The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-02-09
said depost-moncy TO he refunded to the
parties depositing said sum.
Nav II please the court. DC.
TnE ATLANTIC, MISSISSIPPI AND
ONO RUIPOAD COMPANY,

Clerk United states Circuit Court Eastern
District Of Virginia.
GENERAL BUTLER's REMARKS.
General Butler spoke about half an hour
in support OF the petition. He gave his
/ tory OF the Atlantic, Mississippi and ONO
railroad from the date OF its organization TO
the present tine cOmpllmented the receivers
upon the business like manner In which
they had administered the ailiIrs OF the
road. lie said that they had gotten in the
earnings and profits OF the road, nut had
not reduced ihe interest on these bonds eN.
cert in few Instances. lie alluded to The
fact that the receivers had laid many miles
Of steel rails in place Of the old ones OF
iron, substituted iron for wooden bridges,
and erected costly der0t buildings in place
OF those that were Standing when the road
was placed in their hands. He admitted that
this was lust what anybody else would have
done II similarly situated, a. il made the trust
which they held mole valuable and the in
tcrcstS Of the bOndhOlderS more secure, but
cOntended that the real owners OF the road
would have been more cIrefnl OF expense,
and that the revenues would thereby have
been increased. He asked but short de-
lay considering the immense interests in
VOWED. No harm could happen by this
! delay. His clients were acting in gOod
faith when they guaranteed TO pat up $780,
600. The doctrine OF SubrOgailOn j. we'll
settled. and j. one OF the fIvO!Ite u well aS
efficient modes OF working Justice in this
behalf He charged that the advertisements
was flulty, ina,much Il, it failed to state I'm
detail the conditions Of the sale.
MIR. Cn0ATE's REPLY.
u. .,s
ler gave as The amount due The consolidated
bOudhOldcf> ia round numbers SJ.l10,OOO
principal ana - G00,020 overdue interest.
The proposition OF the o;hcr side, a. he un-
dcrstood it. was that the Atlantic, Mi>SI>-
sipp and Ohio Company put up the sum OF
100000, in consideration Of which they
were to Dc allowed sky days in Which,
with the assistance Of parties in New York,
TO pay all overdue interest. In order TO do
this The Court was asked to keep the cOu-
pom, alive in their favor. In answer to this
proposition. counsel for bopdholderS show
ed that the Court had alrcldy declared the
priority Of the coupons over the principal
OF the bonds and that consequently Il the
Court accedcd to thc proposition the pre-
sent consolidated bond, would become in
effect a third instead OF second mortgage
on the railroad.
The principle OF subrOgation which was
advocated would have had the same cil, e.
OF pO,tpOning 10 their disadvantage the eX-
i>ting rights in the railroad Of the State Oi
Virginia and the cities Of Norfolk, Peters
burg, and Lynchburg. No such power eN-
iStcd in any court OF interfering with the
contract rights Of any Of the parties with
out q specific agreement of all Of them. No
such agreement had been even inlinIlted on
behalf OF SAID cities or State, and counsel
| guaranteed that not a single bOndhOdcl
would accept such proposal.
Counsel for b0ndhOldcrS also stated that
they were aware OF parties who were now
prepared 10 bid on Thursday at least eight
million one hundred thousand dollars,
being the full value OF bonds and over
due interest that it bad been i'm
possible until quite recently to obtain a
lid which would cover ihe full amount.
! The present bid would be the result Of the
very large earnings "f the previous year
with the added Influence OF the recent
"bocm" in American railroad securities
Three month, back, when the ral-O1d
should have been sold, the value then put
upon the property in the money market va,
Il million and Il quarter dollars les than The
full value OF the bond, and interest. such
might be the position again IN case OF fur
theT pO>tpOncment, more especially aS The
receipts are leS,eninG very >iderlbly
and the best authority states thai
they will continue to do SO for at
any rate some months TO come. IN,
security proposed against such posi-
bly, large depreciation was only The patrl
and inadequate sum OF 100000; and even
that sum was proposed 10 be Withdrawn by
In Il,
their failure to complete the necessary sub
scriptiOns for redecming the railroad.
JUDGE SHIPNAN.
Judge Shipman followed on the same line
OF argument.
The court then adjourned unhI 10 o'ciocb
this morning, when General Butler vii
conclude his argument.
REPORTED BURST OF THE SYNDICATE.
No little stir was created last evening 10y
the announcement that telegram had been
received from New York bringing the m.
formation that the party Of capitalists who
/ had been relied upon by the Atlantic, Ms.
S>ippi and ONO managers 10 furnish tho
means 10 cary through their scheme had,
upon review OF the whole situation. deter
mined 10 withhold their aid. This startling
news, II true, may put Il new face on the
proceedings in this cause. Whether true or
not that The syndicate has dissolved, it j,
certainly true that the gentleman who sent
and he who received the aforementioned
! telegram are no; in the habit OF giving cur
rency 10 unfounded rumor~, and the former
il sad to BE- in position to know well
whereof he speaks.
Personal.
General Butler spoke slowly and dellbc-
Taicly, without any attempt al oratOry; but
| through the whole Of hi, speech there ran q
VEN Of humOr which went far 10 relieve
the dulucS, OF an argument in railroad
ease AZ one time ne referred 10 what no.