Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1876-03-21
TIE TROUBLES OF THE AT.
LANTIC MISSESSEPPB AND
OHIO RAILROAD.
FOREIGN BONDHoLLERS APPLY TIC
TO JUDGE BOND TO APPOINT A RE
CEIVER-LIENS ACCRUING PRIOR
70 THE FIFTEEN MILLION MORT
GAGE TO BE ASCERTAINED AND
PROTECTED-THE COMPA-
NY'S ASSE1S S AND LA
BILITIES.

Shipman, Barlow, LOroQue and
Maciarlane, solicitors for tie COM
plainanls, have filed bill of COM
plants in the United States Circuit
Court for Francis Skiddy, William
Butler Duucau, and ;. l. NJ. Barlow,
of New York, against the Atlantic,
Mississippi and Ohi0 Railroad
The petition sets forth that the At
lantic, Mississippi and Ohio Railroad
Company having due authority OF
law, did; on The 9th of September,
1871, execute aHd deliver 70 the plain
tIfls mortgage upon ila entire line Of
railway, constructed, from Norfolk %
Cumberland Gnp, together with AL
ihe tolls, inCcnc+, ,Itnts &nd pIufilG is-
suing th"rci4on. and ali real estate,
rights Of way, rolling stock, machine
ry, tools. &c. DC, belonging thereto,
To secure the t-unfs OF the company to
tire amount Of &l5,G00, eco, that is
FIFTEEN THOUSAND BONDS,
OF 81 900 each, bearing even date with
AIe mortgage, pay able in gold coin uf
| tie United States, thirty-lhree years
| from said date, with interest PAYABLE
I semi-unHu8lly al the rate vi EeVeu per
/ Centum in gold or British sterling, nj
! the option of the owner of the bonds.
1t was further provided 10y said
| mortgage that if default should Ue
made in tie payment OF any of the in
| terest coupons, then on the demand
Of bona fdc holders, representing at
/ least one-iitth of the bonds secured 10y
| the indenture, and within nlne:y DAYS
/ after said demand, the trustees (Skid-
! dy. Duncan and Barlow should take
! possession of the mOrtgaged property
| ty of the company, receive the rents,
! tolls, and income thereof, and apply
! the same as provided in the deed OF
! trust; or the trustees might use 80
much of the same rs might be neces-
| sary to meet
OVERDUE LIABILITIES
under the deed. And in case of fail
ure to day the bonds at maturity, that
the trustees, if required ly bona fde
holders of One-tiith of the amount OF
bonds, should take possession of the
entire lines of railroad. its property
and franchises, and proceed by their
agents to conduct the business of the
road and control its receipts and dis
bursements until the amount of any
due and unpaid principal and interest
! he discharged or in their discretion
the trustees might proceed To sell the
premises, or SO much as might be ueces
sary, AT public auction
The complaint sets forth that after
the execution aud delivery of the
mortgage above mentioned. the At
laHtic, Mississippi and Ohio Company
issued and sold in the open market
bonds To the amount of SIS, ,lS0, 600. all
OF which are now outstanding in the
| hands of bona fdc holders. Five
J a., l,,,,,,lp.l Il a.
lars additiona! of the said bonds were
I issued to Oe exchanged under the eu-
pervisiOn of the trustees for certain
! prior mortgage bonds of the company,
! but the exchange was never made,
| and they do not therefore constitute a
| lien upon the mOItgaged premises.
-Four thousand additional bonds
were created for the purpose of raising
means fOT the construction OF the lire
| of road from Bristol to Cumberland
! Gan but the trustees have no nfur-
nation that these bonds were ever ne
i g0tiated, and they pray the court to
| enioin the company from negotiating
| any portion of them, or any of the
/ Sl5, ,OO0,tOO of bonds remaining uuis-
sued.
The company continued to pay i'm
/ terest punctually 90. and inclusive of,
/ April, 1874, on the $40 bonds before
| mentioned.
THEY MADE DEFAULT
I i'm payment Of interest on the first OF
| October, 1874, but afterwards paid one
! half Of the same aud oue-half of the
| interest which tell due April, 1875, and
| have paid hOinterest since then. From
| time to time negotiations have been in
progress between the comUauy's aEeI T.
aud the holders of the bonds, for the
purpose Of obtaining forhearauce on
/ ihe part of the hondholders, and they
have Voluntarily forhOrne To enforce
their rights, r, ,lyiltg upon the assur'
ahre of the cOmpany's agents that the
company would discharge its ohllga-
tious; but the company now admits Its