The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-10-26

sATURDA Z NE IllRNlNG.
payment OF Confederate money but. for
which reiease-deed wns never given. 70
Mr. MacF Farland said that the lieu was ;ir1-
c1uded in the States sale to the Atlantic,
Mississippi and Ohio railroad aud in the
subsequent mortgage, and they proposed to
sell it for what 1t was WORTH.
Judge Crump held that 1t was the duty OF
this Court to clear away all such uncertain
ties as this; that not only the existence OF
the mortgage should be determined, but 1t
should be ascertained II there was any pay.
ment in its discharge.
Judge Hughes asked IL the Atlantic, Mis-
sissippi and Ohio did not pass this as part
OF their assets in the mortgage OF 1870.
Judge Crump said that they did in bulk:
not specifically. He maintained that it
would not be creditable to this Court to
leave this matter to be determined by the
Master and afterwards; fought over. He was
endeayoring to show how unwise it was to
refer purchaser to Masters report, as
proposed in the decree. What is to be sold
should be specifically and emphaticallY
known. Judge Crump thought that unless
the Court pressed upon this question this
(frst) lien might be resurrpcted, and as it
now amounts to s2,000,0OO Gf anythng) it
would swamp al subsequent liens on the
Virginia and Tennessee road.
THE Divisional BONDS.
Mr.. Clarke, of Baltimore, construed this
decree to authorize the sale OF all the digi-
sonal bonds which were turned over to the
Atlantic, Mississippi and Ohio road at con-
soidation and delivered to receivers when
the road went into their hands. Hc made
the point that such OF these bonds as had
never been uttered could not be fairly
claimed as assets going from the divisions
to the Atlantic. Mississippi and Ohio rail-
road.
Mr.. Clarke suggested some other obiec-
tions to the Masters report, and indicated
his purpose to file objections to it unless the
decree was amended to protect the rights OF
his clients.
Mr.. Brown. of Lynchbure, was anxious
to have the liens well defined before the
Court sells the equity of redemption. He
wanted to know if the Atlantic, Mississippi
and Ohio road claimed anything under the
81, 800, GOO lien of December. 1852
Counsel for trustees knew nothing OF
any such claim. Mr.. Brown had said that
he had heard such claim would be set up.
The other side said it was news to them.
Anyhow, Mr.. Brown desired all the clouds
TO be cleared away.
Mr.. MacFarland thought that there was
something in Judge Crump's remarks about
the milIion.dollar mortgage. but nothing
in the other objections which he proceed
ed to clear away.
THE MILLI0N-DOLLAR M0RGAGE.
Mr.. MacFarland, however, showed that
50 all and every interest" OF the State OF
Virginia was conveyed by the consolidation
act to the Atlantic, Mississippi and Ohio
road. More than this, this lien was Specifi-
calIy transferred by the State to the Atlantic,
Mississippi and Ohio. There is no proof
of payment, but the State has released her
claim to the Atlantic, Mississippi and Ohio.
Mr. MacFarand would say frankly that it
didn't seem to be 4 matter of much moment,
though perhaps it might prove to be mat
ter of considerable moment. He went on
to give his views OF the matter in detail.
The Atlantic, Mississippi and Ohio received
the Virginia and Tennessee division from
the State subject to this mortgage. Then
the State assigned the mortgage to the
Atlantic, Mississippi and Ohio. 1t might
be said that for all practical purposes the
mortgage was thus eXtiDguished. But
this. he thought, was not the time for
the discussion of this matter. It should
have been brought up in objection to the
trustees report year ago. Whoever sue
ceeds to the mortgages will succeed to their
rights. They may hold it as a imminent OF
title, or it may become vital thing. So far
as he was concerned, he was willing to have
the decree reformed SO as to be without
prejudice to the interests o. the other mort
gagees OF the Virginia and Tennessee road.
That would be for the protection OF the
Virginia and Tennessee bondhoidcrs. AS
to the Atlantic, Mississippi and Ohio itself.
the lien could not affect it at all at the sale.
Mr.. Choate discussed the legal effects OF
the mortgage, its supposed payment ir Con-
iederate money by the Virginia and Ten
nessee Company, and its assignment TO the
Atlantic, Mississippi and Ohio road by the
Board OF Public Works, in accordance with
l,w. He thought it no part OF the duty OF
this Court at this time to annihi'ate this lien.
The purchasers are entitled to whatever OF
value there is in it.
Colonel W. W. Gordon declared that they
were not raising q new or unnecessary
question. Suppose this is lieu. Why,
then, there is that much more lien on
the Virginia and Tennessee railroad. SO il
is better for all interests to have the matter
settled. The representatives,. OF the divi-
sional bondtolders would contend that ii
had been paid or il not paid that the At
lantic, Mississippi and Ohio were estopped
from enforcing it.
Colonel Gordon stated that this lien (noW
amounting with interest to S2,0O0,0O0) was
mentioned in the Masters first report as not
subsisting lien; in the second there was
doubt implied. He wanted this obseu-
rity removed before there is decree fol
the sale OF the property. Unless the other
side would say in this decree that the lien
is not subssting one they would oppose 4
| final decree, at least until tile Court hac
passed upon this question.
| Judge Green would oppose the question
being reserved until after decree, and would
object to any property or interest OF tho
ceStui que trust being thrown away.
Judge Shipman: That's your mode OF Sc
curing postponement.
Judge Green: No, sir: that is my mode
OF holding you.(the trustees) to your respon
sibilty.
Mr.. MacFarland saw no difficulty in or
| dering a final decree. The very utmos
that can be asked is that the decree may bt
taken without prejudice as to priority, &c.
Of Virginia and Tennessee bondholders
How the Court could do more now he coulC
not understand.
Judge Crump thought that the question
should here be decided whether the cas-,
should 60 back to the Master, or his repor
be interpreted by the Court. He would b.
satisfied With nothing less than the striking
OF this lien from the list OF encumbrances.
Attorney-General Field said that il it wa
to be claimed in any contingency that thi:
mortgage was superior to that Of the State
of Virginia Qor S4,000,000), he would like
to be heard in opposition thereto, and ask
to have the matter adiudicated. He sue