The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-10-25
THE a.. M. & o. n. II.
TIRE ARGUMENTS CLOSED AND A DECREE
OBSERVATION-DISCLOSURES AND ORDER or SALE
ASKED FOR ny. COUNSEL. FOR ENGLISH
BoNDHoI DERs.

ASKED FOR BY COUNSEL. FOR EN6Lish
BoNDHoLDERs.
The case OF the Atlantic, Mississippi and
Ohio railroad was resumed yesterday in the
United States Circuit Court-Judges Bond
and Hughes presiding.
Judge Robert ould and Mr.. j. n. Davis,
counsel for the Barnes heirs. submitted
petition in which it is asked that a decree
rendered by the Circuit Court OF Lynch
burg In May, 1876, for about $500 Tor the
| construction Of norton OF the virginia
and Tennessee road, be made q lieu on tnat
road and give it priority over the mortgage
on the Atlantic. Mississippi and ONO road:
Judge Ould, in his argument on Denati
OF the petitioners, contended that tbe ACT OF
the General Assembly authorizing the con-
/ solidation of the roads now composing tine
1 Atlantic, Mississippi and Ohio railroad pro-
yided that the accounts of each OF these
| roads should be kept separate, and the act
| contemplated a statutory lien to the credit
ors of each OF the roads embraced in the act
of consolidation. .itg,.s,
| Mr.. Choate argued the case for the trus-
tees and English bondholders. lie con-
| tended that in this case the mortgage had
prior dignity over the lien sought to De ac-
uuircd by these petitioners on account OF
| the decree Of the Lynchburg Circuit Court
OF more than two years; that il there was
any statutory lien contemplated by the act
OF consolidation it was but an inferentias
one. The case was submitted TO the Court
who reserved its opinion.
Mr.. Leigh r. Page, in the case OF Sayres'
| for claim OF about $1,000, against the VIZ
gnia and Tennessee road, submitted Pc
fjtion, asking priority OF lien. Several other
- ff>n
bv the counsel OF the respective claimants,
| the papers in which were taken by the
| Court, and opinions in all OF them rescrvea.
| DECREE OF SALE FORMALLY ASKED FOR.
| After disposing OF these cases. the atten-
ton OF the Court was occupied with the
consideration of the question oil motion
for the foreclosure and decree OF sale OF the
Atlantic. Mississippi aud Ohio railroad.
Mr.. McFar,ane, of counsel for the trustees
and the English bondholdcrs, made formal
motion for such decree and order OF sale.
He submitted q printed draft Of the order
Of sale, which he and those associated with
him asked the confirmation OF the court.
| This decree, among other things, provides
| For the sale Of the road in its entirety, with
all the franchises and property mortgased
| to the complainants as set forth IN the deed
of trust made to them also, all property
acquired or to be acquired by the receivers
between the date OF the entry OF this decree
and the day OF sale; also, all the right, title,
and interest OF the receivers and OF the
! defendants in the mortgage bonds, and other
evidences OF indebtedness OF the Norfolk
and Petersburg, Soutbslde, ana virginia
and Tennessee railroads that came into their
hands at any time during the receiverShip
and remain in their hands at the time of sale.
and to the franchises and property OF and
claims against the companies composing the
Atlantic, Mississippi and Ohio road, here
tofore acquired by or through any agree
ments or covenants with, or transfers or
assignments from, the State of Virginia or
the Board OF Public Works OF said State,
| BE SOLD AS AN ENTIRETY
lat public auction in the city of Richmond in
pursuance Of the advertisement hereinafter
directed, unless within sixty days from the
entry of this decree the defendants Uhe At
|lantic, Mississippi and Ohio Railroad Com
panyl shall pay to the complainants' trustees
the sum found to be due to them for inte-
rest upon the Indebtedness secured. The
decree then provides how the sale shall
be advertised and proceeded with. 1t
states that the Attorney-General OF
the State OF Virginia and the Board
OF Public Works shall be served with a
|
the SALE The master OF the court is direct
ed by the provisions OF the proposed decree
to receive from the purchasers in part pay
ment of the plTchase-money interest cou-
pom bonds secured by the mortgage under
, which the road is sought to be sold, with
interest on such coupons from maturity
thereof. IL is Further provides that when
the sale shall have been made and confirmed
by this court. all equity Of redemption III
the Atlantic. Mississippi and Ohio Company
and the equities OF redemption Of all the
holders of liens subordinate to that OF these
complainants shall be forever barred and
ferecosed. --~
Mcssrs. McFarlme and Choate and Judge
Shpman argued in favor Of the form o. the
decree submitted by them.
Judge W. W. Crump, the counsel for va
rous divisional bondholdcrs, stated that he
had not bad time to examine the printed
draft of the proposed decree submitted by
the solicitors for the trustees and English
bondbolders, and suggested that the Court
should adjourn in order TO give him and
other counsel representing similar interests
to those hc represented, time to consider
the matter.
Judge Ashbul Green, on behalf OF the
, Dutch bondholders, said he would leave for
home to-day, and wished the case to be
PROCEEDED Win. ....
He intimated that with some amendments
to the proposed order of sale he and his as
socates and the representatives OF the Eng
lish bondholders might arrive at a mutual
|. settlement.
After further argument by Mr.. McFar-
lane and Judge Green as to the manner OF
disposing OF the proceeds OF the sale over
: and above the amount required to satisfy
the mortgage the Court adjourned until this
morning at 10 O'Clock.
Nomention was made during the progress
OF the case 80 the petition submitted by Mr..
: J. &. Parrish, through bis counsel, asking
that certain Dutch bondholdcrs might be
made parties defendants to the suit for fore
closure.
| LANTIC, MISSISSIPPI AND OHIO RAILROAD.
The following document was sought to
be introduced in the case by cousel for the
Dutch bondhelders, but the reading OF it
was ruled out by the Courton the objection
OF the trusteeS7 counsel. as it was no part
Of the record. 1t may furnish the clue to
the changed attitude towards each other OF
the English and Dutch committees
| Memorandum of Canditiaas for Purchase
Il of the Atlaatie, Mississippi and Ohio
\ Railroad.
4 A decree in the United states courts for
the sale Of the property ana franchises OF
|thc Atlantic, Mississippi and Ohio Railroad
\ Company is to be shortly obtained at The
suit OF the trustees OF the consolidated