The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-05-23

EKS-TAE GENERAL. L.CHARGED WITH UN-
| FAIR DEALING AND INCoafPETENCF-
THE INTERESTS OF ALL THE CREDITORS
DECLARED TO BE IDENTICAL. s 1
The application on behalf OF the English
bondholders for the appointment Of q re-
ceiver OF the Atlantic, Mississippi and Ohio
railroad is the most important action now
occupying the attention OF the public In
| Virginia. The great interests involved being
the possession Of 400 miles Of railroad, the
influence and patronage Of which the con-
troll OF such a corporation necessarily
carries with it, and the reputation and
ability OF the counsel engaged in the
cause, being the leading members OF
the bar OF New York and Virginia,
have all contributed to give to the hearing
OF TINS cause, which takes place on the list
OF June, an importance and interest which
has been attracted to no forensic discussion
which has taken place here since the argu-
ment of Charles o. Conor before Chief-J us
| tiee Chase in the case OF Jefferson Davis.
Having learned that q representative OF the
nsolideted bondholders Of the Atlantic,
Mississippi and Ohio railroad, who are the
plaintiffs in this suit, was in the. CITY,, a
Dispatch reporter at once visited him in
order to make some inquiries, which re-
| suited in the following interview:
+ Reporter: What was the cause Of the
trouble between the consolidated bondhold-
ers and General Mahone?1s
/ &: Answer: In consequence OF his repudia-
! ton of the agreement made by him with
| the holders of those bonds and accepted by
them in january last, and repudiated by him
within q fortnight afterwards. This agree
ment was the last OF four propositions or
schemes which General Malone successively
submitted and withdrew, substituting in
each case one more favorable to his COM
pany. The last, or fourth, was accepted by
the bondholders and incorporated in deed
OF trust which was signed by him in Lon
don under full authority from the company.
The date Of the deed OF trust was 23d OF
December, 1875. This deed provided that
four millions Of dollars OF consolidated
bonds, reserved for the construction
OF the Cumberland Gap road, should
be deposited in London, and not be de-
| Iiyered to the company except with the
consent first had OF the holders Of S5,470,-
600 OF bonds originally negotiated in Eng
1 land. 1t also agreed that four sevenths Of
the interest on these consolidated bonds
should be funded for six years following
the 1st of April, 1876, and that the company
should pay three sevenths OF the interest
from that date. All the overdue back in
terest was to be funded. This. scheme
was accepted on the 9th OF JAN
uary OF this year, and General
Mahonc's deed Of trust, executed with
full authority from his company, was con-
sidered carrying out OF the proposition.
But notwithstanding this contract made by
him, after deliberation and discussion eX-
tending from October, 1875 the day he ar
rived in England), up to January, when it
was accepted by the bondholders, while he
was on board the steamer on his way to
! New York he wrote a letter; mailed after
he reached New York, stating that on recon-
sideration he was satisfied that the company
could not carry out the agreement he had
signed in London, sand it would be
his disagreeable duty to advise his
board not to approve this contract"
He at the same time intimated that the
agreement might still be carried out, pro-
yided the bondholders would procure the
surrender to his company Of S500,000 OF the
four million bonds, which, under the So
! feninity Of contract authorized by his
company, had been placed in trust. This is
one reason why the bondholders have lost
! confidence in the management OF General
Malone. r
Reporter: Is it not possible for some ar
rangement to be made between General Ma
hone and the bondholders in order that he
may be continued in the management OF the
road either as president or receiver!
Answer: 1t is utterly impossible that they
should consent to leave their interests as the
largest creditors of once valuable prop
erty TO the management OF an officer who, it
appears to them, has exhibited such incom-
petency in its management and want OF
good faith towards them
Reporter: Why have the bondholders
come to the conclusion that he has misman-
aged the property!
Answer: Because they find, upon care
fully analyzing his reports and published
statements for the past four or five years,
that there is a balance unaccounted 1or OF
one million eight hundred thousand dollars.
| 1t will also be seen, over his own statements,
that the floating debt Of the company was
| increased between the 1st and 1lth OF FEB
rlIary of this wear 1920, 1000. It will also be
seen that the funded debt is reported to have
been reduced during the years 1874 and
1878 s5S2. 900, when but S454, 600 Of the evl-
dences of that reduction have been deposited
with the trustees of the consolidated mort
gage, leaving S12S,000 unaccounted for.
Reporter: What is their attitude towards
the holders OF the divisional bonds?
Answer: One of entire harmony, because
their interests are identical. They are both
creditors OF property which has become
bankrupt, and theta Joint interest is to adopt
such measures as will secure an able and
sound administration of the property; and
they do not believe that the divisional bond
holders, with full knowledge OF all the
facts in the possession Of the consolidated
bondholders, will ever consent to continue
the management Of the property in its pre-
sent hands,.
THAT SPEEcH-Our foreign citizens have
been Justly exercised over report tnat
Colonel w. C. burlington, Conservative
candidate for Mayor, in speech on Navy
Hill on Thursday night last said that III
was high time that native Virginia gentlemen,
white and colored, ruled the State" we
have taken great pains to arrive at the truth
of the matter, and have it from the most re,
liable sources that Colonel Darlington said
4 nothing of the kind. The remarks were
made BY the Rev. Mr.. Dungee (colored)'
pastor OF the Navy Hill Free Baptist church,
a prominent Republican,, who repeated