, 1875-07-26
THE COURTS.
Important Decision Projecting
Foreign Bontiholdors.
Receiver Appointed for the Joliet &
Northern Indiana Railroad.
Onfnlon aa to What Constitutes Foreign
Port,
a Vessel Mortgage Lien Takes Precedence
Of Ali Other Claims.

Of All Other Claims.
TIE JOLIET K NORTHERN INDIANA RAILROAD.
Judge UotlRatt rendered number OF impor'
tant decisions Saturday morning, tho ilrht botnR
one involving tho rigttR Of tho lolIo1R OF bonds
Of tho Joliet 4 Nortuorn Inf1lsna llailroad md
tta mode in which thoy can roallze Oil tlsois
bonis. Tho docisfon covers alt possible phlHsa
In the caHo. nna will be OF interest everywhere,
number of tho bond,otdore being reRtdentB OF
Eurupe. Judging from i!lo past surplus oarn-
ines OF tho roaJ. It will take thirty-two years to
pay lilo ps!ncirn OIL tho bonds. AZ the Income IL
only $50 900, tho annual interest $Gi.0W. and
tho surplus $4,000, Tho nnouut Of the bonds
bolug ssO0, 900. The following il the decision
IN full.
This IL q Till III ctl1nccry aalsng for the ap-
pointmen. of llocoIvpr aud for general eluts-
b!o ralicf.
The facts alleged lIy tile BILL and ntllnt.ou for
tho purpose Of this motion arc. that OF, tho 7th
day Of September, 1851, tho Joliet 4 Northern
lndiana nailroad Company was engaged In tho
construction Of its limo Of railroad from tho
City Of Joliet noE.lleastorty to point Wleso tho
eaule intorBocts with tho railroad Of tho Michi-
gan Central ltniIroad Company. n distance Of
about Az miles, md In order to raise funds
for tho prosecution and coupotlon OF said
rai1road, said Company. made q truat-dcod or
mortgage 10 tho complainant, Julius Wadswofth,
and Theodore Sodg wick, na Trustees, cohycying
to ansd Trustees all tts raroad tllon CONSTRUCTED
snd thereafter to DO constructed, together with
ita rights. frauc]ieoa, ron, os.ato, and propcrty
~ ororv Il. ,.cr,,,tton IN noc,ro lin ,avmcnt n
.ao -, =. oo, ~ s,. n., -, -, .,,.
m 1th pDn4 aas 10 % 1as ga an n.vabIo IN M twopg
ysaxs from date, with interoas theroon ut tho
y.to of \ mar cont ,,or a,utu,. paysblo somi-au-
n,,s,,. ~, .1,o ,n,., do.a ~ ,Tn,v anI January
:n W 49,. w. .1a .a an, s,a.,a w. ,'. .
"until tho astd pr'nc'pa! sum Should DO ps"s."
1t also further appears that cou!enroraneous-
II with tho making of said trust decd satd Rail-
Tond uomn.uy EXECUTED and delivered to tic
Aen'aau esn'l11 ~ ~. nso'uaa s'a 1oalsny ss1,o ~
perPe tulty or W 1ts rsi'fpsd property ana frau
sh,sas at au aupual rontal nf ~, 900 for. each
sui every mile Of sail railroad, payablo 10 Asnai-
,rrnot ,avments Inn 1aKsoo Ia furnish all rolI.
.,o.r T9 ~, ~ rac,unar,. =, ton,, so;, rn,,ro.,
Ms s'oeA ~" Aaen'''e''' W Aeop sA'a i"4fi"Au
p repair, pay Rl taxes ald as6e6enlaIts' 80 tllat
tt4Gra would ba = net income tt0m said lease to
said tnortraRor of about fSY0QU Der al,uum.
17,e sunstsnao of aai,l loase VIM n,intoI u,,ou
r. i'.s, ~ .,Se r. I, is
w pSoh y. ea''' u 'l.o eu''"n !N7hnu uooos
eaia moftsago' aud tic bonds wero
provided by tile tornus Of said Lease would bo
f.,,hr,lIu o,,n,oa ~ In r,r,,ot ~ m. intaxast
' ,i: aIre- ~ - l'.4V ~. -. e
W. '1S t''au@t1 tu,Apn'c"I =, too h'nt'pr, u
source OF income, Ile interest n''on tho Haid
1onds was regularly paid az 1t natnrcd up to tho
10th day Of July. l"74, wlon the principal Of
ssd honds beeaino duo ,
Tho sad Joliot d Hpttbekp IndanA Railroad
company lssuad feW hl}uuFeh thousalld do!larA
81 STOCK Which IL l'ow Gil or nearly all slcd hy
:i1o Directors Or IFi'ciiMl stockhoiderK Of tho
Michigan Central Railroad Company, aud ever
slnco the makng Of said leaso tic control
o1 sa!a corporation has bsen ~ ftso lands os the
agcn's atla o.neefs oa tue sichlgah Csnsral COM
Northern Indiana Railroad Company llas been
Eont qP W olcctlng DirectorH and oi'crrs from
the Uohfd OF l!lrectors ot the Michigan Central
company, anu bald 'oot d Nnrttltrn lndlana
sompsny ~ , Sser sl.co said loase beor,, and
now 's practically. ~ tho landa, mud ll,ldor the
control or ot said Michigan Central lsatlroad COM
pai,S. IAo mosicy arising from sad leasc over
snd above what waa necessary to pay tho inter-
est on tho poilda nos been regularly applied TO
maturity Of said bonda. tho ccnstal naiIroad
company proposed to tho bondholdcrH to give
1i'4 asin q neN oonu upon tue had rond at per
tet te!s aq.S.esi, ot Gho stoeRhoaora fetnsod to
tloir old per cent boidH, tlcy proposed to nj
LON thn bondhodess to foIccloae tho mortgage,
ssss "a,,1i '1 ~ alas oy sae foreclosure tho lea~o
w. Toala aa Got ont anu uo moftgaKoos would got
sno haeea 49,, 1aiIoad ai,, ~ without equipment or ln-
eoRo: Ihts bill u filed to prevent any capcclla-
aon OF tho lease by consaon between tho lessor
md lesseo who, nj hps boon saia, arc prscticaIIy
2ne, and to secure tho appointment Of 4
AeeeiSor s' who shall teceive the annual
ion.N as H. grows duo upon Hald
.eHoo Auu apP!y the hatno as Tar as necessary to
re paYnont Of thu intoreHt mud tho bonds. and
sas balance 10 tho ret'reuont OF Tho principal "a
tAe Court should dlraot or dectec.
lho motion OF the part Of tho complainant III
resisted BY tho dofonhant, tho Michigan Central
ia,lrosd Company, on the ground that tl.e lease
u held BY tue Michigan Coutral Railroad Com-
pany sebiest b to .he morsgago. and thu: foro
Eul4h tho lease. 0"''
But am satisfied from tho facts AZ they ap-
pear upon tho Iocords that tllo making of tie
lease and Of tho mortgage were col,pursunt
tion,-and that the niortgagcos hold tic road