Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1877-06-21

Southern Maryland Railroad Company
have entirely CEASED all operations IN
constructing their said railroad since
about the month Of June, 1e44. That
the said company have admitted an in
debtedness to sundry creditors, includ-
ing the complainants, Robert Callahan,
John i. Cook, ID. Langran, VIM. Casey,
Isaac G. Burgess. on contracts for work
done on the said railroad, In engineering
and grading. for cro-s-ties and supplies.
the aggregate sum OF SO, 900. as appears
BY % EXHIBIT marked No. 8 fled with
| the Sssd tiiE fhat fhsse 81 kss ess1s-
tors Of the said company, whose claims
exceed twenty-five Thousand dollars, as
appears by exhibit marked 81: that the
said company by a resolution of its
Board of Directors, authorized S. s.
Smoot, its President, to enter INTO an
arrangement with its creditors named in
exhibit 8, by which he was authorized
to deposit the FIRST mortgage bonds Of the
said company hereinbefore described,
to the amount of $3.50 900, valued al the
rate Of twenty cents on the dollar, with
Andrew Saks, Frank Hume and Roratio
Browning, Of Washington City, acting
as a committee of the said creditors, in
exhibit No 3, who received from the
SAID S. S. Smoot the said bonds, and de.
posted them in the National Metropol-
itan Bank Of Washington, D. c., who
are holding the same,
That the said arrangement provided
| that aid k~,l. L. III. 4
upon condition that if the said creditors
did not pay the claims Of the said cred
itors named in exhibit No. 3, on or be-
fore the 9th day of November, 1878,
with interest at the rate of per cent.
per annum, that the said committee Of
creditors should have authority to sell
the same for the purpose of paying the
claims of the said creditors, and the
surplus, il any, to the ssid company;
bu: that the said s. s. Smoot never in
fact signed the said agreement, and the
said Robert Callahan AYERS and charges
that the said agreement was procured
to be made by the said S. S. Smoot
President of the said company, with the
fraudulent intent and purpose to secure
a delay in the settlement of the indebt-
edness due the said company, for the
fraudulent purpose of disposing of and
appropriating to his individual use, the
bonds, assets and property of the said
company. That he has fraudulently
delivered to certain n. G.. Ordway, of
New Hampshire, seven OF said bonds to
secure an individual Indebtedness of the
said s. S. Smoot, amounting to the sum
Of two thousand dollars; ten of the said
bonds to Robert Cohen, of Washington
City, to secure an individual indebted
ness to him amounting to about the sum
OF Sl,65i IL; fifteen OF said bonds TO
G.. G.. Cornweli, and other persons not
known to the complainants, trading as
q. G. Cornwell s. Sons, to secure an in
dividr al indebtedness to said firm
amounting to the sum OF S2.92S SO.
That the said S. s. Smoot had sold and
was engaged in removing large num-
Der of the .cross-ties of the said company,
which had been placed on the line OF
their road as located, tor the purpose of
paving his individual debts TO certain
persons, and was wasting and convert
ing to his own use the assets oi the said
corporation.
The bill further charges that the said
Southern Maryland Railroad Company
lis entirely insolvent aud unable to paw
the debts and liabilities due by them to
their creditors. and unable to proceed
with construction of their said road:
and the said Robert Callahan charges
in the amended bill that the said agree
ment with the creditors OF the said cor
poration for the deposit Of the said
bonds was accepted by them upon the
assurance made BY the said S. s. Smoot,
that the real indebtedness Of the com
pany only amounted to the sum OF
S42,7IU SO as contained in exhibit, r.
Callahan, A-and only $4,000 90 OF
the company's bonds had been issued,
fraudulentiy concealing from the said
creditors the true amount of the lndebt-
edness Of the said company, which be
well knew largely exceeded the said
amount, and the issue of the aforesaid
bonds rs herein stated; and that he
made certain other false and fraudulent
statements in regard to the said matter,
and the Indebtedness of the said Com
pany; that the said Smoot had deliver
ed to certain f.. Galetti, whose claim
was not included in the SAID arrange
ment, certain OF the said bonds to secure
private Indebtedness of the said Smoot
TO hun, amounting to 81 500 w: that he
bad delivered to a certain NJ. nj. Rounds.
G. ID. Smith, G.. ID. Smith & Company.
w. ii. Holt, and c. G. Morrison, a Ger.
tain number Of the said bonds to secure
the payment of certain claims which
are particularly set forth in the said
bill, amounting m the aggregate to
S39, 194 Il, in which said CLAIMS the
said 5. s. Smoot, President: L. n.
Darling and w. II. Holt, Directors OF
the said cotnpany, are interested: but
which said claims are alleged to be false
and spurious, and not founded On any
proper contract by any contractor or
contractors, with the said company or
any Of its oiheers or agents duly author
ICED to make the same.
The bill and amended bull further
states, that contrary to law the Office oi
the said Southern Maryland Railroad
Company, is and his been located in
Washington City, where the meeting.
), Of the Stockholders and Directors oi the
said company has been held, since and
prior to the execution Of the said mort.
, gage or deed Of trust and where its di.
reetors were elected. who elected the
said S. s. Smoot. President. and Chas