Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-12-21
hORrvLKS BUDGET
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,corr~poudeuee OF shs Richmond DispaschJ
yonyof.x. VA. December 20, 1884.
The soutbers Telegraph suit came no In
the United States Court this morning. and
attracted large crowd Of spectators
Judges Hughes and Bond presided.
General Malone, one Of the cempiansnu.
4 represented by General B. +. Butler ana
Mr.. John 8. Wise, and the Greenvsue
Land and Lumber Company. the o.her
complainant, Ia represented by Messrs. Tnn-
stall 4 Thorn. The telegraph company
Il represented by General Bradley I: John,
son and Messrs. Sharp x Hughes. General
Malone filed his bill, an abstract OF wnich
II m follows:
The bin of complaInst is fled against the
Southern Telegraph Company, the wash
lpgton Improvement Company, the bink-
err and Merchants Telegraph Company.
and the Farmers Loan and Trust Com
many. II sets forth that the Southern Telc-
graph Company was Incorporated IN the
fall of 1882 to build q line cf telegraph
from Washington 20 New Orleans. Its
capital stock was S5,000,0O0, In shares OF
sloO each. In order TO raise funds neces-
sary 10 build and equip the line, first mort
GAGE was executed 10 secure issues OF bonds
aogrevntipp s2.50O.000, and the Farmers
Loan and Trust Company Of New York
WINS designated ~ trustee. About the same
time the Washington Improvement Com
many was organized with substantially the
same jpcorporaton rs the Southern Tele.
praph Company. and with capital stock
of $1,000, 900. and this company was 10
luiId the line. the telegraph company TO
nav $500 mile IN first-mortgagc bonds
and $1,000 q mile in stock. BY the
terms Of the contract the trustee, the
Farmers Loan and Trust Comp,ny.
was to hold the g.. 600 OF bonds issued
and issue thu same upon the production OF
certificates from the proper officers OF The
the telegraph company that section or
sections OF the line had been completed.
The woik has progressed under that con-
tract. General Malone purchased some
sG4.CCO worth OF bonds. He claims that
under the contract the company should
have paid out only sl.3GO.O00 in bonds
and 2,120, 900 in stock for the number
Of miles of telegraph line constructed,
but in point OF fact the entire issue
of flrst.mortgage bonds has been obtained
by the Southern Telegraph Company from
the Farmers Loan and Trust Company.
trustee, or in collision with the trustee;
that the income OF the telegraph company
has been Incorporated and divided
until the company Is Ia default for interest
due the bondbodeTs. and l. insolveni, etc.
The complainant also charges that in the
early part OF 1888, A. W. DimocS. who was
largely interested in the Bankers and Mer-
chants Telegraph Company, got control
Of the Washington Imp ovement Company;
that the stock OF the Southern Tele.
graph Company paid mt the rate OF
81 800 per mile TO the Washington Improve
ment Company under the construction
contract was divided as a dividend to The
stockholders pro rata Of the Washington
Improvement Company, and by this method
Mr.. Dimock acquired controlling interest
In the Southern Telegraph Company, and
secured his own election rs president OF the
said Southern Telegraph Company, aud
gained ossession OF and withdrew from
ITS custody the remainder OF the series OF
81, 500. 900 OF bonds, which ought not to
have been issued. II is also charged that A.
w. Dimock failed In business in 1884. and
soon after his failcre the Bankers and
Merchants Telegraph Company failed. and
that among the assets OF said company are
bonds OF the Southern Company aggregat-
ing q very large amount, which bonds are
held as valid obligations OF the Southern
Telegraph COMPANY, whereas they are not
valid obligations. but the identical bonds
fraudulently obtained by Dimock, and
by him bypotbecated 10, with. or
for the Bankers and Merchants
Telegraph Company. The complainant
insists that all Of said bonds are
null and void and should be called in and
cancelled. else irreparable damage will be
done to him and other bondholders in Vir-
GINA, who hold bonds TO the amount OF
100000.
The other bill is In substance the same
as the above.
In reply the defence pleas that the court
has no Jurisdiction.
After speeches by counsel on both sides,
the Court decided it had jurisdiction. and.
more than that. that 1t would grant the IN
junction ard appoint a receiver, Judge
Bond delivering the opinion. There was
a spat between Wise ard Ttom as to how
the two bills would be received, Thorn
wishing to consolidate and Wise obiecting.
Ii was finally decided by the Court to re-
ceive both hills. and that receiver be ap-
pointed In both cases.
u.
Hates, and Il. T.. HUBBARD. any two OF
whom would please him, but wanted Hates
in any event.
Mr.. Thorn, for the Greenville Lumber
Company. will make his nomination Mon
day. When the receiver is appointed the
bond will be fixed at 100000.
Those who have seen General Buffers
pictures land who has not y have seen the
10 Ia In nj a1
corpulent and rather awkward, very neir-
sighted, reading with the book close to his
eyes. He speaks deliberately, but not flu
emily. He Is the grand centre OF attraction.
and has Just received a telegram. Every
body is watching his every action. and the
crowd smiled as the General made the mes
seneer-boy pull of his hat.
X. u. Cooke and &. G. Elliott each gave
$4,000 bond IN the Corporation Court To.
day as receivers of the Virginia-Beach rail
road.