The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-10-11


The Virginia and Tesnessee ra'iroad 90 oao
owed her ................ .....'''''''..' w,
No., ~ .9e4 $50
She had in addition Of guaranteed ana
nrcferred stock I'm those roads the follow
ing amounts:
Norfolk and Petersburg Railroad.
fparan,ccd Stock SSoo on
Preferred stock. o"o'oNN
IYro,nta and Tennessee Railroad.
Guaranteed stock sSo2 60S
Preferred stock ........''''''''.' ooN'o
r..,, 1865 zoo
This Guaranteed and preferred STOCK was
in the nature OF n mortgage debt. ana, MT
RoYALL said, in his opinion, would to-day
equal 1905, 700 in cash. The debts duc "ou'u
be equal 10 their face-yalue in CASH. Inc
State. il she were now the owner OF Tue
debts due her and her guaranteed anu pre-
serred stock, would therefore have assets
which she could convert into s2,929'9oo.
This sum of money would 1ust about puS
md eytincuish her entire peeler debt.
In addition, she had OF common STOCK ID
those railroads
Norfolk and Petersburg ral'road......s Sd.'0oo
Southside railrotd........... ....'..' Soc'oO00
Virpin,a and Tennessee rai:road....... l,716.ooo
ro,,, 800
1t is, of course; impossible 10 say GER
family what this common stock was WORTH,
but as the ownership OF it would have given
the control of the roads to its owners, Inc
probability is that It would have sold very
high. The late JOHN u. BALDWIN. Just be-
fore the consolidation act was passed, oher-
or
her entire interest in the Virginia and Ten
nessec railroad, for the face-vaue OF her
stock-interest, in bonds Of the State, with
all accumulated interest, dollar for dollar.
Itwould be safe, therefore, TO say that the
State could have sold her common stock,
payable in her bonds, ut dollar for dollar.
This would have extineuished $685., 300
OF the principal of her debt.
Now, what was done with this enor-
nous interest of the State, which, said
MIR. royal, could easily have been
made to eXtinguiGh s10,o0O,0O0 OF the
principal Of her dcbt?' Under the provi-
sions OF the consolidation law she relin
quished all her claims, debts, and stock,
and took in place OF them mortgage upon
the roads from Bristol to Norfolk for
$4,000, 600, to begin to bear interest in 1880,
but to be postponed to. prior mortgage
for SlS,000,000. AS the ROADS are worth
nothing like what the State agreed that her
claims should be postponed to, her $4,000
900 mortgage is to-day not worth the paper
it is written on.
Now, when the consolidation law was
passed General MALONE was president OF
each one OF the roads that was consolidated,
and he was at once made president Of the
one consolidated road at a salary OF $25, 1000
a year. It is q notorious fact that General
MALONE was an arden: advocate Of this
law, and used every means at bis command
to secure its passage.
\ Mr.. ROYAL showed further that when
the new mortgage for S15,00o,000 was put
upon line, the General MALONE, or the COM
pauy acting by General MAHoNE's advice
and wishes, paid the sum Of $155,069.73
s.for legal fees, commissions, engraving
bonds, STATIONERY, tax, stamps, &C., ill.,
Cured in negotiating S15,OO0,0O0 loan"
Mr.. ROYAL showed further that the
sum OF $1,000 OF the money of these COM
pauieS had beea paid, under General Ma
HOMES administration, to one newspaper
the Richmond Whig-and that the sum Of
$4,000 Of these companies money had been
paid for advancing the interests OF the con.
solidated company before the Legislature ;
in each of which sums the State bad vital
interest, because she was interested to see
the affairs OF the concern prudently and
economically administered, in the hope lha'
something after all might be realized for heI
S4,000,000 mortgage.
Mr.. royal then argued, and we think
Justly, that when General MALONE comes
before the people Of Virginia with tnls re-
cord OF disaster and ruin to her interests II
those matte: of her finances with whlch ne
has been concerned, he does not come wei
recommended as her financial minister fol
the future. Mr.. royal took the figures II
respect to the States interest in those com
panies from a document compiled and pub
lished by General MALONE himself-his re-
ply to JOIN CoLLINsoN, which we have in
pampbet form in this office. He got the
item of expense for preparing the new
mortgage and bonds from report made
to the Legislature by committee appoint.
ed for that purpose in the year 1874. The
Whig-and egislative-expense items came
from JOHN CoLLINsoN's letter, and are not
denied by General MALONE. Mr.. BALD.
WINS offer for the stock may he found in
Journal Of House OF Delegates for 1S69-'70
page 5l4. l..
COOP SIGNs.-A writer for the Harrison.
burg Old Comm on1eenlih SAWS that he re-