The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-11-26


By exchange for debentules 100000 4,044 600
5000, 900
And In the same period de-
creased BY amount OF
seven per cent mortgage
deben,ure bonds for hy-
poIhecation with bills
payable, the mortgage
bonds being preferred by
lenders for coiat"ralS.. 81 13S.OO0
Funded into income bonds. $4,000 1880 600
Balance...... ....So:3Ao'ooo
On page s Mr.. Steger says: 'The New
York office makes the total Indebtedness Of
the company S49, SOS, ,426.79, but there is EN-.
braced in this amount S15, ,89S, .96 of paid
up stock Of the company" AS the state
ment referred TO is headed " Liabilities"
and as the stock is stated to itself and dis.
tinctly before the items enumerated as debts,
! presume the use of the word " "indebted-
ness" By Mr.. Steger was as accidental as it
was erroneous.
On page he declares that statement B
No. ,, does not represent correctly the cha
racter Of the debt inasmuch as Sc, $685.
554.74 is stated as "Foating debt"
whist part of it is Secured by 7
per cent. mortgage bonds as collateral,
as shown by account G. His own
statement shows that the two Statements
No. 9, and C-furnished by the New
York ctlice enable him to state fully the
whole character Of the debt; so that, as the
accounts were furnished together. no suSpi-
cion of any attempt to deceive can attach to
those furnishing the information, and it is
certain that no accountant could state the
sum Of sc, ,925 554.74 in any other way than
as " foat,nq debt" 1t consists of bills pay
able, oyerdrafts, and open accounts, and is
nothing but floating debt; and the company
had no right or authority whatever to state
it, as Mr.. Steger claims they should have
! stated it, as mortgage debt. To do so would
| have been 10 make false entries In their
books, and to determine for the owners Of
the notes, without consulting them, that
they should exchange their debts for their
collateraS.
At the bottom Of page 7 Mr.. Steger says,
speaking of the property Of the company
beld as collateral security, But by whom
this property is held, and Of the details of
| the transactions, we are not yet advised"
| This seems to be an intimation that the Off.
| GERS Of the company are keeping back from
the receiver information that be is entitled 10
| have. If so, it is unjust, for MIR. Stegcr
ought to have known that there were letters
| from me TO the receiver III reply TO bis re-
quest "fOr list Of the names Of the parties
| who hold bonds or property of the company
as security, the amount Of bonds or property
| held by each, and the sums OF money ad-
vanced by each upon such securities" Ia
which | say: Ito disclose without their
consent, except upon the compulsory order
of the court, the names OF the creditors 0l
the company who held its bonds or property
as security for the debts due them, would he
tA,t yIrh ipn IL
regarded as sacred in commercial communi-
ties and in the present financial condition OF
the COMPANY many of those holding claims
against it would be unwilling that
the fact Of such Indebtedness and the amount
oftho,e claims al d the securities held forthem
should be made known to the public. L did
not raise any question as to the propriety of
furnishing you with the fullest information
in regard to matters in which the company
itself and those engaged in conducting its
affairs were alone concerned, and which are
matters of record in its books; but when the
interests Of third parties are involved 1eei
bound to regard those interests and 10 re-
spect that principle Of reticence in regard 10
the exposure of private affairs OF others
which is universally recognized as binding
upon businessmen.
"Havipg already furnished you, in accord
apce with the terms Of your origlna! inqul.
~, with the gross amount and description oil
the property, bonds, &C., which have been
mortgaged and hypothecated, and for what
they are held as security l must respect
fully ask you, for the reasons above given,
to waive your inquiry for the names OF the
creditors by whom they are SO held as secu-
ritv. | trust that you yourself will, upon
reflection, concur in the propriety Of this
course; but if you do not, and think ut 10
apply 10 the court for any order IN the pre-
misses, hope that you will do so at once,
and in such manner as to give the company
an opportunity to be heard upon the ques'
ton. Ii the court shall order the informa-
ton to be given l will furnish it as far as it
may be in my power, and with as lille de-
lay as practicable"
So far as the
"ApPgAIsEMENT OF THE ASSETS OF THE COM
PANY
is concerned, ! think that beyond the pro.
vince of either Mr.. Steger or myself; out
will say, whatever the present cash value OF
them may be, that had not the unfortunate
European war SO seriously affected comb
dence in all railroad securities as eventually
to bring about the panic Of 1873, and Its
copsc cguent depression of all interests In this
country, | am satisfied that our plans for the
connections Of this road would nave resulted
successfully, and that we now would have
been on a solid basis instead Of being broken
down; and / have now no doubt that an early
sale of the read and re0 'ganization of the
company upon sound and equitable basis
will eventually result in remuneratiye re-
turns to all who have Invested in 1t.
In stating the amount of bonds deposited
with the Auditor of Virginia; or, rather, It
should have been with the Secretary of the
Board of Public Works, Mr.. steger has
omitted to mention certain interest. .certll'
Gates. which raised the SUM deposited llttle
above the whole amount of $34O, 9O0 Whicn
was due to tine State. That payment was
made under the charter OF the company. ana
not under the act OF March 90, 1871. VI tne
ss CERTAIN UNSECURED BONDS AND oTHsR DEBrs"
referred to by Mr. Steger when he says,
:. What has become OF this unsecured deos
Of S50O,O00 I Lam not informed, y the sum OF
s1S7, SIS, 30 is still unpaid, and is introduced
into statement B No. 2, as The !" funded
debt secured by charter y; the remainder