The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-18

Statement Of Messrs. Clyde maben and
0oadby, the Ccmplsin anfs.

The New York Sun Of yesterday says that
rs soon as the news of tho receiyership Of the
Richmond and Dsnville railroad was received
the following statement was prepared and
issued by the gentlemen at whose instance
the receivers were appointed:
| "First- Circumstances unnecessary to COM
rnent upon had placed the property, as Is well
| known and as is shown by the market price
of the different securities. in very emoar-
RAISING financial condition. condition which
unless properly handled ana relieved, threat
eos the disintegration of the system.
/ ssecond-This condition. in itself quite Sc
| rious enough has been vastly aggravated aud
rendered much more dangerous through the
| unprecedented. and. as is believed, absolutely
J illegal action of the Federal Court Tor the East
| ern District of Georgia. upon the complaint
| of parties claiming TO be Interested In tho
| Georgia Central Railroad Company. prop
erty the control of which bad been puohciy
! bought. and tor over two years held without
challenge or dispute by the Terminal Com;
| pany and since July. 1891, pubhcly operateu
by the Dsnyille Company.
| "Third--The purchase of the control OF TINS
| Georgia Central Railroad Company, and the
! losses incurred in its operation. amount 10
more than the total floating debt, wnlcn IS tue
| present cause of the embarrassment or the
| Richmond and Danyille. and consequently OF
| the Terminal Company. Under this state OF
facts the aforementioned court OF the East
ern district of Georgia, at the request or one
! Mrs. Rowena Clark (who. according TO the
public press. says she never heard OF this
suit until after it was brought, owner
of fifty shares of said Georgia Central
stock at 10 o'clock at night and without
notice TO any one. seized the Georgia
Central Railroad Company, placed the same
in the hands OF its receiver aud in violation
Of the charter provisions OF the Geofgls
Central Railroad Company. this court ordered
al. .tas .gt L.. - aafd NOR
be held At the same time. by an order which
experienced counsel say Is unparalleled IN the
history of law. the court DISTINGUISHED the
majority of the stock of said Georgia Central
Railroad Company, go purchased and owned
as above described. by the Richmond Ierml-
nal Company, and required that at this cleo
ton all representation of such majority OF
stock should not only be denied, but that
board should be elected which should be en-
tirely satisfactory 10 this court. This court
also subsequently made further order that
stock of the New England and Savannah
Steamship Company, which had been
placed by the said Georgia Central Rail
al Company in escrow as security Tor
soUO. 600, advanced to Ii by the Richmond ana
Danyille Company TO meet its maturing obi
cations in January last, after the Richmond
and Danvilie Company had declined To adj
vance further without security, should be re-
turned TO the Georgia Central Railroad Com
pany by the Richmond and Danville Com
Dany without any repayment Of said adj
vances, although q sworn report made by
Dir. 5. NJ. Williams, formerly auditor OF the
Reading railroad. q dlsnterested and COM
petent accountant. and also sworn 10 by Cap |
tain Green, general manager of the Richmond |
and Danvlle aud filed with the court, |
showed that the Georgia Central was in |
debted 10 the Richmond and DanYille 20 |
an amount exceeding @2.3OO,0O0. This
court granted an order upon the said
Efofrf s..,I IA, D.tf 90,
pany, at the suit Of this Georgia Central !
Railroad Company and its new managers.
which the court had appointed as receivers,
not only 10 return this security without any |
consideration except the issue in its place OF
receivers certificates TO an amount less than |
one-fourth of the value of the stock taken |
from the Richmond aud Danyllle. and which
receivers certificates being issued without the
bondholders being before the court. are we
are advised, invalid and worthless, but also
ordered that the Richmond and Danyille
show cause on June 18th why the entire Dan
vile property should not also be seized by
this court and putinto the bands Of receiver
THE RECEIVERS.
''Messrs Clyde Maben and Goadby, being |
advised that none Of these apparently arbi-
trary acts Of this court are legal and that |
they cannot DO sustained. and feeling that
they would not be justified, either in their own
interest or the interests Of the other security
holders IN leaving anything further open TO
the action Of this court the above mentioned /
application was made 10 Judge Bond and +.
W. HuidekOper and Reuben Foster were, as a
result. appointed receivers Of the Richmond |
and Danyllle Company.
Mr.. HuidekOper was for some years vice. |
president Of the Richmond and Danyille Rail
road Company aud was its efficient executive
officer at time when II was most prosperous. |
aud Mr.. Reuben Foster has been for the past
fifteen years its most efficient and effective
representative in Baltimore, the point from |
which the Danville system derives Its largest
business. and at the same time manager Of its
terminal aud water lines at that port. and
both arc thoroughly familiar with the system |
and its business.
The parties making the application TO
Judge Bond not only had the past action of
the Georgia court os an indication of what 1t
would do on the 18th instant IN the matter of
granting a recelvership for the Richmond and
Danylle Company, but also had other evil
dence which induced them 10 believe that
receiver would DO appointed in the interest
Of the Georgia Central Company. To avoid
SUCH a calamity and the consequent further
spoliaton OF the Richmond and Danvlle
property. these parties took the only course
which seemed open 70 them to certainly stop
such hostile action.
NOT INIsncAL TO THE REORGANIZATION.
This appointment Of receivers by Judge
/
siton 10 any plan for the financial re8rgaui-
zaton and rehabilitation of the Danyille sys
ten, but will be found 10 greatly facilitate
and aid any plan OF reorganization while II |
the Georgia court had obtained possession ~
and Jurisdiction over the Danyille system
this would have been rendered practically
impossible. The order of Judge Bond fixes
August 10th as the day on which. if desired.
cause may DO shown for either abrOgatinR
this receyership OF changing IL as the inter-
ests Of the Danyille Company may suggest.
This interval Of sixty days will give time
within which to mature and promulgate any
plan for such reorganization. and will IN the
meantime hold the system together as an en-
tlrety and protectit from these covert or open
hostilities
The necessity for such action will be fur
ther appreciated when 1t - known that for
some weeks past the Richmond and Danyille |
Company has not been able 70 keep either a
dollar in bank or In its safes within the State
Of Georgia. because every such dollar has
been attached or garnisheed by parties a.
leging claims against the company. and even
the money sent by express for the liquidation