The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1877-09-15

The Legal Status Ot the claim Of mr..
calder Against the Property Of tho
Company, ANA Thnt of Pointer a
Obenchain Against tho Contractor
Individually.
To the Editor OF The Herald
The HERALD having mentioned my
name In connection with the Dallas
aud Wichita railroad, please allow me-
TO explain some Of the matters referred
to. In THE HERALD OF the first In
slant you say.
I'VE are authorized to say that
Pointer " Obenchain will raise their
lien upon the same terms that they
have agreed upon with Mr., Calder TO
raise his. Now, then gentlemen, here
is the chance for the Dallas and WITCH.
ita. Let the work go on.n
There IL no similarity In the legal
status Of the two claims, nor In the
rights OF the claimants. The Calder
claim existed, and It's payment was
provided for upon the terms you refer
to, before any part OF Pointer II Oben-
chains claim was created. The Roll
ling Mill company was cOgnizant OF,
and agreed 10 the terms OF ita pay
ment The Calder claim Ia q claim
against the railroad company, and IL
secured by a first mortgage upon all
the property OF the company.
The Pointer ~ Obenohaln claim was
created after the contractor Hender-
son, had pledged all the first mortgage
bonds OF the company, which he con-
trolls by the terms OF his contract, to
tho Il anuau DnllingY Mil nnn,na,,u fnr
iron, Pointer Il Obenchain's claim Ia
a claim against Henderson, whose sub
contractors they are. The railroad
company IL not bound to pay the debts
Of their contractor. Is il reasonable to
ask or expect the Kansas Rolling Mill
company to do It? They consent to
the use OF 500, 600 of the bonds pledged
to them for iron furnished to pay the
Calder claim because II was 80 agreed.
What right does this give Hendersons
sub.contraotors to ask them for bonds
to secure their claim?
When they took their contract from
Henderson without security, they took
the risk OF loss and charged for IT,
They have greatly increased, and are
still increasing that risk by stopping
VIC WUih VII VIC IOhut lutJ hbNc
filed liens against the company to the
amount Of about $4,000 ofthis, near
ly $ll 600 Ia mechanics or vendors
lien, in the validity of which no one
seems to believe; but 1t casts shad-
ow upon the bonds of the company,
and the Rolling Mill company insist
upon IL being Cancelled and the re-
cords cleared of all liens against the
railroad cOmpany-which have been
obtained since last May before they
will furnish more iron for the bonds
OF the company. All the other parties
having liens, have, it is said, agreed to
release them. Who then IL RESPONSE
BILE for the "Hluge Disappointment"
of which you speak In yesterdays
HERALD?
Your article this morning headed
"Shall we Repudiate," is in my opin-
ion, unwise and damaging The cred
Ii OF community IL as easily tarnish-
cd in these days OF defaloatlon and re.
pudiation rs the reputation Of "A wo-
man-an idle word, a jest conveying a
breath Ofsuspicion, is sufficient. The
article referred to was intended, sup
pose, to brighten the company and the
contractors into action; but its effect
will be, unless neutralized, to depreci-
ate the value of all Of our securities.
No one connected directly or Indirect
ly with the railroad owns one of the
bonds issued to aid its construction,
they have all passed into other hands.
The Dallas and Wichita railroad WN
be built. II the present management
fail to settle matters with contractors
and sub-cOntraotors, another mans
agement will perhaps be more success
full. CALDER.