New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-29
IMPORTANT RAILROAD DECISION
THE CONVICTION AND LEXINGTON RAILROAD SUIT
DECIDED AGAINST BowLERs HEIRs-HsToRr OF

THE CONVICTION AND LEXINGTON RAILROAD SUIT
DECIDED AGAINST BowLER's HEIRs-HIsToRY OF
THE LITIGATION.
IRON AN OCCASIONAL CORRESPONDENT OF THE TBIBUNE.I
FRANKFORT, Ky, April 25.-The case of the
Coyineton and Lexington Railroad decided this
morning by the Kentucky Court Of Appeals in favor OF
the original railroad company and against the heirs OF
r. b. Bowler who have been holding IL since 1882 The
case was an an appeal frOm the decision rendered Sept
90 1870 by the KentOn County Circuit Court adversely
TO the petition of the plaintiffs the Covington and Lex
ington Railway Company, to make r. B. Bowler the
purchaser road under decree Of SALE granted by
the Fayette County Court Aug 49, 1882 Trustee OF the
road for the Company. The Railway Company was
organized under charter granted by the State OF Ken
lucky in ls9 1t began the work of constructing the
road In 1880 with Sl,3S4s5O stock subscriptions On
March /. 1882 the Company executed first mortgage
for $4O0,O0O which $4,000 bonds were
issued an over issue Of $4,000. On March l,
1885, II executed second mort and Issued on the
100000 bonds On June 1855 the Company issued
$50 900 third mortgage bonds and In 1884 ana 1888 S
the road was operating from CovngtoD TO Lexington,
the company natdg ,s par and a. nHgt
The OF the road were year by year reported
satisfactorily up to 1884, when tne board OF o directors
and county, and S205OO OF income bonds Inc interest
bearing at tins time $2SO3OOO The holders of
bonds thus affected assured that this course was
necessary the road from actual sacrifice and for
the time this assurance satisfied them. On December
Is 1881 r. b. Bowler OF Chiffon elected member OF
thi new Board of Directors. The first act Of
this Board was 20 approve the conduct or their
predecessors in suspending the payment OF interest
on certain bonds the second notable act was the APP
pointment on Jan. 49, 1853, OF r. b. Bowler and two
other directors committee 10 make oyetures 10 the
holders OF the first and second mortgage bonds with
gain their consent 70 suspension on postpone
payment interest on these bonds for twelve
months. TINS was done 10 allow the directors 10 make
needed repairs and improvements. In June, 1885, resO
luton passed defeTTing payment OF interest on tne
third MORTGAGE bonds. On the 18Th OF June, coumit-
tee appointed TO report plan OF operations 10 the bond
holders reported what has been called the 100000 clrcu
lar rep esented that the actual debt was slO2lA,
and that $4,000 would be required to put the road IN
complete condition. After TINS depreciation OF the
stocks and bonds followed and upon petition OF James
Wnsow trustee OF the second mortgage bonds the road
was forced sale by foreclosure. IL purchased
by r. b. Bowler, then a director. oct. g. 1859, for
81 25O0O Mr. Bowler al that tIue held OF the securities
of road 81 small proportion In STOCK, ana
tbe IN aud third mortgage and Income
bopds The stockholders AT their annual meeting In De-
cembar 1880 left Mr. Bowler out OF the new directory,
and an The members OF the old Board except one. Al
meeting of stockholders ~ December lS5y Two months
fr fhe sale sanction was refused 20 action Of the
BOARD In allowing the road 10 be s0ld. In the
S,IIoner OF 1865. the COyingtOn aud Lexington Rail
vvay COmuany sued to be Telnstated III me control
of The ROAD They based their suit upon the proposl-
~ line time OF his purchase. that purchase gave MIN
fe Ia the road only trustee Tor the Company ana
a. alternative the proposition that MS conduei IN TINS
nl,rcbase--he being director OF the COlnpahyooWaS
nd in the KentOn County Circuit Court, the company
esr,ed the case 20 the Court OF Appeals Tue DEFENSE
a ncanaclty OF the plaintiff 20 sue, want OF Jnilsdc
80, IN, kentI County Circuit Court, ostOppod Dy inc
Judgment sale Of the FdyetJe Souny i sp a
gns and acguiescence Sy planhs ana denial OF raud
alleged against the defendant Tho Court mas he tho
matter under ndvseeut since November lb'l' nodrp 10
months. Their decision this hOihiHg wac """H"0u''