The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-12-04
G.. OVER HILL COMP-tNyY.. !.
Serious Financial Embarrassments.
RECEIVER AprerSrED BY soUKT.
FoREcLosE OF MORTGAGES ASKED.
CoxDrssoS OF AFFAllEsss. y A i 9 !.

large bHsfuess in Chesterfield county 10
mining coal and transporting it to Osborne's
aud to Richmond and Petersburg, has pc:
come very much embarrassed. DO complatSt
of Messrs. Ould & Carringtos, representiog
Messrs. R. ,A.qLancasteS, Mason lou1g, ana''
I. e. Darlington, trustees under certain
mortgages, and after considering the answer
thereto OF the board OF, directors, Judge
Fl.zhugh, of the ,Chancsry Court OF KEN
H,oud, has appointeda receiver OF the conn
pauy, and referred The company's affairs 70
commissioners for report
The complainants set forth In teeir
bill that the defendant, the Clover Hlil
.Raiiroad Company, Is a corporation creased
by and eyistiBg under an aee OF the Le.
eislature of The State Of Virgins, &c; that
She said corporatsop, defendant, has It's princi.
nal Office In the city OF Richmond, aud has
for many ,years owned aud operated. and
still owns and operates, railroad running
from the Clover Hill pits, in the county OF
Chesterfield, to place known as Osborne's,
on James river, in said county, and the said
corporation also own large tracts OF coal.
lands and mining rights in lands, and lease
hold interests in coaE-lands, all in said county
of Chesterfield, and is and has for many
years engaged in mining and selling the coal
of said lands; that on the 1st day OF June,
1866, the company executed and delivered
deed or trust Called the old mortgage to
Wellington Goddin and L. Nunnaily. con-
yeyipg to them its lands snd other property
to secure the payment Of one hundred and
eighty of its bonds OF $1,000 each, bearing
date June 1, 1866. and the coupons for inter-
est: that on the 25th OF June, 1871, the cor
poration executed and delivered deed con-
veying to B. A. Lancaster certain property
described in the deed to secure the payment
OF two hundred and seventy five OF It's bonds
tor 81, 900 each, bearing date Goth June. 1871,
known as first mortgage; on the 18th: Of
February. 1874. the company executed .
deed to the complainants Lancaster and
Young to secure payment OF fifty OF its Sec
ond mortgage bonds for 81 900 each; on the
1st day of August, 1919, the company exc
cuted deed to Isaac H. Darlington convey
ing the rolling stock, &C., to secure the pay
ment Of forty Of its equipment bonds for $a0o
each, all of which we're duly aud properly
recorded in. the County Court OF Chester
field; that the whole principal sum OF the
first mortgage bonds Is now, under the terms
Of the mortgage, due and payable: that toe
defendants have failed to pay the interest on
the second mortgage bonds due in Septem.
Der, 1875; that by the second mortgage the
cQrDOTdIlOu CUNGuuELCtss W1t6 kA0bSaStCA obe
Young as trustees that in order to provide
for the redemption OF the bonds secured by
said mortgage the company would on the 1st
of Nav in each year, beginning with 1875,
and until 1888, pay the trustees one half per
cent. of the gross receipts of the company,
and If default should be made, then the
whole amount secured By the bonds should
Immediately upon the expiration Of sixty
days become due and payable that the said
CORPORATION has made default In this particu-
lar and refuses to make such payment; that
they have failed to pay the interest on
equipment bonds; that the corpora
tion Is indebted to the State of Vir-
ginia for $4,000 for taxes; and that
other Indebtedness represented by notes
which have matured have been protested;
that the holders of a large amount OF
first and second mortgage aud equipment
bonds have requested the complainant .Lan-
caster to sell the property covered by the
deeds, but the complainants have declined
to make such sales, and owing to the number
Of liens of different priorities upon the pro-
perty proper distribution of the proceeds
could not be made among the parties entitled
to share therein that pending advertise
ment of sale property Of the company may
be seized, &C., that the railroad aud mines
will be seriously damaged unless the road Is
kept in operation and work at the mines
continued; that the said corporation en-
ploFs about four hundred persons; that by
reason of the failure to pay the wages Of
these employ e,, according TO the obligations,
they bave threatened to leave the service OF
the company, thus exposing the property,
&c. s,e
The camplainants are advised that they
are entitled to have the premises conveyed
by the deeds of trust known as the frst, Sc
cond, and equipment mortgage foreclosed
and sold according to the usual practice. 10
have said premises sold at such time ana Ia
such manner and under such direction 10 re-
apect to the disposition OF the proceeds as
will fully protect The interest of the COM
plainants aud of their cestuis que trust, and
that receiver should be appointed in this
action. <ss ,n' '1 4
ORDER OF COURT.
Judge ,Fitzhugb, after receiving the an!
swer of defendants, made an order In sub
stance as follows: 1E.= " 80
And it appearing that the three deeds of
trust mentioned in the bill were duly de.
liyered and recorded, and are valid instIu.,
ments according to their purport, and that
bonds have been issued Hereunder, which
are outstanding, and that default has been
nade hy tho Clover Hill Railroad Comnanv
70 ,ha ~ avment of nterest an said honds and
in the the ms pnaymsnt 10 the fund for redemption
nrovided for in said deed of trust of Febru-
ary 81 1874. all as in the bin Of complafn-
ants alleged: and the said three deeds Of
tr,,st are liens upon the property, inter-
ests, franchises, and rights of said
COMPANY according to the purport of said
deeds: and il being admitted In the
answer of the defendant, the Clover Hill
Railroad Company, that the plaintiffs have
shown sufficient grounds in their Bill for the