The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-06-06


MORNING.
The United States Circuit Court, Judges
Bond and Hughes presiding, resumed its
session Mt O'Clock yesterday morning.
Hon. Thomas s. Bocock, on behalf Of the
defendants, argued that the company is not
insolvent, and that the interference of the
court is not demanded by any interest. He
referred to Il letter written to the British
bondholders only few years ago by Mr..
Collinson, assuring them that their security
was ample. In the affidavits of Mr.. Collin
son Mr.. Bocock pointed out gross errors,
which, il corrected, he claimed would
| establish the fact that all OF the revenues OF
the company have been iudiciously, law
fully, and discreetly applied.
PRAISE OF GENERAL MALONE.
| He read to the Court extracts from let
ter written by Colinson April 13, 1915, to
the editor Of the Money! Marcet Recieo in
response to Disappointed Bondholder,"
| in which Collinson declared that the COM
| pany was doing its best to meet its obliga-
| tions and ought not to be discouraged, and
saving in reference to General Mahone'S
large salary: "With the education of civil
engineer, the experience and reputation OF
distinguished general, politician, and q
man of business, such president as Gene
ral Malone cannot easily be met with, and
must be literally paid; and without the ser
vices OF such person to manage the affairs
OF the company the losses it would annually
sustain from incXpericnce, want OF ability,
or influence, would far exceed the salary
mentoncd.'
Mr.. Bocock wanted to know how it was
that ColIinson's opinion had been so sud-
denly changed, and why he was now foe in
stead OF friend.
C0LLISsON DISCUSSED.
Mr.. Bocock asserted that the troubles OF
the company were first occaSoned by Col
linson's failure to take the amount OF bonds
he had contracted for-SG, 900.
Judge Shipman wanted to be pointed to
Mr.. Collinson's agreement to take that
amount OF bonds.
Major Stringielow showed that Collinson
had advertised the loan as SG,00o,000 loan.
Mr.. Bocock argued that at first it was con-
tcmplated to reserve S3, 800, 900 to build the
Cumberland Gap road, but afterwards, 1t
having been ascertaincd that that would not
be enough, s4,000,000 were nomlnally set
apart for the purpose. 1t was the difference
(S500,000) between the first sum named and
the sum last named that General Mahone
made during the Generals visit to England,
and that caused the misunderstanding with
Collinson-Collinson considering mere re-
quest as a demand, and refusing to wait an
explanation by mail.
BOSDHOLDERS AND INTEREST.
Referring to the plants OF the English
bondholders, Mr.. Bocock declared that ut
the rate Colinson bought the bonds (GS),
! i A. "a sy,tn n1f
paid, the bondholders had received Ct per
| cent. interest on their investment.
JUDGE sHIPMAN's REJoINDER.
Judge Shipman defended Mr.. Collinson
from the forensic assault and battery made
upon him, particularly by Judge Robertson,
and claimed that Colinson's conduct had
been in all respects fair and honorable.
Collnson was not "the trusted agent OF
the company" in the sense alleged, and rhad
in no wise proved unfaithful
The bonds of the Atlantic, Mississippi
and Ohio were, Judge Shipman represent
ed, purchased by Collinson. He acted as
middleman, and was in communication with
both bondholders and railroad company,
and was not the agent of the company, eX.
cept in one special transaction, to arrange
for defaulted interest, &c. He further main
tanned that Collinson never contracted &c
take SG,000,000. He had the option OF
a9, 900, 600, indeed, but was not bound to
take more than S1,000,000 and he affirmed
that the $500, 900 OF bonds set apart for the
building of the Cumberland Gap road,
under no circumstances, could General Ma
hone Use for another purpose without being
guilty Of cmbezzlement.
THE SOLAR SYSTEM SAFE.
After speaking OF and reading from Ma
| homes letter to CollinSOn, written at sea
and defending Collinson for publishing
it; Judge Shipman said: "NoW, will show
your Honors that Mr.. Collinson IS much
wiser and cooler man than General Malone
neither swclcd up with excessive self-con-
sciousness. nor does he imagine that the
Island OF Great Britain or the State OF Eir-
ginia is dependent upon the breath OF his
nostrils, and he recognizes the fact that
| this world will still revolve around the sun
and the solar system continue to move II he
is not the agent Of the foreign bondholders,
/ and if General Malone should cease to be
the head aud tail, the beginning and the
cnd-the Alpha and the Omega-of this cor
poration."
LABoRERS' WAGES.
In relation to the amended bill, which
omits the prayer for payment OF the wages
due to the laborers on the road, Judge Ship
man explained they proposed to do the Ia
borers and all others justice, but thought II
better to leave that particular subject to
come up regularly in the proceedings on the
reports Of the receiver.
He charged that since this suit was
brought General Malone had had command
Of 100000, with which he might have paid
the wages OF these laborers had not he used
the money to take up notes upon which he
was q personal endorser.
b.. NOTES ENDORSED BY GENERAL MALONE.
Mr.. Bocock asserted that when this case
was last adjourned it was well known that
these notes were becoming due and had to be
paid. 1t was then understood from the
prayer in the bill that the laborers were to be
provided for.
Judge Robertson said these payments OF
notes, many of them secured by coflaterals,
were made with the approval, even by the
desire OF the trustees. Up to within few
days the bill proposed that the hborers
should be amply provided for by the receiver.
There then appeared to be no danger to the
laborers, while the notes upon which the
president and directors were personally en-
dorsers were OF urgent character.
He was glad to hear that Judge Shipmani
did not now mean to oppose the payment OF
the laborers' wages, but to leave 1t an open
question.
IhPUDEECE.
Judge Shipman did not mean to criticlse
the company for not paying the laborers with
the money which had been used IN the re-
duction of the floating debt, but for their
L.. .s,,nx {lnf 10