The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-10-12
MATTERS OF MOMENT.
NEW FEATURES IN c. d o. r. n. CASE
AN ATTACK MADE ON THE MORT
GAGE BONDS OF TIE OLD
CENTRAL ROAD. ~.
tNTERpLEADEs OF A TRUs TEE.
PROCEEDINGS OF RECEIVER TYSON.

From an examination of the petition upon
| which Judge Bond appointed MIR. Henry Ty-
son receiver of the Chesapeake and Ohio
railroad it appears that in addition 10 charg-
ing that the property liable to the first.mort-
gage bondhoiders was being seizsd and of.
fered for sale 10 satisfy demands of subordi-
nate creditors, the complainants make the
following important statement:
And your petitioners also show that 1t is
claimed by certain persons in the State of
Virginia that bonds held by them and issued
by Z defunct corporation kaown as tie VIr.
giDa Central Railroad Company are first
and paramount lien on the largest and most
valuable portion of the road and line of the
Chesapeake and Ohio Railroad Company
and your petitioners are Informed, and verify
believe, that since the default of the Chesa-
peake and Ohio Railroad Company in the
payment Of its Interest some of the bolders
Of said bonds, cliimiDg to act under power
in some mortgage, have offered the said pro-
perty, mortgaged to your petitioners, for
sale as under first mortgage thereof.
And your petitioners aver that the bonds
which they purchased and the mortgage
under which they hold distinctly confer upon
them first, paramount, and absolute lien on
the property therein described, and it is a
matter of great surprise to your petitioners
to learn Of any ostensble lien on said pro.
perty claiming TO be superior to their OVID.
And your petitioners are greatly appre-
hcnsive that some Of the bondbolders under
said Virginia Central mortgage will enter
upon, under q power claimed by them, or
sell, as aforesaid, portions Of The property
embraced in your petitioners mortgage.
And your petitioners further show that the
railroad line and system Of sad Chesapeake
and Ohio Railroad Company exists as an en-
tirety and is operated as an entirety, ard
that the detaching OF any important portion
thereof would render the rest of the line
useless for profitable business, aud that the
action Of any single eXecution-creditor
would seriously embarass the working Of the
entire line.
And your petitioners, therefore, also aver
and show that it is necessary, in the interest
of the creditors as we'll as Of all parties in
terested in said Chesapeake and OHIO Rail
road Company, that Il receiver should be
promptly placed in possession of said line,
and thereby, under the sanction CT the court,
protect the said property from the acts here
inbefore described, and preserve the same fer
the benefit Of all the equitable interests
therein.
And your petitioners also show that it is
necessary for the safety Of the mortgage
bonlholders of said Chesapeake and Ohio
Railroad Company that receiver, when ap-
pointed, should baye sufficient time TO eX-
anime the accounts and the property OF said
company, aud particularly in reference to
said Virginia Central Railroad Company, and
to report to this court before the hearing of
the intcrlocutory motions set down for hear
ing before the court !; and that for said pur-
Dnuoc ba boaripp of cail inf orlooptorC mn.
tions should be set down for some future
date, when the same can be heard after the
coming iu Of the receivers report herein.
Wherefore your petitioners pray that a
suitable receiver may be appointed, &c.
1NTERpLEADEE CT TRUSTEE.
On Yesterday Mr.. Joseph Lane Sterne filed |
the following in the United S ates Circuit |
Court, and it was declared by Judge Bond |
to be an important paper:
To the Hon. Hugh L. Bond. Judge of the |
Circait Court of The United States for the |
Circuit Of Virginia:
Complaining, showeth unto the Court your |
orator, James Lyons. that on the I'd day OF
June, in the year 1854, the Virginia Central |
Railroad Company, corporation then exist
ing by law in Virginia, baTing authority TO
raise money by the sale Of its bonds, and TO
make conYeyanccs by deed OF trust convey
ins all its property TO secure the payment OF
them, under that au' 'hOrty did on the 9th /
day of April, 1854, resolve to raise 81 800 ,OGO |
by sale Of the company's bonds for that |
amount but on the 2G!h day Of May, 1854, |
the said company, by its president and dl- !
rectorS, determined to raise 81 600, 600 only. |
and on the ID day Of June thereafter the said |
company, by deed of trust duly made ani |
recorded according to law. conveyed TO Hugh |
W. Fry, William II. Maciar!aId. and james |
Lyons, your orator, sits railroad, lands, |
det OTIS, engines, cars, and ull their other pro- |
perty used in the business Of the said road," III
trust to secure the pay meut Of the said bonds, |
amounting TO S1,000.000, a copy OF which |
deed is herewith exhibited, marked "a,
and prayed to be taken as part of this bill.
Ancrwards-to wit, on the - day OF -
49,, the Virginia Central Railroad Company |
was authorized by act of Assembly, upon the |
conditions specified in the said act, to take the
pame of the Chesapeake and Ohio Railroad
Company. 1t did assume that name, ana
under the authority granted to the SAID
Chesapeake and Ohio Railroad Company
borrowed large sums OF money ard eXecu'
ted mortgages or deeds of trust to secure the
paymeut OF them. One of them, Jour ora.
trust, he does not know which, having never
seen it, bearing date January 15, 1870, was
executed, conveying the said road to Wllllsm
Butler Duncan and Philo G. Calhoun TO Sc
cure the payment of Sl5 .00O, 900 to the held
ers, whoever they might he, OF the bonds OF
the company and subsequently executed
another mortgage or deed OF trust to the sald
Philo c. Calhoun and William K. Kitchen to
secure other Indebtedness Of the said com.
puny. as your orator is Informed and he has
been informed by the public newspapers
that on the 5th day Of the present month
q bill was exhibited in this honorable court by
Albert +. Richards, and Char lotte A. Clarke,
and Morris Loweuiball against the SAID
Chesape and Ohio Railroad Company and
the trustees aforesaid, praying for fore
closure of the second and third mortgages
or deeds of trust, as they may be, and lor the
appointment Of receiver Tor ai! tbe proper
ty and receipts OF the company, and 40 craer
has been made appointing Henry Tyson the
receiver TO take charge oil the same. Your
orator now represents that The said Fry am
Aacfarlard have departed this life, and ne
is the sole surviving trustee 10 the deeu OF
June 3, 1854; that the debt secured by that
deed of trust. amoun.ing to q million Of dol
lars, is unpaid that the principal sum is not
due and payable for thirty years from the
said Cd day of June, 1854, hut there is muca
interest due upon il; that the deed OF trust 10
him being lopg prior in point OF time TO tEose
last mentioned, and having been Gully re-
corded according to law, is prior 70 tnenl
alSo in right and obligation; that the clalm-
ants under The two subsequent deeds OF truss
took with know ledge Of those claims ana Ia
snhor,lin1tiou TO then, and ean have no right
sunerior 10 them, and your orator IS advssa
that tney have no r,gh! to the custody ana
nossession of The property conveyed 10y .ne
first deed. or TO interfere WIFE she
ms. as,. ,t tho road which are