The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-08-29
A PASSAGE FROM THE SECRET HISTORY
OF THE PA YMENT OF THE INTEREST
ON THE EXTRA DIYiDEND

The following facts are derived from unqueston-
able authority, and may be relied upon. Our read
ers will remember that on the 18th of last July the
management OF the Baltimore and Ohio Railroad,
by coup de main and under favor of peculiar cir
cumstances brought to a seemingly prosperous
issue, financial scheme of very doubtful charac
ter We refer to the sudden removal of the legal
obstacles in the way of the payment of the inter-
est on the Extra Dividend, for few days, thus af
fording an interval which was improved by the
Company in paying out large sum of money on
account of that interest and in providing for the
payment of another considerable portion of it in
another manner. The first intimation the public
had of the contamination of the arrangement by
which all this effected, was in The American,
which the morning of the 10Th of July contained
this announcement:
During yesterday John A. Thompson, City Re-
"gster recevedn consequence of the settlement Of
"the suit, account of the City of Baltimore the
''sum of $3.50 600, that being the amount to which
'the city is entitled"
This however, was the entire amount of the in
terest due the citys Extra Dividend Bonds while
it soon appeared that individuals were only receiv
ing one-half Of the amount due to them. An expla-
nation was afforded by Mr.. Dulany's letter,
which appeared on the 23d, in which he says that
| the city "received one hundred and eighty nine
thousand dollars, one-haf in cash and the other
half IN note, payable 10Th September next, to be
Immediately cashed If desired" (The italics are
ours.) 1t was said at the time that Mr.. Garrett
stoutly resisted giving this note to the city, on the
ground thait was treating her better than the other
holders OF the COmpany's similar obligations, and
nothing but Mr.. Dulany's frmness could prevail on
him to extend to her such an important preference.
1t is very well known that that the utmost expe-
dition used in paying out the interest as it
was understood, that the counsel of the opponents
of the scheme seeking Judge Giles among the
Virginia mountains, and might be expected at any
moment with process by which farther payments
would be arrested. That gentleman did arrive,
and brought back notice that the United States
District Judge would sit on the 18th of August to
hear argument for the renewal OF the injunction,
in behalf of certain foreign private stockholders.
Now the whole amount of the interest accrued
on the extra dividend bonds $5iG $50. So of
which the company assumed to pay one-haf or
S272 ,9754O. Yet it had paid out but 1928, 49,
3d. when the counsel returned with the notification
aforesaid. But such was the companys delicocy
that although there actual Injunction, and
| could be before the 18th of August, then
almost three weeks off, it Immediately suspended
further payments, though amount Of $780,
5000 still unpaid to holders of the divi-
dend orders. 1t has not yet resumed payment as
the day of the hearing in the District Court has
been postponed-the counsel of the company ac-
quiescing the motion. 1t may be possibly said in
extenuation Of this apparent lack of vigor on the
part of the company that it had previously exhib-
tied such energy in the cause as fairly to ex-
cuse its subsequent relaxation, and perhaps, that
all the parties Of any particular consequence had
been paid off, and otherwise prorided for.
But the extreme good luck of the city in securing
virtually the entire payment of her claim, which
had no more merit than any body else's, led US to
suspect that there might be some other parties
equally fortunate. The Company paid the city
in full half cash, and half note, with an agreement
that the note should be cashed, which we are told
was done. Now it matters little to the city, so far
as the payment of the balance of her accrued inter
est is concerned whether the injunction shall be
renewed or not She received this note, passed it
to third party without notice, and the Company
is presumed to be liable for its payment at ma
turity, since it is very unlikely injunction will
be obtained in prejudice of the rights of bona
tide holders Of negotiable paper. Now this is so
strong position for the city to occupy, that we
wondered whether it had not occurred to some
others to fortify themselves in the same way, and
on inquiry we find that the note issued to the city
1oas not the only one
There were, in fact, nine in all given By the
company in settlement of the deferred half Of the
accrued interest, all payable on the 10Th Septem