New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-03
the House, adjourn from day to day until deci-
sion Is received from the court
ANOTHER RAILROAD RECEIVER
NORFOLK AND WESTERN PLACED UNDER
THE COURTS ORDERS.
OWNERSHIP PERMANENT-THE ROADS

[BY TELEGRAPH TO THE TRIBUNE

I'M IsLESkAIH TO IHE IhibCNhJ
Charleston. W. Va, June 2.-Judgc Jackson,
| In the United States Circuit Court to-day ap-
pointed temporary receiver for the Norfolk and
Western Railroad, on the application Of J. c. Hopkins
assignee OF Thompson Bros, OF Cattettsburg. KY
| The papers were presented by Simm & Ensow and
| J. F. Chiffon, attorneys for the assignee, and the
court set June 30. and Parkersburg the time and
place for hearing arguments upon the application
for the appointment OF permanent receiver In the
mean time the court designated Colonel z. L..
Vlnson, Of Huntington, temporary re-
ceiver, pending the consideration OF
The application for a permanent receiver. Colonel
Vnson occupies the place only at the pleasure OF the
court He is appointed to guard the interests Of
the claimants, and is not required to exercise author
ty in the affairs OF the road unless by order OF Judge
Jackson.
Deputy Marshal A. ID. Larden attached the r0adbed
and rolling stock OF the Bluefeld Division yesterday,
but the running OF trains Is not interfered with
The appointment OF n receiver is the result OF sut
brought by the assignee to claim Of &44 900
for labor performed contract In the construction
OF the Norfolk and Western road from Bluefeld to
Kcnova by Thompson Bros The firm failed and the
assignee Hopkins takes this step to obtain returns
upon some Of the accounts he found due the firm.
1t Is generally believed that this suit Is only the
beginning OF number OF others that will follow
quickly, and result the road will probably be
forced to 60 into the hands OF permanent receiver
for the settlement OF It's affairs by the court. II
IS tho opinion among railroad operators here that
the management OF the Norfolk and Western made
n fatal mistake when 1t negotiated an English loan
for the building OF the PocahOntas division AMI the
purchase OF the extension TO Columbus, Ohio by not
getting enough money. The company had enough to
complete the actual work OF construction and equip
ment, but not enough to operate II until the line
could DO made to pay Its expenses The Norfolk and
Western appears to be in a bad state at present.
The news OF the appointment OF receiver for the
Norfolk and Western did not reach New-York until
after business hours, and therefore without effect
In Wall street yesterday. Not oven hint Of the ke
hood OF such proceedings was In circulation. The
only transactions In the company's stock at the Stock
Exchange were sales Of 32O shares OF preferred at
% II to %. net decline Of ) per cent from the
last quotations shown by the latter price, vLlch
was attributed TO the cold reception In London Of
proposed new ISSUE OF bonds and preferred stock
ported In yesterdays cable dispatches.
The Norfolk and Western. much Of whose stock is
held abroad has for time been In need of money
for working capital, and to meet the obligations
incurred In completing new ohio extensions and Co
umbus terminals. well to provide for cash
payments due on car trust obligations and for new
rolling stock To meet these obligations and to pro-
vide for the funding OF loans coming due In about
six months, the Board Of Directors has Just issued u
circular shareholders asking for subscriptions 10
new Issue OF $J,OO0O00 OF l0Oyear per cent
mortgage bonds, and 70 100000 OF preferred stock,
which II was PROPOSED 10 lump together for $3.50
900 cash and accrued interest the bonds to be
funded The right to purchase TO have
expired June 49, The circular said that arrange
mcnts had been made with guarantee syndicate TO
take all the bonds and shares not taken by the share
holders. and that the company would thereby be
relieved Of all Its floating Indebtedness. and would
he assured Of ample working capital. BY this circu-
lar the company was represented to have had in its
treasury January |. 1898. in lis" as collateral
sj93- Oc0 Of lis Io)year bonds. and to have
outstanding bills payable amounting to S7os, ,0eS. a
collateral loan OF s2OOO.OOo becomes payable on De-
crmicr 81. aud 1928 900 convertible dcbenure bonds
will be payabl" january -, 1894. These obga-
toriS tc have been funded in the new loan.
Upon the completion OF III" proposed transaction
there would have been outstanding SI5,065,0OO OF
the 100 year bonds.
The road was formed in 1852 by the consolidation
and merger Of the New River Railroad Company Of
Virginia the New River Railroad Of West Virginia
gnia into the Norfolk and Western Railroad Com
pany. reorganization OF the Atlantic. Mississippi and
England and the Shenandoah Valley roads were pur
chased In 1890. The Lynchbug ard Dur
ham and the Roanoke and southern roads are
owned on December 81 1891, was LEO miles. and
The capital stock at the same date was SiD,oOoOoo,
Of which $4,000. 900 preferred and T3.5O).O0O
common. The funded debt then amounted 10 SJo-
$4,000. -. -
grc>s permission to bridge the Potomac River, thus
securing entrance into Washington. byt has not
tensions through OHIO toward Chicago. and 1t Is the
burden OF these obligations that has dragged down
into rcceivershp. T. j. kimbali OF Pllllad' iPhia'
is president and majority OF the directors are Phila-
dclphans.