Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-04-21

SI2O, 600 Suit Against the louisville
a. Nashville Railroad.
Montgomery County Made a Party
Defendant.

Yesterday MeSsrs. Shackleford and
Helms, and James NJ. Quarles, attorneys
for the Judgment creditors of the Memphis,
GAINESVILLE aud Louisville Railroad, filed a
bill in the Chancery Court of Davidson
county to recover about $4,000 against
the Louisville and Nashville Railroad, the
Memphis, GAINESVILLE and Louisville Rail-
road and the county of Montgomery, Ten
nessee. The creditors seek to make the
money out of the Louisville and Nashville
Railroad as purchasers of the States in
terest in the Memphis, GAINESVILLE and
Louisville Railroad upon the ground that
they (the Louisville and Nashville Railroad
Company are stockholders in the Mem
phis, GAINESVILLE and Louisville Railroad;
that as such they could not buy for
themselves to the exclusion of the
other stockholders and creditors
of the Memphis, GAINESVILLE and Louisville
Railroad; that, being stockholders their pur-
chase of the States interest in said road
was as trustees and Injured to the benefit of
the corporation; that, as the debt of the
State was bought by the stockholders of
the road, it is relieved of the State lien and
therefore liable for the debts fthe corpora
ton. The creditors, state, in their bill that
if they fail to make the Memphis, Clarks-
vile and Louisville Railroad liable, in the
hands of the Louisville Railroad, for their
judgments, then they seek to make the
county of Montgomery liable TO the amount
of the money received or to be received by
it for the stock in the Memphis, GAINESVILLE
and Louisville Railroad upon the ground,
that, "a stakeholder in an insolVent corpor-
alton cannot sell his stock in the corporation
so as to relieve himself Of liability for
the debts of the corporation"
The bill further states and charges that
the sale of the State of Tennessee's interest
in the Memphis, GAINESVILLE and Louisville
Railroad to the Louisville and Nashville
Railroad was a device to defeat the credi-
tors of said road in the collection of their
debts, and it seeks to set aside the DEGREES
that were entered, by consent, in the cause
of the State of Tennessee VS.. the Memphis,
Clarkville and Louisville Railroad where
by, as charged in compliments bill, they
attempted to transfer 10 the Louisville and
Nashville Railroad the entire States inter-
est, in the Memphis, GAINESVILLE and Louis
vile Railroad, together with the rolling
stock, equipments, ETC., belonging thereto.
The counsel for complainants, we are in
formed, feel confident of making the
amount sued for out of the Louisville and
Nashville Railroad, which has, we believe,
paid about S250,000 in stock and bonds, in
liquidation of their stock to the county of
Montgomery.
We fear the tendency of this bill will
prevent, for the present at least, the county
of Montgomery taking stock in the Clarks-
vile and Princeton Railroad. Montgomery
county has had a sad experience in rail-
haa Ay,o 10 fIo
and its attendant effects. Since dis
posing of the Memphis, GAINESVILLE and
Louisville Railroad, the county, as well as
the city of GAINESVILLE, have been relieved
from an onerous taxation, leaving them al
most again free and in condition to assist
other enterprises and foster new schemes
tending to the development of their COM
mercial and agricultural resources. Att the
May term OF the County Court PROPOSE
ton was to have been made asking the
transfer of part of the counS's stock to
the Princeton Railroad. In order to mature
the plans and give the people an Opportu-
nifty of realizing the benefits re-
sulting from the acceptance of this
proposition, its presentation to the County
court was postponed until the May
term. The purpose of this bill will doubt
less act as a temporary aStringent upon
whatever willingness there may be on the
part of the County Court of Montgomery
to accept the proposition above stated, in
which event Gen. WinslOw, of st. Louis,
may be placed at an advantage as to ma
king terms with the company of the Prince
ton Railroad, but hardly derive any benefit
thereby, because of the county's pOstpon-
ing action. In all probability the PROPOSE
ton will be again deferred until another
term Of the court, thereby delaying longer
than was desired the beginning of work on
this road.