The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-03-25
From the Inter-Ocean. 24th.
The r., R. !. & ST. |. RAIL
ROAD.
Important Decree by Judge
Drummond.
By Which Priority is Given to the
Bondholders Under the Mort
gage Of June Is, 1858.
Decree Of Judge Drummond Establish
ing the Priorities of the Bonds.

Decree of Judge Drummond Establish |
ing the Priorities of the Bonds.
The following is the full text of the i'm
portant decree just entered by Judge |
Drummond, of the United States circuit
court,in the case of the Unoin Trust Com
pany of New I ork against the Rockford,
Rock Island l. St.Louis Railroad Company
in pursuance of his opinion rendered few
days since The present decree declares
the holders of the bonds secured by the
S5,OOO,O0O mortgage of June Is, 1868, to
have prior lien to those secured by the
second mortgage which the present suit
was brought to foreclose; also, that they
have right to share pro rata with the
second bonds after their own security is
exhausted:
THE DECREE.
And now od this day come the complain
ant, by Lyman Trumbull, its solicitor, and
all other parties who have interviewed in
this case by petitions claiming priorities or
preference of the holders of bonds secured
by the mortgages in said bill mentioned, or
either of them, by their respective solici
tors, and the said defendants, the Rock
ford, Rock Island & St. Louis Railroad
Company, having filed answers herein ad-
hitting the facts stated IN said original.
amended, and supplemental bill of COM
plant, except as to the priorities of the
holders of the different series of bonds
mentioned therein, and consenting to de-
cree of foreclosure as prayed for in said
bill,and the matters and things involved in
this cause between the said defendant, the
Orion Il Minersville Railroad Company and
the other parties to this suit, having been
referred to Henry w. Bishop, a master in
Chancery of this court, by previous or
der herein and the questions of priority in
volved in the answer Of said Nickerson, and
in said petitions having been submitted to
| the court for its decision upon said petit
tions, and said answer thereto, after hear
| ing the argument of counsel and upon due
consideration, it is adjudged and decreed
by the court
| /. That the holders of said first series
Of bonds numbered from to :, 1000, inclu-
slve, amounting in the aggregate to $5,-
100000 are entitled to a first and prior
lien on all that part of the said railroad
and other property which is covered by
said mortgage of June Is, 1868. and if
the proceeds of the property covered by
said mortgage are insufficient to pay and
discharge the said first series OF bonds
and interest, that the holders thereof are
entitled to the extent of any balance which
may be due them to the same distributive
share on each bond of said first series as
the holders Of said second series of bonds
numbered from 5,OOl to 5000. inclusive,
amounting in the aggregate to $4,0OO,UOO
ln the proceeds OF the rest of said railroad
and other property covered by said mort
gage of Oct %, 1868. and not embraced
in the mortgage of June Is. 1863 Bu
this part of the order is not to foreclose
any special equities which it may appear
on the coming in of the masters report
g certain holders of the second mortgag,
bonds may have as against certain holders
of the first mortgage bonds, that matter
being hereby expressly waived.
2. That the holders of coupons belong
i ing to each of said series of bonds whicI
: fell due Aug. l, 1871, and subsequently,
= who did not become parties to said proyis
ional contract of July and Oct 9, 1872
are entitled from the proceeds of the proE
> erty secured by SAID mortgage respect
It lively to preferential payment upon salt
!, coupons by way of interest upon their SAT-
e bonds equal to the sum paid by way of in
l. terest to the holders of coupons belongin
to the bonds which were scaled down III
! der said contract.
, On motion of the complainant, it is flu,
d ther ordered that said original, amended
Al and supplemental bill of complaint be. an
# is, taken as confessed by the said defen,
! ant, the Rockford. Rock Island and s
7e Louis Railroad Company And it is ful
8. ther ordered, that the matters and thins
,s involved in this suit which are undete
A. mined be referred to the said Henry Y
: Bishop. uaster, as aforesaid, to take proc
- of the facts stated in said original, amel
70 ded, and supplemental bill, and that |
= ascertain and compute the amount, primo
u pal and interest due on the bonds S
-, -, cured by the said mortgage of June !
W. lS68,an of said mortgage of Oct, %, lS6
ne separately at the date of his report, A
Ss as so, that he ascertain and report of VIII
": He the property of the Rockford, Rock Islal
,s ,,s and st. Louis Railroad Company consist
"' and its entire value what part and be
much of said property is covered by sa
ng mortgage of June Is, 1868. and its valu
ST, what amount of said bonds of each serit
ut RESPECTIVELY, were Cancelled, one half U
ng der the said contract of July and Octob.
1t 1872 (; what amount of interest has be
on paid upon the bonds so Cancelled, one b
be since Feb. /, 1871, and what amount.
anything, on the bonds not half cancelled
lp. aforesaid since that date
~ Aud it is further ordered that the So
ay, master inquire and report what sum t
hit complainant, the Union Trust Compar
ne, as trustee in said mortgages. and the ol
nd er intervening creditors are entitled to
ial reasonable attorneys fees and other n
ng essary expenses incurred in the prnsec
he ton of this suit or otherwise and that
report his findings, together with I
roe proof, to the court and, also, that he
md port upon the other matters hereby a
"a heretofore referred to him with all conv
,ob lent speed. And all other matters
he hereby reversed.
Ter
md