The home journal. (Winchester, Tenn.) 1858-188?, 1874-08-20
Del'aulting Railways.

There is busy time Just now among
LAWYERS, courts, and juries IN the way
of foreclosing railway mortgages
Something over three hundred millions
of American railway bonds have gone
to nrotest on their interest coupons,
and the holders, at first shiverlng with
alarm at not receiving their eXpecteu
income, and then wrathful at wiiaV ''iey
deemed the dishonesty OF the borrow
ers. have begin now, for the hrst ti,he'
to examine their legal remedies, ana 10
ino,lire into the nature and value OF
the assets which constitute their sec'l-
rtv Tn some cases they find curious
provisions in the mortgages, preventing
Them from taking any steps to reallzS
until the expiration ot one, Two, or
three wears after default-also provld-
ing that no foreclosure shall take pace
nxcent on petition of a majority OF all
The bondhoIders-aud other cunning
devices which really put the lenders III
worse plight than they would pe nv
common law. In still other cases they
find that the trustees under the mort
popes are loath to perform their ou'y'
fins raising the presumption that they
arc acting in the interest Of the mort
roonrs rather than of the mcrtga8ees'
f. is fouud in IL few instances that the
money borrowed to prosecute or com
nlete a certain road was diverted 10
. some other road with the connlVance OF
. H., t,retees and that bonde said to bo
Il navable in gold are really payable ohly
p'onrrancv Various other forms OF
" swipdling have been Developed pu. iol ,a
II tbo most part the non;;lnterest-pm;yiIin r;,Ii ins
rniIryn,1s nave rcSofteu 10 nv NJ,
a. either before or after the delaui'' "us. I'e
Of them, it is true, were bullt Oh Vn1
g Credit Mobilier plan, but that was wei
Il known to the lenders. ,,.o1
o The holders of these three nuh"reu
and odd millions of delaulted BONDS
" arc ara mainly inhabitants OF the Onlteo
l. States S Germany, and England, and the
d rat;o If their several holdings is prop
7 ahlv in the order III which they ar'
[ here set down. All the Northern ia
ID ,.;tic honds wcro taken in Canada an'
y England. Nearly all the new f'a: railway
~ in Michigan were built by New EhB'''n' m
le capital. Boston and its suburbs "r
carving from thirty to fifty millions ,, u
in nrotested bonds. Several eastern prok
ry an down railways, like the New Haven
ar Middletown and Willimantic, the VI
no wepo Midland, the Canada Southerl
ly "n5 @ the Chesapeake and Ohio, weI
,r, mainly constructed with money On
or ta;nei t in this country, and great sho'
yn nf second mortgage bonds we're SOFA
at home after the first mortgages hau oe'
len taken in Germany and England. -.
of The effect upon American credit
,he th;a ~ enormous failure to meet oblle
ner tions ton is disastrous. The good ana U
ne, bad suffer alike in foreign marke
fits Even I've those securities which have reg
she iorlv met their interest have suffered
md heavy decline. Germany IS iuii
her American railway bonds bought at
T. to 95 cents (gold) which can De pong
on hack % nj 25 to 40, with the hearty than
of the present holders to ANYBODY y"
ave M ,n;,i Tia toke them at those prices. AS
ap- megotiating " new loans there. y9n, mig s,9
my ~ ~ we'll attempt to sell lava on the sMu M
han mit Of yesuvius. Not only IS the IN /,
my Lat I for railway securities destroyed
With the tIp ordinary real estate mortgage,
par. highest form of security next to COVE
and ment bonds, finds no takers. me
eel tom has tumbled out OF everything
vent cent governments. Can anything
mer done to re.establish our credit?-'
cago Tribune.