The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-12-24

!IHE CHESAPEAKE AND OHlO CASAL-
BILL FOR APPOINTMENT OF RECEIVER AND
AN INJUNCT1oN.-In,t the Circuit Court of
Baltimore city, on Saturday, there was
filed by Bradley r. Johnson and John =.
Poe, ESqs., solicitors on behalf Of the Com
monwealth Of Virginia, bill for an injunc-
ton against the Chesapeake and Ohio Ca
nal Company, and for the appointment of
a receiver of all the tolls and revenues of
said company. The bill recites the facts
of the incorporation Of said company for
designated purposes, &C., and states that
long before the year 1914 all the money
advanced by the State Of Maryland was
expended, and the resources and credit Of
the company wholly exhausted, leaving the
canal completed only to point fifty
miles east Of Cumberland; that the &C.
neral Assembly of Maryland passed an
act on the 10th Of March, 1914, by
winch the officers Of the company were
authorized to borrow upon its bonds
the necessary money to complete the
canal to Cumberland, not to exceed
81, 7OO,0 900, to be secured by pledge Of all
the tolls and revenues of the canal and its
works between Georgetown and Cumber-
land, the State of Maryland waving her
priority as mortgage under previous mort
cages. Under this act the company issued
coupon bonds to the amount of Sl,699,50O,
of which Virginia guaranteed 100000.
Subsequently further guarantee of $780,
600 bonds was authorized by the State OF
Virginia, based on memorial of the Pre-
sident and Directors Of the company, and
representation that said loan would be Sc
q. t., hn foil md
nue. of the company, superior and prior to
that of the bonds issued by virtue of the
MARYLAND act Of 1914. The official opinion
of the Attorney General Of Maryland as
to the legal power Of the company to raise
money in anticipation of it's revenues for the
purpose of repairs and improvements was
communicated to the Governor Of Maryland
on the 2Sth of June, lS49, that such right
existed. The Board of Public Works OF
Virginia, on the 7th Of August, lS49, GER
tilted to the Treasurer of the State that
the payment Of the principal and interest
of the bonds of the company for S2O0,oOI
was sufficiently secured III accordance
with the requirements Of the act OF AS
sembly, and said bonds were endorsed as
guaranteed by the State of Virginia. Or
the lst Of January, 1853, the company re-
fused to pay the interest on said repair
bonds, amounting to $4,000. The com
plainant, from that date to January lst,
1861, paid the semi-annual interest on
said bonds, and after January, 1861, unit
January, 1865, paid such Of the coupons Oh
said bonds as were presented; that the
company being unable to pay all the int
rest due January and July, 1851, and ia
nuary, 1852, upon the bonds issued for the
completion of the canal to Cumberland
an arrangement was made between the
company and Selden, Withers u Co.. o
Washington, the latter to take up the cou
mons so due, and hold the same
until the company should be in con
dition to redeem and pay the same, witt
interest thereon, the future revenues OF tne
company being at the time expressly
pledged to secure them, the amount o
said coupons being Sl43,000, which were
transferred by said Selden, Withers q 10
TO the complainant. The latter claims II
have owing to it the sum of S35, 400 to
commons surrendered by it; S269,625
amount paid to redeem the coupons On tne
preferred bonds, as also the $4,000 IS
sued to Selden, Withers & Co., ana int
rest thereon, and prays that the company
he required to apply the net tolls ant
revenues thereof successfully to the pay
ment of the coupons above stated. ALSO
tn have stated an account between tne
complainant and the company, and 1or ap
monument of q receiver of all the tolls ant
revenne. and for an injunction against I'M
COMPANY. it's agents, &C., for using, apply
inr or expending, any OF the said net toll
and revenue to or for any purpose WlaI
ever other than the payment ana als
charge of the prior lien thereon OF com
plainant, until the same shall have bee!
fully extinguished, &c.-Ba!timore Amer