Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-13
BELT RAILWAY TO BE SOLD
Decision by Justice Cox Rendered Today in
Equity Court No. l.
Proceeds of Sale to BE Devoted to
Discharge of Obligations Ac-
cording to PRO- ity.

LII q DECISION rendered To-Day by Judge
Cox. in Equity Court No. 1. 1t was decreed
that the Belt railway shall be sold. the
stipulation being made that the proceeds of
the sale shall be devoted to discharging OBJ
legations in the following order: First the
expenses of the sale; second, the expenses
of the receivership. the matter to be re-
ferred to the auditor Of the court; third, to
refunding loan of $500, secured by re-
ceiver's certificates; fourth, to redeeming
bonds secured by first trust. and fifth, to re-
deeming bonds secured by second trust, ex-
GLIDING coupons paid and Cancelled.
In regard to the trusteeship Judge Cox
although his mind is made up on that point.
Issue of Certificates Forbidden.
The court, in addition. denied the petition
of Receiver Schoepf. recently presented.
that he be allowed to issue receivers GER
tificates. in order to secure funds with
which to pay wages due employees Of the
company and current expenses.
The decision rendered by Judge Cox to-
day was the climax of a hearing that &C.
cupied several days last week.; occurring
On a cross bill filed by the American Sc
curity and Trust Company, representing the
hcndholders of the Belt Railway Company
asking a sale of the road and a settlement
of priorities. The questions involved were
whether the railway should be sold, and if
so, whether by the trustees under a deed
of trust, in it's entirety, or in parcels, and
how the funds should be distributed, the
court being asked to determine what cred
itors should have priority over the bond
holders, and whether or not the receiver
should be authorized and permitted to bor-
rev money en- certificates of Indebtedness
The attorneys who took part in the hear
ing were Mr.. John Ridout. representing the
Belt Railway Company and Receiver w.
ard A. b. Brown, representing the Ameri-
can Security and Trust Company, trustee
for the bondnolders; Mr.. A. 5. Worthing-
ten. representing the bondholders: Mr.. S.
T. Thomas. representing s. S. Daish & Son,
and Mr.. j. ]. Darlington, representing NJ
Ament & Co. of Baltimore. Daish & Son
and Anent & Co. claimed that the railway
company was indebted to them for goods
received.
Indivisib1e Franchise.
The opinion of Judge Cox was rather
brief. At the beginning he announced that
he did not see how it would be possible to
sell the road in parcels. 1t was one entire
and indivisble franchise, and, therefore,
the court stated the entire road must be
sold.
The principal question at issue, the court
held. related to the distribution of the pro-
ceeds after the sale of the road, and
"
should be allowed priority over the bonds.
The receiver was appointed, Judge Cox ex-
plaiLed, for the sole purpose of collecting
the current revenues of the company, as
the court understood it, and the receiver,
he said, certainly SO understood it at the
outset, for one of his first acts was to
petition the court for authority to pay four
days wages to employees OF the railway
company. covering the four days preceding
his appointment receiver.
Among other things, Judge Cox stated, in
concluding his decision, that he knew of no
case in which debts contracted by re-
ceiver without authority from the court
have been given the priority over preceding
obligations.
The ROnd's Position.
Mr.. Schoepf, the receiver of the Belt
railway, is not in tie city, and at the office
of the company it was stated this after
noon that no decision had been reached
whether the operation of the road would
be continued by the receiver or not. 1t is
said by those who are familiar with the
present mana cement that it is doubtful
whether the money needed to run the road
could now be obtained. 1t is possible, OF
course, that the receiver may resign before
the date fixed by the court for the sale of
the road. But, as stated, nothing had been
decided as to the course to be pursued.