Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-09-24
A Gard from Hon. John :. wise.
NV YORK. september q, lss9

NEW < ORg, September q, lss9.
To The Esiior of ae Disyatch:
IN your account Of Senator Daniels speech OF
Roanoke he 81 reported G. saying touching Ma
hone. no wrecked she road, paid FOR labor aud
supplies In script, and then through John 5.
Wire bought this script up at nifty cents on Tue
dollar. and then secured an order from inc
United States Court that these claims be PAID al
face value
n senator Daniel made any such statement
there is not ono word Of truth IL 80 far as II re-
latcs 20 me. Gld a statement oi the facts VIII
show him AS wolf rs the public how utterly
reckless tho statement vas. Whom the At
lantic. Mississippi and ohio railroad failed
II had mortgages upon II, including uhl
% tho STATE. amounting 10 something Ike
Si2 0la0J1 and owed floating deDt Tor
lobor aad supplies amounting 70 abolt @%!o,-
600. Tho mortgages took precedence IN tue
distribution o. the proceeds OF sale OF inc
property over the labor and supply claims.
Mahouo was very solirtous 70 get The labor ana
supply ciaims pad. one 81 our plans 81 re-
organization was broken up because he insisted
thnt the capitalists coming 10 the rehet OF mo
road should agree 90 pay the labor aud supply
Claims. and they, holding The road was not worth
as much 81 The liens on u, insisted that to pay
tho labor and supply claims was % throw away
g 100.
Whom tho syndicate that did ultimately buy
the Atlantic. Mississippi and Ohio railroad and
reorgsnize L a. tho Norfolk and Western rail-
road began 70 treat with Malone for his co-ope-
ration, no renewed bis demand that they recCg-
ME and pay the labor and supply claims at
par. This they at frst declined 10 do, but
finally agreed that # Malone would help
thom they would pay the labor and supply
claims--Ouo hall 10 cash, and the balance In com
mon stOcs OF the reoTganlzci IOa1. ms WIS
arcepted At the time IL was regarded ~ great
point gained for the unsecured creditors. Nahouo
lad no, ono dollars interest In these labor AMI
supply claims, and his contention for their re-
cogniiion deserved al credit At that point his
come action with these claims ended.
After fne Norfolk and western ROAD was or
Canized was ono Of the attorneys for the road.
BY dir ton o. tho company and In pursuance
OF its promise 10 Malone / published the oncr
of the company and gent circular ietter 10 OIL
the holders o. these labor and supply claims
MAKING lie offer Of 80 per cont In cash and ID
per cent 10 common stock Tor their Claims
Many voluntarily accepted the oner IRON tnO
railroad Meanwhile large nunb0r oil tho
claimants had pooled their claims and put
them in the hands of Messrs. Kelley ana Lyon.
They refused 10 accept the terms and contcnded
that while they had 10 be postponed 10 lien
holders as TO the corpus OF TIC property, the
court might and should give Thorn preference
and pay them FIRST out OF large surplus OF N
clIns which had accumulated. inc Court hnaly
decided in their ,ayor and the decision was &c
qniosced ia by tho Norfolk Rnd Western railroad
for some reason Of its Own, although ! WAS not
then counsel in the ca-e. From the above state
mont which may be easily verified by Tho BOOKS.
A. will 10 seen that Malone never owned 81 OF
these claims that al he did Was for their bepent
that he never bought q dollars worth. and that
the decree finally entered directing payment IN
fun % such Of tho claimants ~ had not accepted
the compromise offered by tho railroad enurod
70 their own benefit.
will make Mr.. Daniel or any one else this
offer: Tho printed list of these labor claims and
the names and residences OF the owners are nled
in the papers OF tho cause In the United states
Court II no viii show hat Malone owned one OF
thom, or that bought one OF them for Malone,
or that Malone bought ono Of them for any one
else or that no or / either directly or indirectly
n benefit tnesG
Will subscribe $500 10 the Democratic campaign
fund.
NV relations towards General Malone are not
more friendly than are those Of Mir. Daniel, but
have 70 idea Of being silent when Malone aud
myself are uajustly attacked, as in this case.
Moreover ] cannot understand how as good q
leWyor as Mr. Daniel, with the opportunities OF
learning the facts easily at hand, recOnciles II
10 his sense of fairness 10 blunder out such reck
less statements as the above. Easily refuied a.
they are The only damage they can do mus, be 10
him. as thoy impair pubic confidence IN tho &c
curacy or reliability VI his public utierance.
Respectfully, JOnS =. WISE