Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1876-05-30
From the Richmond Dispatch.l
The A., VI. e o. Railroad.

English bondholders for the appoint
ment of receiver of the Atlantic,
Mississippi d Ohio railroad is the most
important action now occupying the
attention Of the public in Virginia
The great interests involved being the
possession of four hundred miles Of
railroad, the influence and patronage
of which the control ofsuch a corpora
ton necessarily carries with it, and
the reputation and ability of the coun-
sci engaged in the cause, being the
leading members of the bar of New
York and Virginia, have all contribut-
ed to give to the hearing of this cause,
which takes place on the LIST of June,
an importance and interest which has
been attracted to no forensic discus
sion, which has taken place here since
the argument of Charles O'Conor be-
fore Chief Justice Chase in the case of
jefferson Davis. Having learned that
a representative of the consolidated
bondholders of the Atlantic, Mis-
sissippi d Ohio railroad, who are the
plaintiffs in this suit, was in the city,
a Dispatch repOrterat once visited him
in order to make some inquiries, which
resulted in the following interview.
Reporter: What was the cause of
the trouble between the consolidated
bondholders and Gen. Malone?
Answer. In consequence of his re-
pudiation of the agreement made by
him with the holders of those bonds
and accepted by them in January last,
and repudiated by him within a fort
night afterwards. This agreement
was the last of four propositions or
schemes which General Malone sue
cessively submitted and withdrew,
substituting in each case one more
favorable to his company. The last,
or fourth, was accepted by the bond
holders and incorporated in deed Of
trust which was signed by him in
London under full authority from the
company. The date of the deed of
trust was the 23d of December, 1875.
This deed provided that four millions
of dollars of consolidated bonds, re-
served for the construction of the
Cumberland Gap railroad, should be
deposited in London, and not be de-
livered to the company except with
the consent first had Of the holders
of $5,470,000 of bonds originally
negotiated in England. 1t also agreed
| that four seventies of the interest on
the consolidated bonds should be fuEd-
April, 1876, and that the company
should pay three seventies of the in
terest from that date, All the over
due back interest was to Ae funded
This scheme was accepted on the 9Th
of January of this year, and General
Mahone'a deed of trust, executed with
full authority froc! his company, was
considered carrying ont OF the
Dat tlNNU 81 , h fsntN
this contract made by him, after
from October, 1875, (the day he arrived
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 letter,
mailed after he reached New York,
stating that on reconsideration he was
satisfied that the company could not
carry out the agreement he had signed
in London, land it would be his dis
agreeable duty to advise his board not
to approve this contract. He at the
same time intimated that the agree
ment might still be carried out, pro-
vided the bOndholders would procure
the surrender to his company o.
$500 900 of the four million bonds,
which, under the solemnity of a con-
tract authorized by his company, had
been placed in trust. This is one rea-
son why the bondholders have lost
confidence in the management of
General Malone.
Reporter. Is it not possible for some
arrangement to be made between
General Malone 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 impossibly
that they should consent to leave their
interests as the largest creditors of q
once valuable property to the man
agement of an officer who, it appears
to them, has exhibited such incom-
potency in its management and want
of good faith toward them.
Reporter: Why have the bond
holders come to the conclusion that he
has mismanaged the property?
Answer; Because they find, upon
carefully Analysing his reports and
published statements for the past four
or five years, that there is a balance
unaccounted for 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 DelWeen Jne ISL ana llJl
of February of this year $4,000 1t
will also be seen that the funded debt
is reported to have been reduced dur
ing the years 1874 and 1875 $582, 900,
when but $454, 900 of the evidences of
that reduction have been deposited
with the trustees of the consolidated
mortgage, leaving SIPS, 000unaccount-
ed 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 a property
which has become bankrupt, and their
joint interest is to adopt such measures
as will secure an able sound admins
tration 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 con-
solidated bondholders, will ever con-
sent to continue the management of
the property in its present hands.