which McHenry
complains of were necessary for the ROADS ex-
istence. They deny that McHenry is citizen
of Great Britain, and say he is citizen OF Penn
sylvania. They claim that the Atlantic Great
Western was built by McHenry a contractor,
he receiving in payment all the bonds and shares
ISSUED. The trustees claim that McHenry con
Rpired with the engineer of the consolidated d.
On cross-exeminatiOn by W. W. Mcfarland,
today he testified that the scheme of reorgani-
cation was intended TO pay of, eventually, every
Indebtedness of the Atlantic & Great Western.
represented that fact publicly to stock and
bondholders. [ was so ignorant of the decep-
tion practlced on me- that believed the sworn
statements of officers of the road until by this
litigation my eyes were opened. On NOV. Ii,
1874 Mr.. Warner submitted a sworn return
showing the earnings for the year ending Sept.
30, 1873, to be ST. 920,0 600. This justified, in my
eyes, the competent management of the road,
and to my surprise later 1t claimed to be lnsol
vent. l do not think the earnings of the road
were honestly accounted for, and the indebted
ness could always have been met had the Erie
road paid Its dues. l own majority
of the shares of the road, and am willing
to have it's earnings go toward paying Its in
debtedness. am opposed to any lease or agree
Inent with the Erie, and wanted to dissolve all
connection with that road, for Its managers re-
Tlentedly broke faith. Did not investigate the
FIRST annual report of the trustees, assuming
that the men whom placed IN power would NOT
betray me. The report of General Potter was
designed to depreciate the value of the property
in the eyes of its proprietOrs, and WAS fabric OF
malicious falsehoods and untenable positions
showing his ignorance OF railway matters, and
that he was made tool by my enemies ne
gotiated the first contract with the United States
Rolling-stock Company, aud raised the amount
reQuired-$5, 100000 The report of General
Mcclellan as to the Indebtedness 70 the Rolling
stock Company OF 100000 per
mum is absurd. Taking the traffic
of 1he road into consideration, the rolling
stock must have paid fol itself every year to the
amount of the rental due the Rolling-stoek Com
management was oarelessly bought savagely
used, and owing to mismanagement failed to
make proper returns At the reorganization and
Jay Immediate friends held most of the bonds.
i nsver specialized in the bonds and my present
interest does not lie with speculative purposes.
At the time the receiver was appointed stated
Hhat there was no need for one, as the road was
;solvent, had it collected what owing by
tho Erie. AT the first reorganization scheme OF
lS7l, authorized the issue of tfrs5 mortgage
Bonds 81 g 100000, second S12,O00,000, third
1923, 900, 900, over the main line and branches.
hah Of 1tua
rental bonds and S1O,000,000 of western extern
sion bonds, of which One-fOurth issued to
me. indorsed by the Erie, which then stopped
further Issue and repudiated Its Obligations.
There no floating debt. When I prepared
fhe'seheme of the last reorganization based 1t
Tipon the ability of the road to increase its prof
dts and earnings from the usual annual reports.
q never attempted TO wipe out Tor repudate) any
Indebtedness. 1t is against English policy, and
mot allowed IN any other Christian country ex-
cept America. The trustees | appointed had no
Interest with The road beyond their trust, and
intended it should be so, for the better satlsfac
fion of creditors. | intended to reserve
for myself the active management
poor clergyman, anxious to save
his $4,000 invested in Atlantic u Great West
erD. bought tickets for himself and his seere-
tary to this country and paid him about So 900
7 paid no money to Mr. Lewis, agreeing, how
ever, to paw him 81 900 on the satisfactory COM
pleIiOn of his work as trustee. Lewis is pro-
bessinnal company wrecker. Five wealthy
p.ondon companies came to grief through him.
HE folsting himself upon them all as perpetual
trustee and director at 9400 year from each.
Neither Lewis nor Bates ever rendered
a full and satisfactory report to
fhe directors OF the company.
required by the scheme of reorganization.
They were dilatory in carrying out the schemes.
The whole work ought, and could, have been
completed within year. The delay was, in
my opinion, made purpOsely. I have address
1ng Mr. McFarland) your own written opinion
concerning that, and the opinion of your assO-
ciate counsel was that it was the indisputable
desire on the part of tine trustees to keep affairs
IN statu quo to afford them opportunity to
% n in RI nVvr infn 70 aud
Rake steps toward the lease of the New York,
Pennsylvania & Ohio, recently carried out