The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-11-24
gnl,u,ontl l|lspatel1:,
SATURDAY. i. NOVEMBER p, 1917
The a. M. and o. Railroad.


fortunate administration and placed in the
hands OF persons who, ignoring politics.
hsve demonstrated that as commercial
business enterprise the railroad can De mace
s,ccess. We are informed that Mr.. HENRY
FINK receiver, has said. and says, that the
road can be made to pay the current interest
,,,o, al, IFS debts, and ultimately the debts
themselves.
We wish TO say that we trust that Mr..
CoIllNsoN's principals. the European bond
holders OF sevcn-per-cent. gold consolidated
Atlantic, Mississippi and Ohio Railroad
bonds. may receive every dollar OF interest
and principal to which they arc entitled. H.
howeycr. they desire a REIMBURSEMENT we in
sis, that il shall not be compulsory, but on
business principles, satisfactory, ana With
on. any enforced equity.
Nevertheless. Mr.. CoLLINsoN and his prin-
c,pats must not expect their schemes 10 pass
without criticism and opposition. We are
aycrse to the sale OF the Atlantic, Missls-
.jrni and Ohio railroad under decree OF
Federal court if it be possible to avoid It,.
4 transaction so important to Virginia,
both as a creditor and as Commonwealth
should be negotiated and consummated
under the supervision OF her own Judiciary.
The purchasers, at any sale, would become
body corporate, subject to Virginia laws,
ike any other joint-stock company. The
interests OF all concerned, the safety OF the
pDvers. security against unfriendIy legisla-
t!on. and the precipitation OF the goodwill
OF the sovereign who, when granting the
charter. retained large reserve OF power,
al indicate the importance OF having the
sale made and confirmed in accord with the
will OF the Legislature rs eXpoundea by
Virginia courts.
That sale is inevitable will probably not
be Geried. II it be precipitated, there will
be- 80 far as can now be seen, only one bid
der-to wit, Mr.. CoLLINsoN>s "purchasng
committee" We do not know these gen.
tienen. either their names or local habita-
tlons. Criticism may therefore be deferred
unii, they shall have been introduced to our
acquaintance. Their appointment was pos
siblv premature. But sale with only one
bidder would be monotonous and un$atls-
factory. The Commonwealth, although Il
thlrd-mortgaSe creditor for S4,O00,Oo0, is
prohibited by her Constitution from buying
even 10 protect her interest. But possibly
tie city OF Richmond, and also the cities of
Norfolk. Petersburg, and LynchburS might
wish 10 get legislative authority to bid and
tuv.
II the sale he made upon terms usual in
courts Of equity-that is to say for so much
cash as may be required to pay past-due OBJ
legations, and as to the residue OF the pur-
chase-money upon credits adapted to meet
obligations hereafter TO mature-a pur-
chaser Of unquestionabIe Solvencv, integ-
rity. and credit win have but very little mo-
ney to pay. The S5.o06,oS4 OF divisional
bonds reported by Mr.. CoLLINsoS first mort
gage are, covered by the same amount OF
Mississippi and Ohio seYen-per-
cent. gold bonds, deposited in bank in New
York in pursuance of the charter and mort
gage; s5,470,000 OF the consolidated Attain
tic, Mississippi and Ohio seyen-per-cent.
gold bonds are held by Mr.. CoLLINsoN's
principals, who bought them at much less
than par, and who are willing, as Mr.. COL
LlNsoN himself reports, to convert them
into an entirely satisfactory security, bear
ing interest at i've per cent. There remain |
in the Union Bank OF London for safe
keeping, and now effectually sequestered,
81, 100000 Of said seven-per-cent. gold
bonds. The S4,000,00O OF State bonds due
the Commonwealth can be bought at to-
days quotations (3o) for sl,2S0,o0O. &~"-
Suppose the city Of Richmond, in high
credit, with her siX-per-cent. bonds COM
handing premium, having obtained ne
1essary authority, should buy the Atlantic,
Mississippi and Ohio railroad with all its
assets, subject to all its liabilities. TO the
81. O06, O34 OF divisional bondholders she
Ia say: We will pay you with the pro-
cec;.s Of our own six-per-cent. bonds, eXtln-
sulsh your eight-per-cent. and seven-per-
cent. securities, and thereby acquire the
right to withdraw from the custody OF New
York bankers u corresponding amount OF
Atlantic, Mississippi and Ohio consolidated
seven-per-cents. To the European holders
of s5,47o,00O Of Atlantic, Mississippi and
Ohio the city Of Richmond might adopting
Mr.. CoLLISsoN's suggestion say we offer
in exchange for your railroad securities our
own fve-per-cent. gold bonds to run for
fifty years. To the Commonwealth she
might tender in advance a, 100000 OF State
securities, and obtain return OF all her
Claims. Inihis estimate we do not include
some additional debt due on account OF IN
terest in arrear, costs OF suit, &c. But it
would be practicable for the city OF Rich
mond at cost but little exceeding ST.
Oo0 600 to become the absolute owner OF
the great theroughfare from Bristol to Nor
folk, 4O4 miles long, which is destined to be
part OF the principal highway across the
continent from the Atlantic to the Pacific.
Thanks to the forecast Of nine enterpri-
sing citizens OF Richmond, the Atlantic,
Mississippi and Ohio Railroad Company has
secured the right to build five-foot track
,upon the roadbed and bridges Of the Rich
mond and Petersburg Railroad Company.
With main stem resting upon Virginia's
capital, and branching at Petersburg like
Y, with one arm extending east to Norfolk
and beyond, and the other arm extending
west to Lynchburg and beyond, the whole
road could be managed with convenience
FROM a principal Office here. Thus might
Richmond in some measure retrieve the
losses she has sustained by the abortive
effort TO make the Atlantic, Mississippi and