The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-07-26
VERY IMPORTANT RAILROAD
CASE.

Charge of Illegal Organization and Proceed
ings--Iniunction Applied for to Restrain
Further Action by the Managers OF the Conn.,
pany, and Specially to Prohibit Negotiation
Of New Loan-AppOintment OF Receiver
also Applied for-Notices to Defendants
bay Set for Hearing.
A bill has been filed within day or two
past in the circuit court Of Richmond,
against the Petersburg and Weldon road,
Reuben Ragland and others, praying for
an Injunction and the appointment of a
Receiver for said road. The bill charges
that Ragland and others combined together
for the purpose of getting into their possess
sion or under their control q majority OF
the stock of the Petersburg and Weldon
road-that after having done SO, they in
hot haste, and against the protest of many
stockholders, voted to themselves some
$250,0O0 on claim Of back dividends
due to the stock purchased by them, and
installed Ragland as president of the road
with salary of $12, 900 per annum. The
bill alleges that the appropriation Of
this large sum of money out of the assets
Of the company was fragrant wrong, that
the stock purchased by Ragland and his as
sociates was not entitled to that or any
other sum more than had already been
paid upon it, and that the complainants
in the bill, who are stockholders in the
Petersburg and Weldon company, are ag-
grieved by such unlawful appropriation OF
the funds Of the company. The bill also
charges that Ragland and his associates
have, since their purchase Of majority Of
the stock of the road, or a controlling in-
terest therein, managed the affairs Of the
road in such reckless manner, and in such
total disregard of the rights of other
stockholders, and especially in the recent
consolidation of said road with the Rich
mond and Petersburg road. that they
ought not to be allowed TO have the
control of the road any longer, and the bill
therefore prays that Receiver be appoint
ed to take charge of the road and manage
the same. The bill also prays that Ragland
be enjoined from the further prosecution of
certain matters charged against him, and
especially that he and his associates, be
required to refund the said sum OF $500, 900
to the company. The board of public
works have also been made party, and it
is sought to restrain the state from transfer
ring any interest now held by it in the
stock bought by Ragland and associates.
The judge has fixed Friday, the 8th OF
August, for the hearing Of the application
for investigation and the appointment of a
Receiver. This application necessarily
brings for legal review all the actings and
doings Of Ragland and his associates from
the time of their purchase of the stock
held by the city Of Petersburg in said road,
unto the present date, including the recent
alleged purchase Of the Richmond and Pc
tersburg road. Another matter brought
prominently forward in the bill,
is loan of 100000 some
time ago authorized by the stock
holders ofthe Petersburg and Weldon road,
for the purpose of building a branch road
from Petersburg to City Point. The bill
charges that the proceeds Of said loan are
to be appropriated to other purposes than
that Of building a road to City Point, and
therefore prays that Ragland be enjoined
from negotiating sad bonds. The biil
calls for disclosure under oath
| from all the defendants as to the
facts charged in it, and for all other proper
relief in the premises.