The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-03

Who Can Convey q Valid Title on Foreclosure
Under lis Sterling Mortgage!
Thirteen Millions al Stake-Curious War
"reminiscences.


ject OF this SUIT integibe brief outline the pro.
ceedngs which gave riso IL becomes necessary and
in many respects these proceedings interesting
they are important In February. ls4s, tho Mobile
and OHIO Railroad Company incorporated by acts
passed almos. simultaneously by tho legislatures OF
tho States OF Alabama, Tennessee Kentucky, It's
ne OF road being Intended 10 pass through all those
States. In the year 1853 tor tho purpose OF complct
ing and equipping tho road, tho company placed ON
the market loan OF s6,0 900, 10 represent which
they issued 5000 bonds tor tho sum OF g225 each
payable In thirty years from their date with interest
coupons attached payable semi annually each coupon
being Tor 10 los TO Tho payment OF
these bonds and coupons tho company
scnted FIRST mortgage its prop.
crty. OF which mortgage Mcssrs. Morris Ketchum,
John j. Palmer ana William X. Hallcu were made
trustees These parties accepted tho there
upon became the mor gagccs OF tho property in
for tho holders of the bonds. In January 1860 John
J. Palmer and William H. HalIct died. leaving their CO.
trustee, Mr.. Morris Ketchum, sole trustee. A largo
portion OF tho property OF the company consisted OF
lands situated Ia tho thrco States through which the
road ran, and in 1860 Mr. Milton Brown, then prcs-
dent OF the company, wrote to Mr. Kcichum express
ing dissatisfaction with the latcr's Interpretation or
tho deed OF trust as to hts powers 'creunder dis
pose OF the companys lands anu apply tho proceeds TO
the formation OF sinking fund for the security OF
bondhodofs. This was about tho time tho
.'slight misunderstanding between tho States
rapidly approaching an irreconcilabe stage
and IRON the tenor OF President Browns
letter he evidently doomed II question OF vital i'm
portanco whether the agent charge .lund do.
partmcnr should have his .'scat OF power, AT Mobile
or Nv New York. BY tho terms OF the deed OF trust
Mr. Kechum had the right 10 nominate to the Board
OF Directors tho successors TO his dead ustecs
According to the tenor OF tho correspondence Prcs
dent Brown at that time Dir. Ketcnum was in favor OF
the appointment OF Mr. Walsh and himself but some
question TO tho compensation OF tho trustees arose.
and on this us well tho question OF right OF
the company TO sell lands IN the city OF Mobile without
the intervention OF Mr. Kochum trustee they seem
/ to have split. Mr. Brown also accused Mr. Kc,chum
OF thwarting tho company in some measures which It's
officers deemed Of importance success and leaving
them TO 'struggc on without his aid or comfort.n
/ DINING AND WHINING DODGE
j On these points Brown expresses himscl. in sort
OF sage whisper In letter from New York to a friend
under date OF July II, 1860 In the following strain -
"Your despatch met mo my arrival here on the
18TH but the papers referred TO have yet arrived
but Mr. Kechum has road me his copy and have
had long interviews tho SUBJECT besides dining
together at his house lis first effort was an appeal
my fears to tho consequences II did not agree
forthwith to nix his salary and pay up the signing
OF tho mortgage until now. THIS tailed. Ho then
changed his attack by making IL an appeal 10 my
vanity. He praised my lrmncss, my ability and my
great II said that time OF my cleo
non he knew tho enterprise would succeed; that no
man had built up SUCH reputation MS had and con-
cluded by inviting me To dine with him. saying no
had no doubt We could arrange all our differences
satisfactorily. ate hts dinner aud drank his VINE,
and with warm and conidilg shake OF the hand,
parted TO meet next day. We met accordingly, nnd no
began 10 hope that by his appeals 10 my stomach,
through his dinner ana wine anu 10 my vanity by his
speeches. he had me in good condition. and II he
could also got my nvnrco enlisted by tho hope Of a
salary as trustee, thai he and l, acting together,
could make good thing out OF IT, rs the Yankees
ins somcboiyn From what oiiowe, II ia evident that
| tho conflicting ideas OF Messrs ketchum and Brown
Jailed TO become reconcca over the Dinners and vino,
aud that tho iormer's mountainous Of parties
his cotrustees were not acceptable 10 the managers
Mobile, tho latter insisting that those nominated
be residents o! Moboor on the line of the road In
one OF the southern states through which It passed.
