The state chronicle. [volume] (Raleigh, N.C.) 1891-1893, 1892-06-19
AFFAIRS OF THE RAILROADS,
ReceiversAPpointed for the Richmond
Il Danville System.


n. Y. Herald.
On the application of William P.
Clyde, J. G. Maben and w. H. Goadby.
acting for themselves and others, owning
and representing several millions of dol
lars Of the securities of the Richmond &
Danvllle system, Judge Bond, of the
United States Circuit Court of Richmond,
yesterday appointed F. w. Huidekoper
and Reuben Foster receivers of the
Richmond & Danville railroad, together
with all its controlled and leased lines.
This action was induced by the follow
ing considerations:
Circumstances had placed the property,
as IS well known and as is shown by the
market price of the different securities,
In a very embarrassing financial condi-
ton, condition which, unless properly
handled and relieved, threatens the dis
integration of the system
This condition-in itself quite serious
enough-has, it is claimed, been vastly
aggravated and rendered much more
dangerous through the alleged unprece-
dented action of the federal court for
the eastern district of Georgia, upon the
complaint of parties claiming to be in
terested in the Georgia Central railroad
company, property the control of which
had been publicly bought and for over
two years held without challenge or dis
pute by the Terminal company, and
since July, 1891, publicly operated by
the Danville company.
The parties making the application to
Judge Bond not only had the past ac-
ton of the Georgia Court as an indica-
ton of what it would do in the matter
| of granting receivership for the Rich
mond and Danville company. but also
had other evidence which induced them
| to believe that a receiver would be ap-
| pointed in the interest of the Georgia
| Central company, and to avoid such ii
calamity and the consequent further
spoliation of the Richmond and Dan
vile property, these parties took the only
course which seemed open to them to
certainly stop such hostile action. This
appointment of receivers by Judge Bond
is not only not inimical to or in opposi-
ton to any plan for the financial reor-
ganiZation and rehabilitation of the
Danville system, but will be found to
greatly facilitate and aid any plan Of re-
organization, while if the Georgia Court
had obtained possion of and jurisdiction
over the Danville system this would
nave been rendered practically impossi-
ble The order of Judge Bond fixes Au-
gust Is at which time, if desired, cause
can be shown for either abrogating this
reccivership or changing it as the inter
ests of the Danville company may sug-
gest This interval of sixty DAYS will
give time within which to mature and
promulgate any plan for such reorgani
ZatlOn, and will meantime hold the sys
tenn together as an entirety and protect
it from these covert or open hostilities
The necessity of such action will bt
further appreciated when it is known
that for some weeks past the Danvillt
company has not been able to keep either
a dollar in bank or in its safes within the
State of Georgia, because every sucl
dollar has been attached or garnished 10y
parties alleging claims against the com
pany. Even the money sent by express
for the liquidation of pay rolls has beer
attached in the hands of the express
company, and in every instance enormou
bonds have been required TO release sucl
moneys. The taking possession of th
property by the receivers under Judg
Bonds order will relieve the compan
from such petty persecution and embar
rassment and enable it to discharge it
duty to the public and reap the prope
benefit of its own business. This receiver
ship does not necessitate default on an
coupons or other obligations of the com
pany, as the company can, and doubtles
\ will be permitted by order of the cour
to pay any and ali proper obligations a
fast as it can earn the money to do SO.