Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-11-29
RECEIVER APPOINTED.
CALICO MILLS IN COURTS.

Yesterday the following bill was filed
IN the Chsncery Court of this city;
o. IT, The Honorable A. L. Holladay,
Judge II the Chancerg Court
uumbiy complaining, show to your
Honor your orators, A. y. Stokes and
George V. Alien, who sue for them
selves and al othor creditors OF the
Gallego Mills Manufacturing Company
holding and owning bonds and coupons
for interest on BONDS, secured IN and by
The deed Of trust OF the SAID company
frs; hereinafter mentioned. who will
come n and contribute 10 the costs OF
this suit
That your orators are the holders
and owners al the bonds Of the SAID
company, winch Is 3 corporation duly
chartered and organized under the laws
OF the State Of Virginia, ms follows
10 wit Your orator A. J. Stokes, fifty
SIN bonds Of 81 600 each and seven
bonds Of tl00 each. and your orator
Il. ". Allen, twenty-five bonds OF
g 200 each and thIrty-three bonds of
500. being IL ali sS5.000 OF bonds.
which are exhibited to the court IN this
hill and will be filed IL proof Of your
orators claim when and as the Court
may require
The bill states substantially that
deed Of trust war made by the company
december 90. 1873, &c Isaac Dsven-
uort, and recorded December 30. 1873,
conveying 10 Isaac Davenport. Jr.. and
francis Leland, large amount Of real
estate II Richmond-mills, fixtures.
&c. This deed was flied as s part OF
the bill.
The property was conveyed for the
purpose OF securing the principal and
interest, Al per cent, Of 90 bonds Of
me company, Of which 22l were for
the sum Of $1,000 and "a for 800. all
OF them payable 70 Francis Leland and
Isaac davenport. IT., OF bearer, three
wears after date, with interest payable
scmi-annually III the rate Of = per
cent. al 10 bear date January. 1874.
Before these bonds fell due il was
agreed 70 extend the time Of their pay
mcnt. and the agreement was carried
INTO effect 10y al endorsement upon
each Of tins bonds.
OF these bonds there are outstanding,
secured as aforesaid, s22G, 400. There
are outstanding and unpaid sl76.00O.
including those held by the orators. the
residue having been cancelled and dis
charged
% the SIS 600 Of bonds held by the
orators. interest II arrears and unpaid
since july J. los4, the coupons tor III
teresi which iel due upon them Oh the
LIST day of January Ssh. were al ma
turity Isl Of January. 1851. duly pre-
scented a. the office OF the company and
payment demanded. and refused
These coupons amounted 20 SOD,
and OF that sum interest from the date
last mentioned is claimed until PAID q;
thc rate 81 per cent.
Oh the Us; dav of July. $50, the in-
teresi-coupong OF said bonds. winch
maiureC that DAY aHo winch amounted
70 the SUN Of $3.50. were also pre-
scented anc payment refused and the
creditors claim interest or tins sum al
the rate OF per cent. from July lst
until paid.
BESIDES these unpaid coupons the
orators assert that there are Sl2.UDO oI
$4,000 Of pasi-due coupons Toy inter-
est upon bonds secured IL ssid deed Of
trust other than those held by the
plaintiffs. All Of these the SAID COM
parry Is unable 10 pay, and the peti-
TONERS and creditors have nc means Of
collecting except al law, and IL sub
lectIne the property conveyed TO the
payment OF int debt.
The petitioners show that on the lst
d8v Of October, 1855, the Gallegc-
Mills Company MADE another deed Of
trust conveying large amount o. prc-
peTty. consisting chiefly. If not wholly,
Of the same property described IL the
deed OF December o., 1850. by this
deed the grantees anC trustees are Isaac
Davenport j.. Richard G.. pegram,
and Thomas Potts. The company un-
dertOOk 10 secure further amount of
S-5O,OOO OF its bonds. IL different
sums Of $1,000. 800. sl0O and 500.
This deed Of trust Is filed with the pc
tluoners papers, and Is prayed &c be
taken as part Of their bill.
Il viii be seen that by the terms OF
tins deed goo. 0uo therein secured are
directed t. be SET apar; foI the purpose
Of retiring The bonds and coupons out
standing under lhe deed OF trust Of the
said company 10 Isaac Davenport. j..
and rancis Leland and the plaintiffs.
a. holders OF bonds and coupons out
standing under the deed OF trus; 70
them. claim. as iar as may be necessary
Tor then ultimate indemnity, the bene-
fit Of the trusts o. the deed Of October
], 1853, not IL any respect meaning 70
surrender oT 10 waive any OF their rights
OF priority under the deed Of December
o., 1873. subject 10 the prior lien OF
which Geed the saIO deed Of October l.,
1850. is IL fact expressed OF It's face to
be made.
AS to the residue OF the S450.OOo Of
bonds-the sum OF $3.50, O0O--s very
considerable part OF the same has been
negotiated by the company, and Is now
believed 70 Zoe II the hands Of 60H0 fIGc
holders for value while another part
remains unused II the hands Of the COM
paDy.
The petitioners assert that the entire
Indebtedness Of the company greatly
exceeds the whole amount Of bonds
provided for IL the deed Of October J.,
1885. so that there If no longer the
slightest hope that by means OF the
deed OF October ! 1855, even the out
standing debts Of the company can be
provided for. much less thai from tins
source any working capital car be real
ized by which the company car conduct
It's operations.
Some Of tine general creditors have
refused 10 accept these bonds, and some
OF them are threatening the company
with iegal proceedings. THIS discredits
the bonds and renders them vslueless
-. ........s,.F ,,-,,.c .ltkou~t nm Ia