The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-03-15

Court, and the representatives Of the press,
the members of the bar, and all Others feel
ing interest thereic, were permitted to ex-
anime the papers fled against General Ma
homes railroad company.
The orators-Francis Skiddy, William
Butler Duncan, and Samuel L. N. Barlow,
of the city, county, and State Of New York
represent in their lengthy bill of complaint
that on the OH day Of September, 1871, the
Atlantic, Mississippi and Ohio Company
executed mortgage upon its line Of rail-
road property and franchises for Sl5,000,000
TO secure the bonds Of said company to be
ISSUED for the purpose Of raising money for
the use and benefit OF the company; that on
the Oh September, 1871, the said company
executed and delivered to the orators its in
denture and deed of trust and mortgage,
wherein the company conveyed to the ora
tors tor the trusts described the right, title,
and interest Of said company-the true intent
Of the said indenture being to vest all the
propcrty and all The corporate powers in the
orators.
AMONG OTHER THINGS
1t was provided that the premises aforesaid
were conveyed to the orators to secure the
bonds of the said company to the amount Of
$4,000, 900. Of 81 200 each, payable in gold
coin of the Uniled States thirty.three years
from date, with interest coupons attached
for the payment of interest thereon semi.
annually at the rate OF seven per cent. in
gold coin. 1t was provided in the said in
denture that il default should be made in
the payment Of any Of the interest coupons
on the demand of the bona fde holders of
said coupons representing at least one tifth
| of the bonds secured by the said indenture,
and within nipe,y days after the said de-
mand, the orators, trustees as aforesaid,
should enter upon the mortgaged premises
aud take possession thereof, receive the rents,
tolls, and income thereof, and apply the
same as therein provided, and might proceed
to sell after certain notice. Aud it was fur
ther provided that
IN CASE OF DRFAULT
in the payment of such bonds at maturity,
and the continuance thereof for the period
cf ninety days, and upon the demand of the
holders Of Que FIFTH in amount of the said
bonds remaining due at the time, then if re-
quired by the bona Jfae holders of the one
fifth the orators should enter upon the
premises aud take possession Of the entire
properly, and proceed by their duly appoint
| ed agents to conduct the business Of the
| same and pay otf interest and principal. or,
| ia their discretion, sell the premises. That
pany sold bonds to the amount of Sj,4I0, 900.
Five and one-hslf million dollars addi-
| tional of bond, were issued by the company
| TO be exchanged by the trustees for certain
prior mortgage bonds. No such exchange
has been made, and the bonds are under the
| trustees control, and constitute no lien upon
| the mortgsged premises.
F0ar thousand additional of the said
bonds Were created for the purpose OF rails
! ing means for the extension Of the road
| from Bristol to the
CUMBERLAND GAP.
The orators (the trustees) are informed
| that none Of these bonds have been disposed
| Of, and that they do not constitute lien
| upon the mortgaged premises. The orators
| have no Information touching the p oasession
and custody of the said bonds at This time,
and are advised that for their better protec-
| tion and for the protection Of their ces*Ni
| que tra.a,S the said company ought to be re-
| strained and enioined from issuing or nego-
tiating any part of the 100000 Of bonds,
or any other portion Of the said Sl5, ,0o0Q00
! remaining unisSued.
The said company continued to pay inter-.
est Us itbecame due TO and inclusive of the
| 1St of April, 1874, on the said $40 bonds so
issued The
| COMPANY AaADE DEFAULT
| in the payment of interest on the 1st Of 0c.
| tober, 1874, subsequently it paid one half of
the interest which became due on the 1st of
| October, lSE4, and one half of tine interest
which 5ecame,due on the lst of April, 1873.
1t has paid no interest since the date last
| mentioned.
| The orators are informed aud believe thst
when and as The interest aforesaid became
| due and payable according to the tenor Of
| the said bonds, payment thereof was duly
demanded by the holders respectively of in.
terest warrants or coupons; and that If In
any case formal 'demsnd was omitted, such
omission wasin pursuance OF notice on the
part of said company that such interest
would not be paid; that payment was re-
| fused by the said company and its agents.
| that public notice was given of the inability
Of the SAID company to make such payment,
and that
| EAaIoUs>NRGoTIATIoNs
have FROM time to time been had between
the said company, its agents, and the bold
crs of such bonds and coupons, to the end Of
inducing sOch hd.ders to forbear proceedings
10 enforce the mortgage security therefor and
70 grant time and!ndulgence to the said com.
rany for the payment thereof. All of which
negotiations have failed, though the bond
hSlders have hitherto voluntarily foreborne
to enforce uafe smor1gage, relying upon the
| assurance OF the said company and its agents
| that it would fay add discharge the interest !;
| but the said company. notwithstanding its
promises and assurances in this, behalf, has
RAlLEDioo PAY,
and Is the orators are informed aad believe
that the company cones des and aGmits that
IL is unable 10 pay the interest SO due and
unpaid, and which amoEnts in the aggregate
to a large sum-t0 wit: the sum ofS700,0 600
or nore,-aud that the >seid company, being
unable to pay the said s!nterest, has endea-
vored to induce the holders OF suck bonds
and coupons to fund the same and tsorego
payment &aereof for series Of years, w hich
said bond.,and soupoxs-hoieers have refused
TO do.
The trustees represent thSt there sre Eens
on the roads which existed before consGEda-
dion which asxount to s5,#9sO05.11. Fsey
pray that the order of these liens oe aseer.
lMned, and tina. they have leaRs to make tde
holders of the liens defendant bereto, If they
shaSi be advised chat il Is proper or necessary
10 do so. ana
As
THE sTATR OF VIRGINI& |
has sotne interest in the loortgagea promises,
they psay that such order and decree may be |
made in respect thereof as may be just and /
lawful. " .r
The trustees represent that tbere are un-
secured debts amounting 10 $1,000 ,0eO, and
in addition the company is indebted TO its