Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1871-03-09
Delinquent Railroads in Nashville Chance
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A very important bill has been filed in
the Chancery Court at Nashville by Messrs.
E. III. Ewing, w. f. Cooper and w. b.
Reese, solicitors for the State, against the
following named railroad companies:
Edgefeld and Kentucky; Nashville and
Northwestern; Memphis, Clarksviile and
Louisville; McMinnyille and Manchester;
Winchester and Alabama; Southwestern or
gouthern; Knoxville and Kentucky; Gin
cinnati, Cumberland Gap and Charleston;.
Knoxville and Charleston; Rogersville
and Jefferson; East Tennessee and West
ern North Carolina. The bill is also filed
against the stockholders of the above NAM
ed companies, including the county of
Davidson, as stakeholder in the kEdgefield
and Kentucky and in the Nashville and
Northwestern Railroad Companies. -
The bill recites the act of July, 1870, APP
pointing commissioners to sell the roads,
and their failure to sell last November. as
advertised. The bill further recites the
provisions of the act of last December au
thorizing the State to begin proceedings in
Court to settle the rights of stockholders,
creditors, and all persons interested in the
roads, as well as to provide means for the
State realizing it's claims. 1t then gives
the following as the claims the State pre-
sents: W&AFffTSs
Edgefeld and Kentucky. .S2s081, 179 II
Nashville and Northwestern. 4, 541 l29 Al
vile s53, 795 90
McMinnville and Manchester. 1,099, 578 90
Winchester and Alabama......... 1,79O, $50 10
Southwestern Railroad ....,.. 503, 600 90
Knoxville and Kentucky .......... SIC, 176 90
Cincinnati, Cumberland Gap and
Charleston .....,...... ,6ol, l00 62
Knoxville and Charleston. $1,000 90
Rogersville and Jefferson........... 513,013 20
East Tennessee and Western North
carolina 44S,UOO w
The bill then alleges the, insolvency of
the companies and their failure to pay in
terest, or comply with the internal i'm
provement law under which they accepted
aid, and for this reason they have made
forfeiture Of all their rights under the in
ternal improvement law, and authorizes
the State to demand a sale of all the pro-
perty and effects, rights, privileges and
franchises of said several companies, the
proceeds of sale to be applied-frst, to the
extinguishmento of the debt due to the
State, with interest and costs, and the sur
plus, ifany, to the satisfaction of other
debts in the order of their lines. If the
sale should produce more than is required
to pay the debts, the stockholders would
be entitled to the same pro rata. The State
claims, in any event, priority of satisfact-
ton out of the incomes or sales of said
roads for the whole of the Indebtedness of
said companies as herein before recited, or
as the same may be found to be land the
complainant, the State, reserves the right
to correct errors therein, if any over all
other creditors or claimants of said roads
of every nature and kind whatsoever. 1t
prays for decree Ofsale 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 assented to by such
parties, nuolI 5oio ~ be r1atic by tire euHf-
fnisioners appointed by the Legislature,
the proceeds of sale to be paid to the parties
entitled under the orders and DEGREES of the
Chancellor or upon the principles settled
by such orders and DEGREES. !