Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-10-01


ors will propose 20 the Court 10 authorize
the Issue Of receivers certificates, which
they viii accept themselves and with the
proceeds will put the road and equipment
IN arst-class condition.
Mr y. Dana Green. tho electrician OF the
Spraguc Company, accompanied Nr. WISE
20 Richmond and has gone over the road
as an expert. He reports II IN puaoie
plight. The road-bcSl which was put down
by Barry & Co. has been allowed 10 deterio-
rate vcrymuch and thoequipmentiurnishecd
by the Sprague Company has been so badly
handled and run down TINT an entirely new
electrical equipment viii be necessary.
and Do ~ estimated that between c13.OJO
and Sl00.00 viii be required t0put the
line IN a frst-class condition. Tins sum,
Mr.. WISE saws the hondholders will put
up Immediately upon being placed ~
protected position. They have absolute
faith IN the Spraeue system, which Is now
being operated in about seventy or eighty
of the leading cities Of the country, and
they DO not at all attribute the condition
of The road 10 any defect IN that system,
hut 20 the manner in which It has been
conducted by the persons in charge OF 1t.
CITY hallway COMPANY.
The third bill was filed on behalf Of
Henry Steers and Thornton \. Motley
against the City Railway Company, and
sets out that in June, 1897, Maurice B.
Flvnn bought the City road OF Claiming
NJ. Bolton The stock OF the road was
800 shares Of 800 each, and its bonded
debt about $3.50. 600. Bolton agreed TO de-
liver the whole stock and bonded debt 70
Flvnn for $3.50 600, Of which Flynn PAID
$50 900 in cash and for the balance gave
four notes at six, twelve, eighteen. and
twcuty-f0ur months.
The stock. old bonds. and notes for de-
ferred payments were all delivered 20 tTUs-
tees. Is the deferred payments were made
the trustees were 10 apply the proceeds
10 the retirement of the old bonds and mold
livestock and bonds as collateral until Flynn
completed the payments. and then the old
bonds and the whole capital stock were to
be delivered to Flynn.
WHERE THE MONEY CAME FROM.
Having obtained this contract, it Is
alleged that Flynn secured a receipt
from Bolton for 100000 instead Of
S5O.0OO. and returned to New York,
where ne represented TO his associates
that he bought the road for $500. 600 ana
paid 800. 600 cash. and il is alleged that from
Mr.. Steers he collected $4,000 and was
to collect $4,000 more for "a One-tifth IN
tercst in the property upon the basis Of
$500 600 a. the purcase price. From Mot
ley he obtained 500 cash and gave him
a Onc-hftcenth interest upon the same
he got 000O cash and gave hlm one
thirtIeth interest. and from Gilbert VI.
Speer -. 600 and gave hm One-hundTcdth
interest These sums were obtained be-
fore he actually made the cash payment,
so that he collected ~63. 900 20 pay S5OOOO.
These parties have filed Their receipts, IN
all of which Flynn prOfesscd 10 have bought
the road for 5000 900. The parties borrowed
the money % pay Mr.. Bolton his first two
deferred payments from the Atlantic
Trust Company, of New York. One hum
dred thousand dollars is still due Bolton
and the same amount is due the Atlantic
Trust Company.
TIL BOARD.
Mr.. Wise represents that the Board Of
Directors of the railway company have
not "a dollars interest i'll the road and they
have heretofore been merely representa-
tives of Maurice B. Flynn, and he beng
dead. the trustees who hold and vote
the stock. having learned of the IN
tcrest of these compainants. refuse tOvote
If any more. and the directors thus chosen
decline 10 incur any responsibility IN view
of the diverse interest claiming the stock.
Meanwhile Mrs. Flynn, as eXccutriX, has
been enjOincd from selling and transfer
ring her husbands interest both IN New
York and Virginia, and the complainants
represent that "a receiver is necessary to
a reorganization can bc effected.
THE JUDGES ACTION.
After hearing brief oral argument judge
FitZhugh granted the injunction prayed
for restraining Mrs. Flynn from conveying
any OF her stock 81 bonds. and required
the plaintiff, or some one for HIM, To exc
cute bond n the sum Of $500. This Cap
tain Wise did, with Mr.. BOulware as his
surety.
At The suggestion Of Mr.. Meredith the
question of appointing receivers Tor the
two railways was postponed for decision
until 10 O'Clock this morning. III order that
Mrs Flynn might be advised and have an
opportunity 10 present her side OF the
case Mr.. Meredith teleEraphed Mrs.
Flyun what had been done. and he being
furnished with copies of all the papers III
the case which are numerous and voluml-
nous) Immediately set 10 work to examine
into the matter and to prepare himself Tor
to-day work.
THE DEFENDANTS.
The defendants in all of the suits except
that against the City railway are:
"Florence C. Flynn. Individually aud az exc
triX of the last viii aud testament OF Maurice Is.
Flynn, deceased the Richmond jniOn Passen-
ger Railway Company. tho Richmond CITY hail-
way Company. the Portsmouth SreetHailway
Company tho Virginia Elcctnc-LiRht ana Power
Power Company. and tho Richmond schuyler
Lighting Company
THE 100000 RECEIPT.
With regard TO Major Claiming NJ. Boil
tons receipt for 100000 Oustead of 500
OOOl as the first payment for the City rail-
way property, "A wcll-informed gentleman
of this city said yesterday that the con-
tract provided for payment of S30O,UOO
with the understanding that only e2jO,OO0
were 10 bc paid. The point IN dispute and
the only substantial question l. whether
Mr. Maurice Flynn made tins purchase as
the representative of himself and Messrs.
Speers. Motley. and others or on his own
private account. Probably il will be con-
tended that it was on his private invest
ment and that the others were let IN after
the purchase had been effected.
WHAT IT ALL MEANS.
When asked by Dispatch reporter yes
terday afternoon what this proceeding
really meant. Captain Wise replied " The
owners of both OF these car lines are men
of abundant wealth. and they are perfectly
willing 10 put more money INTO the enter
prise. but not with matters in their present
shape. Two of the stockholders have dlod
with their affairs, and especially those OF
Nr Flvun. in an unsettled condition, ana
II l. desired that the courts shall take hold
Il
present IN 2 position where they VIII be
able to- protect their own interests, and then
We are ready 10 pUt up the money and
make the roads hrst-class in every respect.
Mrs. Flynn claims 10 hold very large III
terests IN both roads. especially the City
railway, and If her claims are just, as she
believes them 10 be, my people d0not want
to spend their money for her benefit. It Is
therefore fair to all that the Court shall as
sumo temporary control Of the property
and hold it until the contention can be adj
iusted. and then let thorough reorsaniza-
tIon follow
While Mr.. Boulware was present as the
representative Of Mr. Bolton, the former
owner of the hOrse-car line. and OF another
creditor. ne was not opposed TO the ap-
pointment OF a receiver; IL fact he rather
favors it, but simply wishes to protect the
interests of ms clients.
WHO WILL IT BE
The question very naturally arises. Who
Will be the receiver if the Court concludes
TO have one? II is understood that those
petitioning for the appointment of such
an officer would be entirely satisfied with
Nr Gruhhs who has been connected with