The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1869-08-28

Se1den, Wtthers d CO.-Iuteresttug
statements, &C.
We have received the following interesting
which Is vouched for as per-
fectly reliable,
RtouaoSp, August n, $50.
EpIroR REPUBLICAN,; Mr.. Peabody's last
donation to the cause Of education In the
South has been gin of claim Of 100000,
which he holds against the State Of Virginia,
to endow q professorship In Washington
College, Of which institution General Robert
E. Lee Is now the president. Mr.. Peabody
and General Lee have been together guests
through respect and admiration for the lat
ter that this generous donation was made.
The interest, which at six per cent, amounts
to 5000 per annum, Is only TO be used
three thousand to pay the professor, i've
hundred to keep up library. But IL now
seems that there Is little or no possibility Of
collecting this claim, unless, indeed, the
State OF Virginia chooses to pay II as
gratulty. 1t has hitherto stcadfastly, aud
perhaps wrongfully, refused to pay Mr.. Pea
body, though the claim has been standing
twelve years. The history OF the case Is In.
tercsting. In 1851 the State was building
the Virginia and Tennessee railroad and got
sorely pressed for money, to raise which II
became necessary for the Legislature to
Issue some two or three millions of coupon
bonds. Messrs. Selden, Withcrs Il Co.,
then among the wealthlest and best known
bankers OF Washington, were appointed
agents for their sale, and they, In turn, APP
pointed James T. soutcr, president Of the
New York Bank Of the Republic, rs their
! nj thu aala IF auah hnnda hn,
could dispose Of In that city.
II was near the middle Of the year 1854
before the bonds were fairly In the market,
and for many reasons II was found difficult
to get rid OF them, for one provision Of the
act authorizing their issue prohibited their
sale except at par. In this state Of affairs,
Mcssrs. Selden, Wlthcrs Il Co., being pressed
for m oney by our Board of Public Works,
took upon themselves the responsibility OF
hypothecating several hundred thousand
dollars OF bonds with Barring IL Brother and
Geo. Peabody In London, with smithers and
perhaps other bankers In New York. Seldcn,
| Wlthers Il Co. soon after became insolvent
and made assignment of all their property
to pay certain debts, leaving the State Of vir,
ginia almost entirely out. II was In this
way that Peabody h Co. became sed
OF el0S,O0O Of these bonds. Selden, Wlthcrs
h Co. had exceeded their authority In raising
money upon them, but would, undoubtedly,
have made everything right had they retained
their solycncy. The State of Virginia at.
tached several lots In Brooklyn and every
thing else II could find belonging to III
agents, and notified Peabody & Co. of what
they had done, as well as what they claimet
TO be their rights In the matter.
Early In the fall Mr.. Peabody put thest
bonds In the hands Of a messenger for trans
mission to their house In America. He tool
passage on the Inflated steamer Arctic, which
cleared from Liverpool for New York on tn,
eth september, 1854. When forty miles Of
Cape Race, In a thick fog, she came In COLI
sion with the French propeller yesta. aud
went down In two or three hours. The Vesta,
with seventy-fvc out Of the four hundred and
eighty souls constituting the crew and pas
sengers Of the Arctic, although badly In
jured herself, succeeded in getting into St
Johns. No baggage, mails, or valuable,
were saved.
Mr.. Peabody demanded the reissue Of bond
to supply those thus lost. The treasurer
though expressing himself perfectly salts
, fed with the evidence Of the loss, declined /,
reissue, as such had never been the custom
In the case Of coupon bonds-which are JUS
, as easily transferable from hand to hand a
bank notes. Mr.. Peabody, thus estopped
i petitiQned the Legislature; and the matte
, being brought before the House Of Delegates
. was referred to Its Committee on Finance
On March O, 1856, 1t reported as follows;
, The Committee Of Finance, to whom wa
referred the petition of George Peabody 1
Co., OF London, asking that coupon bond
be reissucd to them In place OF certain bond
lost In the Arctic, have had the same unde
consideration, and ask leave TO report tina
the said petitioner does not set forth In wha
. character the said bonds were held, whcthc
as owners, mortgages or agents for Seldcn
Withers & Co.
Your committee have also consulted wit
\ Mr.. Holiday, who recently visited Englan
In relation to these and other matters con
= nectcd with the sale of State bonds, and you
@ committee has resolved to recommend til
passage of the following bill:
e Re,olref, That the petition be rejected.
9 The Mr.. Holiday here referred to Is III
Hon. Alexander r. Holiday, then presidcr
q of the Board OF Public Works, who was ser
n to England aftcr the failure of Seldeu
Q Withers n Co. to negotiate new loan, an
s to arrive at some amicablc arrangement wit
= Mr.. Peabody. There were frequent inte
t views between these two gentlemen-th
z latter always contending that he was q
agent OF the State, and as such 10 returnin
II these bonds to the treasury, entitled to r,
endorsement for their loss. The Leglslf
a ture took another view of the matter, an
d maintained that Mcssrs. Sedcn, Withcrs I
: Co. had no right to delegate authority
y which they themselves had already tran
scended, and that Peabody Il Co. were onl
private holders, II indeed they had legl
, claim to the lost bonds at all.
So here stands the matter. 1t has ncvC
been before the courts, and until II
, brought before them and decided In NJ
, Peabody's favor, the donation to Washing
ton college is not worth postage stamp.
CHESTER.