Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-01-17
CAPTURING THE RAILROAD
OF RICHMOND CAPITALISTS.
Tho Auempt 90 get Possession or the Mem
Psss, B,rnsiasham and Atiantic Railroad
Frustrated sT the Court AT oxford, Missis-

Tho Aiiempt 90 Get Possession OF the MEM
Psss, B,rusiasham and Atlantic Railroad
Frustrated sr the Court at oxford, Missis-
sippi.
Especial telegram 20 the Dispateh.l
MEMPHIS, TENN, January lG.-
This community was startled this morn
ing by the result Of the sensa-
tional proceedings held at chambers
before Judge Baxter AT Knoxville,
Tenn. on the 18th instant, which re-
suited IN the appointment Of receiver
for the Memphis, birmingham and
Atlantic Company. This company was
organized by the purchasers OF the
Memphis, Selma and Brunswick rail-
road property, Of which Fred. Wolfe
was president, and which broke down
with q large debt, part OF which was
frst-mortgage bonds under proceedings
in the Federal Court at Oxford, Miss,
Judge Hill president.
The Memphis, Selma and Brunswick
road, having passed into the hands Of
receiver, was completed 10 Holly
Springs, Miss, forty-hve miles south
east Of Memphis, with receiver certih.
Gates. When completed TO Memphis,
TO that point it was sold for the debt
and passed by the purchase into the
hands Of Messrs. Dunayant. Piper d
Kelly. Of this city. who associated with
them Messrs. j. =. Pace, I. {. Leake,
IT., and other Richmond Va CAPT
talists, with the view Of extending II 70
birmingham. Ala.
Fred. Wolfe, president Of the old
company, being dissatisfied with the
litigation in the Federal Court al Ok
ford. under which said road was sold,
undertook 10 attack the sale. lie filed
petition for that purpose. and the 10th
Of January was fixed for the trial OF 1t
at Oxford, without letting the present
owners of the road know his purpose.
He and others had bill prepared IN the
name OF the Trust Safe Guarantee De
post Company. Of Philadelphia, which
corporation ne had made trustee IN a
frst-mortgage bond, which provided for
the issuance OF $500, 600 worth OF
bonds. % this amount he used about
$500, GOO as a pledge for $4,000 or
$4,000 borrowed from said corpora
ton IN the name Of this corpora
ton against the Memphis, Selma
and Brunswick Company, with
out making the purchasers parties
or giving them notice, and having the
bill so drawn as to create the impress
sion that the Memphis, Selma and
Brunswick Company still owned the
said property. and employing counsel
for that company who consented 70 the
appointment Of 6 receiver. He procured
the order appointing Mr. L. Il. McHenry.
The counsel managing the affair Sc
cretly brought the order and bill 70
Memphis late last night, filed the bill
at 1880 o'clock, depositing $50 for cost
IN lieu Of bond, and without the least
hint or suspicion on the part Of the rea
owners Of the property tine Memphis
birmingham and Atlantic the counse
and the receiver appeared with the or
der appointing the receiver late az nlgni
and demanded possession Of the en-
plovees. They were amazed. The re
ceiyer struck of circulars and sent them
TO all the employees. When daylight
came the owners OF the road. a
the earliest hour possible. sought
Judge I. S. Hammond. OF tins
Federal court here, and expose.
the sharp practice by which the re-
ceiver was procured. Judge Hammond
promptly suspended the receiyership toi
five days to allow the parties il theJ
desire, TO make application 70 Judge
Baxter for a renewal Of the order for a
receiver, when the reai owners mlgn
be present. and there could be no sup
preston OF the material facts. the
claims OF which this suit were founded
were embraced II the decree Of th'
Federal court al Oxford. Thu
trustee and Fred. Wolfe wer'
DOM btlOIt LAtt Iou4s = All sANf N4sAH
they got their share OF the proceeds
OF the sale Of the property OF tbs
Memphis, Selma and brunswick road
1t was claimed. or the other haud. tina
the corporation mas no property and Il
doing no business but the bill, Il
order TO get the receiver. alleged that i
mad and was doing business, but wa
insolvent. The triai OF the case OF II
merits al Oxford. Miss. set for to-day
was called and dismissed by Judg'
Hill. showing that there Is no merit Il
this pretended claim.
This afternoon Judge /. 5. Hammond
Of the United States Court here, Sc
aside the former order appointing L
i. McHenry receiver OF the Memphis
Selma. and Brunswick railroad. TIT
case will now be argued before Judge
Baxter Oh motion for appointment o
{ receiver