The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-04-17
fCo,nmunics;ei.l
r,.>is.ippi and 0aio Rail.
An"" road Company.
,,r ADMINISTRATION RI CHANGED

4
49,. rrc,rH managers OF the Atlantic,
-; ;.>ir,f ard Ohio Railroad Company
&S,r,,, I.r confidence Of the people who,
@h. vr.7> 1871, 1917, and 1873 bought
""s ;.s3, q, ,ac company to the amount OF
~, Their reports and statements
80, la1-er considered reliable. Their
~. - -. b,re proved illusory. Their promises
>-,.,ro; been fulfilled. And transactions
90 t,rr imputed to them which, IL true,
ry,,, \, justified, and which ought to be
'..tirs,ed. Consequently tho seven per
-, l,ol6 bonds Of the company have be-
,,,.t un>aiahle in any market.
-, Tho rclr.nncy oi the suit OF Skiddy,
r,rr,n. and Barlow. in behalf OF the Eu-
lean hundholdcrs. is proof OF the loss OF
o&tdcn"".
A. uarr"arS by the reports Of Nr. James
: Cythurt. treasurer. that S5iS,9.S.45 OF
80 funded debts OF the several divisions
T,r, Na-n paid, retired, and taken in.
I,1or the deed ii mortgage it WAS the duty
=; .rr rr.>;,i,n:. with reasonable prompt
-,,. - d.uo>it with THg FARMERS LOAN
,y- Trsr COMPANY, Of the city OF New
y,rt. a, Il the evidences OF such exist
y ;r.fnd,ltra,>S and liens SIS the same (werel
..,l-r,a>"d :. or acquired for the
ia-;lrr security II the bonds issued under
t..., mpr.-..". 90 as in no case to
;r,.-,rre with the priority OF the liens Of
'I,,, jn;-.Mcat over said Indebtedness so
;;r-,la>aG and surrendered" THIS DUTY
=, rgs< pHnllY NEGLECTED. And it is
sized. without contra9iction, that some OF
=, "cy:,. arcs oi such Indebtedness and
lions % purchased or acquired :" have been
i,..l a. s..,':.;r..l security for parts Of the
+ 4.iug u",i q! the company.
%i l., President Ashone's letter dated
london. prrrM!cr 18th, 1878, he stated to
ir cons 9,iiar~d bondholders that, "with
-.r3rJ ~ the loads which have been in
tended % 20 applied to the construction OF
,4r extension to Cumberland Gap, now that
s.ea extension has been practically aban-
Ianrl win The sanction Of the State, we
irog1>" sud consent that such bonds Of the
nominal ya}i!c ii S4.0o0,000 shall be depos-
it'd win bankers in London and
s!.alI not he withdrawn, except with the
sanction - 4 meeting OF the consolidated
torihoGar%. Alter the Presidents return
T. Nir.iaia il was ascertained that said
S,.l-H.',p Il bonds were not in the posses
sion nor anicr the control OF the company,
and tbs, liz proposition aforesaid could not
lie COMPLIED With.
9Th. rn the 18th April, 1874, joint reso-
luion vi it," General Assembly entitled "a
Joint res ,lltloM directing the president and
directors of the Atlantic. Mississippi and
OHIO Railroad Company to commence work
on the road Ia Cumberland Gap" was ap
proved In the tccth OF its title this reso-
luti0N i, first. a pcrcmptory direction that
said company shall mot undertake to build
said road a. and for n local road; and Sc
coudy. = practical abandonment Of the ex-
tension I" Cumberland Gap with the sane
ton oi III" state, us stated by President
Malone il his letter aforesaid. At the
sHnV%I meeting OF the stockholders held
on the "a Of December, 1874, said
joint resolution was formally accepted
and adop:Hd by the company. Thus there
s,cl&> to .ara been made between the COM
pauy and lA- state 4 contract which is bind
ing upon EuIH or THEN, but which is, rs to
The trustees Hid the bondholderS under the
mortgage. aad Il! other persons having con-
tract ri-nt>, unconstitutional and void. The
resolution undertakes to diyest the trustees
II a}l IL" franchises, rights, property, and
>>>ri> p:ri&l.'".t - about one hundred
mi.rS II railroad from Bristol to Cumber-
\
Tie proc, L. i = .u00 0G0 OF bonds set apart
tlr road. bat ii 0tninishcS the capacity OF
t." Remnant iur future usefulness by alien
a,mg Il franchise extending 10 Cumberland
Gap and reaching t!!"ncc in the direction OF
L"ui>fiii" aad fhc Northwest. 1t author
lAr> the Ataatir, Mississippi and Ohio Rail-
road Company to employ the $4,000, 900 of
l.. hnr> fn, oil
In such manner and TO such extent as may
Seem 10 the said company best for its inter-
e>t and The good of the State" And while
the resolution expressly provides for the
State thai nothing therein contained "shall
De 50 construed as to impair the obligations
OF the said Atlantic, Mississippi and
Ohio Railroad Company AS by COVE
SASr- AND DEED DATED TIE 22D DAY
oY DEcEpnER, 1870" 1t leaves all
other parties unprotected except by the
Constitution of the United States. The
passage Of this joint resolution was pro-
cured by The solicitation of President Ma
hone: and he and his directors, in their re-
port 10 the stockholders dated 9th Decem-
Der, 1871, advised its formal acceptance by
the company.
5lh. To retrieve the credit OF the COM
l'any, and protect the president and direc-
tors against Injurious imputations, which
Can be verified or rciUted only by access to
The books, papers, records, and vouchers,
a CHANGE OF MANAGEMENT Is INDISPgKsABLE.
The reports oi impartial, capable, and faith
III! receivers, scrlltiniZed and sanctioned by
tie court, will satisfy al parties concerned,
F"'ute false accusations, restore confidence,
ana establish upon tirm foundations a great
and useful public enterprise.
C0NsoLIDATI0NIsT.
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