Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1882-08-21
ALEXANDRIA, VA.
MONDAY EVENING, AUGUST 81, 1882.

IL WILL De seen by Gne 1OllOWlnS EXTRACTS
from the second epistle of Mr.. Frank G.. Ruff
fin, an original, consistent and persistent
readjuster, but not q Mahoncte, how Gen.
Malone has availed himself Of the strength
given him by the hundred thousand negroes
from whom, as he said in New York he
could get any majority he desired to gorge
his own pockets at the expense Of the pco-
pie Of State, too poor, he asserts, to pay
her honest debts. In the history of the
worlds polite it will be hard to find
parallel TO Mahoneisin, either rs regards
its results or the means by which they are
accomplished.
according to the first annual report Of
General Malone to the Atlantic, Mississippi
and Ohio Railroad Company in May 1872,
he had arranged with the State to exchange
her debt against the company, amounting to
SG,&l ,l3035, including 81 ,SlI G93.9S. Sc
cured mortgage debt, for second mortgage
Of only S4O00,000. Nine years afterwards
to wit, the latter part of last summer-when
be was engaged III negotiating the sale of
this road to the syndicate that Immediately
afterwards bought it. he waited on MessrS
Massey and Reynolds, two Of the Board of
uDIlC w OihS, anu plIiStliuti lutlu tlllI IL
was patriotic duty to ratity the sale in con
sideralion of the sum Of $500,000 to be- paid
the State, il being fortunate" thing IA: he
truly represented, to get that much. it be.
ing one eighth part Of the 81 100000 second
mortgage. Later. these gentlemen were
somewhat surprised to hear-as have heard
and upon authority which am at liberty to
surrender to proper application--that Gen.
Malone had been much more fortunate i'm
negotiating for himself than for the State.
For the reorganization Of the road under the
name ofthe Norfolk and Western Railroad
Company embraced 10000 shares Of pre-
ierred stock, equal to SIS 600, 900 distributed
among the associates at $50 per share. Gen
eral Malone subscribed for 5000 shares at
$50 per share, equal to $4,000, on which
he paid not cent, it being carried for him
BY the syndicate until it rose in the market
to $3.50 per share, when they took the
whole block OIL his hands at an advance of
S67 500 paid in cash. Besides this he OBJ
tanned $4,000 from the same company
upon claim for services rendered when he
was not president Of their predecessor, the
Atlantic Mississippi and Ohio Company
under decree in which Judge Hughes said
he only gave it because the Norfolk and
Western Railroad Company wished il to be
done; thereby clearly intinating that there
was no legal claim to it,"
The Richmond and Danvie Railroad Compa-
ny had been active against the readjuSerS and its
president was among the most Jealous members of
the funder executive committee; going through
the city i'll person, as once saw him doing for
the purpose of raising election funds And hence
when reconciliation WAS talked with that compa-
ny, was not surprised to hear the rumOr that his
head had been demanded as the price of his mis-
conduct, and as one of the conditions of peace.
But soon all alliance was formed with this pres-
dent as one of the contracting parties, of which,
though the air was filled with rumors of its terms
only this much, though that ought to be enough
Is, or may be- known to the public: 4 gentleman
known to be one of General Mahoncs strongest,
oldest, and most constant friends. WAS appointed
tc good office on the road joint resolutions in
troduccd i'll the Legislature by Mr.. Giddings. of
Chesterfield instructing the proper authorities to
regulate tolls and transportation the road ac-
cording to power devulved them hv the
original charter of the railroad, were buried in the
committee; an act legalizng the Ssuc of the com
PanyS watered stock passed rs was also n
law, introduced and actively advocated by Mr.
Riddleberger, chairman Of the State Committee Oh
Roads, by which, in its prescribed mode of settle
ment Of al old debt the State lost, and the COM
pany publicly claims TO have made, upwards of
s25O,OoO. 1t may be mentioned to show how
complete was the discharge" of debt So this hos
tile railroad that some of General Malone especial
friends were the most active lobbyists for this last
Dill, and on more than one occasion We're seen hur
ryIng OIL to the different drinking honScs to bring
IN members pledged to its support