The weekly Floridian. [volume] (Tallahassee, Fla.) 1867-19??, 1881-08-09
G.inesrilIe Advocate. Aug. al

Gainesville Advocate, Aug. g.
Will the editor Of the FLoRIDIAN rise and ex-
plain afresh TO the unnitiated the difference be-
tween the claims of the first mortgage railroad
bondholders. now converted into judgment cred
itors, for principal and interest at and 8 per
cent, respectively; and the claims against the
Internal Improvement Board for non-payment
Of Guaranteed interest on the same bOndss For
instance, supposiog the interest not 10 be dis
charged will the bOndholders who will probably
own all the roads, have the right to sue the
Board Of Internal improvement for the amount
Of the past due compOundIng interest, or for the
difference between such interest balance unpaid
and the legal simple interest allowed in their de-
crees? Were the suits, just finally disposed Of,
for the face of the bonds only, without the &C
crued interest, up TO the time the DEGREES were
rendered. In other words, would the pur
cbasers still hold more or less OF a million dollars
Of claims against the Board, after they purchase
the roads for the respective amounts of their
judgments?
BY referring to the Third Section of
the Internal Improvement Act, the editor
of the Idcocate will see that upon fail
ure upon the part of any railroad COM
pany accepting the provisions of said act
to provide one per cent. per annum as a
sinking fund, the Trustees shall take pos
session of the road and sell it at public
auction to the highest bidder. The pro-
ceeds arising from such sale shall be ap-
piled to the purchase and cancelling of
the outstanding bonds of the detaulting
company, or be incorporated in the sink
ing fund. In 1859, the Pensacola and
Georgia Railroad and the Tallahassee
L. 1.fo
March goth of that year. The amount
bid for the two roads was 81 ,4l5, 900,
enough to purchase and cancel all the
outstanding bonds of both companies.
OF this amount $95l, s24.63 was paid in
bonds, amounting to $500, 800. The Tai
lahassee Railroad having sold for little
less than its bonded debt, the bonds
of that road were received at little
below par The balance of the purchase
money, amounting to $4e3, 1887 was not
paid, and for this amount the Trustees
claimed vendors lien on the roads. This
claim has been adjudicated to be valid
with interest from the day of sale, and is
holders of the bonds of the Pensacola
and Georgia and Tallahassee Railroad
Companies.
Subsequent to the sale by the Trustees,
these roads became merged as the Jack
sonville, Pensacola and Mobile Railroad.
Then the "Little6eld bonds were issued,
purporting to be a first-mortgage lien
upon the road. These bonds were pur-
chased by the Dutch bondholders. The
recent sale of the road was made
under q decree in favor of the Dutch
bondholders, but was purchased subject
to the vendors lien, which, under
the decree of sale, must be paid off
within twelve months. The Dutch bond
holders purchased the road and are there
fore required to pay the amount due the
Trustees. With the moneys received from
the purchasers of the road, the Trustees
must pay the outstanding bonds of the
p. & G. and Tallahassee Railroad Com
panies, together with the interest which
has accrued thereon since March goth,
1869. These outstanding bonds amount
to about e4ss, 400. The vendors' lien
draws interest at eight per cent per an
mum, the bonds at seven per cent. per an
mum bat as the coupons of the bonds
also draw interest from maturity, the sg-
gregate due upon the bonds for principal
and interest will exceed the amount due
the Trustees We suppose that the Internal
Improvement Fund will be liable for the
payment of any excess due over and
above the principal and interest on the
vendors' lien.
The editor of the Adcocats has evil
IDENTIFY contounded the two glasses Of
bondholders, and seems To suppose that