The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-03-15
SI5.l .S6l
$l5,l64,S6l
GENERAL MALONE

expressed "our willingness and wish that
an agent should be nominated by you (whose
fitting salary we will pay, to reside IN Vir.
ginia. This agent shall have full access to
and knowledge of all the operations Of our
company, and shall report in reference there.
to in such manner as the bondhoders shall
deem best"
With regard to the bonds which bave
been intended to be applied to the construc.
ton OF the extension to Cumberland Gap,
now that such extension has been practically
abandoned, with the sanction OF the State,
we propose and consent that such bonds, of
the nominal value Of 81 900, 900, shall be
deposited with bankers in London in the
jont names OF two trustees, TO be approved
by you, Of the president OF the company for
the time being and of our London agent,
and shall not be withdrawn except on the
following conditions-viz.:
That should we deem their application
in part or in whole advisable, we shall sub
NIT our intentions to properly called
meeting of our consolidated bondholders,
who shall. by majority vote of not less
than S1,000,000 Of par value, sanction their
appropriation to the purpose or purposes
proposed"
In this circular g eneral Malone submitted
estimates of expenses from date to 1881 -'S2.
and he asked the bondholders TO fund the in
terest in arrear in form named, and the ln-
ducements offered were intended to accom-
piSh that object.
Proceedings similar to those instituted in
the United States Circuit Court for this dis
trict have no doubt already been begun IN the
United States Circuit Court for the western
district Of this State.
4 =, Dn1f 10 hn n
he may
APPOINT A RECEIVER
at once, or be may defer the appointment
until the April term of his court. In Octo-
Der last Judge Bond, when asked to appoint
General Wick bam receiver of the Chesa-
peake and Ohio ,CompaDy,-a request in
which nearly all the bondhoders united
said:
"Now, the proposition is that the court re.
move its present receiver and appoint an.
other, who he's all along been connected with
the present management Of the company,
and who is responsible in a degree for the
present unfortunate bankrupt condition of
the railroad, wheth that condition be the
result of misfortune or negligence.
alt seems to the Court to do this would
be to decide now in linl,ne that there had
been no misDapagemest or negligence in
the past conduct of the affairs Of the defend
ant company, asd that its condition was the
result solely of the depression In mercantile
affairs.
4" receiver, while it is not necessary that
be should be antagonistic TO the officers Of the
company, ought at least to be an indifferent
person as between the parties. The unse'
cured creditors. though they may have little
hope Of ultimate payment, ought to bave the
full assurance that the affairs sf the road
will be Administered by impartial hands,
ansl should be satisfied that if they get no.
thing it will be because there WAS nothing to
be gotten" r..
Ia this opinion Judge Hughes concurred
with Judge Bond.
A PRIVATE TELEGRAM
from gentleman of New York to busi-
ness .man of Richmond received yesterday
states that General Malone was in New
York .endeavoripg to effect a compromise
with tbe trustees. It was represented that
Genera Malone was willing to deliver over
to the arustees the $4,000, 900 in bonds set
apart for the construction of the CGmber-
land Gap road, and which be some tune ago
proposedto send to England for the security
of the foreign bondholders.
It is stated that even SHOULD General Ma.
hone COM promise with the trustees proceed
i,,gs would be commeseed in somewhat
sil luilar fora by bondholdees.