The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-02-07
LOCAL MATTERS.

IMPORTANT RAILROAD CASE DECIDED BY
THE SUPREME Court OF APPEALs.-The case
of Silliman Us. the Fredericksburg and Char.
lottesville Railroad Company, decided by the
Supreme Court on its last opinion-day, was
a suit by persons claiming to be holders OF
mortgage coupon bonds of the company,
which they sought to enforce by the sale OF
the property Of the railroad. The Frede'
ricksburg and Gordonsville Railroad Com
pauy was incorporated for the purpose Of
building railroad from Fredericksburg to
Gordopsville, for which they obtained the
States subscription. Haviug failed to conf
ply with its undertaking, after making pro-
greSs In it, its charter was forfeited, and by
its terms, and by virtue Of an act OF Assem-
bly, it was superseded by the Frederlcks-
burg, Orange and Charlottesville Railroad
Company, which was authorized to complete
the road to Orange Courthouse and ex-
tend it to Charlottesville. By an act of Feb
ruary 81, 1872, this company was authorized,
in order to complete and extend the road
and to pay certain debts, to borrow $780,
900, at an interest of seven per cent, on
coupon bonds secured by mortgage on all
the property, rights, and franchises OF the
company then existing or thereafter ac-
| quired, but not more than 5000, 900 OF bonds
were to be issued before the completion OF
the road to Orange Courthouse. Bonds
were accordingly issued, some of which, 1t
| is claimed, came to the bands OF the plain
| tiffs. But it was provided by the act under
| which these bonds were issued that should
| the company fail to complete the road TO
| Orange Courthouse, in the manner prescribed,
| by the first day of May, 1873, it should for
felt to the State Of Virginia its corporate
l r. r;p II.
road track, road-ted, work-materals thereon,
and all other property, and the State snould
hold the same as trustee for the benefit OF
her herself, the corporation of Fredericks-
| burg, and the other private stockholders OF
the original Fredericksburg and Gordons-
Vile Railroad Company. Progress was
made in the work, but it never was ex-
tended to Orange Courthouse. By an act
pissed March 26, 1873. the time for the
completion of the road to Orange Court
house, subject to the same conditions
of forfeiture, was extended to the first
| OF July, 1873, and it was made the duty OF
| the Board Of Public Works, should
| the forfeiture occur, to take possession OF the
| road and 10 re0cganize the former Frede.
| ricksburg aud Gordonsville Railroad Com
pany, which should thereby be rtIlvcsted
| with its former corporate existence and oil
the property, franchises, rights, powers. and
privileges of the Fredericksburg, Orange
and Charlottesville Railroad Company, and
| that the company thus rt0rganizcd should
proceed to complete the road. The forfeit
ure took place, and the Board of Public
| Works Dok possession accordingly and re-
organized the former company, which there.
| by became and is now invested with full
corporate power over the road, and all It's
other property connected Herewith, OF the
said Fredericksburg, Orange and Charlottes.
| vile Company; but the plaintiffs insisted
that notwithstanding these transactions tn:
| lien OF their bonds still subsisted and shoulo
be enforced. The Circuit Court of Rich
mopd dismissed their bill, from which they
appealed. and the Supreme Court affirmed
the Judgment of the Circuit Court.