EFFECTS THE LIrTLE uxPLEAsAsTSEss
i In January, 1862 while Generals Mcclellan and Lee
were organizing aud modifying tEclr respective armies,
when potn sections had drawn m tary Gordon
their respective borders between them was n gulf
impossible Tor ordinary business and current news
as that between tho dwelling places OF Lazarus aud
| Dives was 10 tho respective dwellers, the Southern
managers Of the company commenced suit before
Chancellor Cooke, In the Cbanccry Court OF the state
Of Alabama, 70 eject Mr. kechum from his position Of
surviving trustee and appoint three Others IN his
room and that OF his two dead associates Tho pro.
cccdings for this purpose we're Ind IN the city OF
Mobile, whlo Mr.. Kcchum was resident oil New
York, and being somcwha, announcement under then
existing circumstances TO give him personal notice
they gave him statutory notice.
A fARcicAL NOTIFICATION.
Taxing INTO consideration tho then state OF actual
war between the sections ami the impossbility OF
\ business communication between their respective
residents the following formal juicia notice may be
considered 0y some as bordering on the iarcical-
In this cause Il appearing that tho defendant Morris
Ketchnm trustee. Is OF mature and that resides
seyo"d 81 , Init q s"s r.ais ct VII !. the
lea Il ordered that lie the allegations
March Itis further ordered BE- pub.
Daay Tribune ''''''
Attest, JOHN NJ. TAYLOR. Register
That Mr. Kctchum did not receive regularly tho
Mobile DAILY Tribune, and dd read the notice OF
the proceedings posted at the court house door
Mobile county, vas Of course, his own fault hc being
loyal resident OF Ncx York having neglected 10
answer or dcmur to the complaint witn,n Tho twenty
days specified, decree pro concsso entered against
him on the 20th OF March, 1856, as iollows:-
In th. compartments their solicitors. present
,s printed notice 81 ah,.s.loa heretofore made against
thereto attached that sad publication regularly made
ga a Sncs 70! Tour sen.sss,,ys Ssss ~ q,
the cry Of sools aud ,hS. copy thereof wa.
days Of the hi, publication. aud il appear
s e sS to % s s he s % sns -"
this is ordered that tho allegations OF tho be
Attest. JOHN NJ. TAyi OR. Tesis,or
DECLARED An ALIEN ENEMY.
In the complaint the substance the charges against
Mr. Keichum was that he was rciardng and embar.
rnssing the southern managers OF tho company IN tho
sale o. lands and was an allen enemy On these points
tho decree oil reference. which followed Immediately
the heels oil the decree pro conicsso, says
The object Of the btu is appoint under tain
deed OF trust exhibited Wy the companant OF tho date Of
Isl OF November, 1885, o which " attached tho
I'LL place at William r. lallctt nnd John y. Palmer
who dead also the surviving trustee
Morris ketcnum. for breaches ~ aud also
because he b. alien enemy aud ncnmpc 10 The
Court satisfied OF tho death of said Palmer iiaet
and OF the fact that said kechum alien enemy: II IA
therefore ordered adudgcd said kechnn
be removed FROM mis- laid trnstecshp and mrtcr that
the bill for tho OF In place
OF said kcchum, Hailctt and Palmer he granted.
| rRusTggsmir.
In pursuance OF this decree, Charles Walsh, George
4 ~. Alexander OT 10
Confederate states" were appointed trustees In
Apr, 1875 these Confederate resigned their
Offices and William Butler Duncan and Andrew Foster
/ Elliott came IN as their SUCCESSORS In May, 1915,
Duncan and Elliott rs such trustees mcnced q suit
to forccosc the mortgage aud IN such suit obtained
possession OF the road. On tho 9th OF March. 1876,
Judge Wood OF the Circuit Court Of the United states