The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-04-22

and shows that al very distant day all sorts OF trouble
and litigation will grow out Of the present Loose and Illegal
WY Of Issuing railroad bonds is matter of me Oss
vital importance that all the financial operations OF any
railroad company Should be legally and properly conuct
ed and thai all It's sues OF bonds and mortgages should
be in accordance with its charter and all the special acts Of
the Legislature controlling its affairs We venture to say
there is no, one railroad company in dozen in the coun
try the obligations of which market possess the
first point of legality The time Is coming when contest
between bondholders stockholders, regard to the
possession ofraroad property, will be carried with the
greatest bitterness and determination and in anticipation
of that time bondholders should look the character OF
their secure The annexed answer Of railroad company
is curiosity just now because it is new, but few years
hence shall be used to these things, aud become
pretty ell posted all the Law points in relation such
cases.
An answer has been filed by the Railroad Com
pany which the transactions Of the company relating
10 the execution and delivery of its rst third
mortgages, and the issuing and negotiation of the bonds
intended 10 be secured thereby and the execution Of the
mortgage the hundred acres OF land 10 -,
cury for payment Of Ssl 900 OF bonds therein
company sets up and claims that the first mortgage
deed of trust and the deed conrmatory thereof to Mr. c.,
were and void security for the payment Of the
first 5000 900 Of bonds, for reasons following
l. Because such Instruments, to such future nd
yances bonds delivered TO the trustee negotiated by
p because defendants charter authorized the execution
n M Fh NC m
Because the defendans Board Of Directors never su.
red The execution Of any such Instruments
e. Because they not properly recorded renewed
fled
But n said Instruments have any validity then they
hold nothing else but the surveying Instruments and the
tools used herewith.
l. Because, by the law of the land they cannot
future acquired property.
2 Because the defendants charter allows no conveyance
TO be made OF future acquired property.
g. Because the defendants Board OF Directors
horized it, President other officer make any convey
ance purroriing 10 convey future acquired property
a. Because no corporate franchise or privilege can be
lawfully conveyed unencumbered without the consent
OF the power that granted them.
8. Because the defendants right OF way ease
ment merely and incapable Of sale transfer of being
in any way encumbered.
g. Because said surveying instruments and tools
all the property, real and personal mixed of any kind
Whatever that belonged to owned by tbs defend
ant on said 1st day Of November, 1851.
T. Because tho second and third mortgages, against
the first the property in ese, in their times;
the second to be made subject TO the FIRST the third to
be made subject 10 the second and first.
g. Because there be mortgage of 'nonentity."
The defendant also insists that the mortgage pledge
OF the - TO - for the use OF -,
l. VALID
l. Because it to raise money to pay the interest
the bonds.
q Because by the special provision in said mortgage,
The Of the defendant allowed to be used for the
purpose of raising money finish and equip the road.
Because said mortgages not recorded, renewed,
relied according to law.
a. Because they subsequently acquired property