, 1875-05-25
RAILROAD NEWS.
o.rort Of tho Master on tho Rock
ford, Rock Island u st.
Louis Road.
p,or Comfort for Holders Of Second
Mortgage BoLl'.
,ndro D1olgott Lays Down tho Law Of
Railroad Taxation.
THE ROCKFORD g. ROCK ISLAND.

THE ROCKFORD * ROCK ISLAND
nE1nnr or TIRE MATTER IN cHANcEnY.
Afow wcoks ago Judge Drummond dclyased
a, imnortant decision in the caso OF tho Union
Trnst Company vs. Tue Rockford. Rock Island
! &, Louis Company d 10 the priority Of tdo
,;an NJ tho lrst-tnortgage Lonls. Tlle road. In
1nnt. 1868, issued aerics Of bonds for *5,ao0,-
too. secured bY first-mottgago on nearly al Ito
,o.d: but Ia 8epto,nbor following tllis mortgagc
~, swallowed up in consolidated mortgage
IN $4,000, 900 on tho whole road. When tho road
~ Into difficulty II of courBe became
= muttcY Of mucl, importance to know wllotlIor
N these bonti,oiders fAred alike, aud tho point
L.,,ue bonn raeed, JudYo Drummond held Tint
ihs loltor4 of bonds secured BY tho nrst mort.
r,co were entitled to priority Of l(en on tha
nropo.ty coycsod by their mortgage to the full
mount Of their claims, and in caao thin property
.lou!d rot provo sufl.ccn. thoy wcro ontstlod to
.sparo In the remaining propcssy along with tho
ohcr bonAholdorg.
THE cAsg wAB THEN REFERRED
10 ,tt. II, ". Bishop. tho Master III ChAncorr.
NTH Instructions 10 lind out the amount, nrinci-
raj and interest, duo On ti,a honds tacnrcd by t!e
lis. mortgage IT June 25 1868, and aEao OF tho
iho character and vatHe Of tl1o whole property OF
tho roal, aud what portion ia covered by each
pottgago also, to tlnd out what amount OF tho
bonds Of eacl, sos,ea were canceied; one.hals
sso' sso what M amoun. Of interest La boon paid on
Ihe cancelled bonds s:nce Fob. !, 1871, and what
AMOUNT, II auything. OBJ tho bonds not haf can.
ccfcd or acAlod. II was further ordered that
tho Master ascertain and report what sum the
complainant. tho trns.co. md tho other Inter
ycnIug creditors nro entitled to for reasonable
attoruoss fees, att for otftcr neceHsarE expenses
incurred In tito prosecution Of tho suit. and to
fepnrt also on tho other minor matters rotcrrou
10 him.
took considerable testimony, aud yesterday tled
With tho Clerk
ru1L REPORT,
covering ttlirty-ono pages Ut legal cap. After
referring to tic order undcr which ho Naa IL
sct. tho Master said that ho GaVa duo notice OF
bin proposed examination, ai,d that on tho rnrt
Of lilo complainant, lo took tho testimony Of ".
H. Ferrr, !. r. Whitehead n. D. Merrill, II. il.
Eoodv. and ". 9. Cloudy, and. on the part Of tho
intervening bondholdeFH' tho testimony Y Of ltenry
al tho witnesses tho MnBtor concindes that no
cart OF the Rockford, lock island & st. Louis
ltallroad WAS constructed june IL, fsca. or tho
date when tho frat portgaGo VAS made. This
ford to 6letlinE, kno"n A. tho first Grand
Division. also from Sterling to llock 1slnnd. or
noar that point, known AZ tho sccopd Grand
nvs9n and .so o t9S IN no s
on the ales'aaipp' Islycr, opposite Barliington.
Iowa being part Of tho Third Grand Division.
