Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-07-26
CHANCERY COURT.

Further Hearing I'm the Winchester
and Alabama Railroad Case-Hhc
Contest Between COntending Own
ers, etc.
In the Chancery Court yesterday morn
ing, special Chancellor A. L. Demoss, pre-
siding, the Winchester and Alabama Rsil-
road case being up for hearing. w. n.
Wright & Co. presented an amended pc
4iti9a reviewing the action O, the Directors
If thst Railroad Company transferring to
W. n. Wright & Co. their right to purchase
4he road, aIId also the action Of the Stock
holders confirming the action Of the Board
of Directors. The petition also alleges
that Wright & Co. subsequently, obtained
an extention Of time in which to purchase,
and that they had complied with the de-
cree by depoSiting bonds for the first pay
nent and had executed good note for
the payment of the balance Of $500, 600
within the time specified by the decree.
We amended petition further alleges that
{be purchaser. John Frizzell, Esq, when
he obtained tie report of the State Com
yoissiouers reporting the sale of the prop
4rty 20 him, did not have $4,000 In
bonds in the Mechanics or other banks
NJ Nashville, but that the order OF W. A.
Glesyes for said bonds was accepted by the
Cashier of the Fourth National Bank, pay
able within thirty days after date. The
amended petition prsys that the sale to
Mr.. Frizzel be set aside, and that the pur-
chase of Messrs Wright & Co., be allowed
to stand, and that Mr.. Frizzell be required
TO answer the petition. The solicitors IN
behalf Of the latter announced that they
wonld be ready to file their answer by 3
o'clock this afternoon, and the Chancellor
after hearing portion of the argument in
The McMinnyille and Manchester Railroad
case. adjourned until that hour
When Court met in the afternoon an an
sver to the petition was read.
The answer Of Mr.. Frizzell to the petit
ton of Wright & Co. sets up that the
assignment by the Board of Directors to
the latter was nullity, because the Board
of Directors were required by the decree
10 PURCHASE the property for the benefit oil
all the stockholders, and the Directors
daclined 20 take it, and assigned
the rioht 10 Wright & Co. upon tht
yronn5 that nobody could be found who
1orld lake il at $500, 900, and therefore,
thew assigned the right and themselves
took benefit under the assignment, and
then found purchaser who would take Il
at $500 coo. thereby making for them
-elyss 5000. 600. The answer alleges thai
this was a gross fraud and a nullity, IS the
directors were trustees for all the stock
holders. The answer insists that th'
purchasa by the defendant was vall'
because made within the thlrt!
7sys allowing any stockholde
to buv. and that the extension did not IN
terfere with the thirty days. MIR. Frizzel
adn,jts that the road is to be rendered t
the Nashville and Chattanooga Rsllroa
Company and the purchase necessary Z
through line by the way OF Gadsden an
JncksonyiIle to Selma-that this is now II
dIspensable to Middle Tennessee IS q CON
II TING line 10 the great through line froI
louisville TO Montgomery. The Nasnvlii
and Chattanooga Railroad means I'm
South to the seaboard, and the Memphl
and Charleston Railroad means,
oats Il. the chances OF a northern conneS
non by the way of Decherd from Hdnt
willie. MIR. Frizzell denies that any deceI
lion was prscGced about the bonds, an
saws that Messrs. Cole and Gleaves agree
10 furnish the bonds, and MIR. Gleay'
made an arrangement with the Mechani'
Rank for them, but the bank falling to g
the whole amount, check was drawn
the Fourth National Bank and accepts
which the Commissioners received ait
g,eing fully appFized of all the tac'
0y.(ioyernor Harris, Representa-
a., other side made strong argument
~, ,he ~swer, and court adjourned until tn
morning. xotorance IN Il
On m alton made IN releten ~. n At :
,,ottar Of II, ,ggins and others vs.. the Ma
chester and MteMinnvllie haliEoSu G .Sa4
ny, Chancellor 3eMoss decided a h tnco
had no jurisdiction IN ina! case; Je tor,
the decree providing Tor TINS speciai 'e on
referred only TO the mater no" Oeins "
sidsred.