The Washington herald., 1909-02-14
ASK RECEIVER FOR RAILWAY
Newport News and Old Point Line
in Serious Trouble.
Application Filed in Norfolk by Bal
timOre Trust Company. TruE-
tee Under Mortgage.

Baltimore. Feb. I1-Ths Maryland
Trust Company or Maryland. trustees
Of the general mortgage issued By the
Newport News and Old Point Railway
and Electric Company 10 secure S2.900OlO
Of 8 per cent bonds has fled an applIcs-
ton al Norfolk. Va. for the appointment
Of a receiver to take charge Of the prop
erty.
The petitioner alleges that the railway
and electric light properties have been
mismansged and that as a result OF Ger
tain transactions entered into by the
management without the knowledge or
consent OF the trustees the security OF
the bonds would be impaired # these
transactions were allowed TO stand.
Following the application OF re-
ceiver Alexander Brown & Sons. Of Bal
timore. and Brawn Bros & Co. Of New
York Philadelphia, and Boston Issued 2
call for deposit with them Of the bonds
and preferred stock. that they nav ~
in better position 10 protect these l7-
terests
The bonds and preferred stock are
largely held In Baltimore. and announce
ment that legal action against the man
agement OF the company had been taken
caused lively interest in financial cir
eles. In their call for a deposit Of The
bonds and preferred stock the banking
houses say:
The Newport News and Old Point
Railway and Electric Company IS the
owner Of S1ss,o00 par value Of the com
mon stock OF the Citizens Railway.
Light and Power Company CtotaI issue
S2oe,eo9l ard ss@aAae par value Of the stock
Of the Danville Railway and Electric
Company Ctotai issue Sl0aOoO. which are
held by the Maryland Trust COMPANY
trustees as part OF the collateral security
for the general mortgage bonds % the
Newport News and Old Point Railway
and Electric Company.
We have been informed that the
board OF directors of the Citizens Rail
way, Light and Power Company, without
the knowledge or approval Of the Mary
/ land Trust Company. trustee. has pur-
chased SS05.000 par value Of the common
stock OF the Newport News and Old Piont
Railway and Electric Company. and has
! issued it's note for $4,000 therefor. Al
the same tine the Danvilie Railway and
/ Electric Company, without the knowledge
or approval Of the Maryland Trust Com
.
pany, trustee. has purchased $1,000 par
value OF the common stock OF the New
! port News and Old Point Railway and
/ Electric Company and has issued its note
! for $4,000 therefor.
/ we are advised that II these trans
/ actions are permitted TO stand. they viii.
/ 70 the extent Of the said notes impair
] the security of the general mortgage
/ bonds. We have, therefore. requested
the Maryland Trust Company, trustee,
on behalf Of the general mortgage bond
holders. to take such action as IL may
deem advisable TO protect the interest
/ OF the general mortgage bondholders.
while the company has not defaulted
IN interest payment on the bonds, we
believe it Is advisable for the above rea-
sons that al holders Of the general
/ mortgaee bonds promptly deposit the
same with Us, particularly in view OF
the fact that the management, which IS
RESPONSIBLE for the transactions. claims
to personally represent q large block OF
these bonds.
Owing 10 the fact that these bonds
were originally placed by Us. II IS our
/ intention 10 pay all counsel and other
! expenses properly chargeable 70 bond
holders in this connection and no de-
positor viii assume any financial obliga-
fion 70 US by reason Of such deposit
An extensive deposit Of coal or the