Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-11-23
THE DEFAULTING RAIL-
ROADS.
The Bill of MIR. Fleming Providing
for Their Sale.

RNbADSs
The Bill of MIR. Fleming Providing
for Their Sale.
Below we give the full text of the bill
of Mr.. Fleming, of Knox, for the sale of
the defaulting railroads of this State,
which is most likely to be the subject of
much discussion;
bill to protect the interest of the State by the
sale Of railroads and other property.
Section l. Be it enacted by the Gener-
al Assembly of the State of Tennessee,
That if any railroad company that has re-
ceived bonds of the State of Tennessee
under the act of the 18th of February,
1852, entitled Gan act to create system
of internal improvements in the State
or under any other act or acts amendatory
thereof, Las failed and now fails to pay
the interest due upon said bonds, il shall
be the duty of the Comptroller to give to
the Governor immediate notice of the fact,
who shall thereupon direct the Attorney
General of the State, and it shall be his
duty to file bill in the name and on be
half of the State of Tennessee, against
such company in the Chancery Court of
the Chancery District in which such COM
pany has its principal place of business,
making defendants thereto all other prop
er and necessary parties for the purpose of
having sold by decree of said court, the
railroad, rolling stock and other property,
rights, franchises and privileges of said
company upon which the State has a lien
under the provisions of said acts. to pay
the principal of said bonds, together with
the interest thereon, to protect the inter
est of the State, and to secure it against
loss in consequence of the issuance of said
bonds to said company.
Sec 2. That should said company pay
said interest before final decree in said
cause it shall be the duty of the Attorney
General TO dismiss the same upon the
payment of the cost thereof by said COM
pany.
Sec. 3. That the provisions of the
foregoing section shall apply to and be
enforced against any railroad company
having received the bonds as aforesaid,
and that may hereafter fail to pay the
interest on said bonds, as it may fall due
as provided by existing laws, and it shall
OC hutl VI LnC SOlll pllOllCl, OONCluOI
and Attorney General of the State to pro-
coed to enforce the same as required in
the first section of this act
Sec. f. That said Chancery Court shall
have power, and jurisdiction to hear and
determine said cause according to law, and
the course of proceeding and practice in
Courts of Chancery in this State, and to
make such sale upon such terms and upon
such credit as may in its discretion be
deemed best for parties, not exceeding
| credit of - years.
Sec. 8. That said court shall have
power, and it shall be its duty, to settle
and determine the liens of the respective
parties to the cause, and their priorities
| of payment out of the proceeds of such
| sale.
Sec. 6. That it shall be lawful for the
purchaser, at any sale made by decree of
said court, or other sale made under the
provisions of this act, to pay such pOr-
tons of the purchase money as may be
due or decreed to the State, in any bonds
of the State of Tennessee at par, whether
due or not due, and if not due they are TO
have attached thereto the coupons that are
not due at the time of the payment
Sec. Z. That the notice of any sale made
by decree of court under the provisions of
this act shall be thirty days, and shall be
published in two daily newspapers pub
lished in the city of New York, and in one
daily paper published in each of the cities
of Knoxville, Nashville, Memphis, St.
Louis, Chicago and Louisville, and said
sale shall be free from all redemption OF
rights of redemption whatever
Sec. 8. 1t shall be the duty of the
Attorney General of the State TO attend
such sale and bid for and in the name OF
the State, for the railroad, rolling stock
and other property, rights, franchises
and privileges offered for sale, sun
equal to but not exceeding the debt o.
amount ascertainel and declared in the
decree of the courts to be due in the
State by said company, and as having {
lien prior to and superior to all other lien,
or claims.
Sec. 9. That in olpler TO provide for {
sale by the State, of a railroad, rolling
stock, rights, franchises and privileges OF
said company, so purchased by the At
tOrney- general, three fit and proper per
!
State, shall be appointed by joint resolu
ton of the present General Assembly anC
by succeeding Legislatures as the SAINT
may become necessary, who shall have
power and whose duty it shall be to make
such sale upon the terms provided in the
sixth section of this Act, and if the sale
made by them of the rolling stock, rail
road and other property, rights, franchises
and privileges of said company, De
for an amount equal to or greater than
hTeefOurths of the Indebtedness of sucl
company to the State it shall be absolute
but, if the sale be for less than three
fOurths of such Indebtedness, ii shall BE-
subject to the ratification of tn,
Legislature at its next meeting
after the sale; and any purchaser
under the provisions of this act, shall
upon the payment of the purchas,
money, be vested with all the rights, pow
ers, franchises and privileges which sal,
company now has by existing laws, an,
upon his purchase and compliance will
the terms of the sale, he shall be entitled
to possession of the railroad, rolling stool
and other property purchased, and to TIT
use VI lllC EtllllC VII lllC llSnAS, IEdil
chises and privileges conferred upon sal,
company by its charter and laws of tn
State, except that no bonds of the Stat
shall be issued or lent to said purchaser b,
virtue of any law of this State.
Sec. 10. That should either of sal,
companies, against which proceedings il
court shall have been instituted, OF
or before final decree and sale in tn
cause, pay to the State, through its prOpe
officers, tlIree-fOuTths of the amount o
said Indebtedness in any of the bonds o
the State, whether due or not, and if no
due, then with the coupons that are no
due attached thereto, such payment shal
he deemed and taken as a full settlement
and payment of said Indebtedness an,
upon the production of the receipt of tn
Treasurer of the State, in open court, 70
such payment, and upon the payment o
the costs of the cause by the company
, the said court shall have authority an
r power to render decree declaring tn
? payment and satisfaction of said indebted
ness and the discharge of the said lie
/ of the State of Tennessee; provided
= that this section of this bill shall appl
OnIy 10 IlOSe IalITodu COIlpdLleS tudt nav
received bonds of the State, as aforesaid
under said acts, and have failed and nov
fail to pay interest due by them, that be
| came due and payable on or before tn
lst day of January, 1869, and to no Othe
companies.
Sec. II. That it shall be lawful fo
J the railroad companies that are exclude
from the provisions and benefits G
the 10th section of this act b
the prOvisO thereto, to pay the
entire Indebtedness to the State cref
r ted by the issuance of bonds to them 8
y aforesaid, with any of the bonds of tn
a State at par, whether due or not, but
7 not due. the coupOns not due must B