Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-05-30
CHESAPEAKE & OHIO
ARGUMENT HEARD on PETITIONS IN
THg FORECLOSURE PROCEEDINGS.
Case Submitted and Time Taken 20 Consider.
General Offices TO Remain in
This City.

Ease Submitted and Time TAKEN 20 Consioer'
General Offices to Remain in
This City.
Judge Wexford, OF the Circuit Court for
HenricO couuty, Yesterday heard argument
upon the petitions OF Whitcomb and others
praying that they be made parties defendant
IN the suit Of c. =. Huntington We. the
Chesapeake and Ohio Railway Company. the
object OF which is to iorecose the mortgage
and sell the road
Az ii o'clock counsel assembled in the
City Circuit Court room, but It was soon de-
cided TO repair 10 the rooms OF the Rich
mond Bar Association lover the Merchants
National Bank. which are commodi0us and
much more pleasant than the courtroom,
and here the hearing took place.
DISTINGUISHED GENTLEMEN.
The rooms were well filed with persons
connected in one way or another with the
foreclosure proceeding and Interested specta-
,oTs-amOng tue latter many prominent !
members OF the Richmond bar. Mr. N. h.
ingalls,. president OF the Chesapeake and
Ohio, and General Williams G. Wickham, the
receiver and general manager, were con-
spicuOus II fiSures IN the assem0lage. Follow
Ing are the gentlemen who were present to
represent az counsel the various interests in
yolved
John G. Bullet and r. c. Dale, OF Phla-
dcphia. representing the Committee on Re-
Organization.
ioveruor IIoadly, toward n. Baync and
Mr.. Johnson. OF NeV' York; Major Robert
stiles and William Ellyson, of Richmond,
counsel for Adolphus Wbitcomb, owner OF
one million and ball "B" bonds. and az
such petitioner seeking to become party de-
fendant to the suit Whitcomb j. one OF the
principal hondholders who opposes the sale
Of the road and the plln Of re0rgan'z ItiOn.
Mr.. II. Cardozl and William Strlus, oi
! New York, aud Johnston, Williams a
| Bonware. oi Richmond, attorneys Tor the
petitioners J. VI. G. Noyes and Charles
! Guidct, who are owners OF some b bonds
and currency bonds and stock.
sherman Eyarls. OF New York. son OF
United States senator EyartS, who fled pc.
tiuon on behalf Of John =. Raymond, OF
! California, holder Of "a" bonds.
Ilcury G.. Chapman, attorney for John 7.
| Hardand, oi Cllifornis, who presented his
petition. which va, fled. This person holds
Peninsula lNevport News division gold
bonds.
THE ISSUE.
on the 18th instant the petitions Of Whit
comb, NOycs. and GuiAlet were presented
ud the parties 10 the suit were notified 10
| appear yesterday and show cause, II any they
/ could, why the payer OF the petitioners
/ should not be granted.
Upon the opening Of the court yesterday
! Mr.. Bullet stated that the Reorganization
| Committee would make no objection to any
| of the petitioners being made parties plain
! lin, but counsel for Whitc0mb and others
! 70 afr.r n n
| tid, and insisted on their right to be made
parties defendant. Their legal reason
| Tor this was that a. parties plalntih they
could not demnr 10 the bills and petit
tions presented by the Central Trust Com.
| pany and by trustees reprcsc nting the dif-
/ fcront mortgage, on the road. and therefore
| could not avail ihcmseiyc, oi other positions
! which as defendants they would be entitled
/ TO.
CONFERENCE or COUNSEL.
When the petitions referred to above ~
! being presented for the California holders
/ had been handed TO the Judge proceedings
were suspended for awhile and counsel held
/ q conference with the hOrc oi being able to
reach some agreement which would Obvi-
ate the necessity OF arguing the question AT
| ISSUE. whethcrtne petitioners should be made
parties plliuun or defendant. Not reaching
]
counsel for Whtcomb. made a mastery arSu-
ment with "A view 10 maintaining his right 10
be made party defendant.
Counsel on the other side said they had
M views to present and the matters were
| .JbouteC TO the Court.
Judge Wexford took time TO consider.
The counsel IN the case remained in con-
,ultaton during the greater part Of the after.
noon taking over matters IN connection
with the controversy.
THE DIFFERENCE.
The holders Of a" bonds claim tnat
they have the ouly mortgage on the New
| port News division Of the Chesapease and
Onto railway; and having the same mort
gaze on the NAN line that he other pcti.
TONERS have they arc entitled to come first,
and therefore they desire to be made plain
iil., and are In favor OF the reorganization
and sale. Th,re is no dispute OF the
fact that they are entitled to and will receive
M any event the face value of their mold
ings. They would not have flied soy pcti-
tions hld they not knOwu that the holders OF
| 3 bonds would antogOniZe their claim 70
holding the only mortgage on the Newport
News division. WhitcomD and other Il
bondholders claim among other things that
the prov sion in their mortgage which gives
them a lien on the franchises Of the road
places them on an equal footing with the A
people I'm thi. matter. Here are involved
many interesting as well as intricate qucs-
| lions.
WHAT THEY PROPOSE.
The REORGANIZATION Committee propose 10
nye Whfc0mb 81 1000 Of first preferred
! bonds in the road under the new manage.
ment and ior the other half million which he
holds hr,t preferred stock, and they claim
th,t lc will fare better by th's than by flEbt-
/ Ing the r, organization and .lle. Thi, would
ln,ulc him GG} per cent. Of hi, holdings with
/ tho Stock 20 Represent the other 33J per cent.
lie thinks on the other hand that by fight
! Ing the scheme he will realize the full value
Of the plp.r which be holds.
Nr. Huntington wishes 70 subject the road
10 the payment Of his judgment, and the
Central Trust C0mplny, while claiming 10 be
neutral, II Is thought desires TO iorecosc the
mortgage.
The tight is being made by some Of the
! parties, ii appears. 10 get the case into the
/ United states Court. but this will be strenu-
ou,Iy resisted.
OFFICES TO REMAIN HERE.
President ingalls,, when asked by a Dis.
| patch man II the report published IN tnc
| Cmrnnsii EHqaWer and copied IN some OF
the Richmond paper. that the general Offices
/
of the company are 10 be removed from
! Richmond 10 Cincinnati was true, smilingly
( reDlied: " am very glad the newspapers
have settled this matter for Us without our
aid, and Of course there can be no appeal
from their decision"
Your Board OF Directors have taken no
action in the matter then Z" pressed the
scribe.
None" he responded, " other thaE TO
decide at our meeting held in Loui'yille 70
have Them Teman in Richmond. 40, sir;
the offices will rot be removed from Rich
moud. This place is much the best suited
for them. and greatly prefer to have them
here and come down Occasionally and spend
week rather than have them carried
to Louisville. This report was copied
in the Cincinnati papers irOm the Louis
vile courier. journal, and originated from
the statement beng made, that the Office OF
Mr. Fuller. general passenger agent, would
be removed from Louisville TO Cincinnati.
No, sir; en- see no advantage in removing
lHla l. "a