The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-04
Virginia Trust Company
Named as Receiver by
Judge Crump.
SAY 1T IS UNABLE
TO PAY ITS DEBTS
Canadian Bankers Allege That
Road Is Wholly Insolvent and
Receivership Is Necessary to
Preserve Assets-Record
Shows 1t Failed to Pay
Cost of Operation.

Scarcely two years after the opera :
tlon or It's first cars. the Richmond and
Henrico Railway Company was yes
terday morning forced into receiver
snip upon application of the Union
Trust Company. Limited, of Toronto,
canada. underwriters for "a SI25O.00O
Issue OF first mortgage bonds. The bill
OF complaint was filed in the Law and
Equity Court. and was not contested
by the railway company. Judge Bev-
erley L. Crump entered a decree ap-
pointing the Virginia Trust Company.
or this city. receiver without bond. di-
rectlnS IL TO assume Immediately com
piete control OF the business.
The bill filed by the Canadian bank
ers set forth in support of its plea for
interference by the court that the Rich
mond and Henrico Company is wholly
lnsolVent and unable to pay it's debts
and obligations" and that II has failed
to provide money with which to pay
any part Of the interest which has been
due semiannually on the bonds since
July /. 1910.
Fails to Earn Operating Cost.
Furthermore. ii is claimed BY the
Canadians that the financial affairs
OF the defendant company are in an
embarrassed condition; that it failed
for the FIRST fiscal year ending June 30.
1912, to earn Its operating expenses;
that II has already incurred a floating
Indebtedness, much OF IL past due and
unpaid; and that It's earnings are in
sufncient TO pay the charges and ex-
penses OF operation OF the traction
properties, together with the taxes and
charges having priority over the mort
gage and interest on bonds as they
mature"
An answer to the bill of complaint
tiled yesterday by the Richmond and
Henrico Company, signed by w s.
Forbes, president admits all of the
all le0 tfAn
nine paragraphs OF the bill, and de-
clares the company's intention not to
oppose the receivership and the sale
OF the property asked for by the bond
holders.
blanca Trnnsfcr Plan.
statement issued later in the day
by Samuel l.. Kelley, attorney for the
Richmond and Henrico Company,
throws no light on the company's plans.
1t attributes the present crisis to un-
profitable operation due in large part
to a transfer arrangement with the
Virginia Railway and Power Company.
characterized as unjust to the new
company, and to the failure to obtain
from the City Council West End and
other franchises which would have
compensated for the temporarily un-
profitable operation OF its present lines
The hope Is expressed by Mr.. Kelley
that reorganization will be effected
which Will insure the operation OF the
property as an independent line.
The crisis in the affairs of the Rich
mond and Henrico Railway Company
was not unexpected. Railway men and
citizens generally who were familiar
with the facts received the news with
out surprise. To others the receiver
ship was the big sensation of the day.
in It's last report TO the State Corpo-
ration Commission the company ad-
mitted that during its first year of
operation the revenues were $4,000
less than the expense of operation.
This took no account OF interest due
on bonds.
Old RumOrs Revived.
The receivership revived anew the
prediction that the Richmond and Hen
rico holdings would finally be absorbed
by the Virginia Railway and Power
Company. Officers of the rival COM
pany declined yesterday to discuss the
matter. Those in close touch with the
mana cement OF the old company were
of the opinion that the Virginia Rail-
Continued on Eighth Page.)