The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-06-02

GRAND ARRAY OF COUNSEL IN THE
UNITED STATES ,COURT-AHENDED BILL
OF CoMPLAINANTs EXPLAINED-BRIEF
DELAY ASKED BY COUNSEL FOR TIE
| OBSERVATION-DISCLOSURES FOR IMMEDIATE
ACTION URGED-QUEsTION OF JURIsDIC-
TIoN TO BE ARGUED TO-DAY.
Yesterday was the time appointed for the
hearing Of the case of the Atlantic, Missis-
sippi and Ohio Railroad Company on the
motion of the trustees under the $4,000, 600
mortgage for foreclosure and appointment
of receiver.
About II O'Clock Chief-Justice Waite hay
ing delivered several opinions in cases for
merly argued, left the bench, and Judge
Hughes took his place. Judge Bond then
told the counsel for the plaintiff that the
court was ready to hear them.
The courtroom was full. The plaintiffs
were represented by Mr.. John Collinson, of
London, attorney in fact for the consoli-
dated bondholders, and by Messrs. Ship
man and Mcfarland, Of the firm Of Ship
man, Barlow, Larocque & Mcfarland, and
MIR. Choate, Of the firm Of Evarts, South
mayed, Choate & Co., all Of New York, and
Henry L. Wickham, Esq, as counsel, The
defendant appeared by the president,
William Malone, in person and by Messrs.
W. w. Crump, W. w. Gordon, William j.
Robertson, J. Alfred Jones, Charles s..
Stringfellow, and Thomas S. Bocock. as
| counsel.
Judge George P. Scarborough, of Norfolk,
and Messrs. Z. S. Brown and c. M. Black
ford, Of Lynchburg, and Mr.. Sterling, Of
Baltimore, and many Richmond lawyers,
were present, supposed to represent as
counsel divisional bondholders in their re-
spective cities.
THE AMENDED BILL. -
Mr.. Mcfarland, for the plaintiffs, said in
substance that when the bill was prepared
and filed their information was scant, and
since then, upon the receipt OF fuller infor-
nation, the bill had been amended by intro
ducing additional facts and figures, COM
piled from the official reports of the defeld-
ant, and by adding prayer for general re-
| lief. That affidavits had also been prepared
stating facts gathered from the company's
reports which would probably be admitted.
These papers were handed to the court.
DELAY ASKED.
Mr.. Stringfellow, for the defendant. ex-
pressed regret at the necessity which
obliged him to ask the Court to postpone
the motion for a few days. He said that the
necessity was not of their creation. One
month ago the defendant was ready and
willing to go on upon the bill rs it then
stood. On the 18th day of May the bill was
amended. On the 30th OF May the defend
ant was furnished at night with 4 copy Of
the affidavits, which contain some forty or
fifty pages of printed matter, covering cor
respondence of the company duringa period
OF five years, all its reports, and, indeed, the
whole history Of the company. Yesterday
the affidayits w"re embodied in a second
amendment to the bill. The defendant
wanted time to answer this new matter.
There was in the original OH only one
clause tending to impeach the integrity
OF the administration or to impute
misappllcation OF funds; and this clause
was vague and indefinite and not sufficient
to require answer. The amendments charge
specific misapplication OF funds. The
president went to work at once to prepare
| statements in reply, and was so employed
until o'clock at night That it was physi-
cally impossible to go through the calcula-
tions required, and there was no time left
for counsel to prepare an answer. Indeed,
Mr.. Jones, one Of the counsel, had not had
time to read the amendments. The defend
ant wanted only delay long enough to make
necessary examinations and prepare the an
SWer.
THE SURPRISE AND WHERE.
Mr.. Mcfarland said that the motion for
delay could be granted only upon the ground
of surprise and want OF time to prepare an
answer. lie said that the amendments in
| troduced no fact that was not we'll known
to the defendant, and made no averment
which, for the purposes of this motion, re.
quired an answer. And he asked counsel
to specify the particular fact, which was a
surprise.
Mr.. Stringfellow said he would do so, and
proceeded to state several matters alleged IN
the affidayits and amendments lmputlng I'M
proprieties in the past management OF the
company, misapplication OF money, and
| Justification of the terms OF the prospectus
under which bonds were negotiated, &c.,
and insisted that it was the right Of the COM
pany and its president to have an opportu-
nifty to refutc, correct, or explain the mat
| tiers thus alleged.
THE PAST MANAGEMENT.
Mr.. Mcfarland insisted that the question
OF the past management OF the road, whether
good or bad, was not in issue at this stage
Of the cause, and he withdrew an affidavit
which charged failure to account for over
| 800, 900 OF the bonds. He said the facts al
legged in the bill were taken from the COM
pany's reports, and showed a strange man
agemcnt of the finances; but the object or
| this motion was not to redress the past, not
to determine now whether the management
has been good or bad, whether the present
condition of affairs was the result OF fault or
misfortune, but simply whether the pres
ent condition of the company-What-
ever may have been the cause-ls
such as to make it necessary ana
proper for the court to take possession OF
its property in order that the rights OF al
parties may be protected. Let by-gones be
by-gones, he said, for the purposes OF TINS
motion We ask only what is the present
condition OF the property, and what does
that condition require? There is no contro-
yersy about the floating debt; none about
the amount this insolYent company owes
us: none about the status OF the prior
funded debt called divisional bonds, or the
amount OF interest to be paid upon them on
the 1st of July next, within thirty Gays
from now, about S1S0,000; and none about
the fact that the very existence OF our con-
solidated bonds Of a million and half de-
pends upon the finding some means to meet
the liabilities of the company In respect OF
these prior liens. In January next ABOUT
about u half-million OF these underlying
bonds will fall due and must be provided
for. It was vital to the rights OF the PLAIN
tiffs to have receiver at once that the elder
liens may be taken care of and then ours.
MR.. JoNEs's APPEAL.
Mr.. James Alfred Jones said that as Mr.
Stringfellow had referred to him it was
proper for him to say that with all diligence
he had not been able to this moment to eX-
anime the, last pleadings and get the graya-