The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-06-05
for on the ground OF personal pique against

ysEt -
! for on the ground of personal pique. against
! General Malone. >, n Is E.g5.s.s
I Judge Robertson's argument was one OF
the best ever made by him. It included
nearly all the phases OF the contest, and
was sustained by authorities. The follow
ling facts and figures were relied upon:
LIABILITIES OF THE COMPANY. ~
The Liabilities Of the Atlantic, Mississippi
and Ohio Railroad Company OF every char.
acter other than stock, including all the in
tterest which it has failed to pay, and all OF
I It's obligations or floating debt, aggregate
about S15, 800, 900. OF this amount there is due
TO the divisional bondholders about SIS, no.
600, and to the foreign bondholders about
SG, 00o- making total mortgaged debt
Gncluding all the unpaid interest,", for which
its property might be Immediately rendered
liable by the present proceedings, Of Sill
100000. It's property has cost over SI9,-
100000, to say nothing OF assets in the way
Of cash, stores, &c, on hand, which it has,
and it is unquestionably true that that pro-
'perty could not now be built at that cost.
Therefore il cannot be said that CORPORA
ton whose property is worth more than
,000, 900 in excess Of its pressing liabilities
is insolyent. And as to the solvency of the
company no one has borne more emphatic
Z testimony than Mr. Collinson in his COM
munications with the bondholders, even as
late as their meeting of 4thof March last.
| DEMANDS UPON THE COMPANY. =
The company does, however, confess to an
inability to meet all, Of the demands for an
nual interest imposed, ,;by its debt to the di-
yisional and foreign Bondholders. 1t is
sufficient here to say that for the year end
ing September 80, 1873, just before the
panic set in, it earned not only enough to
meet these demands, but had a surplus over
and above them OF $4,000, derived from
it's legitimate earnings. Up to that period
its revenues had been steadily increasing
I year after year, until these were 10S per cent.
in advance OF its earnings the first year af-
ter the close OF the war, and continuing
| increase was confidently anticipated by all
conversant with its affairs. The panic set
in, from whose bighting effects the country
has not yet recovered, and hence arises the
inability Of the company to meet its entire
interest demands. The foreign bendhold-
ers, fully appreciative OF the neces-
sity for this I unfortunate condition OF
affairs, and aware OF the fact that
the preservation Of their investment de-
pended upon the payment OF the dlyls-
ional bondholders' interest, agreed with
General Malone for the forbearance OF Il
large portion Of their interest, not only as
I to that which had matured and was then
unpaid, but as we'll to that which would
mature for six years to come. In the pro-
curement Of that forbearance, and in iusti-
fcation of the necessity therefor, no one
worked more industriously than Mr.. John
Colinson, who was then the company's
London agent.
OFFSPRING OF INCONSISTENCY.
The ridiculous attempt, OF which the
company only had knowledge the day before
this case was to come before the court for
trial, to impute to its management any mis-
application OF funds, is the offspring Of an
Inconsistency which is as surprising as it is
unworthy Of 80 grave cause.
These charges, none Of which appear in
the original bill filed by the counsel for the
trustees when these proceedings were first
instituted, and before his arrival in America,
are first heard OF in the amended or supple.
mental bill OF complaint, and are supported
by affidayits of MIR. John Collinson. This
gentleman, ever since the negotiation OF the
! loan, had acted in the capacity OF London
agent Of the company. He is man OF eX-
perience in railroad affairs, and fully COM
petenr to examine into their accounts. This
! he did at all times, occasionally aided, as his
letters show, by experts, and yet in the 250
letters and telegTanls which he sent to the
president OF the company nowhere is there
the slightest iIltimation or insinuation OF
any misapplicationsm funds. 1a,:s -
........, INFORMATION FURNISHED
He was persistent in his applications for
information, and time and time again was
he furnished with special and elaborate re-
sponses touching the affairs Of the company
] from its very organization to the latest
,date-responses which touched anft5ampli-
fed every conceivable EAase OF it's a#alntss
During General Mafione' s'Visit to 81 don,
when the entire affairs Of the compaay were
thoroughly reviewed and closely scruti-
nized, no such charges were intimated or
insinuated, although every fact upon which
such charges are attempted TO be founded
then existed, except as to the payment, or
rather non-payment, Of April interest. On
the contrary, Mr.. Collinson not only thor
oughly and heartily endorsed the manage
ment OF the company and its entire past
history, but advised, urged, and claims
credit for having induced the bondholuers
to con1ide their interests for the next slN
wears to the bands of this management,
whose official conduct he now undertakes
at this late day to impeach.
Ilc IrSC alleGaClOn COHlallicll III tHE ouI'-
elemental bill is that the amount OF the net
earnings is but So, 300 short OF all the de-
mands for interest due, paid, and unpaid,
including that to be paid July /, 1876. rms
conclusion is reached by an over-estlmate OF
the revenue, which should be properly
I.s3, ,524,913 inst cad OF s3, GIG, and by an
under-statement OF the interest accrulng
within the same period, which Is put by the
plaintiffs at So, 3,6O6, ,925 instead Of 1854 ,434
so that the deficiency OF net earnings TO
meet the interest demand was S3l6,52l IN
stead Of $4,000. II to this deficiency be
added an expenditure Of S574,517 for past
due divisional bonds, an amount VIII make
up very nearly coinciding with the amount
OF interest yet unpaid.
DEFICIENCY OR MIsAPPRoPRIATIoN.
The next allegation is that the net reYe-
nues from July 1, 1875, to June 3, 1876,
amounted to S566,576, while the amount
paid for interest in the same period was
$206, $50, and that therefore there is deli
cheney or misappropriation Of over $500, ,0O0'
Waving any discussion OF the singular
combination of periods running into two
several years, and that it is partly based on
calculations for time not yet expired, it
only remains to be said that there was eX-
pended in that period: For necessary
maintenance, S124,000; ior redemp-
ton OF divisional Indebtedness, S1,450;
for payment for floating debt in
the way Of labor and supplies,
S299, 000-making a total of 1924 450-a
sum much greater than the amount which
is claimed to have been misappropriated,