Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1880-09-28
THE BONDHOLDERs' SUITS,
Against the RaIlr0ad Companies
Tyg EOrETennessee.
Decided i'm Favor OF the Roads,
Holding the state Exclu- q Il
-,.Fs sively Liable.

Decided I'm EaVOf Oh inc 1so~WSs
Holding the state Exclu- al 4
r.Is sively Liable.
Chic. M. McGhee, vice president,
etc. OF the E. IT., v. & G. railroad
company. received information by.
telegraph yesterday Of final decision
by Judge Whitney, of Miehigan, judge
Of the United States circuit court, in
the case OF G. lAmory Stevens of New
York, and other bondholders, against
the railroads of Tennessee, to recover
the interest on their bonds.
The decision was filed in the y. ..
court at Nashville, and was in favor of
the railroads on ali the point involy7
ed. The decision holds that the pres
ent state bonds and their holders have
no obligations whatever on these rails
roads, and that they must look exclu-
sively to the state of Tennessee for
their payment.
Judge Whitney was agreed upon by
both parties to this suit in consequence
of his universally acknowledged abili-
ty and entire absence of prejudice one
way or the other, and there ean-be-no
dissatisfaction on this score. al
Judge Bradley, of the q. 8. supreme
court, has heretofore rendered an ex-
actly similar decision in the case of the
Mobile & Ohio and Tennessee roads, as
did also Judge Trigg, in his lifetime,
at Memphis, which 1t would seem
should render the matter conclusive,
as to the non-liability of the railroads to
these bondholders. Furthermore, it ap.
pears to US that by virtue Of these three
decisions, piled on top OF one another
, the demagogues in Tennessee politics
who have been making so much CHEAP
capital on this score, are now deprived
of all their ammunition and rnusl
necessarily be forced to the conclusion
. that there is no longer question as t
. the validity of the entire state debt o
! our state, and that it must be settled
or we shall be everlastingly doomed t.
= the blighting effects OF repudiatior
! and all its consequences. ----------
!. ADDITIONAL POINTS IN THE CASE.
!. Since the above was in type the fol
: lowing is received: - ',35 7ie,, y.
Special Dispatch to tine Chronicle. Y,l3
: NASHVILLE, Sept. q.
Private kilograms received here stat
0 that Judge Whitney has decided; frsl
!. that the Tennessee bondhoiders hav
E no lien upon the railroads Of tbi
Q state; second, that the debt was dis
charged in accordance with the pro
= visions of the original act under whicl
t the bonds were issued, providing tha
the roads might discharge their debt
in any bonds Of the state. 8lslcU
TITS almost universally believe
here that this decision will crush on
Wilson's candidacy, as it remove
( from the reputation party the on i
foundation upon which they elaine
to rest, which was that the railroad
owed the debt and not the state. ]
has already dispirited the reputation
: lists, who are dismayed at the result 3
the suit upon which they built thei
. only hope of success. Wilson is n
longer considered factor in the car
VASE.
es BY ASSOCIATED PRESS
MEMPHIS. Sept. 27.---A private dis
1t patch from Judge Stanley. Matthew
e. to Maj. r. 4. Wilson. in New Yorf
says that Judge Whitney, before .whoI
the Tennessee state bond cases againi
,x the railroads OF the state were tried
decided that neither the foreclosed nc
the non-foreclosed roads are subject {
v any lien in favor of the bondholderi
and dismisses the bills in all the cases
These were the suits instituted by th
holders of state bonds to hold the raj
roads liable for portion ofEthe stat
debt. t e-E s4 e 1850 o4
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