Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-03-09
DELINQUENT RAILROADS.
The Case Of the State AgalHst Them, now
Before the ChsrGery Court Of
Davidson COuaty.
Names Of the Railroads and Amtuat Of the
DglihqHenoIss.
The BlH Of the State and Answers Of the
Defendants.


= Kentucky, Nashville and Northwest
ern, Memphis, ClarksviIle and Louis
/ vile, mcMinnville and Manchester
Winchester and Alabama, Southwest
q ern or Southern, Knoxville and Ken
lucky, Cincinnati, Cumberland Gar
and Charleston, Knoxville anC
charleston, ROgersville and jefferson
East Tennessee and Western NOrtf
Carolina. The bill is also fled against
the stockholders of the above named
companies, including the county o.
Davidson, as stOckhOlder in the Edge
held and Kentucky and in the Nash.
vile and Northwestern Railroad
| Companies.
After reciting various acts of the
Legislature, passed several years
since, the bill, which is very vOiumi-
nous, states that by the act Of July 5.
1870, the Legislature appointed the
! Governor, Secretary Of State and
| Comptroller, and Hon. F. B. Fogg.
! A. Wright and r. J. Mckinney.
! Commissioners, to sell and transfer
/ the interest Of the State in DELINQUENT
railroads, and that on the Sd of No
vember, 1870, the Commissioners IN
dertOOk to sell the interest of the
| State, but failed to receive a bid for
any road.
The bill further states that on the
2lst of December, 1870, the Ipgisra
ture passed an act amendatOry of the
act OF 1870, and directed a bill to be
filed in the Chancery Court at Nash
vile, IN the name Of the State, against
the delinquent railroad companies.
the respective stock holders, holders
OF bonds, creditors, and all persons
interested ~ the several roads, to set
Tie all matters Of controversy touch
ing the rights and interests of the
State, ascertain such interests and de.
line the purchasers rights and for
other purposes, and this bill il flied
accordingly.
The bill then specifies in detail the
amount Of State aid advanced To vari.
Gus roads. We have room to repre-
sent only list of the gross indebted
ness, including interest, to the lst of
January, 1871, which, according TO
the bill, is as follows:
Edgedeli snd Kentuckv..... 81 O9f1-9 y
Nashville and Northwestern i an Al
Memphis, ClaTksville and
LDUfbVlll g ......... ............. Q Q53 TQ5 gn
NcMinnvills and Manchester I -0gg 5-S O1
Winchester and Alabama ..... l.-gl5s6 -O
Southwestern Railroad ........ 5gltOD 90
Knoxville and Ksntucky...... 2.SIfl-6 e0
Cincinnati, Cumberland Gap
and Charleston. ................-. I f5-' 10s I'd
knoxville and Charleston. Sif5.0 90
Rogersville and Jefferson. 5Is OT2 lO
EAST Tennessee and Western
North Carolina. ............... AS. 600 90
Inc Dill then states that most, per
haps all, OF these roads are totally in
solvent, unable to pay accruing inter
est or sinking fund, and in no eoudi- !
Jlon 10 pay the arrears of interest !
which have already become past dne,
ana, OF course, with no reasonable |
nope OF ever paying the principal Of |
the bonds issued to them. It insists /
tnat the failures Of these companies to |
comply with any of the conditions
upon which State aid was extended to !
them, makes a forfeiture Of all their
rights under the internal improve
lnent laws, and authorizes the State /
10 demand a sale of all the property
ana effects, rights, privileges and /
franchises of said several cOmpanips.
the proceeds Of sale to be applied
hrst TO the extinguishment Of the
DEBT due to the State, with interest |
ana costs, and the surplus, if any, to
the satisfaction OF other Debts
IN the order of their liens. II the sale
should produce more than is required
to pay the debts, the stockholders
would be entitled to the same pro rata.
!. me StaJe claims, in any event, prior
Jy OF satisfaction out of the incomes
(lr sales OF said roads for the whole of
-ne Indebtedness OF said companies as |
nerelnOeiOre recited, or as the same
may be found to be land the COM
plalnant, the Stale, reserves the right
20 correct errors therein, if any over
ali other creditors or claimants OF said
'Oads Of every nature and kind what ,
'0eVer. 1t prays for a decree of sale /
u sald roads, with all their property, !
ranchlses and rights, if necessary or
proper upon final hearing, or mani
esJiy Tor the interest of all parties.
md expressly or tacitly assented to bv 2
uch parties, such sale to be made by
ne commissioners appointed by the
the proceeds of sale TO be |
lalu 10 the parties entitled under the :
riders and DEGREES of the Chancellor, !
u upon the principles settled by such :
riders and DEGREES.
Inc following are the answers and
ther papers thus far filed to the bill: :
Messrs. Higgins and Price, as lessees i
4 the McMinnville and Manchester !
abroad, have filed an answer and :
ross Dill. They claim that the State r
as no right to sell out the road and ! =
Interfere with their lease, which lease {
ney claim extends to 1874. The cross (
III asks that this lease of theirs be s
rOtected. :
The Cincinnati, Cumberland Gan r
nd charleston Railroad Company, +
lrOugh their counsel, J. G. and j. NJ. r
iaut and j. Il. Shields, file an answer n
nd demurrer. They throw them h
elves upon what they call the contract ! ?
'lth the State of Tennessee, and they il
aim that the State agreed that she N
Ould not tOroclOse the mortgage un-
| the end Of the thirty years from the e
me the bonds were issued; that upOn | N
failure 10 pay the interest, the State n
Ould resort to a receiver; and that
he state has no right to go beyond {,
John A. Gardner answers for him y
III as q stakeholder in the Nashville n,
I'd Northwestern railroad. He ii
aims that this lien of the State was n
z the identical bonds issued to the N
ad, and that the State has no right
do anything except to put the road o,
TO the hands of a receiver: and ht
rther, that the road can only be sold re-
such bonds as We're legally issued. Ie
ID that such bonds as were issued bV -
oVernOr BrOWnlOw to receivers of -,
e road since the war do not bind =
a company.
NJ Messrs. Williams, Bate, Ed. Baxter ~
~ DemOss, counsel for the county 10
Davidson, have not filed an an ~
YER out have asked for further tiIne. ~
o actlOn yet taken on this appliea- ~ ~
IN. sh
The petition of John Shea and l'
hers states that the Nashville and
OrthWestern railroad is indebted 10 tn
EN- IN the sum Of S1079 81, besides FOL
terest on the same. This amount un
ey state IS due petitioners for labor ar
by them on said road. asd to-
ey ask that their claims be regarded. SIC
Colonel John Baxter files an answer n9'
himself, in which he says that he aD
9 been, for more than ten years, the pr
7ner OF five hundred dollars of the
pital stock OF the Knoxville a9d
Railroad Company. The
egatiOns in the bill he admits, from
formation and belief, to be substap-
lily true. He win interpose no CD
tiOn to any decree that will tend to pr
Dtect the interests of the State; but TO
charges that some of the officers Oh
d agents Of said corporation have idi
diverted to their own De
} sums of money which were appro- ny ny
ated by the Legislatnre for the ~ ~