The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-11-16
LOCAL MATTERS.

LEGAL PROCEEDINGS AGAINST THE JAMES
RIVER AND KANAwHA CANAL CoAPANY-AP-
PLlCATI0N FOR APPOINTMENT OF RECEIVER.
Messrs. James NJ. Spilier, j. NJ. Walker,
and John b. Robertson have filed petition
in the Circuit Court Of the city of Richmond
asking that the Court take the property Of
the James River and kanawha Canal Com
pany un der its control, and appoint re-
ceiver therefor. The petitioners (who re-
present that they are bondholdeIs), after
stating the facts upon which they rely,
charge:
I. That under the existing management
Of the property and affairs Of the James
River and Kanawha Company, which has
controlled its business for many years past,
the said company has become insolyent.
II. That under said management the cred
itors of said company have already suffered
great injury, and are in danger OF suffering
still greater losses. ...>.,. ...r., .-
III. That the management aforesaid has
burdened the treasury OF the company with
the needless and large expense of supernu.
merary officers, who have rendered no val
liable service; and that $4,000 per annum
has been lost to the company by the en-
ployment OF said supernumerary officials. .
". That said company has made default
in the payment Of interest on both Of its
said mortgage debts to such an extent as
entities the bondholders to demand fore
closure Of said mortgages.
Y. That the present management OF said
company has committed serious breaches OF
the trust created by said deeds Of trust, in
failing to apply and distribute the revenues
OF the company towards paying the interest
upon said mortgage debts according to
their relative priorities and legal dignity, in
applying such revenues, to large extent
arbitrarily, to pay in some instances debts
of inferior dignity in derogation OF those
standing upon higher legal right to satis-
faction, and in paying accrued interest in
full to some creditors, and failing to pay
others in the same class who were demand
ing payment, and that your orators have
suffered this injury at the hands OF said
management.
VI. That the said company has committed
q breach OF trust in assigning to the city OF
Lynchburg the yearly rents Of water-power
at said city as a security for the loan OF
So. 900 Of the bonds Of said city, said rents
being legally and justly applicable only to
the accruing interest on said frst-mortgage
bonds. r.j.' -..
VII. That the financial condition Of said
company, having already become one OF abb
solute insolvency, is steadily growing worse
and beyond its revenues, and that the trust
property is steadily depreciating in value.
VIII. That the said company is preparing
to ALLEVIATE and transfer to another corpora
ton the valuable works, property, rights-of-
way, and franchises Of the company upon
the line OF the location for the extension Of
its canal beyon Buchanan, in fragrant vio-
lation OF the vested rights OF your orators
and other holders OF the first and second
mortgage bonds aforesaid, for whose bene-
fits the said subjects OF property were con-
veyed by said deeds OF trust
TX. That the present management OF the
company is spending its revenues i'll fur
therance OF the schemes and enterprises
of other corporations, which expenditures
are illegal and have no reasonable promise
Of returning any benefit to said company.
Marve & Fitzhugh and John B. Robert
son are counsel for comDlainantS.