Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1874-08-22
DeTaulting Railways.

There is a busy time Just now among
LAWYERS, courts, and iuries In the way
of foreclosing railway mortgages
Something over three hundred millions
of American railway bonds have gone
TO protest on their interest coupons,
and the holders, ut first shivenng with
alarm at not receiving their expected
income. and then wrathful at what theS
deemed the dishonesty of the borrow
ers. have begl now, for the first time,
TO examine their legal remedies, and to
inouire into the nature and value OF
the assets which constitute their secn-
ritv Tn some cases they find curious
provisions in the mortgages, preventing
them from taking any steps to realize
until the expiration OF one, two, OF
three years after default-also pro,vld-
inc that no foreclosure shall take place
except on petition of majority OF all
the bondholders-and other cunning
devices which really put the lenders in
worse plight than they would be at
common law. In still other cases they
find that the trustees under the mort
cages are loath to perform their duty
thus raising the presumption that they
are acting in the interest OF the mort
Oaoors rather than of the mortgages
Il "a fouud in a few instances, that the
money borrowed to prosecute OF com
nlete A certain road was diverted 10
some other road with the connivance OF
the trustees, and that bonds said TO DC
nayable in gold are really payable only
in currency. Various other forms ol
swindling have been developed, but ior
the most part the NOTWITHSTANDING
railroads have resorted to no Tricks,
either before or after the default M0s'
If them. it is true, we're built on the
Credit Mobilier plan, but that was well
known to the lenders. -,
The holders of these three hundred
and odd millions of defaulted bonus
are mainly inhabitants OF the Uniteo
States, Germany, and England, aud tne
ratio of their several holdings is prop
ablv in the order in which they are
here set down. All the Northern ia,
cific bonds we're taken in Canada! ano
England. Nearly all the new rallWay1
in Michigan were built by New Engiano
conital Boston and its suburbs are
Carving from thirty TO fifty millions o. o
nrotested bonds. Several eastern Drok
on down railways, like the New Haven
Middletown and Willimantlc, tn9 ,s os
wego Midland, the Canada southern
and the Chesapeake and Ohio, were
taainlv constructed with money oo
mined in this country, and great snoal
Of second mortgage bonds were soiu ia =. a.
home after the first mortgages nau "eel
taken taken in Germany and England. :,
The effect upon American cre9ls " u
tb;s enormous failure to meet opllga
t;nns t0 ;s disastrous. The good and the
had snffer alike in foreign markets
Evan rs those securities which have regu
LAVE met their interest have suffered
heavy decline. Germany Is luai ~ 81 81
Gmsyican railway bonds bought at .,
tn M or cents (gold) which can be pougn
hocL at Ok to 40, with the hearty tnank'
OS OgV1 ths ~ pyesent Te holders to anybody Wht
Viii tolte them at those prices. AS 10
Negotiating new loans there, you mign m
as well attempt to sell lava on the sun sun
ME- no ot Vesuytus, Not only is the mar
Lat Lat sor 4, railway securities destroyed pn
tbe ordinary real estate mortgage, en' W
SHo S;ohast "a form Of security next to govern
m rmsnt MN bonds. finds no takers. the Dot
tnTni tom has oU tumbIed out Of everything ez X
cept governments, Oan osoS;t9R SuS S" Rc5i
done 20 re-establish onr creui'F-O"'
cago Tribune.
AJAPANEsn young lady who had com. ,
oror a. 70 our shores three years ago, DOT