The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-11-01
UNEXPECTED DECISION.
MIR. TYSON MADE PERMANENT Re-
CEIvER OF THE C. AND o. II. n.
New officers Appointed by Him.

New Officers Appointed by Him.
In the United States Circuit Court, on Sa-
turday morning, Judges Bond and Hughes
sitting. Judge Bond rendered the following
decision ia the Chesapeake and Ohio railroad
case:
Richards ct ais. us. The Chesapeake and
Ohio Railroad In Equity:
The Court has considered with great care
the application Of the bondholders in this
case for the appointment of permanent re.
ceiVer therein Of their selection, and the
petition Of the Board Of Public Works OF
Virginia In opposition thereto.
The sole purpose of the appointment of a
| receiver Is to provide for the safety of the
property pending litigation. In this case
the property can only be secured from loss
by deterioration by its constant use. The
receiver, therefore, must not only be trust.
worthy, but he must be com petent to conduct
the business of the defendant.
The circumstances of this case show that
either by negligence or mismanagement
Of the road itself or in the conduct OF Its
financial affiirs it has been reduced to bank
ruptcy.
It's debt Is enormous, and whether this re-
suits from mismanagement or misfortune,
certain it is that none but the secured cred.
itors are likely to realize any dividend from
the proceeds OF sale Of the property of the
defendant.
Now the proposition is that the court re.
move its present receiver, and appoint an
other, who has all along been connected with
the present management Of the company,
and who is responsible in degree for the
present unfortunate bankrupt condition Of
the railroad, whether tnat condition be the
result Of misfortune or negligence.
1t seems to the Court to do this would be
| to decide now sn Linline that there had been
no mismanagement or negligence ia the past
conduct Of the affairs Of the defendant COM
pany, and that It's condition was the result
solely Of the depression in mercantile affIrs.
A receiver, while it is not necessary thathe
| should be antagonistic to the officers Of the
company, ought at least to be an Indifferent
person rs between the parties. The nnse-
cured creditors, though they mly have little
hope Of ultimate payment, ought to have the
full assurance that the affairs Of the road
will be administered by impartial hands,
and should be satisfied that if they get MOTH
ing it will be because there was nothing to
be gotten.
1t does not appear to give strength to the
application of the bondholders under the
first and second mortgages that these bonds
are now controlled or represented by the
parties who have managed the financial and
business affairs of the road heretofore; but
even were 1t the fact that they had iudividu.
ally selected the person named for receiver it
is, in the exercise Of the sound discretion OF
the Court, better for all parties that the ap-
poinlment of the present receiver be made
permanent. And we both concur, and shall
require the receiver to give additional secu-
riIy for the faithful performance of his trust
In the sum of one hundred thousand dollars.
This decision was received with conside.
rable astonshmeut by the large number Of
persons present.
Mr.. Macfarand, of New York, Immediately
moved, on behalf of the Plaintiffs, to file a
supplemental and amended oil, and his Pc
tition was granted, and until the first Mon.
day in December given him TO do so.
The order Of court continues Mr.. Tyson as
temporary receiver until be can qublify and
give bond as permanent receiver.
All the present orders in the case are in
terlocutory. The case will not mature for
bearing on the bill and answers, petitions
aud like proceedings until the regular term
in April next. The bill prays for a toreclo.
sure Of deeds, the settlement of all claims
upon the company, and also prays for the
temporary appointment of receiver. This
latter prayer has been complied With, and
the case will now go on at rules untitit ma
lures for hearing at the spring term of the
court.
Mr.. Tyson on Saturday appointed Captain
". NJ. S. Dunn, who has been engineer and
superintendent of transportation, general
manager of the railroad. General Williams
c. Wickham, who is vice.president Of the
company, will hereafter nave few or no du-
ties TO perform. Captain Dunn is well
known here as good railroad man, and is
popular gentleman.
There were rumors of other appointments,
but there was no truth in them. Mr.. Tyson
intima,ed on Saturday his purpose to retain
in place the present officers and employees OF
the company as far as consistent with the
economical and proper management Of the
railroad.