The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-09-19

ByLrMoRE, September 1s.-In the South
Carolina railroad case to-day Judge Bond
rendered his decision in favor ot the COM
planants for the appointment Of re-
cciyer. There can be no question that the
defendant company is insolvent. 1t has
mortgagcd all its property twice, and now
lnbors under mortgage debt OF near six
million dollars. and fiually has made an
assignmentto the Syndicate otthe directors
of tho road of all bills receivable and avail
able assets 10 secure the payment OF a loan
Of two million dollars. It's Insolvency is
apparent. The necessity OF q receiver APP
pears from the fact that the road has
hoating debt OF nearly two million dollars,
which is being rapidly reduced to judge
mcnts, and already this court has been
called upon by an injunction to
rcstrnin the floating debt creditors from
Selling the road and destroying the
security OF mortgage to creditors. II a
receiver be not appointed there will have to
briissued as many injhnctions as there are
creditors, for there is no hope that out OF
its income the present management can
nav the debt, and it is to the interest Of
both the first and second mortgages that
A receiver bc appointed, If for nothing
else than 10 prevent the property OF road,
which is security for their debts, from be-
ing frittercd away in innumerable suits.
'rhe parties coihplainant have q right y
control this litigation, and it Is too late
for the trustees under the second mort
gage, after a request from the bondholder
and n refusal to act, to come after the suit
Is brought and offer to. prosecute It. In
tho case OF Richard VS.. Chesapeake and
Ohio Railroad, cited at the. Bar, the COM
nlainants themselves asked the Court to
allow tile trustees TO proceed, and 1.-THE
court complied, but there is no such con-
sent here and the conduct OF the trustees
in delaying it so long after the knowledge
OF this roads complete bankruptcy Is at
least no recommendation for their admls'
sion TO o-confuct= the suit. The road II
bankrupt, tho security OF this second
mortgage is not adequate, 1t seems TO me
| for lis payment, and the property OF the
road is liable TO seizure at cvcry point by
the holders OF floating debt These facts
call for the appointment OF o receiver. so
iar as Injunction Is concerned, which the
complainants pray for in their bill, / shall
issue il with modification, to apply only
TO the second mortgage bonds OF the road
received by the defendants rs collateral
security for debts OF tho company, which
bonIs have been received directly IRON
The company or its officers.
Judge Bond then suggested that the
norties be named by the counsel, IRON
which a receiver would be appointed;
Richard Lathers, OF New York, was namec
by The complainants' counsel. The re-
spondents' counsel named, first VIM. ),
S[aerath, the present President OF the
Road, when Judge Bond said that no Of
ficer oi the road would BIO appointed 70,
ceiyer, The respondents then named
Bentley D, lEazcll, of New York, and y
| there was on objection 10 him they Iiamee
John III. Fisher, OF Now York, who wa
receiver OF the Atlanta 4 Charlotte road
The Judge said he would announce lh'
appointing hereafter. a4 ~ -rt1.'