The Marion daily mirror. (Marion, Ohio) 1892-1912, 1909-08-04


on petition filed In the local
court common pleas, Monday night
asking the appointment of receiver
for the Columbus, Deleware and Mar
lon Railway company, and properties
owned by that company Judge Bos-
ton G.. Young, Tuesday afternoon
at 4:30 O'Clock appointed George
| Whyssall, general manager of the com
pany, receiver with power to operate
the properties. The court fixed the
lond of the receiver at 100000. Mr..
Whysall Immediately furnished the
bond and qualified as receiver and
today is in charge of the lines. The
receiver stated to the Mirror today
that no changes will be made in the
| operating department of the line and
that the present service will be main
tained at all times and betterments
made wherever that is possible.
The petition was filed by Newton
j. Catrow, through his attorney Earl
Turner, of Dayton. When the an
swer of the defendant was flied the
case came on for hearing late Mon
day night. The plaintiff demanded
|
the court refused to grant the request
} claiming that one receiver was
enough for a small line. The hear
ing was then adjourned until $40
o'clock, Tuesday morning. When the
court reconvened neither Catrow nor
his attorney was present. The at
torney Earl Turner had left the city
and carried with him the papers in
the suit. He went to Columbus and
| filed them in the Franklin county
| common pleas court.
After the receiver had been ap-
| pointed here Judge Young ordered
| that Turner return the papers of
this court forthwith. Up until late
today the papers had not been re-
turned and It is likely that Turner
will be cited for contempt.
The petition is filed by n. ]. Catrow,
treasurer of the company and presi-
| dent of the First National bank of Mi
amisburg and is for the purpose of
| securing the payment of loans for
which Catrow holds a collateral note
signed by the Columbus, Delewere and
| Marion Railway company through Os-
| car M. Gottschall as vice president
and n, j. Catrow as treasurer. ex-
ecuted to the company's president
John G. Webb, and is for the sum OF
| S372,3S1.S1. 1t Is dated June /, 1907,
and was due Sept. 1, 1907.
| A number of allegations are made
In the petition which would tend to
show the condition OF the company
has been precarious for some time.
IL is claimed in that document that
John G.. Webb is not now financially
responsible, and that the only coll
lateral security the plaintiff has for
payment of the loans is the note on
which he sues, and that the only
property of the company Is that con-
sisting of its lines OF railroads. It's
cars and equipement. This proper
ty is subject TO a mortgage of $2,-
| 50O,0 to secure am issue OF that
amount of bonds.
II Is also claimed in the petition
that the interest on these bonds. since
Catrow became the holder of the note
has been paid from the capital ol
the company and not from its earn
ings, and that $4,000 interest on
the bonds. which was due Aug. /,
has not been paid and that the COM
pany has no means of paying 1t.
The recevership Is sought for the
reason that the only equity Catrow
may have in the properties of the
company would be that remaining
after the payment OF the bonds is
made. He claims that he has nc
recourse to law, because any exc
cution upon judgement would not
be satified without proceedings In a
court of equity. He also believes
that the company Is solvent, and
seeks to prevent any action at law
which would tend to impair the good
will or stop the business of the com
rany. 1t is understood that the assets
of the company are In excess of the
Liabilities. and II Is desired that these
assets be disposed of under proper
court jurisdictions.
In addition to his note for $372,.
SS1.S1 the company also is said tc
be indebted to Catrow In the sum ol
$1,000, which he advanced Feb. 1
1908, for the jayment of interest or
the bonds of the company This note
Is said to be past due, as well al
the interest on the note.
The difficulties of the company arr
believed to have dated from SONS
time back. 1t Is said that during tn,
panic and Immediately following, they
adopted a retrenchment policy and
that several of their officers were Gu
off and a number of minor Office
closed.
The officers of the Columbus, Del
aware and Marion Railway compan!
are John G.. Webb, Springfield. presi
dent; Newton j. Catrow. Maimsburg
treasurer; Oscar M. Gottschall, vic,
president; ii. b. Hane, secretary; G
r G Williams. counsel; A. #. Elkins
. auitor, and George Whysall, genera
3 manager. Gottschsl & Turner o
I Dayton, and Arnold, Morton a. Irwin
: of Columbus represent the plaintiff
The company Is represented by It
a counsel, c. G. Williams and Scofield
Durfee and Schfield.
8 Officers Of the c.. ID. & NJ. are no
: alarmed over the action just taken
but refused to issue any statement las
night 1t was intimated that the sui
might have been Instituted for tn
/, purpose Of clearing the atmosphere
: The organization of the company ha
been complicated to certain degre
for several years past.
: John Webb, the president Is a resi-
dent Of Springfield and last eveain