Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-09-19

Gre0C EVIL IN inc Op1nAOu OF Judge
Baxter-Long Pending Case ended
Builders Swindled.
CINCINNATI, o., Sept. 18.-Judge Baxter, of
the United States court, in passing upon the
application to allow a receiver of a railroad to
be garnisheed, took occasion to remark that
the practice of placing railroads in the hands
of receivers, altogether too common, had be-
come great evil He cited the case of rail-
road in Georgia which cost $15, 000, 600. The
receiver in charge issued certificates of indebt-
edness for million and q half. When the
road was sold the proceeds were not enough to
pay the certificates. In another case the road
cost over $S,OOO,0O0 When the road came to
be sold the eminent cousel requested the
Judge to fix minimum price for the SALE
suggesting that the price should be a sum suf-
fcient to cover the charges of the receiver and
his lawyer. Judge Baxter said he had OBJ
served that when a receiver got possession he
generally ran the road for the benefit Of him
self and his employees. including attorneys.
should be reform in his circuit for the benefit
of creditors and stockholders. If proceedings
to sell and realize were vigorously pushed to a
conclusion he would vacate the receivership
and give the road back to the company. Great
interest was manifested in this deliverance CT
the judge by railroad people.
SUIT ENDED.
BALTIMORE, Sept. 18.-In the South Carolina
railroad case to-day, at the conclusion of Mr..
Corbin's argument for the compliments, Judge
Bond rendered his decision in favor of the COM
plainants. for the appointment of a receiver.
Judge Bond says: There can be no question
that defendant company is innocent. 1t has
mortgaged all its property twice, and now la
bors under mortgaged debt of near $6, 900 600
and finally has made an assignment to syndi-
cate of directors of the road of all its bills re-
ceivable and available assets to secure payment
Of a loan of 5000, 900. Its insolvency is aPpa-
rent. The necessity Of receiver appears from
the fact that the road has floating debt of
near $4,000 600 which is being rapidly reduced
to JUDGMENTS, and already this
court has been called upon by
injunction to restrain the floating debt credit
ors from selling the road piecemeal and de-
If receiver be not appointed they will have
to issue as many injunctions as there are cred
itors for there is no hope that out of the in
come the present management can pay the
floating debt. 1t is to the interest of both the
first and second mortgagors that receiver be
appointed, if for nothing else than to prevent
the property of the road, which is security fol
their debt, from being frittered away in in
Vulnerable suits. If the parties com.
planning has a right to the control OF
this litigation, it is too late for
the trustees under the second mortgage sitter
a request from the bondholders and refusal to
act, to come in after suit is brought and offer
to prosecute it, In the case of Richards, agent
of the Chesapeake & Ohio railroad cited at bar
the compliments themselves asked the court
to allow the trustees to proceed and the court
complied, but there is no such consent here,
and the conduct of the trustees in delaying sc
long after knowledge of the roads complete
bankruptcy is at least no recommendation
for admission to conduct this suit.
second mortgage is not adequate, it seems tc
me, for its payment and the property of the
road is liable to seizure at every point by hold
ers of the floating debt. These facts ell fol-
the appointment of receiver. So far as the
injunction is concerned which complainant
pray for in their bill, shall issue it with a
modification that it applies only to the second
mortgage bonds of the railroad received by de
PENDANTS as collateral security of the debts Of
the company, which bonds have been received
directly from the company to it's officers.
Judge Bond suggested that parties b. named
by counsel, from whom a receiver would b.
appointed. Richard Lathers, New York, was
named by compliments counsel. Respondent
counsel named, first, VIM. J. Magrath presen
president Of the road, when Judge Bond sale
no officer Of the road would be appointed re
ceiver. Respondent then named B@tly D
Hasell, of New York, and if there was objection
to him, they named Jno. H. Fisher, of New
York. who was receiver of the Atlanta 4
Charlatte railroad. The judge said be would
announce the appointment hereafter.
Br1LDERs sw1NDLED.
ST. LOUIS, Sept. l8.-Advices from Licking
ton, Mo-, say Mr.. Taylor, of the firm Of Taylo
& Reid large contractors on the extension o
the Chicago & Alton aailroad, disappeared be
tween Saturday night and Monday morning
with several Thousand dollars which it was ex
pected he would pay to his laborers Monday
they not having been paid for two months
Taylors chief clerk is also said to have left fo