Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-01-27
TENNESSEE.


Of the State of Tennessee by th Attorney Gen-
eral, against railroad companies, their officers,
agents and stockholders. $50
Whereas, There has been information
furnished this General Assembly that
various railroad companies of this State,
through their officers have fraudulently
obtained the issuance of the bonds OF the
State, and also have obtained other bonds
contrary to the provisions of the general
internal Improvement laws of the State,
and the express provisions of the several
acts granting to them State aid, and also
have disposed of said bonds in direct vio-
iation of law, and also have illegally ap-
proprlated the proceeds to other uses than
that prescribed by law, and that the in
terests of the State demand that suits
should be instituted for redress in the
name of the State; therefore,
Section 1. Be it enacted by the General
Assembly of the State of Tennessee, That
the Attorney General of this State, shall
forthwith, 10 the name of the State, in
stitute suits in the Chancery Courts
of the county of the Place
of business, of the' Knoxville and
Kentucky Railroad Company, of the
Knoxville and Charleston Railroad Com
pany, of the Rogersville and Jefferson
Railroad Company, of the Mineral Home
Railroad Company, of the East Tennes-
see and Western North Carolina Railroad
Company, of the Southwestern Railroad
Company, of the Edgefeld and Kentucky
Railroad Company, of the McMinnVille
and Manchester Railroad Company, of
the Memphis, Clarksville and Louisville
Railroad Company, of the Nashville and
Northwestern Railroad Company, of the
Winchesser and Alabama Railroad Com
psny, of the Cincinnati, Cumberland Gap
and Charleston Railroad Company, and
the Tennessee and Pacific Rail
road Company and against their
Presidents, Directors, Agents, and
stockholders and all other person or per-
sons having had anything to do with. the
receipt or sale of any of the bonds of the
State, issued in aid of either or all of said
railroad companies, enjoining said rail-
road companies, their officers or agents,
from dispOsing in any way of any of the
bonds in their possession that may have
been issued to them, and also asking of
the court, on the final hearing, for a de-
cree against said railroad company, either
or all of them, their officers, directors and
stockholders for the full amount of all
the bonds of the State, that said railroad
companies or either of them, their officers,
agents, directors and stockholders have
heretofore fraudulently obtained, contrary
to the true intent, meaning and provisions
of the laws of this State granting aid to
railroads or to each one of said
railroad companies, or that have been il
legally disposed of by said railroad COM
panies, their agents, officers, president or
directors, contrary to the law, or after the
proceeds were received, have appropri-
ated said proceeds to other uses than
those prescribed by law, and asking de-
cree against said railroad companies,
their president and board of directors,
and against their stockholders individual
ly, and against their agents for the num-
Der of bonds so fraudulently received,
for the number of bends SO Illegally re-
ceived, for the number of bonds so lille
gslly disposed of, and for the amount of
the proceeds of the bonds legally issued,
received and sold, which has been illegal
ly appropriated by said railroad compa-
MES, or either of them, their officers,
agents, directors, or stockholders to any
other use or uses than those prescribed by
law, whether by the general internal i'm
provement law of the State or by the
special law granting to the respective
companies additional State aid; provided,
that suits shall in no case be Instituted
under this act against any railroad COM
pany by the said Attorney General, ex-
cept by and with the consent, advice and
concurrence of the commissioners ap-
pointed for the sale of delinquent rail
roads, viz: the Hon. r. J. Mckinney,
the Hon. F. B. Fogg, and the Hon. Arch
ibald Wright, or by the consent, advice
and concurrence of a majority of said
commissioners.
Sec. 2. Be it further enacted, That if,
upon the trial of said causes, the court
shall be satisfied that said railroad com
panies, or either of them, have been
guilty of fraudulently obtaining bonds of
the State, to Re issued to it, or of Illegal
ly obtaining bonds of the State TO be is
sued to it, or of disposing of the bonds
legally issued to it, contrary to the provi-
siOns of the law granting the aid, or of
apprOpriatiDg to other use or uses than
those prescribed by law, the proceeds of
the bonds so sold, or any of them, or of
sppropriating the bonds 80 received, or
any of them, to other uses than those for
which, under the law granting the aid,
they, or any of them, could be legally
used, then, and in the event Of either of
said facts being by the court judicially
determined, then the said court shall de-
cree that said Railroad Company has for
feited all its rights and privileges under
the General Internal Improvement laws
Of the State, and of the special laws I'M
der which the said Railroad Company
claims to have received State aid, and
against the President and Board of Di-
rectors of said Railroad Companies, to-
gether with their stockholders and their
agents who disposed of said bonds lille
gally, individually, for al amount
sufficient to compensate the State
of Tennessee for any loss it may have
sustained or that it may be liable to sus-
tain because Of such fraudulent and il
legal acts in regard to the receipt and sale
of said bond or bonds, and for losses that
may fall on the State in consequence of
the commission of any other fraud by
said company in the sale of said bonds
against law and the misrepresentation of
the proceeds.
Sec. 3. Be it further enacted, That
the Attorney General shall include in the
bills respectively filed, all the charges con-
tanned in the 18th section of the act passed
Feb. II, 1852, entitled can act to estab-
fish system of internal improvements in
this State" and the court in making its
decree will, as far as the interests of the
State demand it, observe the provisions
of that act and make such decree as the
law and evidence in each case Justly de-
mands.
SEC. 4. Be it further enacted, That
the public welfare requires that this act
shall take effect from and after its pass
age.
Passed July 6, 1870.
W. ON. PERKINS,
Speaker of the House of Representatives.
D. B. Thomas,
Speaker of the Senate.
Disapproved July 9, 1870.
D. W. c. SENTER,