Year: 1876




bonds $4,000 quite as good as any secl-
rity Of the whole line, except, perhaps, the
old bonds Of the Norfolk and Petersburg
railroad, and especially good with reference
to the Virginia and Tennessee division, the
key to the line. ~ ss'F's
! l allude to these matters here that you
may Judge and see for yourself that there is
no real danger to our Atlantic, Mississippi
and Ohio bondholders, come what may :;
and if the views have taken are sustained,
as / have reason to believe they will be by
our highest legal authorities here, our gold
bonds ought to become more readily sala-
| Bile.


The failure to pay our January interest,
combined with the monetary stringency
that has for so long prevailed, the prostra-
tion OF business, and the withdrawal OF
public confidence from railway investments,
have made our time hard one. Our credit
was so good and the operations OF our road
so flattering, and its condition SO conspicu-
ously superior to any other line in the South,
| that more was expected of us than was rea-
! sonable. Our loss Of business from Septem-
ber to January inclusive is likely to reach
| $1S0,000. This with the demands of our
floating debt has absorbed all OF our reve-
nueS. ...-


Our bank debt, which was ut the begin
ming OF the panic over 100000, has been
reduced to $4,000, and our floating debt,
otherwise in the form OF open accounts and
| plain rates, to about S375,000.


| The old bondholders elsewhere than in
Baltimore, and one or two in New York,
have exhibited no contrariness-they are
funding slowly. The squibs you have seen
on your side taken from papers here are
the promptings Of one party who had hoped
| to make q commission out Of the sale of old
rails to buy this interest. Every now and
then l heard rumors TO the effect that the
Baltimore bondholders are preparing to take
steps towards q foreclosure; then. again,
to get out an I'M junction to restrain our pay
ing the interest OH the gold bonds due April
1st proximo. enclose the granting part Of
the mortgage of the Virginia and Tenncs-
see. Next in line in priority-the six per
| cent. enlayed mortgage, so-calcd-and
this is the same on the n. and V.
railroad in substance, which you will OBJ
serve is not very severe. Any attempt at
foreclosure could only result in annoyance,
and so as to any attempt at injunction. All
possibility Of annoyance from such sources
might be put at rest by the expenditure Of
| 100000 at farthcst in the buying in Of the
coupons Of the several mortgages to a GER
tain extent. We could not well do this If
we had the means to spare, since it would
excite justly the prejudice Of those who
fund and are willing to forbear. 1t is be-
| lieved that an offer to pay one half down
would be satisfactory to all, and that they
would fund the balance. This we would do il
we had the means, and such payment Of one
half would quiet any excitement which is
| likely to be aroused at our payment in whole
or in part Of our April interest on the gold
bonds.


We have now about 5000 tons Of old rails
ut City Point, and the remaining 1000 tons
are being pushed forward to that place. Our
aim has been to sell enough of this iron to
provide for your interest, but after the en-
ployment of the most industrious efforts we
have failed to sell but about 5000 tons, and
| shall not be able to realize upon all such in
time to get the proceeds to you, but our
hope and belief is that we shall be able to
have with you by the 18th OF March, proXi-
mo, one half of the amount necessary to pay
the April coupons, and if the balance can be
raised by the 1st Of April it shall be done.
II, however, we shall fail in. this, and you
can make no arrangement to advance us the
| balance, then we must ask you to present
the situation tothc bondholdcrS as accurate
ly as you can for their interest, pay one half,
and ask forbearance for the balance in such
| form as you may think best.


| Our road is in good condition, capable Of
any amount of business. 1t is recaining its
business of the past year.


Industry is reviving in all departments OF
trade, and the outlook is hopeful. Under a
stoppage Of expenditures, curtailment Of
current expenses, and the forced reduction
of our floating debt, our road out of present
difficulties is assured. I believe that the
best interest OF all parties would be to pay
one half of the April coupons and one half
of the January coupons; for would hope
then to give general satisfaction and to get
down our floating debt so low as to stmrl-
! late eiustly-increaSed confidence, and that our
business will be rcgaincd so as to enable lis
to pay interest in the future.
The Scott county people have reproduced
their old proceedings in the Legislature to
require the commencement OF the extension
to Cumberland Gap, but no fear is enter
tained but what the Legislature will now
make declaration which will forever put
this matter at rest, leaving the building OF
that road to our company's direction. Its
construction cannot be compelled.


Our Amsterdam friend, Boisseyain, con-
tinues to interrogate. Yours, truly,
WILLIAM MALONE, President.
John Collinson Esq, 80 Old Broad street,
London, England.