The New York herald., 1875-10-31
CHESAPEAKE AND ONO RAILROAD
APPLICATION or SECURED CREDITORS ron THE
APPOINTMENT or NEW RECEIVER DENIED
THE PRESENT INcUMBENcY MADE PERMANENT.

APPLICATION OF SECURED CREDITORS FOB TIE
APPOINTMENT or NEW RECEIVER DENIED
THE PRESENT 1NcUMBENcY MADE PERMANENT.
RICHMOND, va, oct. 80, 1875.
fnal decision was rendered to-day BY Judge Bond,
OF the United States Circuit Court judge Hughes OF
the District concurring, in the Chesapeake and Ohio
Railroad case This decision was upon the applica-
ton or the holders OF s23 Of bonds Of the road
asking the appointment Of General William G Wick
ham, the Vice President, permanent receiver and,
upon the application OF the State Board Of Public
Works, asking the appointment Of Isaac II Darlington
as receiver. The Court in a previous order had ap-
pointed Henry Tyson Of Baltimore temporary
ceiver, and by the decision to-day that gentleman is
made the permanent receiver of the road The Judges
give the following reasons for this aoton:-
The sole purpose OF the appointment Of receiver is
20 provide for the safety Of the property pending tga
uon In this case the property can only be secured
from loss BY deterioration by It's constant use The re-
ceiyer therefore, must not only be trustworthy but he
must be competent conduct the business Of tine de-
fendant The circumstances OF this case show that,
either by negligence or uismanapement of the road
itsefo in the conduct Of its financial affairs II has been
reduced TO bankruptcy Its debt Is enormous and
whether this results from msmanagement or misior-
certain II is that but the secured creditors
are likely 20 realize any dividend from the proceeds Of
sale OF the property OF the defendant Now,
its present receiver and appoint another who
has all along been connected with the
present management Of the company, and who is re-
ponsble Ia degree for the present unfortunate bank
rupt condition Of the railroad whether that condition
be the result Of misfortune negligence II seems to
the Court 10 do this would be to decide now that there
had been no mismanagement negligence in the past
conduct Of the affairs Of the defendant company. and
that its condition was the result solely Of the dcpres-
sion In mercantile affairs, A receiver, while IT Is not
necessary that he should be antagonstc to the officers
OF the company ought at least TO DO an Indifferent per,
son as between the parties The unsecured
creditors, though they may have little hope
OF ultimate payment, ought TO nave the
full assurance that the affairs of the road
will be administered by impartial hands, and
should be satisfied that If they get nothing it will be
because there nothing to be got II does not
appear to give strength the application of the bond
holders, under the first and second mortgages, that
these bonds controlled represented by the
parties who have managed the financial and business af
fairs the road heretofore But the fact that
they had individually selected the person named for re-
cever is in the exercise Of the sound discretion of
the Court better for all parties that the appointment of
the present receiver be made permanent and we both
and shall require the receiver to give additional
security for the faithful performance OF his trust in the
sum Of s1oo GOO