Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1873-12-05
U. S. CIRCUIT COURT.
-irgu;i,cca: iia the s'.s&scy Suit-ESiiI
fFsc States StociG iva The EorsEa Car
oSina Escac be Sold Al, Interests
;asE ana ssapoctaZzt Gu@e.
tErcm tie Raleigh News. !

tErcm tie Raleigh Ncws.l
The Court met 1T 10 o'clock, pursu-
ant to adjournment, Judges Bond and
Brooks, presiding.
The Court called the case OF j. II.
Swasey vs. the North Carolina Rail-
road and others, WLcYcupon Hon. E.
Carroll Brewster, of Philadelphia,
counsel for plaintiff, announced mo-
ton to sell the stocks of the State in
the Roai for the purpose of paying the
accrued interest on the bonds issued
to buy the stock. Mr.. Brewster sup
ported his motion in an argument at
some length, and made fine impress
sion on the bar, the Court and the by
standers by his impressive and forci-
BILE manner as n speaker as well as by
the ability OF his argument.
He was replied to by Judge Battle,
JOhn Gatling, Esq, and Hon. W. n
Il Smith IN very able argumen $. IN
the AFTERNOON, r. C. Badger, Esq, fo.-
lowed in behalf Of the Plaintiff, in q
sho but strong and torcible speech,
and then Mr.. Brewster concluded the
! discussion.
The object Of the Swasey s7lit IS t.
| condemn the dividends to the STATE
from the n. c. r. T., in order to pay
interest upon the bonds OF the State
| issued tor the construction OF that
road. These bonds are not due Igntii
the year 1891. The States stock n
the Road is pledged for the payment
OF the principal q these bOrGs-d4yi-
| denGs that may accrue from the stocl,
are agreed to be applied 10 payment
Of their interest. About $3.50, ,0G0 q
interest is now due
| Tho Plaintiff SEEKS u have sold tIle
! States stock IL the Road, which is
| pledged fer the payment Of tie States
| certificates OF debt incurred in the
! purchase OF the stock.
! The counsel for the p aintlh argued
| that the pledge OF stock for the pay
| nlent OF the prime PAL 0f the debt Is
III law n pledge for the pay of the in
! tereSt also that the interest is an IL
| cldent OF the principal, and when dng
IS treated III equity Just IS the prjn-
clpu.
/ And that wil2le TINS Is 50 generally,
yet III this particular Gaze the pledge
IS TO securf- tie payment oi ''the SAID
certificates OF debt, and those certi!i-
I Gates OF debt are made NJ Of the bond
/ Tor the principal AMI the coupons for
interest.
mat the auu!tloHai clause OF the act
! declared on the stock to be applied .
| the payment OF the interest, 5 ou;ir j.
! supertiuous, rs the pledges Cf the
stock would always be crt;t!g7 /.
draw the dividends and ag,1ly tht y to
keeping down the interest without Any
such clause.
On the question whether the State
/ can be sued, tLev said thai G9voteis.ps
! generally could not I5n sued. vet II.
many cases they are sEabie, a.!u g:tot7t!
a multitude O. decisions ot iy-eiGa
, courts 70 sustain ti.elr position IAey
likewise referred 70 some admiralty
Hnd other cases oi the United States
Courts to the same effect. But in this
case they held that the State was not
party to the suIt-th'tt u w2S net ne
cessary for her to be p2rty-that The
proceeding was to sell pledge fer t-'e
debt constituting llec upon =, which
was proceeding |'' sc1'2--2Galast the
thing, and not SUIT "Galns thepte1Ger.
Inat he legal title % the stock was
not IN tAe state, ana therefore the
state vas not : necessary party. They
stated that the Sha:~S had never been
ISSUED to the State-Gud that if hey
were to be considered rs IN the hanu7
OF nEboay a$ trHstec, they were iii
! The hands OF the Railroad Company,
~, I--9 9'.t i','li-S','i company "9S Z
NJ ,'',.o..r r, .,,. .7,.~.,,-..,- -.
+I,e o4her h,,,1 l3o,,in7 80 49,, ,,i'.7l,l
~ H. ~;4,4, ~. t1,.. ,,-.-...-,,,1 r. ~
/ tlat the. t.z7r.se lT0yiz.r:, tlsf tLA
. DIVIDENDS sAo1ltd 90 to pay. tie lHteC--
+ est al = tins SeGlcc -Au};it fan,
/ then tLa: the Treasurer should n23y tie
interest out ~ arE lands IL tLe lrt2ss-
F urT--eE"!utC! tE@ idea that the STOCK
+ was to DC sold foc .hc payment i he
interest.