Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1878-08-01
MORE RAILROAD LITIGATION.


MORE RAILROAD LITIGATION.
On the petition of DR.. A. II. Davega, late
President of the Chester and Lenoir Railroad
Company, Judge Mackey has issued rule to
the Company, requiring them to show cause
why receiver should not be appointed to
administer the affairs of the Company, and
has also granted restraining order tempo.
rarily enjoining the Company from applying
the receipts of the road, except for operating
expenses.
In his complaint, the late President of the
road alleges that in order to obtain possession
of the road between Dallas and Yorkville,
after being finished by the contractors, it was
necessary to borrow sum of money with
which to pay the said contractors; that to
meet this emergency, the Directors of the
Company, on the 9th of June, 1876, duly
passed, at meeting, the following resolution
"Resotued, That the Treasurer of the Company
be, and is hereby authorized to borrow the sum
of six thousand dollars, in such sums as he can
obtain, at rate Of interest not exceeding ten per
cent. per annum, payable on the first day OF jan
uary next, and the note or notes Of the Company
be executed for the amount so loaned"
That the plaintiff, with Charles S. Brice,
James F. Hart and HenniDg F. Adickes
loaned to the company $1,000 as provided in
said resolution, and took the notes of the Com.
pany for the said sum Of money, in the pay
ment of which, when the same fell due, the
said Company made default, and the plain
tiff and James F. Hart and H. F. Adickes,
&C.. S. Brice having departed this life,) at the
June term last past of the Court Of Common
Pleas for York county, obtained judgment
against the Company for $s,294.S5 upon
which execution was duly ISSUED. That on
the said 9th of June, 1875, the said Board Of
Directors, at its said meeting also passed the
following resolution:
"That to secure the payment of said note or
notes, at maturity, the net receipts Of the road
from freights, passengers and mails, accruing
and received on and after the lat day of October
next, directed to be set apart in the hands OF
the treasurer, and are hereby pledged f'r the
payment of said loan."
DR.. Davega AYERS that the said judgment
of the plaintiffs is unsatis6ed /; that the Com
pany has mortgage debt Of 100000 and a
floating debt of about $4,000, is wholly in
solvent, &C., and prays that the net earnings
and receipts of the road be set apart for the
payment of said judgment, in conformity with
said resolution; that receiver be appointed
to take charge of the said road and all its
property, to operate the road, and after pay
ing the running expenses of the same, to ap.
ply the net earnings and receipts to the pay.
ment of said judgment.
The greater part of the amount involved
was loaned by Beatty and McCorkle, execu.
tors of the Blair estate, who, having obtained
judgment against the makers Of the note, the
makers in turn obtained judgment against
the Company, and it is the payment of this
latter judgment that DR.. Davega is demand
ing.
Such, in brief, are the grounds upon which
the late President of the Company founds
his complaint. He is one of four gentlemen
who gave their joint note for the amount in
volved, and afterwards loaned it to the Ches-
ter and Lenoir Railroad Company, as set
forth above. That he and his CO creditors in
this transaction should be paid, none will de-
ny. That they could and would be paid at
as early date without the appointing of y
receiver to supercede the President who su'
perceded DR.. Davega in the control of the
road, is fact equally patent. 1t cannot be
denied that the road is now under more eco
nomical management than it has been since
the incorporation of the Company. No un.
prejudiced person doubts the financial ability
of the present chief head of the Company, and
that if given time and let alone to conduct
its affairs. the present President and Direct
ors feel that they can successfully meet the
obligations of the Company. We further
have authority for saying it has been their
intention, so far as practicable, to make the
debt in question one of the preferred debts
of the Company.
The cause will be argued before Judge
Mackey, at Chester, one day next week.