The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-10-18
THE C. & O. r. r. CASE.
IsgpORTASr OPINION DELIVERED
atT By JUDGE BOND. ,,s t..f.,ss
Probability Of the Appointment Of
General Wickham as Receiver.

| CeEt21u QUIET 'DO2QQOlQeTS WaS UleQ a3EtBS
TO be made parties defendant. Ali these pc
tltlons were grantee. .gsas-----
| There were before .he court, counsel re
presenting S23, 3,00$90g of the securities O
the Chesapeake and Ohio railroadjj and tbeJ
| united in request te.the court to- substitute
| General Williams C.. Wikbam, Eiee-presi
dent Of the company, as receiver ~ place oi
MIR. Henry Tyson. Judge Bond took the
| papers, and, after due, consideration, deli.
Evered the following opinion:
Albert 2. Richards, e.! slS., Us. WiEaam b.
Duncan and Philo c. Calhoun, and the
Chesapeuhs and Ohio RaEIroad In. Cir
cult Court Of the United States for The
Eastern District Of HTgnia.
The bill in this case was fled by the CON.
pkanants to orec}ose msrtgsge given' By
the chesapeake and Ohio Railroad Company
to secure the payment of cerfain six per cent.
boEds Of the company Of which the conp-
pllitsants, With others, were she holders.
The defendants, Duncan & Calhoun. being
trustees named ill., the mortgage, were made
defendants in the bill, whics' asked an in.
Junction against the company, as well as the
trustees; to prevent any disposition of the
property mentioned in the mortgage, and
also that receiver be appointed to take pos
sion in the usual nannerin bills OF the kind.
The motion for receiver and irJuuction
was set for hearing at Richmond on the 22d
day of October, IS75, and notice thereof
served upon defendants.
The complainants in the mean time. fear
ing that the property OF said company would
be subjected in the various counties of the
State through which the road passes to eX-
Eecutions for debts due along the line of the
road, and to various parties, by petition filed
on the 9tb day Of october, 1875. asked the
court for the immeMate appointment Of
receiver to take possession of the road and
its property till after the hearing of the
motions above mentioned on the 22d day of
October.
Convinced of the pressing necessity Of the
case, as presented in the petition of com.
claimants, the court, by its order of the OH
of October, appointed Henry Tyson, who
was named to the court in the petition of
the comp!ainants, then the only parties be-
fore the court, as proper person to act as
the receiver.
And now come certain others Of the same
class of bondholders asking by petition that
they may be made parties to the bill of COM
pluint, and also come the trustees named in
the mortgage requesting that they may be
no longer defendants IN said bill, but that
they may become complainantS, and unite
with such of the cesaei que trusts as may
choose to become co-compIainants with them
iu carrying on this suit. I know of no rea-
son why the petition of the bondholder5 Of
like interest with the complanantS SHOULD
not be granted, and especially as it is ac-
euitsced in by the parties complainant and
defendant to the bii
Nor does there appear any reason why
the trustees in the mortgage should not,
as they request, occupy the place on the re-
cord they seek. with the consent also Of the
parties complainant.
This being done, however, and the interest
OF the new comphinants being shown to the
court by affidayits setting out the amount OF
the mortgage bonds held by each, which in
terest is greatly larger than that of the orfg-
nal complainapts to the bill, they ask the
court now to relieve the temporary receiver
of his trust and to appoint another of their
own selection. The temporary receiver ac-
uuiesces in the request, or, rather, makes no
objection thereto.
This motion Of the bondholders who have
lust appeared as plaintiffs that another re-
ceiyer be now appointed presuppoSes that q
receiver is necessary before the hearing OF
the motion for permanent receiver, liked
for the ODD Instant, and that the order OF the
court of the 9th OF October was Il necessary
order; for if there was no need o! tempo.
| rary receiver then, there is nothing shown
now 10 make such an appointment necessary.
Whilst the appointment OF receiver is d
matter in the discretion Of the court, the ne
cessity for which is 10 be determined by the
| fac.s shown in each. particular case, who
shall occupy that important and very re.
sponsble position is q question largely left
to the creditors themselves to settle. 1t is
their interest which is 10 be protected, aud
they are supposed to know who is best suit
ed. both .in point of ability and integrity, 10
have the charge Of it,
| Sonow while the court would not by It's
order remove Mr.. Tyson, already appointed
Ereceiyer, against whose competency and ln'
tegrity no one has offered a suggestion, upon
the mere statement of a preference on the
mart Of some of the creditors Of the road Tor
another person, yet where all the creditors
of record unite in request that anothel
person be appointed, TO which request tue
present receiver and all the parties nov OF re
cord either answer or make no objection, lit
I court would not refuse their request were i
not for the following considerations:
! The appointment Of O receiver at this time
l must eccssariy be that of a temporary re
iceiyer. The hearing of the praJer oi TN
bilhfor an Injunction and permanent receive
is set for the 22d Instant, and OF this all TO
creditors Of the road, through the publ
press, have been informed, and the partle
to the suit, or such as are entitled 10 becom
such, through the process of the court haV
the like information, and it would be an &C
I Ct gross injustice to all concerned who's
consent is not filed that permanent re
ceiver should be appointed when th
court has notified parties that that motto
would not be considered before the q
instant. E.,5 J..
And if now the court were to acquiesce !
the petition of the creditors here before i
and, constituting it to ask for the appolnsmer
4 of temporary receiver merely, were to az
point MIR. Wickham, as they do not repre-
sent all the mortgage-creditors, nor IN;
ljority of them, there is no certainty thS
other creditors for 4 larger amount mlgt
not tomorrow ask that for the few remair
ing days some person OF their cnolce misf
: hold the position OF temporary receives
SUCH course wou!d create great confusio
! among all persons who have dealings wit
.. the road, and would give great uDcer:aist
IN the proceedings OF the court. As tier
are but few days remalning before the re
i. yular hearing of the motion for permaner
receiver, l am OF opinion the court ougt
, TO give all the bon dhohers OF like iHleres
and indeed all persons having any interest
the suffice. matters OF the proceeding and
: the preservation OF The properly pledged, q
3euual chance 10 be hea-t.
Mean time the eearg hiss no hesitation
, saving to toe petitioners that Ms. Nickai
IS not at all Objectionable to ifs court, o'
, on the coasrary is, SO Tar as the cou.s es
Judge, bosn from these proceeaing IS ana iro