The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-10-06
AN IMPORTANT SUIT.
FIRST T-MORTGAGE BONDHOEDE Rs
vs.. a.. Il O. X. u. COMPANY.
MOTION FOR THE APPOINTN .ENT
OF A RECEIVER.
INJUNCTION GRANTED PLAIN" iIFFs.

INJUNCTION GRANTED PLAIN fIFFS.
Albert +. Richards, Charlotte A. Clark, and
Morris Lowenthsl, Of the State OF New York,
bnIders of some Of the $1,000 G, 600 gold
(first-mortgage) bonds OF the Che sapcake and
Ohio Railroad Company, yeste' ;day filed in
the United States Circuit Court bill of com.
nlaint detailing their grievance IS and praying
the court TO cause forecoSu 'e of the mort
gage which secures their bont IL, and to order
the sale OF the road and franc hises to pay the
sums due them and other who may join
them in the suit.
The papers in this case are very volumi-
nous. and, as usual, full of legal phrases. 1t,
however, appears that he three plaintiffs
complain against the G. oesapeakc and Ohio
Railroad Company and William Butler Dun
can and Pho {. CaIhol IN, trustees under the
first mortgage, and milo G.. Calhoun and
William Il. kitche a, trustees under a
second mortgage. ] hey relate the crcum.
stances connected eith the issue Of the
sl5,OO0,O0 (tirsp mortgage bonds, and
claim that the prope rty. rents, incomes. and
franchises Of the &C mpauy were in 1870 con-
reyed to said Dur can and Calhoun in trust
10 secure the payr cent Of interest and prin-
cipal Of same, and that the company
has failed to pay interest on any
Of the said bono S which fell due 1St Of No
yember, 1878. or have fallen due since.
Plaintiffs are be ma fde owners Of upwards OF
SI20,0 900 Of sal bonds, on which the inter-
est hiss not be en- paid, though duly demand
ed and the interest due them far exceeds
$500 They have applied to the trustees to
torcclose the mortgage, and the trustees have
failed and refused 10 institute proceedings
therefor, nd Duncan is now insolVent.
Further, there is a second mortgage to
Kitchen nd Calhoun, and otherwise the COM
pany is argely Indebted.
The c',mpainauts 60 on to state that "tbe
| said Ch esa peake and Ohio railroad is greatly
| embarrassed in its business and affairs. and
is. in fact, utterly in>olvent and unable 10
nav it's debts and meet its engagements.
"Apd YOUR orators further show that III ma
nv the mortgage herenbciore described, ana
lin addition to other property therein con-
yeycd to secure the holders Of the bonds
aforesaid. the tolls, rents, incomes, ISSUES,
and profits Of said property, ana oil the rail-
road last hereinbeiore described, were mort.
gagged and pledged to secure the payment OF
the interest and principal of the bonds atore'
said.
!. "And YOUR orators further show that ever
since the failure of the said company TO pay
the interest upon the bonds aforesaid, the
tolls and income Of the said company, and ol
the railroad above described. have exceeded
the expenses OF operating the same, anu large
sums OF money, amounting 10 seferal nun
dred thousands Of dollars, have accrued a.
net profits from the income and tolls Oh sa'o
railroad, but the said tolls and income nave
not been applied to the payment OF Inc ID
terest, or any part thereof, upon the
bonds aforesaid, but, on the contrary
are being applied by the said company
10 other PURPOSES, and will continue TO bt
Improperly applied unless this honorable
court ,ntervenes in the premises for the pro
lection of the holders Of said bonds; and by
reason of the said failure properly TO apply
tie income aud tolls OF said railroad TO inc
Il security 50 pledged and mortgaged for the
payment of the interest and principal OF salC
bonds is greatly in danger Of being lost, &c
the injury and prejudice of the holders o
The SAID bonds and coupons secured by Inc
said mortgage.
And your orators further show unto
yOur YOUR HoporS and charge that all Oh salo
nroperty so conveyed to w. B. Duncan and
i. c. Calhoun in trust for the holders o.
the bonds hereinbe!ore described. rs wei
that which was acquired by said company
before the execution Of said mortgage, ano
also such as mas been since acquired Dy SalC
company, together with AL corporate rlSn's
privileges, and franchises OF SAID company
and the tolls, rents, incomes, ISSUES, ant
profits OF said company, and Of the raiiroaC
above mentioned, are held and bound by sliC
mortgage as security for the payment of th'
bonds and coupons above described and re
naming unpaid as aforesaid, and the!
have priority over every other claim and
demand whatsoever and your orators
likewise show that they arc totally re
NEEDLESS in the premises at law WIN
ont the intervention and process G
cosrt of equity; in consideration Where
of your orators pray process oil suoPUn,
against the said Chesapeake and ONO rail
road, commanding and requiring 1t 10 ap
=, pear and answer your orators bill OF com
plaint as fully and particularly as If it wa;
thereunto specially interrogated. And as tt
sucb of the defendants who may be out o.
the jurisdiction Of this court, your orators
pray that process may be issued to MAKE
them parties if they should come within
: such Jurisdiction, or that if they should no
come within such jurisdiction may be hearc
in regard to such defendants by pubcatlor
or otherwise, as may be authorized by anC
be according to the forms OF the statutes IL
such case made and provided.
"And until The final bearing OF the cause
can be had, and said mortgaged premises may
+ be sold and disposed OF, and in the mean
time be preserved and taken care OF, and salC
railroad operated and the business OF salo
company prosecuted and carried on to tht
best advantage and for the benefit OF Inc
holders Of the bonds secured by the mort
gage above described, and the income ano
tolls OF said railroad applied according TO tht
terms Of sid mortgage, your orators pray
that your honorable court appoint receiver
with such powers as may be adequate lol
said purpose.
"Ard YOUR orators pray your Honors tc
make such interlocutory and final orders anc
| orders of injunction and decreeS as may bt
, necessary TO keep and sustain said railroad
and It's appurtenances in proper repair, or
/ der, and condition for use, and 10 have tht
same used, operate ed, and carried on until Il
can be sold and disposed of, and IN the
mean time the incomes and profits thereo
I paid, appropriated, and applied according tC
The mortgage hcreinbefore described. arc
10 that end-that the aforesaid estate
may be preserved substantially in lt'
present situation - that an injunction
, NAV issue out Of and under the sea
/! of this court epjoiniug and restraining tht
!. defendant, the Chesapeake and ONO Rail
road Company, from transferring, surien
!; dcrirg, or disposing of any of the property
esabraced in the aforesaid mortgage, or The
possession of any of said property, except IL
and for The proper, ordinary, and usual pur
poses of the business OF transportation, anC
en;oining the said defendants, Kitchen, Dun
can, :l.au Calhoun, from taking possession OF
or entering upon, either by Judicial process
or under any power or otherwise. anu IRON