The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-02-01
the james liver raflrnnd. 5iay the day be,
near st aaiand ssiien the IRON lserSs will be
heard along the banks oil tho noble james. ss;
S3E oW AND TMEE.
r,1sc rcn,tcssce I,l.trrny sIust 3.


1Tsc Tcnncsscel RisflHay Busts..
The Nashville aiaefs cd,i Or the aeth says::a
81 One or The most important Bills, and sin-
solgiug The largest stnountof t1aodey ever
in litigation lii this State, was put on record
In The United States Circuit Court clerk
ofslce:yesterttay. nc was fled by Edward
e. Andrews, associate counsel with Judge
Roadiy, OF Cincinnati, with Charles O,C1-1
nor as counsel and adviser IN New York.
The bill Is an application for The appoints
meet OF a receiver with view TO obtaining
payment OF back interest on bonds issued
TO the several railroads hereinafter named
under. the Internal Improvement act OF
1852, and subsequent acts. The effect of
the bin Is first to collect the overdue inter
eat, and then, when the debt fails due, and
il not paid, to sell the roads under the
statute under which the bonds were issued.
lin Memphis MT. Andrews tiled bills
against the Memphis and Charleston. Menu
nbIs, sClarksvile and Louisville, Mississippi
Central, Mississippi and Tennessee, Mobile
and Ohio, and the Memphis and Ohio rail-
roads. 81 IL. ~.
In Nashville Yesterday he fled bills against
the Louisville and Nashville,7fhe st. Louis
and Southeastern. the Central Southern, the
Tennessee and Alabama, the Nashville and
Northwestern. the Nashville and Cbattar,oo-
ga. the McAiinnyille and Manchester, and
Winchester and Alabama railroads. He
Will leave this morning for Knoxville, and
will there file tomorrow hills against the
East Tennessee, Virginia and Georgia, the
Knoxville and Kentucky, the Rogersyilc
aud Jefferson, aud the Cincinnati, Cumber-
land Gap and Charleston railroads.
The American OF 2 later date says that in
Minnesota case decided By the Supreme
Court OF The United States the bondhelders
wanted to. apply the familiar doctrine OF
subrogstion, which is one of ordinary ap-
plication in courts OF equity. that where
one gives surety property to indemnify
him against the debt, the creditor may make
it ayailable also, and after saying. that that
court held in the Minnesota case that the
creditors could not subject the property to
payment OF their debts, because the State
was not a surety as to. the creditor, but a
pripciDal, although as between the@roads
and the State the latter was a surety, the
American adds "that as to the debt the
Minnesota case was in all respects similar
to TINT OF the Tennessee case; The bonds
Of Tennessee are the bonds Of the State,
for which her faith and honor are pledged.
She is primarily liableT7a principal Itj.s
We quote further: ,sa,,. r"lcirn,i /
There is 9 point Of difference. however,
and the sole question is upon the construc-
ton of. the act of 1862. which creates the
/ hen sought to be enforced. II: the Court
holds that the act of 1852 created hen only
for the benefit Of the State, and 'that tue
State would not presume, that the property
~ ony company could supplement or add
solyencv TO her plighted faith and honor,
thpn the Minnesota. case will not apply. II
the Court holds that the lien was created
for fine benefit OF The holders, to be heid IN
trust for them again$t the payment OF the
bonds by t1c company, then The Minnesota
/ case will not apply, How o court Is gong
to conStrue 4 statute Is one or lnose tnlnSs
no fellow can find out until 1t IS done.
Here are the references to the Hen as they
occur in the act OF 1907. rue Teaaei cuti
consfr,le them. It,wiIi be an amusement to
some OF our readers; but there: are many
citizens OF Tennessee who, will not enjoy
the n, ocess-many who have in vested their
earnings who do not relish this policy OF
having the state set its creditors on them
through the. railroads. -. ray. !a,s[ Il.
The act Of '52 contains the following
-. # =
$50 soon as tie bonds Of the State shall have been
issued for The first section OF the road as aforesaid
| they shall cons itule y lien upon said section.
| including the road-bed, right OF way. rradlne:
bridges, ironing, upon all The stock SUBJ ei1bed
| for, \ 4 and upon said iron, rails, chains,
spikes, and equipments"
| Providing for the issuance OF bonds upon
the second section, it says:
THE State of Tennessee shall be invested with
like mortgage nen without deed from said con-
pany. upon said Stock and upon said first ana asdl-
lional sections" etc. >..Ea
And again. ..i ..,Il, ~. ....>-.s.. IS,
sAnd when the track Of said road shall be COM
pleed, The Stale Of Tennessee shall be invested with
entire road. including fhe stock, ~ 4 FOR the
payment of all Of said bonds issued TO the com pany
provided In this act, and for the interest accru-
ing on SAID bonds.o "sT t'-zr 'n' fffr1 ai .. -
Providing against any other prior lien, it
says "any such lien, lbcumbrance, or mort
gage shall be null and void as against said
lien or mortgage OF the State" ...,.s.s
Section s provides for the enforcement Of
this lien against the road for the benefit OF
the State to indemnify them "against any
loss on account OF the issuance Of said
bonds" -. M: r. -. 4.
The roads will claim that the State has
already enforced this lien. and exhausted
its rich. against the roads; the question,
however, is whether the lien was primarily
given to the stockholders or to the State.