The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-10-23

THE ATLANTIC, MISSISSIPPI AND OHIO
RAILROAD TO BE MADE PARTIES TO THE
sU1T-THEY OPPosEA SALE OF THE ROAD
NOw-THEIR REASONS THEREFoR-THE
DECREE OF SALE AS PROPOSED By THE
ENGLISH BoNDHoLDERs PREPARED FOR
THE COURT TO ACT UPoN-ARGUMENT
OF COUNSEL COMMENCED.
The case OF the Atlantic, Mississippi and
Ohio railroad again engages the attention.
| of the United States Circuit Court. Judges
Bond and Hughes were both on the bench
yesterday 20 hear motion for decree OF
foreclosure and sale. when the counsel OF
the Dutch bondholders appeared and re-
Yived petition, making complaint that the
trustees (Francis Skiddy, William Butler
Duncan, and S. L. M. Barlow) are active and
jealous partisans Of the English bondhold-
ers; that the two interests conflict, and
| that the Dutch bondholders have not been
handsomely treated by the said trustees
and their counsel, Messrs. W. D. Shipman
and W. w. McFarane, OF New York. :'
| Nlessrs.- Shipman and McFarlane were
| present to answer for themselves and the
trustees. Messrs. w. w. Henry. OF Rich
mond, and S. L. Parish and Ashlul Green
Represented the Dutch bondholdcrs, and
Hon. Joseph III. Choate, Of New York. the
English bondholders. Attornev-Gcneral
Field, on the part Of the State OF Virginia,
and Colonel w. W. Gordcn. General L. NJ.
Logan, Judge w. W. Crump, Major G. S.
Stringfelow, Captain John Lyon. Judge
Robert Ould, Major T. j. kirkpatrick. Mr..
w. L. Royal, and numerous other members
| OF the bar, were present either as counsel
for parties directly in interest, or assbeing
concerned some way in the result OF the
pending suit.
The fight on this petition was, however,
| left entirely between counsel for trustees
and Dutch bondholders. General William
Malone, who was present, did not show any
particular concern about the fate OF either
one side or the other; though on one hand
| it was intimated pretty broadly that the
Dutch bondholders are in colusion with the
Atlantic, Mississippi and Ohio Company,
and on the other. Mr.. John ColIinson, OF the
English bondhoders' committee, who is not
especially loved by General Malone, was
the subject Of some remarks OF antagonistic
counsel.
WHAT THE DUTCHMEN WANT.
Speeches were made on behalf Of petit
TONERS by Messrs. Henry and S. l.. Parish.
and against them by Messrs. McFarlane and
Shipman.
The Dutch bondholders by their petition
ask to be made parties to the pending suit
for the foreclosure of the Atlantic, Missis-
sippi and Ohio consolidated mortgage in
order that they may protect their own in
terest in the litigation. They represent
over TWO millions OF the entire loan, which
| loan is nearly five and one-half millions.
The reasons that they assign are that the
trustees who bring the suit and are the
plaintiffs upon the record, have allied them
| selves with the English bondholders who
are represented by Mr.. John Collinson, and
who hold about the same number OF bonds
as the Dutch committee, represented by Mr..
James G. Parrish.
| They. allege that as result Of this alliance
this suit is being conducted in the interest
of the English committee, and to the injury
Of the Dutch. The trustees. they say,
amongst other things, have loaned them
selves to the carrying out OF the re0rganl-
zaton scheme proposed by the English,
whereby the control OF the road Will be
given in perpetuity to committee OF four
Englishmen, who appoint their own sue
cesSors in case OF vacancies, and who will
manage the road from London. The Dutch
say that the decree OF sale asked for at this
| time bv the trustees is intended to aid the
En- glish in obtaining possession OF the road,
and is drawn with that end in view.
II the English succeed in obtaining Il de-
cree at the present time, it is understood
that they have made their engagements to
make the purchase; and in that event they
propose to cut off the Dutch and other non
asserting bondholders at about eighteen
cents on the dollar, or less.
The Dutch desire, and have proposed, a
liberal plan of Reorganization, as they claim,
giving equal rights to all the holders OF the
consolidated mortgage bonds.
TIE POSITION OF THE TRUSTEES.
Mr.. McFarlane made the main speech
against the prayer of the petitioners. He
described the Atlantic, Mississippi ana Ohio
railroad "tottering to decay and confu-
sion" when the trustees and receivers took
charge, and claimed that they had put it IN
fine condition. So we'll had they discharged
their duty under the direction OF this court
it had become subject OF congratulation
and commendation not only here, but bad
raised the credit OF our courts abroad. He
declared that the petition was "peurile
and absurd" and that it was the basest
ingralitude for these Dutchmen" to crit
| icse the trustees who have done so much
so well.
| Mr. McFarlane maintained that the trus.
tees were acting for all the bondholders, and
that il the Dutch bondholdcrs' prayer was
granted every one OF the bondholders OF the
million not represented by either the Dutch
or English committees would have the same
right to ask to be made parties to the record.
Tie proposition, he thought, could not be
entertained with any regard for the rules OF
law. He defended the trustees from the
charge Of partisanry in endorsing the Eng
| lISh scheme Of REORGANIZATION.
| One Of the propositions OF petitioners he
characterized, "in legal sense, as simply
idiotic" "-another as bordering. on down.
right insolence." Speaking Of the activity
Of the English in looking after the welfare
OF the road, and OF the do-nothing policy
of the Dutch, he asserted that there was no
more comparison between them than be-
tween an industrious human being and a
protoplasm."
But Mr.. McFariane rested his case mainly
on principles OF law which he cited, and
which he declared would not permit the
Dutch bondholders to be parties defendant,
now that the suit has been conducted almost
to final hearing by the trustees.
At $3.50 O'Clock Mr. McFarlane concluded
and the court adjourned.
THE DECREE.
The decree applied for by the trustees OF
the Atlantic, Mississippi and Ohio consoli-
dated bonds asks for:
l. A sale OF the whole line OF the Allan
tic, Mississippi and Ohio railroad and its
property as an entirety, subject to the liens
Of the several divisional bonds.
9. The master shall make the sale at Rich
mond, giving at least ninety days notice in
the newspapers.
8. At the sale the purchasers may pay in
part payment of the purchase-money At