The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1882-01-08


ture-New Surgeon for the Penitentinry-
Dueilists Added-Three Riddleberger Bills
statc's Interest In the Atlantic, Mississippi
and Ohio Rnilroad-Two More Cierkships--
Legislative Investigation of Small-Pox in
Richmond-Tobacco Inspections; Special
Committee.
The Senate yesterday in executive ses-
sion confirmed the nomination by the Gov
ernor OF DIR. J. NJ. Blanton, Of Cumber-
land, to be Commissioner OF Agriculture.
The present incumbent, DIR. Thomas Pol
lard, OF HenrIco, was renominated by Gov
ernor Holiday, but the Senate refused to
confirm the appointment.
The Governor has appointed DR.. Il. A..
Drewry, OF southampton, surgeon OF the
penitentiary, II position held for the last
twelve years by DR.. NJ. VI. Walker.
The names OF Messrs. John X. Popham. C..
T. Smith, Charles u. Williams, J. A. Armis-
tead, r. A. Dunlop, G. 4. Litchfeld, and
J. Marshall McCue have been reported TO
the Senate TO be added to House bill re-
moving political disabilities incurred under
the dueling clause OF the Constitution.
Mr.. Riddleberger's two bills to prevent
the taking OF coupons for taxes-parts OF
the old Riddleberger bill-will he passed
by the Senate tomorrow or next day.
There is a third bill TO come. 1t fixes all
the details Of funding. This, Mr.. Riddle
berger said yesterday, will probably be in
trOduced tomorrow.
THE STATES INTEREST IN THE ATLANTIC, MIS-
sIsSIPPI AND OHIO RAILROAD.
The following is in response to resolu-
tion Of inquiry passed by the Senate, on
motion OF Mr.. Smith, OF Alexandria:
RICHMOND, January 4, 1882.
To the Honorable the Senate Of Virginia:
At the request Of the present Attorney
General of the State, and because OF my
greater familiarity with the subiect-matter
Of inquiry, / have the honor to submit the
following reply to the resolution OF the
Senate adopted December II, 1881:
The State OF Virginia was a seeond-mort-
gage creditor Of the Atlantic, Mississippi
and Ohio Railroad Company to the amount
Of S4,0O0,000, standing behind S15,OOG,OOO,
the nor3inal amount OF the first mortgage
bonds, but really only behind about SILL
900. 600, as only the first mortgage bonds to
this latter amount had been negotiated,
Indebtedness of the three divisional roads.
The consideration OF the Indebtedness OF
s4. .OO0, 900 to the State was the Indebtedness
OF the three divisional roads to the State,
amounting to about Sl,S00,000, and the
stock of the State in said roads. Some time
after the consolidation company defaulted
in the payment OF interest on the first'mort-
gage bonds the suit of Butler, Duncan, and
Barlow was instituted in the Circuit Court
OF the United States for the Eastern Dis
trict OF Virginia against the Atlantic, Mis-
sissippi and Ohio Railroad Company, to
foreclose the deed OF trust under which the
mortgage bonds were secured. \ receiver
was appointed, and the road taken out OF the
hands Of the company. The state OF Nlr-
ginia and the Board of Public Works OF Vir-
ginia were made parties to this suit. BY an
act of the General Assembly, approved jan
uary II, 1879, was instructed to take proper
proceedings to test the censtitutionality OF
so much of the act creating the Atlantic,
Mississippi and Ohio Railroad Company as
undertook to dispose of to the said compa-
ny the said Indebtedness OF Sl,S00,0OO OF
the divisional roads to the State. 1t was
believed by many eminent lawyers that the
transfer Of this Indebtedness from the divi-
siOnal roads to the consolidated company
was violative OF the 2lst section OF article
10 of the State Constitution. j conceded
i'm this belief and by exceptions TO the mas
ter's report in the suit Of Butler, Barlow,
&C.. Us. The Atlantic, Mississippi and Ohio
Railroad Company, | raised the question
and insisted that the act OF consolidation,
to the extent referred to, was unconstitu-
tional, null, and void, and that the state OF
Virginia was still a creditor OF the diyi-
sional roads to the amount OF the said
81, 100000. The exceptions were argued
and overruled by the Circuit Court OF
the United States, the Chief Justice, Is
am informed, concurring in the decree.
By a Joint resolution OF the General As
sembly i was directed to appeal from this
decree 10 the Supreme Court OF the United
States. The appeal was allowed, and the
cause is now pending in the Supreme COurt
at Washington, and / suppose will, in the
regular call OF the docket, be reached in
twelve OF eighteen months. j feel great
diflidence in expressing my opinion rs to
the result of this appeal. 1t is sufficient
for me to say that generally appeals are not
successful, and in this particular case the
mind of the Chief Justice seems to be
already against the State.
Under decree in the suit above referred
to the Atlantic, Mississippi and Ohio rail-
road has been sold, and q new COM
panv-to wit, the Norfolk and West
ern Railroad Company-has been organ
lied. From the proceeds OF sale the first
mortgage bonds have been paid off, and
there is a balance in the hands Of the mas
ter OF about S250,000. The State Of Vir-
L. NJ IL
entitled to this balance.
There is also in the hands OF the receivers
OF this road about $4,000 arising from the
earnings OF the road while in the hands OF
the receivers. In this last-named amount
the State has no interest, as under the de
cree of sale it went along with the road
and TO its franchises.
IL is proper that should state that there
are claims being asserted against both these
funds by labor and supply-men, by the
former president OF the Atlantic, Missis-
sippi and Ohio Railroad Company, and by
trustees in some Of the deeds Of trust exc
cuted by the Atlantic, Mississippi and Ohio
Railroad Company, which aggregate an
amount almost equal TO the two sums OF
$3.50, 600 and $4,000.
| have resisted the payment OF any OF
these claims out OF the balance OF S250,000
arising from the sale Of the coupons Of the
trust property. OF course, do not know
what decree the Circuit Court will finally
enter. but have every confidence in the
opinion that this balance Of S250,000, sub !
ect, perhaps, to some small costs, will be
iecreed to the State.
/ believe this answers fully the resolution
If the Senate.
/ have the honor TO be, very respectfully, |
JAMES G. FIELD,
late Attorney-General.
TWO MORE CLERKsHIPs.
rrbo folIouinO hill offered nv Mr. Farf. |