The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-12-03

| 2G7 500 of s per ecnt. bonds called 'intereSt
| Miller, December. 1909. to take up and
| extend coupons of the Virginia and Ten.
ncssCe road then due, ard secured by
deed of trust o~ hat road
13S.44l of S per cent. bonds issued IN December,
1873, by the consolidated company. In
| extension of The fine of paying certain
then about falling due. the unpaid cou-
l,onS standing rs 4 pledge for the security
OF those bonds Issued in their stead. which
will fall due JanalYlS79.
,a44 brl,ig rhc total amount OF the s0lIt. to
which thu pettion reScrs.
The allegations of the Estitionir@ trlis-
tees ART thaC 1.-THE holders OF Il large pro-
portion Of the said liabiitieSare wihi'g 10
extend the time for the payment OF the said
nrincipaf": and that "the interest 81 all
parties vii! he promoted b*an order OF
court authorizing and directing the rc-
ccNcrS to prepare and issue to such holders
OF said obligations a. arc or may hereafter
be willing 10. receive them - such cerSiti-
Gates. as are described in the lntltion. Ii
will he obserqcd that the extension contcrl-
plated is but y repetition OF Whaf, WIS dofc
during the detrndars company's regime on
frequent occasions, without objection from
any source. and TO the common advantage
OF alf parties Interested.
No objection is-masEe to the prayer Of the
Detitisn by anv class Of bondhol;iers, q
iarre number OF whom are represented to
be in favor OF Encouragement. The bond
holders are the only persons substantially
interc3ted in the proposal, and are gle class
who ere naturally most intelligent, alert,
and sensitive on size subject. The only OBJ
iectior comes from certain OF the trustees
OF mortgages resting on the divisional
roads. especially the trustees under She inst
and second mortgages OF the Norfolk and
Petersburg road. But the interest CT trus-
tees, liz such a question as this, is merely
nominal, and their powers but little more
than perfunctory. Under proper sense
OF the, responsibility OF their position it is
perfectly competent for them to nile formal
objections to the prayer OF the petition, and
submit the whole matter to the Judgment
and discretion Of the Court. This it was
no doubt their duty to do, and they have
performed that duty; but as the question
presented to the Court is more one Of in
terest and OF policy than Of law il the
bondEplders, who axe the persons really in
teres:ed in the proposal, consent and no
shareholder objects, the Court would be
slow 20 thwart the wishes OF the former at
the instance OF trustees having no aAbStan-
tiat interest. and WHO are but formal parties
to thGrecord.
81 any OF the. divisional boAdholders
desire to forbear inc collection OF the prlli-
cipaE OF their bonds. why should they be
required by theiE:truStees to foreelose? Il,
IN iorbearing. tkav desire q convenient and
usual process OF collecting the instalmentS
! OF interest due them to be provided, then,
| what right have their trustees to Object Ii
this. road were ia the hands OF accompany
there could be no doubt OF the right and
mower OF the company "a r'ght Which 1t
frequently eXerGised) to extend the time OF
having such hondholdcrs as were willing to
| forbear, and to devise 4 con ganient means
whereby such bondholders could collect
and make receipt for the sami-annrial in
terest falling and to fall due. And
| hut for the fact that this read is
in the hands OF receivers, who are
the servants OF the Court. and can do no
thing except by its authority. this petition
would be unnecessary. 1t has been pre-
scented out OF abundan: prudence, and its
praver is simply that the receivers may have
leave to adopt q convenient and usual
means of enabling those bondholders who
wish TO forbear the collection OF the princi.
nal due them to collect and give receipt
for the interest as it shall fall due. The
coupons proposed by the trustees are tc
cover selni-ann,ial instruments OF interest
for ten wears, with the proviso Ito be
embodied in them) that they are &c
he delivered up whenever they shal
he called in. either by the receiver:
mr. bv' anv company succeeding to them
in the control of the road. The bonahold
ers who apply for them will be bound to al
extension for ten years Of the time for de
handing the principal Of their bonds. Blu
the receivers and the company succeeding
10 them will be bound to no time OF eXter
sion ut all, and, indeed, nothing at all, ex
cent the payment OF such instruments o
interest as shall fall due while the coupon
certificates proposed shall be outstanding
No change of securities or OF the rights o
any party in interest can be affected by tn
nronosition in any degree, except only tina
tbe bondholders who choose will be allowed
TO relinuuish for time their right to tn
immediate payment Of the principal OF thei
bonds.
norties. except such as those bondholder
who choose may voluntarily submit TO, th
only question for the consideration OF tn
Court is whether it is for tie interest OF al
concerned to permit the transaction pro
posed. The effect OF the transaction WI
!, be to satisfy those bondholders who have
, present right to the immediate foreclosur
of certain divisional mortgages restini
, upon parts OF the line OF the Atlantic, Mis
sissippi and Ohio road by separate SAFE 0
, those divisional roads. BY satisfying thet
the Court will diminish, ana, lrust, re
|: move, the danger OF separate safes OF part I
:. of the line, and prepare the way ior sai
OF the road as an entirety. Inc court iee'
: bound to employ every means IN its po"e
and within the scope OF It's luilsa!ction
prevent any disintegration OF the line.
It's custody Of the road has not so iar pee
preiudicial to any interest CONNECTED VIII
#. Leaving out of view such injury as ma
have been caused by the floods OF the las
week. the road is ia better condition tina
, ever before, while the floating debt left b
the company has been diminished. Durin
the custody and management OF its r.
aa;z-a.., 4la hnnds saclIred unOn the div