The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-06-05

CoNfPANY-DIsAGREEIN VIEWS OF MIR.
MCFARLAND AND JUDGE ROBERTSON
THE LICENTfoUSSEsS OF TIE PRESS
! CoLLINSoN VERSUS MAHoSE-oTIiER
| SPEECHES TO BE MADE TO-DAY
! The United States Circuit Courtroom was
again crowded Saturday morning by men,
bers of the legal profession and business
men interested in the contest raised by the
motion OF the trustees OF the Atlantic, Mis-
sissippi and Ohio Railroad Company under
| the 5000, 600 loan for foreclosure and ap-
| pointment Of receiver.
Mr.. James Alfred Jones, on behalf Of the
company, filed three affidavits, at the same
time saying that they wished to prepare
more, but had not had the time, though the
president and his clerks had worked inces-
sanity night and day since the adjournment
OF the court on Friday.
Mr.. Mcfarland, on behalf OF the trustees,
and Judge Robertson, as counsel for the
company, occupied the whole time Of the
court in their arguments. In closing, Mr..
! Mcfarland took occasion to remark upon
the unbridled licentiousness OF portion Of
! the press, which had heaped outrage and
abuse upon Mr. Colinson because he was
undertaking to discharge plain duty in
collecting money overdue to bondhoiders.
Mr.. Collinson, before becoming the attor-
ney Of the bondholders, was the agent in
England OF General Malone, and the charge
! has been made that Mr.. CollinSon proved I'M
true to General Malone in the hour OF tie
Generals greatest need. This Mr.. McFar-
| land denied. He claimed tAat Mr.. Collinson
| had reputation as financial agent on two
! continents, and was now for the first time
suspected Of diShonorable conduct. Mr. Nc
Farland said that the newspaper attacks re-
| ferrcd to were OF course unpleasant. but that
they amounted to nothing, and that on any
proper occasion Mr.. Mcfarland could prove
their falsity.
Judge Robertson, in the course Of his re-
ply, said that they had nothing to do with
what the press said about Mr.. COllinson.
They had to complain Of outrageous and
malignant attacks through newspapers
upon General Malone, and the assertions
and statements thus made lie now found in
corporated in the bill of the trustees.
| Judge Robertson several times in the
course OF his argument characterized Mr..
| Collinson (who was in COURT as a deserter,
and as unfaithful to the interests OF the rail-
road company. He represented that Mr..
! CollnSon had changed from friend to foe in
! consequence OF receiving letter which he
misconStrued intoa demand that 100000
Of the S4,000,000 Of bonds which were
agreed to be left in England should be re-
turned to General Malone, when in fact it
was merely request.
Argument of Mr.. Mcfarland.
| Mr.. Mcfarland, opening, said that he of
course had not read the aftidaYits just pre-
scnted, but took it for granted that they
were not inconsistent with the answer,
which he had read with great care. The
answer does not deny any fact alleged in the
/ bill; it is ieremiad, 4 pathetic lamenta-
ton; that IEnea>' story OF the 1atcs OF Troy
and his adventures with Dido were not more
pathetic than this answer. 49, -
Approaching the merits and facts OF the
case, Mr.. Mcfarland said that the state
ments made in the memorandum or pro-
spectus furnished by General Malone TO
Mr.. Colinson as the basis OF negotiation OF
the consolidated bonds had not been real
lied or fulfilled. The company, according
to its official reports, had received by sale OF
bonds in net cash S3,1S9, ,2S3.09. Deduct
from this the floating debt OF S771,000, said
in the prospectus to be all, would leave 4
little more than S3,000,000 to be expended
in repairs and improvements.
FLOATING DEBT.
In 1872 the president reported that the
whole floating debt had been paid, and that
the company had more than money enough
on hand to put the road III perfect order.
The gross earnings Of the road up TO lst
October, 1875, taken from reports, and up TO
1st July, 1876, estimated according to data
furnished by General Malone, exceeded the
amount of current expenses by enough to
pay the interest. That the amount OF inter-
est actually paid was less than the amount Of
net revenue by S934,592. Add to this the
amount of floating debt reported by General
Malone on the l1th February, 1876, will
give the sum of S2,010,947 to be accounted
for. The company, free from floating debt,
and having, as it said, all the money it
wanted, with receipts more than Suthclent TO
pay all interest, had, nevertheless, within
three years. run behind and accumulated a
floating debt OF S1,01G,355.
Mr. Mcfarland said he made no charge OF
intentional fraud-would not undertake to
explain the situation or its causes. he TOOK
the facts and figures from the official statlS'
tics OF the company. He might ADMIT, 1or
the sake OF argument on the pending mo-
ton, that every officer had kept all the ten
commandments and all the commandments
of men since enacted. Nevertheless here is
the result; we must take it as we find it;
and it is with this result we have to do.
. DlE AMI DESOAlNG DIE.
If nv calculations be right, said Mr..
Mcfarland, there is now due for interest in
default more than SS00,000. On the 1st OF
July neXt-in less than thirty days-there
will be due for interest on division bonds,
in round numbers, SlS0,000; on the 1st OF
October next, to the European bondholders,
another instalment Of interest, 100000;
and the like sum again on the 1st Of Janu-
ary next, little more than six months
4 hence. at which time, also, S463,0OO OF the
Norfolk and Petersburg Railroad Company
will mature and become payable. He had
searched the answer in vain to lind What
means and resources the company has or
expects to have to meet and bear this heavy
liability and Lurden. There Is no averment
on the subject, but simply a suggestion thaI
on the 1st day of July next the company eX-
meets to have $12O, 900 in cash and balances
whatever they may be-available assets
Even this pittance they have not now.
After having made compromise Win
the European bondholders, in London, Gen
eral Malone, returning from his TRIP, pc
came satisfied that he could not perform IT,
Aboard ship at sea, he wrote letter TO M. Mr.
Collinson, his agent, to that eiiect. Inns
was distinct confession OF insolvency.
The president found it was lmposslp!e
to take even the first step towards comPh-
ance, impossible to tide over the ISL 5uly,
unless he could get permission to Withdraw
$780, Of the 100000 OF 6onds Whic1
yVn N