The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-03-25


lnfe q me ststsdn t,e silt now pending
In he Unitsd stasss Ciisc5it Court. for tf:e
Eastern NM Western Dsatficts Of Vtrginia
ngsinst the AtIantic, Mlsssssippi and Oh,e
Railroad Company. ss
w 8. MoRRfs, ff1m Che same commit
tee, submitted the following min ftsy Tepoks:
TO tie House OF Delegates Of Virginia
The undersigned, B member OF the Com.
n1ittee on Roads and internal Navigation, 20
whom wss referred the motion OF Wflllatn
s. Norris, the delegate from Campoeii
county--as follows :: q
That special committee, TO conslst ;oi
Eve members, be appointed TO inquire Into
the relations of the Commonwealth as
creditor or the Atlantic, Mississippi and
Ohio Railroad Company, the nature and pur.
poses Of the suits recently brought In the
United States Circuit Courts OF the East.
ern and Western Districts Of Virginia, ask
Ing for the appointment of a receiver FOL
said railroad company, OF their assets, aud
particularly il any,; and If so what, steps
should be taken by the General Assembly
TO protect the, rights and interests OF the
Commonwealth as sscond: mortgage fol
four millions Of dollars ga 1000. 0S0) OF bonds
Of said company, and that said committee
have power to send, for persons and
papers, ....,;,,.-. if,;y Il ls7ie ~ (
Respectfully report that: ,ssE ..44!ys1tt.r. !.
am Of opinion that special joint Gem.
mittes of ,6ye--three from the House
aad two from the Senate should 4 be
appointed with authority to sit during the
recess Of. the General Assembly, and to send
for persons and papers and With the pro!ess
sional aid Of the Attorney: General, and in
consultation with the. Board of Public
Works, to look after and protect the interests
of the Commonwealth, as indicated in said
resolution. m.
I call the attention of the House Of Dele
gates to, the following facts: -: i, -iH..i !.
Two, suits in equity have recently been
brought in the Circuit Courts OF the United
States for The Eastern and Western Districts
of Virgins respectively, at Richmond and
at Lynchburg, praying for the appointment
of receiver and for sale Of the Atlantic,
Mississippi and Ohio railroad. IL seems 70
me that the State of Virginia, as second mort
gsgee for s4,000,000, must necessarily lbe
made party defendant In said suits. II ap'
pears by the last annual report of the presi-
dent and directors of the company that on
the goth day of September, 1915, the whole
amount OF the first preferred debt Of Inc
company embracing the, debts OF alt the
divlsioHs) was 1894, 029.86-say in round
numbers, $4,000, 000--equlv1lent to, about
$4,000 per mile. The whole amount Of the
second preferred debts embracing out.
standing consolidated bonds. aud interest.
funding notes. was SIS ,629, 51.50, equivalent
to about S12,700 per mile; so that tine whole
debt which has precedence before the States
1000 900 is only $40, sta, 481 equivala.
lent to. about $4,000 per mile--'a sum OF
money very much less than the actual value
of the road, which Is In good condition and
admirably equipped. Including the $4,000.
600 due the State, the whole actual mortgage
debt of the Atlantic, Mississippi and Ohio
Railroad Company is only S14, STA. ISLE :
equivalent to about 1886, 900 per mile-not
more than the value of the property. ,,,.. !.
Remembering that the holders Of the first
and second preferred bonds are men Of active
industry and business capacity, intent upon
the promotion Of their, own interests, II
seems to me that the legislative department
of the Government should be represented
by committee of practical, diligeat, and
ernest businessmen to: look after the In.
terests Of Che Common wealth in aspects which
would net ordinarily occur to lawyer,
and which, in fact, lie beyond the. range
OF strictly professional duty. No disparage'
ment is Intended of the. learned Attorney.
General, whose. professional counsel and &C.
tiyity would be indispensable. 80 sa,-
. We suggest for greater perspicuity some
of the questions which occur to u.s., without
.intimating an opinion as to how they shall
be answered: y i..g. 7g;y q. 'a-s..: -7.5 /,
:. 1. Does the judicial power Of the United
States extend TO these, suits, which ought
and must be, prosecuted against the State OF
Virginia? Have the United States courts
jurisdiction JfSee eleventh amendment to
The Constitution of the United States.) I'll
= q. Now that the extension Of the road to
Cumberland Gap has been practically aban.
doned, and now that the consolidated bonds
have declined 60 low that they cannot be
sold or bypothecated except st rulnous rates,
should not the State promote before q proper
judicial tribunal an Injunction restraining
The use of the 81, 600, 600 Or s3,500,000 OF
consolidated BONDS which were originally
apportioned or laid aside for use on the Cum
berand Gap extension? ,.,;t.. . 8G,>l /;
8, In view of the. fact that the, revenues
OF the road for some; time past, have
not been sufficient, after paying expenses,
to pay the interest on the existing S1O, 49,
4S1.16 Of. interest.bearing funded debt, Is 1t
not ao,o the duty Of the, General Assembly,
as well towards the taxpayers, as towards
her creditors, to promote the appointment
BY Virginia court Of q receiver to run The
road temporarily, disembarrassed Of the in:
and high discounts Of the un-
secured floating debt of S1.016, 800 %, re-
ported on the 30th Of September, 1870, 80
that operatives may receive prompt pay ment,
and bondbolders their interest past due and
i, ara. car! =! eos,
:. a. is it not possible; indeed probable,
that by such proceedings the just complaints
or bondholders of non-payment OF interest
may. be- satisfied within q creas enable time,
the credit of the. company restored, and the
debt Of $4,000, 900 due the State made per-
fectiy lsecure.? i.ss f!F,sy;,p 3 f1aGaz5j
p o. May not Virgins, by dtligent attention
to this business, retain, the control and man
agement of The Atlantic, Mississippi and
Ohio Railroad Company .bscisa.
The SUBJECTS large and complicated, and
should ssbe considered with patriotic in
5,lstrytj aEs, EDS 81 SnJaSSs4rs Jt''.G ;.
~ recommend the adoption Of the follow.
ing resolution .ocs.'2 H,,n1'<- 80 l3s %
; Resolved by the General Assembly, That
a committee Of five three members OF the
House OF Delegates and two OF the Senate
be appointed to take into consid eration the
relations of 0the Comm onw ealth as q creditor
of the iHtlsntic, Missis sippi and OHIO Rail-
road Company, the nature, and purposes OF
the suits recently brought In the United
States Circuit Courts for the Eastern and
Western Districts, asking for a receiver for
said railroad company, and the sale of It's as
sets, ana particularly II any, and if 90 what,
steps should betaken to protect the rights
and interests sof the Common wealth and
that said committees Shave power to ait during