The New York herald., 1870-01-09
ANOTHER RAILROAD WAR.
Important Suit on Question Of Jurlsdic-
don-A Company Declared Bank
rupt Without Form OF Law
Southern Law Tactics.

Tho great Alabama and Florida Railway case, IN
which the procesdings OF the Bankrupt Court of
Florida had boon uD for review before Justice
Swayne, or the United States Supreme Court
has been argued within the last few DAYS
This case is important. not only on account
OF the great amount OF property involved, put
1t Is tho first bankrupt case under the new
law that has been brought before Justice OF tho
Supreme Court for review. The plaintiffs, Davis ana
Jaudon, were trustees OF the mortgage made upon
tho Alabama and Florida Railway Company to
secure $4,000 on bonds. They brought their suit
In the state Court Of Florida, ana had q receiver.
Richard ~. BUSHNELL appointed.
The Alabama ana Florida Railway COMPANY was
incorporated by anl under the law Of Florida lsj,
to construct AMI operate railway from the western
line OF the state OF Florida to Pensacola bay in that
state. lne zine was finished IN 1851 ImmcdIaGeiy
after che war broke out and the C0nlederate govern
mont removed anu TOOK up the rals throughout
nearly the wloe extent Of Iae line since then IL
nsd ooel partially restored 10 working order. De-
Interest upon the bonds tho p.alntllrs IN the
pIeseat SUIT, u enforce The security thereof,
=. tae request OF the bondholders filed on
the lSs OF June bill, In the ESCamba County
court, OF tno State of FLORIDA to bring the
railway 10 sale, ana the Court IN July. 1861. duly
appointed RICHARD NJ Bushnell receiver or she rai-
way equipments and m0rtiaged property u the said
company. Later IA the same month OF Jnly peti.
tlon was presented 10 Judge Frazer, or the United
States Distr.ct Court oI Florida, sitting IN bank-
ruptcy, praying to be declared q bankrupt The
pettlon was granted ana an assignee appointed.
ihs latter ACT IS one oil The acts complained or r
being charged as against such acs0n llat NO officer
Of SAID company hal been authorized 70 present any
declared bankrupt ald t1e prJperty soli for tho
sum OF $4,000. lno plaintins now seek
to review these proceedings, claiming tina. the
BANKRUPT Court nad no jurisdiction IN the matter
ana couseaueLtly no right 10 sell IL as perishabe
property; tnat no ,lte passed, and thar II any Ute
had passed II was subj ct to the lien OF planfs'
mortgage Tho plaintif, further aver thai the pro-
ceed,nRs were oppressive aud outrageous aud the
result u coo.na ION 0y Tue PURCHASERS TO deprive
them oi tncr security on the bonds he purchasers
formed a new company. winch now possesses the
properly.
pafcna ers ana or the opposition by Mossrs. Clark
son and Potter.
1he defence was general denial OF the fraud al-
legeo.
The petition the main points OF which. as the,
form the basis OF the sut, we have given ABOVE con-
cludes as io.lows:-
Therefore your orators pray that the said defendants
& Rn.. Bennss k,ehardson AMI tho fsnsacoa and Louis.
e s aoaa De re- ana directed TO dsvsr
the aad receiver Bushnell; they aaa show that they
ing. by, from or undsr Item, or either Of them,
the sh: ssa lessss ana and nss the
said Ruter and lennctt md all have
he ss arising
se ae |a ssr was a the rsesys DC
for 70 me said aud thai the said Maus Hal ben
aad Company and NIL persons claiming by, from
hen either OF Them, Ddden
ac dispouses interfering with the said receiver In the
and ths said morayed and
property and that meantime and until
and judgment OF this coart in tho premises the defend
MaSrude Hall, Bennett kuter Richardson pensa-
cola aud Lousyie Railroad Company, and all persons
claiming by FROM with under them either OF them, and
their agents attorneys and associes be cnoncd
aud forbidien from carrying interfering
with, conveying dtsposng OF sssd premises and
properly hoso ~ restore tLe ~ the said
bushnell, receiver aforesaid
That H. be by yonr honorable Court ordered and ad
judged that aforementioned orders the Court In Bank
ali proceedings hitherto had therein TO the sale
OF property nortgacei orators
aside and vacated that be by your
honorable Court adud cd and dccreed that the said lush
ne snt to the OF the said rail-
and mortacei property ADD that orators
titled to proceed with heir said action IN the Escambia County
Circuit Cour the State OF Flor da without
rnoestaon h.ndrance from the said Court 10 Bank
ruptrv. said defendants hnt that your petitioner
have such further aud other different relief the
the shall shall be agreeable equity
anu good And that the defendants he required
to be appear the Of this honorable Court
place and time be mentioned then and there
the premises and TO stand abide by perform such
order decree therein this Court shall
AID shall bs agreeable TO equity and good
TEyroS a. Don, Trustees.
BY j. q. b. DAVIS,
X. NJ. BUSHNELL, Receiver.
AT the conclusion OF argument by counsel the Cour,
took tne papers and reserved decision.