The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-11-09
MOBILE AND OHIO.
IMPORTANT DECISION By THE UNITED STATES
SUPREME COURT.

IMPORTANT DECISION By THE UNITED STATES
SUPREME COURT.
In the litigation concerning tho Mobile and Ohio
Railroad the Supreme Court OF the United States
has Just rendered decision alike interesting to the
large number OF bondhodcrs OIL tho road and to men,
bcrs OF the Bar BY this Judgment the applications
made on behalf OF william II. Hayes, T. Haskins
Dupuy and William 5. Person hav. been denied, and
the position Of Moran Brothers, representing hrst
mortgage bondholdcrs, sustained. Among tho series
OF applications made by the Hayes party Tor
the purpose setting inside the stay Of proceedings
against the sale OF the road another to
tho appeal bond oil the first mortgage bondholdcrs from
500 900 to $500 ooo and st further, that they DO
allowed sell road and consummatc their plan OF
reorganization upon furnishing bond to tho appel
lants in the sum OF $4,000. The decree tho Court
boow from which appeal was taken, was made by Mr.
Justice Bradley, who axcd the amount OF tho appeal
bond s100 000 and IN coDcurrng with his associates
in the present judgment stated the Bench that he
had the bond at that amount after very great
doubt Upon tho argument before tho Supreme
Court there appeared largo array OF counsel. ex-
Judge John A. Campbell, Of New Orleans; +. N.
Bangs OF this city. aud Pcter Hamilton, OF Mobile, IN
support Of the applications, and Judge hoadley,
Philip Philips, OF Washington, ana Judge L. IL.
Grandn, OF Mobile, opposed. Tho opinion, which
wued
m by all his associates, briefly rcctcs tho proceed
ings when gave riso 10 the application made to tho
Court and Courts decision thereon, Us iollows:-
rnK DECISION.
In the year 1873 Duncan and Elliott claiming that they
trustees under mortgage executed by the Mobile
ana arosd Company and that the company was IN
defiant Tor interest on tine bonds secured thereby falling
due in The 1854 commenced suit Tor foreclosure
the Circuit Court Of the unte states Tor the southern
dsric, OF Alabama 10 This SUIT none o. mo Lcrsons
hereinafter named were originally parties IN the oth
10 report among other things due upon
bonds secured by the mortgAsc anu thc nsmes o. the
Ing only lawful trustee under the same mortgage
suit tor foreclosure 10 which he made
that there had default by the company interest
but that all coupons for that yenr had been paid IN
respects the bills in tue two suits were substantially
In ssesaary sa7 zsssr Dc w Sa;.,. e.
certain Of the bonus secured by the mortgage,
s %aGhs s Elliott ;A' and
like kechum alleged that me Interest OF 1874 had
Beior. fling bill all these lasnamed conplaiuants
had claims before the master IN the duncan
Cnuard other bondholders were upon their
motion, admitted as defendants In the Duncan and
Elliott suit with but before making their
motion they I'd proven their claims before tue master
On "y n az three iaa % % sa
setting their ownership OF The coupons Tor the
master in the xandcr Duncan They alleged that
the still outstanding aud unpaid, and That
sails OF The property preference holders
Of other principal and interest ~ tins stage Of
proceedip the parties consented TO Of
to three SUITS and order 20 that effect was entered
witch provided urthcr that MI proofs orders made and
had the Duncan and Elliott suit should DO
used on bearing VI the consolidated suit IN the same
aud with the ,s .s e s. naa
tho Court entered decree ,Gs eomsoa"'s !"
iavor, and directing sale Of tho mortgaged
property Win specne From o. 70 M Se,"s
zcslcr and his co.complauans Chsvsnncs Jump and De