The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-02-09
aIOvEMENTs OF THE MHENRY PARTY.
"A Talk with Capitalist Who Has Placed
500. 900 900 in American Railways.

"A Talk with a Capitalist Who Has Placed
100000, 900 in American Railways.
James McHenry and party, which consists Of
Mr. McHenry and Ed MacNamara, of London,
England; W. H. Tailor and wife, T. P. Fowler,
and A. P. Reilly, of New York. spent yesterday
in the city, and will this morning leave for Lou
isyille, over the j., NJ & I, road This was the
first visit of Mr.. McHenry to this city, and his
first trip over the Decline He expressed him
self as being highly pleased with Indianapolis,
although owing to bad weather he saw the city
under unfavorable circumstances. Mr.. McHenry
says he came over the Decline to learn the con-
dition of the property, as he represented a large
stock and bonded interest-men who had been
led to invest in the property on
his judgment They were receiving no
dividends on the capital they have put into the
American roads. The c., c., G. & l. had bonded
debt of only $6,0O0,000 share capital stock of
SIS, 600 O00 over one-t third of which he owned or
represented. 1.-THE road is earning in round
numbers, S., 900, 600 year, or % per cent gross
on all capital. The bond and stockholders
would be contented with 5 per cent
dividend, but we get nothing. We
are told that all surplus earnings are invested in
extensions and Improvements to the road. l
contend that these extensions and improvements
should be paid out of new capital, not with
honorable IN the directors to take it
out of my pocketbook. The net earn
ings. OF operating road are the profits
of the partners who furnished the cap
ital for its construction and if the capital
already invested produces no profitable results,
OF any results at all, what necessity is there of
further expenditure, OF what nducement to pro-
vide further capital existsl We put our money
into American railways; they thrive and pro
gress, or at least the arrangements do, on our
money, while we who furnish the capital starye.
This may seem strong language he said 'but
1 represent hundreds OF English people, many of
whom are suffering for want of the money they
have invested in American roads. represent
large interest, and have right to criticise and
speak boldly in this matter have
raised $780, 100000, and every dollar has
been put into American roads, mainly the Erie
the Atlantic g. Great Western, and the Cleveland,
Columbus, Cincinnati & Indianapolis" With
the gentlemen who manage the Bee-line he had
no fault to find. 1t was the directors he blamed,
who SO .blindly handle the finances of the road,
and 30 disastrously. 1--WE are ready to furnish
new capital to put into extensions and improve
ments required after we have realized a reason
able return on capital already invested" Mr..
McHenfy admitted that the blunder of his life
was when he was instrumental in electing Peter
Watson president of the Erie system In 1872 he
came to America with 90 per cent. of the capital
stock OF the Erie road in his vest pocket. He
owned the Atlantic & Great Western practically,
and controlled the c., c., c. & l. road and his
plan was to consolidate the three, but Peter
Watson betrayed him. He said VIM. H. Van
derbilt, ST. Thomas Scott, and Robert Garrett
all said he was the man for president of the
Erie He was elected and in less than three
years the enemies of the McHenry interest had
control OF the property, and as soon as they Sc
cured such control, they ousted Watson and
elected H. .Jewett, 4 man whose paper was dis
honored, whose Word was dishonored,
and who was more corrupt than
Peter watson, were such thing
possible. In answer to the question. what are
you going TO do now, he said: 1--WE propose to
elect directors for the c., c.. G. G. /. road who
will see that the stockholders have dividends;
that it docs not all go into extensions and i'm