Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1879-01-28

/ ro21. The act of Feb. %. 1862 provides
ct7t the interest of the present bondhOlder;
OF he State shall not be affected, and thai
-GiiE51d companies which have issued
second mortgage bonds, availing themselves
OF he provisions. .Of that act, shall file with
the Comptroller bonds Of the same series as
those Ioacd to such company, for which the
State holds a t!rst mortgage lien. The act
OF Jan. ,, 1870, requires that its provisions
shall not be so construed as to allow the
payment and satisfaction Of debts created
y bonds issued by the State, and upon
which the State is ssecOndarily liable, nor to
the paymentof the sinking fund.
Your orator charges that, under aud by
virtue Of the provisions Of the general inter
ma Improvement law Of FCbydary ~, 1852,
the Sta,a Of Tennessee was only secondarly
liable or the bonds loaned by it to The East
Tennessee and Virginia Eaiload Company,
and ,hat the said company was primarily
liable under the provisions of said act, for
the payment Of the principal and interest of
said bonds. And your orator CHARGES that
the said acts were not applicable by their
terms to the lien secured 10 The bonds is
sued in aid of the East Tennessee and
Virginia Railroad Conp pany.
Your orator further charges that by the
terms Of the general improvement law Of
February II, 1852, the State of Tennessee
constituted hersclfthe trustee for wEonsoevcr
might become the holders Of the bonds
loaned % the several railroad companies
named in the act The terms Of that trust
were defined and set forth in the sections Of
the statute.
By the acceptance Of the bonds, and the
use Of their proceeds by the East
Tennessee and Virginia Railroad Company,
a mortgage lien attached to the property of
the company, without deed from the COM
pany, and the conditions of that mortgage
were as prescribed in the statute. BY the
purchase of the said bonds, the holders
thereof became entitled, by contract, to the
lien rights set forth in the internal improve
ment law. That lien was distinctly speci-
fed to be for the payment of the principal
and interest of the bonds loaned to the
company. as the same accrued ard became
due.
Your orator charges that the aforesaid
acts, OF date subsequent to the is
suance of said bonds, IN so far as
they attempt, or may be construed to have
the satisfaction of tho statutO-
~ lien established for the benefit Of the
holders Of the internal Improvement bonds
Of Tennessee loaned to the said company
by any other means than payment, impair
ed or sought to impair the obligation Of the
contract aforesaid. and were in violation of
the Federal Constitution, and void, and all
acts committed there under are illegal and
null,
Your orator likewise shows thai. by vir-
the Of his right in equity as lienholder
and the terms Of the statutory mortgage
above described, be is entitled to lave the
possession of the East Tennessee and Vir-
gina Railroad, in the State of Tennessee,
secured by receiyership, Cor the benefit Of
the holders Of the internal Improvement
bonds aforesaid, loaned 10 the East Tenncs-
see and Virginia Railroad Company, and
for the payment Of the interest thereon, for
which the said company became bound.
The receiver or receivers so to be appointed
should apply the revenues Of the proper
ty to the payment Of the overdue interest
on said bonds.
Your orator shows that the officials Of
he State Of Tennessee. named in the in
nrnal Improvement law for the execution
Of the trusts pertaining to the statutory re-
t0-uit, the Comptroller and the
Governor, claim to be bound by the subse-
1uent acts Of the General Assembly of Ten
rceyce, pa Sc / in lie years 1869 and 1870, !
md your oga.-r is unable to obtain The ac-
ion Of he said officials. or Of The State of
Tennessee, as .rustce lor the execution ofth !
rust aforeea:d. Your orator SHOWS that he |
S rem cdiless at law ard without the inter |
,en.on Of cou.. Of equity.
Wherefore, your orator prays that the pri- |
1riy OF the said len of the internal i'm. |
D.ovemen1 bonds and coupons aforesaid, |
lpon eli the railroad equipment, incomes, |
oils, CHS, privileges, property, and fran
,L.sas of said East Tennessee and Vir-
,in;i Ra.-Cad Company, wi.lin the State of |
tennessee, may be established above all |
1tLer claims and demands, IS constituting |
lie first sLd paramount ircunbrGnce on
I'D property and rights. That the income
II sad property, aE.s;ng from its use in said
5ta.a, may he applied to the payment OF in
eEGL5 accrued ana 10 accrue upon the bonds
described, and as may appear
,y p-c0-a before a mas.e- ID Ie still out
landing and unpaid. That The said prop
.--v NAV be seized By order Of this Court
.nd p~ced - Le hands c. receivers, 10 be
idmlr.s.s-@i according to '.e liens and
rlsts dec.1-el upon 1t, and % which it has
cen pledge and covenal.ed . be applied.
And, may i: please you Honors, to grant
INTO your ORE or such 4dl,ler or other and
ife-eHt relief in the pgemi-cs s3 the nature
f the Csc may require, and be consistent
With equity ana good conscience.
May i: please your Honor5 ID grant unto
our or-.5-, w-.ss Of ofsubpona OF the United
'.ate5 Of America, to be directed to the
sd Eass Tennessee, Virginia and Georgia
Railroad Company, and against all other
,ersocs iGte-es.ed in this mater and amen
be to the jurisdiction OF this court, when
discovered, thereby commanding them and
Te~y one OF them, at q certain day
nd under a certain penalty therein
0 ba specified, personally to
'e and appear before your Honors in this
ono-tble Court, and then and there to
.nswer all and singular the premises, and
. stand to, perform, and abide such orders
nd dec-ees therein as to your Honors shall
eem meet. Z. L. ANDREWS and
GEORGE HoADLEY,
Solicitors aud of fCounsel for Complainant.
In the "Appendix" to the bill is given
he text oc the Act of Feb. 3, 1854, entitled
An Act to amend an Act passed Feb. IL,
852. entitled An Act 70 establish a ,
vstem Of internal improvement in this
tate - the Act OF Feb. II, 1875. entitled |
An &c. 70 amend the charter of the Mem
his and Sone-v.ile Turnpike Company,
nd for ot5er Purposes;' the Act Of Jan.
855, entitled An Act to amead the inter
eI improvement acts Of 1852 and 1854 :"