Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-03-07
Nearly Fifteen Millions Involved.

Nearly Fifteen Millions Involved.
A very important bill has been fled IN
| the Ohancery Court at Nashville, by Messrs'
E. b. Ewing, W. F. Cooper ana W, D.
| Reese. solicitors for the State, against the
following named railroad companies
Edgefeld and Kentucky; Nashville ana
Northwestern; Memphis, GAINESVILLE and
Louisville; MeMinnville and Manchester;
Winchester and Alabama; Southwestern or
| Southern; Knoxville and Kentucky; O1ncln-
natl. Cumberland Gap and Charleston;
Knoxville and Charleston; Rogersvllle and
| Jefferson; East Tennessee and Western
| North Carolina. The bill is also filed
against the stockholders of the above
named companies, including the county OF
Davidson, as stakeholder in the Edgeheld
| and Kentucky and in the Nashville and
| Northwestern Railroad Companies.
After reciting various acts Of the Legisla-
l ture, passed several years since, the bill,
| which is very voluminous, states that by the
| act of July 5, 1870, the Legislature ap-
| pointed the Governor, Secretary Of State
| and Comptroller, and Hon. T. B. Fogg, A.
| Wright and r. j. Mckinney, Commission
| ers. to sell and transfer the interest OF the
| State in delinquent railroads, and that on
| the Sd of November, 1870, the Commits
| sioners undertook to cell the interest Of
| the State, but failed to receive bid for
any road.
The bill further states that on the Dist of
| December, 1870, the Legislat are passed an
| act amendatory OF the act of 1870, and di.
/ rected a bill to be fled in the Chancery
/ Court at Nashville, in the name Of the
State. against the delinquent rail
road companies, the respective stock
| holders, holders of bonds, creditors
and all persons interested in the
| several roads, to settle all matters
| of controversy touching the rights and in
terests of the State, ascertain such inter
ests and define the purchasers rights and
| for other purposes, and this bill is filed &C
cordingly.
The bill then specifies in detail the
l amount of State aid advanced to various
| roads. We have room to represent only
list of the gross Indebtedness, including
interest, to the LIST of January, 1871,
which, according to the bill, is as follows:
Edgefield and Kentucky ......S2, Ool, 179 IL
Nashville and Northwestern. 4, 541, 129 Al
Memphis, Clarksville and
| uisville...................... 1888, 40 w
| McMinnyille and Manchester 1,C99, 579 90
Winchester and Alabama. 1,79O, $50 70
Southwestern Railroad....... SOB, 900 90
| Knoxville end Kentucky...... 2,816, 176 90
Cincinnati, Cumberland Cap
| and Charleston............... ,657,lOo 81
Knoxville and Charleston. $500 90
Rogersville and Jefferson. 5l3,Ol3 20
East Tennessee and Western
| North Carolina ............... 44o, 900 %
The bill then states that most, perhaps
all, of these roads are totally insolvent,
unable to pay accruing interest or sinking
| fund, and in no condition to pay the az
rears of interest which have already be-
come past due, and, of course, with no
reasonable hope of ever paying the prlncl-
pal of the bonds issued to them. L in
sists that the failure of these companies to
comply with any of the conditions upon
which State aid was extended to them,
| makes forfeiture Of all their rights under
the internal improvement laws, and autho-
rizes the State TO demand sale Of all the
property and effects, rights, privileges and
| franchises of said several companies, the
proceeds of sale to be applied-frst, TO the
extinguishment of the debt due to the
State, with interest and costs, and the sur
plus, fanny, to the satisfaction Of other debts
in the order of their liens. If the sale
should produce more than is required to
|. paw the debts, the stockholders would be
entitled TO the same pro rata. The State
claims, in any event, priority OF satlstac-
ton out of the incomes or sales of said
roads for the whole Of the Indebtedness Of
said companies as herein before recited, OF
as the same may be found to be (and the
complainant, the State, reserves the right to
correct errors therein, if any over all 9th
er creditors or claimants of said roads Of
every nature and kind whatsoever. It
pravs for a decree of sale Of said roads,
with all their property, franchises and
rights, if necessary or proper upon final
hearing, or manifestly for the interest Of
all parties, and expressly or tacitly as
sented 70 by such parties, such sale to be
made by the Commissioners appointed by
the Legislature, the proceeds of sale to be
paid to the parties entitled under the or
ders and DEGREES of the Chancellor or upon
the principles settled by such orders and
DEGREES.
The following are the answers and other
papers thus far filed to the bill:
Messrs. higgins and Price, as lessees
of the McMinnville and Manchester rail
, | road. have filed an answer and cross bill
| 1DGV CHILL lLhk lllO CbdIC ld6 AAO 1lEn1 "
| sell out the road and interfere with their
lease which lease they claim extends to
, | 1874. The cross-bill asks that this lease
of theirs be protected.
The Cincinnati, Cumberland Gap anC
Charleston Railroad Company, through
q their counsel, j. G. and ]. NJ. Gaut and j
i T. Shields, file an answer and demurrer
s They throw themselves upon what they
c | nth fha Sfota nf TarNnnC
see. and they claim that the State agreed
that she would not foreclose the mortgsg
until the end of the thirty years from thu
: time in bonds were issued; that upon fail
], ure topay the interest the State would re
r sort to a receiver; and that the State has
9 no right to go beyond that.
}, John 4. Gardner az swers for himself a
e a stakeholder in the Nashville and North
Q western Railroad. He claims that thi
6 lien of the State was for the identical bond
g issued to the road, and that the State ha
s no right to do anything except to put tn
road into the hands of receiver; anl
further, that the road can only bs sold 70
g such bonds as we're legally issued, and tina
4 such bonds as were issued by Gov. Brown
, low to receivers of the road since the wa
n do not bind the Company.
= Messrs. Williams, Bate, Ed Baxter an
! Demoss, counsel for the county of Davidson
= have not filed an answer, but have aske
for further time. No action yet taken o
"a this application.
The petition of John Shea and othel
states that the Nashville and Northwestern
Railroad is indebted to them in the sum
o SI,O79.62, besides interest on the same
:, This amount they state is due petitioner
- for labor performed by them on said road
:. and they ask that their claim be regarded
3, Col. John Baxter files an answer for hin
- self, in which he says that he has been, fC
~ more than ten years, the owner of fiv
!, hundred dollars of the capital stock of th
M | Knoxville and Kentucky Railroad Con
~ pany. The allegations in the bill he a.
mits, from information and belief, to
substantially true, He will interpose L
h. objection to any decree that viii tend
ay protect the interests of the State; but
err charges that some Of the officers and agen
h. of said corporation have fraudulently
On verified to their own use sums of mont
which were appropriated by the Lsgislatu
for the purpose Of building the road Fro
evidence taken by this respondent, and 6
sc | Investigation by a committee of the IeQi