Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-04-04
THE GREAT RAILROAD 1mBRoGLIo.
The Nashville and Northwestern Rail
road Company Apply for an
Injunction.
The Matter at the Mercy of Judge
shack eIford.
An Interesting and Elaborate Review
of the Points Involved.


Gerry Court an application for an injunction
to restrain the Governor, Secretary of
State and Comptroller from issuing bonds
to the bogus concern foisted upon the stock
holders on Thursday. President Burns
and the Directory, in taking this
step, should be sustained by every
right-thinking person. The interests in
voIved in the decision in this case are
most vital to the whole people. 1t is re-
sistance to outrage and encroachment I'M
paralleled, and there is not property
holder in Tennessee who will not look with
interest for the result. Should the usurp-
ing directory be upheld, the next thing we
may look for will be seizure and sale OF
property throughout the State for the
benefit Of hungry political pets.
The following is the application filed by
he railroad company yesterday
To The Hon. james o. ShdckeLford, one Of
The Chancellors Of the State Of Tennessee, 'oho
presides at Nashville IN said State Your
complainant, the Nashville and North
western Railroad Company, would show
unto Your Honor that it was Incorporated
DT All ACT Oh ltlt hoSCuhb=J VI thS
State of Tennessee, passed on the I'D OF
January, 1852, entitled "An act TO incor-
poraie the Nashville and Northwestern
Railroad Company" Said act, with all its
provisions and subsequent amendments, is
made part hereof and specially referred to
your inspection.
1t will be seen by reference to the first
section of said act, that the object was to
construct and operate railroad from the
city of Nashville to point on the Missls-
sippi river. The Sth section provides that
Gthe affairs of the company shall be man
aged by a Board of Directors to consist of
fifteen, and shall be chosen by the stock
holders from their own body, and Presi-
dent of the company shall be selected by
the Directors from their own number, in
such manner as the regulations Of the cor
poration shall prescribe"
Your complainant would now show unto
your Honor that large amounts of stock
lawfully, under the provisions of said
charter, organized, and which Board has
now been in existence for many years, and
the road is completed from Nashville TO
the Mississippi river. This road has been
built to great extent by individual capi-
tai and enterprise, and very large num-
Der of stockholders are now represented by
this Board. Large amounts of State aid
have at different times been set apart and
used in the construction of said road.
Your complainant further represents,
that this road is one Of the most important
in the whole State, and that its stock
holders, as well as the State, are deeply In
terested in the management of said road
that under the act of the said General As
sembly passed on the 9TH of March, 1867
entitled ian act to amend the charter Of
the Memphis and Charleston Railroad
Company, and for other purposes" and
under the 9TH section of said act, which il
in these words, "Be it further enacted, Thai
the Governor shall appoint Directors il
each railroad in this State in proportion
to the amount of aid received by said com.
pany, whether the sid has been received by
The issuance of bonds of the State, or in
dorsing bonds of the said railroad COM
panies," the Governor of Tennessee did or
the - day of -, 1867, appoint fifteen
Directors, who, without objection, came
into the Board and acted with the regularly
elected Board. These Directors so ap
pointed and acting were good men, and
sought alone to take care of the interests OF
the State, and the stockholders Board were
more thar willing to have the benefit o.
their counsel and advice and cooperation
in the management of the affairs of said
raid road, and in the management of the
affairs of the two roads, the two sets of Di
rectors acted in harmony. This harmoni
continued I,
out interruption until the pretended organ
ization of a new Board, hereafter referred
TO.
On or about the-d day of --, 1856
the Governor appointed w. p Times Re
ceiyer of said road, who has assumed t.
act as such Receiver since about the --
dav f, 1856. Complainant, through
and by its regularly constituted Board o
Directors. as well those elected by thu
stockholders as those appointed by Ia
Governor, duly and lawfully elected NJ
Burns President, who is still the Presiden
of said company, and who has possession o
| the zeal and some Of the valuable books o
| the company.
Complainant, some months ago, finding
that the road could not be equipped ant
run successfully without some additiona
| State aid, made application through ii
officers to the Legislature Of Tennessee 70
such help or aid, and the same was grante'
| to complainant as a company, by an &C
| passed the 9TH of December, 1867, 10 tn
extent of $3.50, 900, the provision of whicI
law applicable TO complainant is in thes
words:
"Be it enacted by the General Assembl
of the State of Tennessee, That the Gov
ernor of the State be authorized to issu
the bonds of the State, bearing six per CEN
interest, with coupons attached, similar il
every respect TO the bonds issued under tn
act this is intended to amend, to the Nash
Vile and Northwestern Railroad Compa
ny, $35O,0OO."
The second section il in these words
Be it further enacted, That the bonds {
the State TO be loaned by this act shall b
exclusively applied TO the purchase of en-
gines, rolling stock, etc, for said road, an
for the building of depot houses and work
shops, and for iron for side-trscks an
spikes, and necessary equipments"
The 18th section provides, that whe
any railroad company accepts the beneh
of the loan given in the act, il shall acceI
the State Directors also, and said Director
shall be entitled to all the rights of othe
| Directors.
The preamble to said law is az follows
"Whereas, The Nashville and Northwes
ern railroad has been but recently con
pleted through TO the Mississippi river
and whereas, it was impossible for sal
road to make any profit during its cour,
of completion and whereas, the intere
upon the State bonds has not been paid b
said road in consequence Of its unfnishe
condition and whereas, it is impossible
run said road with success without larl
increase of rolling stock; therefore, r
solved" etc.
On the 23d of December, 1867, Il
| Board of Directors met and accepted Il
| State aid rendered and authorized Il
, President, M. Burns by name, to receiN
the bonds from the State. A full and con
plete copy OF the proceedings ofsaid Boal
r as accepting said State aid is here to Il
court shown as part thereof
IL will be seen from these proceeding
; that the Board composed of the Stool
I holders, Directors, and the Directors a
pointed by the Governor, accepted the Sta
aid upon the grounds that the Legislatn
= intended the bonds to be issued to q
| o,1 10 tho Rpapivpr