The Republican. [volume] (Oakland, Md.) 1877-current, 1880-01-10
A Receiver Asked.
American. ian. 2.

req CONSTITUTIONAL bOiiuo Va e"N OHSo7
apeake and Ohio Canal Company,
filed Yesterday in the United States
District Court bill in equity against
the canal company, praying the
court for an injunction against the
present management Of the canal,and
for the appointment OF receiver to
take possession of the canal property
franchises, books, accounts, &C., with
authority to manage the canal until
the debts claimed to be due the COM
plainants are fully satisfied. The suit
is brought in the name of Daniel K.
Stewart, and the counsel for the
complainants are Messrs. Marshall &
Fisher, Johnson & Poe, Archibald
Stirling, Jr., and Joseph Bryan.
The parties named as respondents
are Arthur P. German. president of
the company ]. Bayard I'll. Smith,
a. Bowie Davis, Geo. S. Brown, JAS.
Sloan, Jr., and Lloyd Lowndes, Jr.,
trustees under the mortgages of 1913
and 1873. The bill recites in detail
the history of the canal and the acts
of the legislature bearing upon it
the failure of the company to pay-fHs
terest on the issue under the act of
1914, of which bonds, with interest
coupons, complainant holds $780, 600,
the whole issue having been 81 3d.
500 The amounts due the holders
on these coupons from June /, 1865,
are put down at oyer 81 800, 900. The
bill then charges that the company
is largely insolvent, wholly unable
to pay it's debts, and that by 10 pro-
ceediDgs at law or equity can the
bondholders obtain paymentof their
claims out of the property of the
company. Further, that byan act of
the legislature Of 1873, authorizing
an issue of 100000 of boTds, secur-
ed by mortgage upon TIE canal it.
self, its tolls and revenues, the State
waived its priority of lien upon the
canal, and that the effect Of that act
is to expose holders of the preferred
construction bondholders ID the total
loss of their security, anduause the
company to default in the payment
of the semi-annual coupons on the
last issue, and that the acceptance of
the act of 1878, and the execution of
the mortgage underit, was / wanton
sacrifice of the true Interests of the
company and of the properly rights
of the preferred bondholders Also.
that the act of 1878, chapter5S, and
the mortgage and bonds issued under
it, are null and void as againss him,
and the other holders of the prefer
red bonds, as taking from such bond
holders the security acquired under
the act of 1874.
So complainant urges that it is I'M
lawful ior the company to assume to
exercise such power as it seeks to do
under the act Of 1878 in order to pro-
vide for anticipated necessities that
the tolls and revenues may De suf-
ficient to meet; and AYERS that the
alleged deficiency of means to meet
these charges did not in fact exist
when the company executed this
mortgage except through the unlaW-
full and improper squandering and
diversion of the means of the com
pany by its officers and he charges
that this deficiency of means, so ere,
ated. was not greater than could have
been readily met from the cur
current tolls and revenues, and was
far less than the large sum which the
company has assumed to borrow.
POLITICAL MACHINE.
The bill then charges that the duty
of the corporation was to manage lis
affairs honestly, wisely and econom-
ically, so that it could exercise the
franchise conferred upon it for the
benefit of all the public, and for the
security and payment of the debt
due the complainant and other cred
itors like him. But instead of the
corporation performing its legitimate
duties-for the purpose of which it
was created-it has for several years
past been used for the accomplish
ment of objects entirely destructive
of theinterests and rights of complai-
nant and other creditors that it has
been used, and is now being used, to
a great extent, as a political machine
for partisan purposes, without regard
to the rights of creditors.
1t then recites that "the president
OF the company, Arthur z. German,
Esq, is now, and has been for some
years past, the chairman and head OF
thesState Central Committee of DO.
litical party in the State of Mary
land, and member of the Senate OF
that State and the whole power and
patronage of the canal company have
been for several years past, and are
now, applied and devoted, mainly to