The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-04
Judge Crump Appoints Virginia
Trust Co. to Take Charge
of Street Railroad
HAS DEFAULTED ON
BONDED INDEBTEDNESS
Bankruptcy Proceedings lnstitu.
ted by Canadian Bondhold-
ers--Sale Will Shortly be
Ordered by Court

AT the instance of the Union Trus
Company of Canada representing tn,
largest bondholders, bankruptcy pro
ceedings against the Richmond ant
Henrfco company were instituted IL
the Law and Equity court of Rich
mond yesterday by Attorney Samue
A. Anderson. representing the trus
company. and Judge Beverly T
Crump, after hearing the petition. i'm
mediately named the Virginia Trus
company as receiver for the railwa,
company.
The petition represents that tn,
Richmond and Henrico Railway com
pany has failed to pay the interes
4 on It's bonded Indebtedness of which
1sthe Canadian bondholders hold abou
H1.00o,000. Samuel l.. Kelley. gener
hi counsel for the railway admitted
these allegations. stating to the cour
that the company would not Oppose
the receivership proceedings. and tbs
petition was submitted without arEu
Aaent.
Court to Order Sale.
The Virginia Trust company tool
charge Of the property yesterday at
ternoon and Immediately began the
work of taking inventory. AS soon a.
this is completed--which will prob
10 the court and Judge Crump will
then be asked to order the sale OF tbs
property according to law. In tht
meantime the car line will be operated
Rs usual without disturbance OF the
present system or of the men In IT.
employ. and the revenue, 1t In ey
pected. will be sufficient to mee'
operating expenses.
President Jackson, OF the Virgins
Trust company. stated yesterday thai
speedy compliance with the neces
contemplated and he expected TO bt
able TO submit an inventory 10 court
which liz the first step-within few
days. After viewing this report ol
the receivers the court will be asked
TO name a date for the sale Of the
property. In the meantime tn affairs
of the company will be handled un-
der the direction of the receiver bn'
Just as II nothing mad happened
Bondhoiders Lost Patience.
While ii is the general belief ir
&nany quarters that the Virginia Rail
way and Power company will acquire
the property when 1t goes under tbs
hammer, the hope was expressed ny
General Counsel Samuel l.. Kelley
yesterday that a syndicate OF Rich
mond capitalists would be formed &c
pUY III III. ASiuS from tt't p'iiiFV Az
debtedness he stated. the company /:
now on it's feet. II owes less thar
$1,000 and last month cleared $eet
over and above operating expenses
He expressed great regret that ths
Canadian hondholders had not re
strained their impatience and giver
the road chance to make. good. whicr
he believed ii Is in fair way to dc
The Union Bank of Winnipeg, ht
H. 9Th isa In 4
anstigation of the receivership pro-
ceedings This bank. which has a cap
atalization of $50. 600, GOO, owns Rich
xnend and Henrieo Railway company
bonds to the extent OF 1850, 900, anc
simply lost patience over the fac'
! that the Dad was not making head
way faster That Is the whole story
In a nutshell.
The petition filed yesterday. sets
Nav 2. 1919. the Union Trust Com
pany Of Canada became trustee fol
the Richmond and Henrico Railway
company bond issue of 1890. GOO
which was sold largely to Canadian
investors This was a twenty year is-
sue, bearing interest at per cent
9tnce July, 1910, the petition alleges
the interest on these outstanding
bonds has not been met according tc
ar July OF 1911. in January or July
OF 1912, or in January, 1918. Neither
declares the petition. is the road in a
rositton to pay its State taxes and the
receiyership, 1t represents. Is imme-
date and imperative. The petition
further asks that the officers OF the
company be restrained In any manner
from interfering with the operation OF
the road except under the direction OF
the receivers
Began Operation In 1911.
The Richmond and Henrico COM
many began the operation of cars In
Richmond on August Z. 1911. The
Equipment is modern in every par
11cular. and an excellent service, with
twelve 10 fifteen cars daily in use. has
heen riyen over its nine miles oi
track. In addition to the track and
rolling stock 1t owns a large power
plant equipped with modern machin-
cry. located on Lester street near the
river, and 1t also owns the Marshall
street viaduct. which It built as an
airline short cut to the East End for
the operation OF its cars.
The Richmond and Henrico COM
many succeeded the Citizens Rapid
Transit company. which was organ
Axed in 1900, composed largely of men
now interested in the defunct COM
pany. The company was authorized
by charter to issue $2.500,000 in bonds
and a like amount Of stock. One
half the bond issue was sold and the
other half remains in the treasury
The company also issued half the limit
OF stock, and a considerable part OF
this went with the bonds to Cana
dian holders. though large amounts
az its are held here. Recently the
company, after hard fight before the
council, succeeded In securing the
privilege OF furnishing light and pow
er. and II was to have made a hid
Monday night for the extension Of its
line to lakewood cemetery, but did
not. probably anticipating the pro-
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