THIS mortgage VAS made for eJ,030,00o
1 ea ss %hsn s ss2e csauv e ased' to
ptete the wl,olo Of the three grand dislsious
from Rock ford 10 East St. Lot,,s, and for that
purpose to 1ssao 1900 moro bonds for $1,000
each. This WAS done and o nav mortSago H..
sued on all tho road to secure ali tho bon1s
oQun!ly. and 1t wan supposed TINT tho bondhoid-
era would alI stand on tho ssmo footing.
TIE Length or Tue Road
,nctually constructed is 275 4-10 miles. Desides
10 lin h1A with Af<prr4l rfHt{1
for tho uso u their tacks for certain short dis
tances. 1llo Koctford, 1took lntand & 81. LOUIS
Road also owns oil tho Carrots nlong its
'oSsi ea...lon % blnotsthshop, nschino- o-yhor. anI
Eound-hou.c at EoaidhtoIn. and an cngibo.
house at Nock Islant Junction. Sagosowu: end
koil lhBburg. It also has tue following. rolling
ktock Ii frat and second clasa coaches aL 4
Shoppers, is way.cars, D baesasa and mail cars,
391 box freight cars. 90 stoc.cars.. 90 lat cara,
SIT conl-cars, mad 50 locomotives. As Homer
found 1t. to he hoyond Ills Eo"cra to make tho
catalogue Of shius iii tho seeoad book Of The
lind ycry interesting, III, II thu details Of tho
present report mar some OF thom hppear tire
aorc, to rentios il at boetY to initiate tho Btu
dcnts Of Homer. anu rkip them.
TILE REAL ESTATE
Of tho road consiHls at that occupied for tho
t-ack, also aome eant-pftH, aud a largo amount
uscd for mining purposes, aud IL yai1ied Ut
$4,000. THO whole propefty OF tho railroad:
ffunciiseH' il valued altopt thcr 1T s1.uoo. COO.
TIE ROAD, however, Is ~ btuntcd that il cat'-
not ho divided up advantngconsy, but must 10
to'd in onc parcel. The first mottsago covers
100 $40 miles Of track ard right Of "ny and
10 8-10 additional miles Of right Ut way on which
no track IL fal. It also covers roal Cstato val-
ued 1t s22,2oo or ncarls four-Hiztna Of tue Hhoa
amount.
Up 10 Oct. %, 1913, II. II. Toody, tbs Iteos.
urcr, hal roIl f271 Ut0 III the titRt mortgage, mud
on tint tiato tilu hccopl mortgage WAS made COZ.
ering both iaAfcs. From Oct. =. 1868, to Aug,
{. 1850, tho rtcasntos sold 600 hor.ts more, al
day Of March, 1863, tho Company mat[n con-
t1ict with MoEitz Du1ge, ef Frankfott~on-tho'
Main, Germany. TO negotiate itH bonds, smount.
lug to &G.5no000. Auoshor somewhat dlteront
both these agroon1auss thoro wcro delivered uT
Co.. tho Now York eortssp'ondeats q
ssns ssst1 Of .ds ss 1 sss al Aas sss Is, :sss lsss ss
Company began to deliver tho second series Of
bouda to Euago. scs,,n It Co., and Hoon aftet
sent sAoul the remaining thirtY.ona OF tho tlrs'
.cries. Doody, the Tfossutor. sold tue remain
Ing bonds that Wcro not gent to IudEe, and oi
tbs proceeda fll0.00o wsB employed by the
Treasurer in "gecurinx influcnco a 10 negotiating
The general salo Of the bonds. Theao bonds
m so tler baae az o ' aa 2s
second issue, OF tho SECOND aerLos, 1.6o{
wore retained by Doody. and representative
bonds Of el0o and sh0o issued In thcIE place oni
who did not wish tnvess largely III railroad stock
There arc 1t present outstanding el.39yU00 o
those smaller bot,sls, the ramaiuler, Sl0l, ,0oo
hasius been oxchapgsd for tho larger demon
duEton.
for Aug, 1871, Feb. I. ld72. and July l, 1872
wss not paid, and arrangements Nere lnado b,
which boudholdcn representing eB, 024. .3U con
sentoa to haye their 1s nenas ,o7o and tL'