Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-07-29
INJUNCTION.
The First National Bank EniOins the
City and Mr.. Brinkley.
The Bank Claims that the Board
have Acted in Punic Faith.

the NCobClNNs v
gave what we believe to be a Ialr ana
truthful statement of the negotiations
then pending between the FINANCE
Committee Of the Board Of Aldermen,
and certain other parties, for the loan
of s25.O 1000, and the hypothecation of
the citv's Little Rock stock collateral
therefor.
These negotiations had been con-
Quoted first with the First National
Bank. but e afterward transferred
to Mr. r. c. Brinkley, and we are in
formed that the necessary arrange
ment had been agreed on with this
gentleman for the accommodation OF
the city on terms far more advantage
u than those offered by the Bank;
and that the negotiation was definite
" closed with him.
1t seems not, however, from a
document filed yesterday in Chan
Gerry, of which the following
is a careful resume. 1t is
an Injunction against the Mayor and
Alderman of the city of Memphis and
r. C. Brinkley, aresident Ofthe same,
by f. S. Davis ct al, Of the First Ma
tional Bank.
THE BILL.
The complainants show that at a
regular and lawful meeting, on the
blank day of July, 1869, the Board of
Aldermen of the city of Memphis
adopted a resolution authorizing the
Finance Committee of the Board of
Aldermen, together with the Mayor
pro tenn, to use the Little Rock Rail-
road stock owned by the city as col
lateral, redeemable at the pleasure of
the city, to secure past due claims
against the city Of Memphis, and to
borrow money for the purpose of de-
fraying the current expenses.
They further state that at the
time of passing this ordinance
or resolution, the city was in
extreme need of money, and was the
owner of five thousand seven hun
dred and twenty (5720) shares of the
stock of the Memphis and Little Rock
Railroad, of the nominal value of
S572, 900; that at this time among its
other Indebtedness the city owed
the compliments for city scrip, de-
mand notes and past due coupons,
with interest SS4, 195 II, a portion of
which was due to the complainant in
dividually and the balance to parties
for whom he was acting as agent and
trustee.
The complainant further states that
in pursuance of the instructions, con-
tanned in the said ordinance or resolu-
ton the Finance Committee applied
to him to borrow the funds necessary for
for the use Of the city. Negotiations
ensued and resulted in the agreement
of the complainant Davis to loan the
city the sum of $4,000, on condition
that the corporation would not only
secure him in the loan, but also the
whole amount Of the aforesaid indebt-
edness (SS4,19j ~, the interest on
which was to be calculated and added
to the sum, and the whole amount
thus formed to be divided into sums
payable as follows: $780, sol on NoVem-
Der l, 1869; SIS, 900, December !, 'G9;
and sos, I52 4S on the LIST Of January,
1870, for all of which amounts notes
were to be given by the Mayor and
countersigned by the Register of the
to secure the payment Of which
the Finance Committee agreed to de
post with Davis the said Railroad
stock (S572,OOO WORTH as collateral.
This was put in writing in the shape
of a proposition by the Finance Com
mittee, and submitted to him by Da-
Wis, and by him agreed to.
The complainant further states that
having consumed much time in nego-
tiations, and taking much trouble to
calculate interest, etc, after agreeing
upon all the terms, the evidences of
this said past due Indebtedness were
taken by him, put in an envelOp en-
dorsed with the name of the proper
city official authorized by law to re-
ceive the same, and were specially de-
posted subject to his order, and to be
delivered to him whenever the notes
aforesaid should be signed and deliv-
cred and the railroad stock transferred
according to agreement, the notes and
agreement being all drawn up ready
for signature by the said Committee.
This action on his part, the COM
plainant AYERS, completed his share of
the contract, and the signing of the
notes and transfer of the stock was all
that was necessary on the part of the
defendants to close the contract. He
further AYERS that he has always been
from the time of his acceptance
Of the proposition, and is yet ready
to pay over the money and.earry out
the bargain.
The complainant further states that
the contract was drawn up by the
City Attorney under the direction of
the Committee, and stipulated that in
the city should not be able to
meet the notes when they became due,
they should be disposed of at their
then market value, and in S that
should not be sufficient to pay the
amount then due, the complainant
should have the power to sell so much
of the railroad stock left as collateral
as would make up the deficiency, first
of the Mayor of the city thirty
notice of the time and place of
the said sale.
This, the complainant alleges, was
the real contract between himself and
The said Committee, and which he
has always been and is now ready to
larry out in every particular, but that
upon demanding of the Committee
hat it should be carried out they re-
used to do so, and now are attempt
.ng to wholly reject and repudiate it,
md in total disregard of his Com
)lainaRt's) rights in the case have ac-
and are about to cOnsummate
proposition from r. G.. Brinkley, a
larty defendant, to transfer the said
abroad stock to him, i'm cOnsidera-
ion that he loan the city So, 900, all
# which viii greatly aggrieve and
njure the complainant, who further
tates that he has been advised
hat he has acquired in Equity a right
o have the said stock appropriated to
he purposes for which the said trans
er was to have been made to him,
nd that unless it can be done he will
ufier great pecuniary loss and injury
or which he would have no adequate
edress in the courts of law; that tl9
'ontraet with the said Brinkley is a
on his rights, and if carried out
will be unjust and inequitable.
The complainant further states that
liter the forms specified had been
zone through with, and regarding thee
'ontraet as made, he called in loans
made to other parties, which were
fielding a pecuniary profit, in order
o have ready at hand the funds nee
.ssary to meet the call for the said
2 1900, and unless he have redress
the Honorable Court he will
ufer great damage from having thus
.cted.
In conclusion, the complainant
makes touching illusions to the other
ums which he had advanced the city
When she was hard up, and says he
lad hoped that his claims upon her