The home journal. (Winchester, Tenn.) 1858-188?, 1869-12-09
Can, the railroads be Sold

Can the ItallrOaNS DE SOld
Among the great and absorbing ques'
tons Of the day, what shall be done
with the delinquent railroads, is one.
" hat shall the remedy be? What can
be done so as to do justice to all par |
Ties. and do injustice to none: NouId
it he best to sell the roads or lease
them? Such as the foregoing ques'
tons have been repeatedly put to us.
So far as our Individual railroad
sense is con ,erncl, We freely confess
our incompetency to give satisfactory
answers, hence TINT which may he said
by US, will be q rejection Of the best
legal minds Of the State, rather than a
display of our originality of thought
or suggestions in the matter.
1t is earnestly insisted that the only
legal course that can be pursued IN the
matter, is the appointment Of Rcceiv-
crs for the roads that have failed to
pay the interest on the bonds issued by
the State. For further satisfaction the
original statute relating to these loans
are referred to, and relied upon in sup
port OF this proposition. By axamn.
ing the Code from page 26o, inclusive
Of page 2GS, it will be seen that these
roads cannot be sold until the principal
Of the bonds fall duo. by reference to
Code, SEC. LOOP, il will he found that
the Governor was authorized to issue
Londs to railroad companies not to
have more than forty nor less tllan
thirty years to mature.
The bonds were to constitute lien
on the roads Of Tie companies rs surf
ty to pay the interest in the drs. place
and secondly. the principal. twill al.
81 w Secli lhaI III Wv S'V"V VI WV IAN
ure of the companies TO pny the inter
est and the principal Of the bonds. two
remedics were provided. One applies
to interest tue other to principal. II
the interest was not paid then the road
was to 60 into the hands Of Receiver
and to he under his management until
ploiits were realized sufficient to pay
of the interest. The other. II the com
pany should fail to pay of the bond at
maturity, all.r thirty or forty years,
rs the case might be, then the remedy
stipulated in the contract or mortgage,
(lt was or is 4 mOrtgagc) is that there
shall be q foreclosure in Chanccry for
decree sale.
From the foregoing it is earnestly
insisted that the State cannot sell thes'
delinquent roads until the bonds fail
due, (thcy are not yet due unless by
consent of the stockholders--the STATE
can ouly appoint Receiver.
While on the other hand. this posi-
ton is not seriously disputed as being
the proper Interpretation of the Stat,
ute referred to. ii is coptcnded that to
sell the roads il the only mode OF pro
trlting the interest OF the State, and ul
securing il against any lu,!lIer loss in
consequence OF the issuance oil lN n,ls,
al.i that whereas the property mort
gagged (it is insisted that the relation.
existing between the State and their
railroads, are simply those of mortga.
gOr or mortgagce,) j. going to waste,
the interest aecumuIuting at fearful
rate, and the period Of maturity very
distant, that both OH principal and au-
thority, q Court of Chancery wonld
have the right to decree sale of the
mortgaged propcrty before the maturi-
ty ofthe principal, under the doctrine
of Quia timet -...... ,...r.