Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-11-03
A Malone Faleohood Exposed.

In Manchester on Friday night General
MALONE tried to impress upon the mind.
Of his hearers that he saved the state a
half million in money. which was paid into
her Treasury aud was applied to school
purposes.
How true this statement was Tho reader
will know after be has read the following
communication from Richmond lawyer
Of unimpeachable vcracity ana thoroughly
acquainted with tho facts:
General Malone has repeated again and
again that DE saved the state e50J.OJO IN
the sale OF the Atlantic, Mississippi ana
OHIO railroad
Never was a statement more directly OPP
posed - tho truth. as the records Of thc
suit and Of tue Board OF Pubic WORKS
show.
In the suit brought in the United States
Circuit Court 10 Richmond 10y NAddy,
Duncan, and Barlow. trustees. &c, against
the Atlantic, Mississippi and ONO railroad:
&c, the Court by Its decree or the gun OF
Nav, 1879, fixed the liens on the railroad.
II held that next 70 the mortgage, OF the
foreign bOndhOldcrs represented by the
SAID trustees was the clam az the state o.
Virginia for -. g92, 405.87. II then ordered
a sale of the property to satisfy the sald
mortgage, the purchasers 60 take the pro
per.y subject 10 any liens prior 10 sad
mortgage. This claim Of the State
was under the cot of l1th June,
1870. known az The CONSOLIDATION oct,
whereby General Malone had gotten
the State TO give up first mems on
and preferred stocks i'm the divisional roads
20 the amount Of $500, S4i.s2, and take III
lieu thereof a second lien on the consoll-
dated line for 100000. From this decree
the S,are of Virginia appealed, claiming
that this oct was contrary 20 the Constl'H-
ton OF the state. forbicdiug release or
Communication Of Claims against such cor
porati0ns. Pending CHS appeal t49 SAFE
was made under the order Of tne United
States Circuit Court.
BY the reYor; Of tho commissioner
70 occurred February 3D. 1871, .... ..
and ihe price obtained VAS. $s,tljN0J %
Tho amount due under the mort
gage was nscertaiueQ 70 De...... f,4NZihS' %
Leaving balance of................ si,aJ2,3l2 p
CT, ceyers cer.!a,at.s noi over. 47sGlO Il
Rol,poo. S7eoiOl IA
BY the decision e the Circuit Court this
sum belonged 10 the State OF Virginia, sub
iect only to the expenses Of suit. these
la.t may bc safely put down at less IMAM
$500. 600. as o large portion oitacm he'd been
paid out OF money in hands Of the re-
cciycrs
In this state Of things after the sale aud
when the fact was known that upwards OF
100000 OF the purchase money would
come 10 the State, cvcn If she lost her APP
peal IN the Supreme Court, and That IN
case She succeeded IN that court She would
recover her original liens in full. General
Malone. who cOufossedly controlled the
Board Of Public Works. had an order en-
tered rociting the purchase by Boyce, hlul-
bali. and others AT the sale just had and
agreeing - sell to them the clam OF the
State for 100000. TINS was n effect taking
part Of tine money belonging TO tho state
aud with IL paving Aer Tor transfer OF
her entire claim, amounting 10 sOlue ten
times a- much Had this not been done
the State would have gotten over SjJ1ul)
from tine sale. for she would have seen tolt
that the sum in court was not wasted III
improper allowances This order OF the
Board Of Pubic " ovss WAS conditioned on
the purchasers making terms with Genera!
Malone. How much they paid him ior the
Job has been variousiv stated, but IL is
quite certain that. including the $4,000
they allowed him for salary while TIC TO-
ceivers had his road, il couiduot have been
less than $4,000. And now after tins
shameful sacrifice of the claim of the
State for hi own pecuuiary benefit Gene
raj Malone has the cGTOntery to clam that
he has been a great public bonclactor III
the transaction. Such IS the man. II.