Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-09-28

tic. Mississippi and Ohio railroad (subse,,
ouently the Norfolk aud Westerly, stated
that Hon. John s. Wise NJ attorney Tor
General Malone had offered him ana
Others fifty cents on the dollar Tor thelr
clniIns, and that Afterwards the Court or
dpred the navmcnt of tho claims IN full:
The next dav Nr. A. s. Caliee, of Pulaski
City. and Mr.. ID. Terry Martin, OF hoa,
noke county. told me tho same thing l
gave my authority for my statement IN my
speech. referring 60 Colonel Deyerle py
name. and knowing him NJ nlShH-
respected and truthful gentleman did not
feel that any imputation Of 'recklessness
could attach to my repetition OF his 'or-
sion Of the matter. IL.
have to-day seen copy OF the CIRCULAR
sent ont by Mr.. Wise when Offering 20 buy
in for the Norfolk and Western railroad
the labor and supply claims of tho. ATTAIN,
tic. Mississippi and Ohio railroad. and
deem il best TO give the facts ~ they now
appear that IL may be fairly judged how
far Colonel Deverle (and / through hm)
was in error. When the Atlantic, Missls-
aippi and Ohio Railroad Company, OF which
General Malone was president, faiied
large number Of claims for labor anu sup
niles were left unpaid After the road WAS
sold Hon John s. Wise. as attorney Tor the
purchasers, who renamed the company
"Ibe Norfolk and Western wrote TO the
claimants offering them fifty cents IN
money and fifty cents in common stock OF
the Norfolk and Western Railroad Compa-
nv according 10 face value, without lnte-
rest. for their claims. lie at the same time
advised them that the Norfolk and west
ern purchasers were in no way bound 10
nav them. NOR do they believe thew can
OF will be legally paid from the proceeds
of sale Of said railroad" CHE Atlantic, MIS-
sissippi and Ohio. :,
Another circular was sent out by MI.
Wise. in which he said:
Dear Sir-The offer heretofore made 70 you by
US 10 compromise your claim against me Athn-
Tic, Mississippi ana Ohio Railroad Company was
made pursuant 10 the following covenant IN an
agreement OF February IL. 1881, between Geno-
raj William Malone, president Atlantic, Mlssls-
sippi and Ohio Railroad Company, and Messrs'
Royco and Kimbau for themselves and olner
purchasers Of said road : ,
for services. labor, and supplies, OF origin prior
tn the appointment OF a receiver Tor said foad'
shall be- liquidated by The reorganized company
70 an extent not exceeding two hundred thou-
sand $4,000 dollars at their face value, and
without interest. one half In cash ana ono bnli IN
common stock. referred 70 ~ article thirl hpoNe.
provided, ths above stipulation shall not
bind tho parties OF the second part 10 pay any
thing 10 any such claimants for services, labor.
and supplies as shall decline or iai 10 accept
the terms above provided within fifteen DAYS AZ
ter the same shall be or shall have been offered
them bv the parties Of the second part or any
one authorized TO act FOR Thorn in this behalf
As representative Of the purchasers, II now Do
comes my duty 10 renew thelr oner 10 YOU 10
pay you % per cent. Of tho principal oi your
claim in cash and % per cent Ia common STOCK,
and To toll YOU trat UNLEss TIE SAME X ACCEPT
FL WITHIN FIFTEgE DAYS FROM THIS DATtII Will
BR roo LATg FOR VOC TO LCcErr IT. IS THEY ONLY
MAKE 1T FOR THAT PERIoD-To-WIr: FIFTEEN
- IVA JoHN $. WISE.
Notwithstanding these repeated offers
quite number of claimants declined them,
and having the question settled by Judicial
decision received full payment. They nap
PLY ignored the admonitOns gwen them
and the fifteen days grace allowed them;
and possessing their rights established
them.
Nlr. Wise SAYS in bis card that all Mahone
did for the claimants was for their bene-
fit ~ and that ne was not interested III the
claims to the extent Of dollar.
Why General Malone should have IN
sisted on the purchasers of the railroad
paving claims for which they were not be-
iieved TO be liable and which they could
not bc legally compelled 10 pay Is Re-
maTkable.
How he benefited them 10y covenant
under which they were notified TO accept
depreciated stock then worth some tWen-
ty cents in the dollar within "FttcN tags
in half-pavment, without interest, when
without such intervention they wouid
have been paid IN full as were those VINO
declined the COMPROMISED, it would be DIFF
fcult TO discover.
Iacccpt Mr. Wise's statement that Gen
eral Malone acquired bv the compromise
with those who accepted j. no interest IN
the claims themselves, and II ANY remaI X
Of mine or the force of the facts related
carried an intimation 20 the contrary 1t Is
Just to General Malone that should say
so. But il Is by no means clear that Cen
eral Malone did not possess a substantial
interest OF collateral kind 10 urFe ihe
compromise upon the claimants. He was
enlisted in the service Of the purchasers OF
the railroad III manner very interesting
TO him.
And he also had claims upon the
fund to which the labor and supply claim
ants were looking for payment.
The purchasers Of the road conceded 70
him claim for $4,000 of salary as presi-
| dent of the company, which, rs | am IN
! formed, Judge Hughes declared he allow
| ed only because OF such concessions.
There was no deprecated stock offered
or taken. as | am advised. for tins.
/ Besides. the purchasers also carried for
| General Malone CAS- reported in the press
and never denied TO my knowledge
/ $1,000 of preferred mot common stock
/ in the Norfolk and Western railroad at
| $50 per share until il rose n the market
/ to $500 per share. when they took 1t OIL
| his hands. paying him c67,5OO bonus for
! that for which he had not given dollar.
He was not. therefore, " disintercsted
party. but one richly rewarded and much
! favored when he was endeayorlne 10 get
in the labor and supply claims at a heavy
discount. which he did not apply TO his
| own claims.
Furthermore. have been informed by
an able lawyer who was the representative
/ of some Of the claimants in the litigation
| that General Mahone's claims and the
claims for labor and supplies were limited
to certain fund for payment, and that
! the interest excited to curtall the latter
was the apprehension that there would not
be enough to pay General Mahone's.
| | do not deem il necessary TO reicr lar
Their to Mr.. NisC's observations.
That | was in no degree reckless IN my
statement Is shown 10y the fact that / gave
it as given TO ne 10y an honorable gentle
man (himselt claimant), whose name !
cited as authority, and whom know TO be
| incapable of Misrepresentation.
That the details as 10y him given, and by
me repeated. were not altogether III har-
mony with the facts as disclosed 10y Mr..
Wise and his circulars is acknowledged.
How nearly they Appropriated the facts
! in substance. and what weight Is TO be at
tached to the facts as they now appear, it
is for a candid public to judge. One thing
remains beyond disputation: the labor
and supply claimants who ayailed them.
selves of General Mahone's covenant and
Mr. Wises urgent and repeated counsel to
compromise got the worst of il : and those
who rejected them got, TO use Mr.. Mise's
own language. decree finally entered di.
recting payment in full"
Very respectfully, JoHN W. DANIEL.