Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1882-08-24
MISSOURI STATE NEWS.
The Hannibal & st. Joseph Bonds.

The Hannibal & st. Joseph Bonds.
In the suit of the Hannibal & st. Joe
Railroad VS.. the State OF Missouri, Judge
McCrary has granted an injunction enjoin-
ing the sale OF the road upon payment of the
interest due Jan. l, 1882. His conclusions
upon the law Of the case are as follows:
the Treasury of the State OF the sum of S., $50,
600 on the goth of June, 1881, did not satisfy the
claim of the State in full, nor entitle COM
pialnants to an assignment of the States
2. That the State was bound to invest the
principal sum of S3.00o00O paid by COM
plainants without unnecessary delay in the
securities named in the act of March 26, 1881,
Orsome OF them, and SO as to save to the State
as large sum as possible: which sum SO
State and complainants credit pro fanto up
on the unmatured coupons now in contro.
g. That the rights and equities of the parties
are to be determined upon the foregoing
principles, and the State must s.-nd charged
with what would have been realized Ii the act
of March, 1881, had been complied with. It
only remains to consider what the rights of
the parties are upon the principles here
stated.
In order to save the State from loss on ac-
count of the default of the railroad company,
further sum must be paid In order to de-
termine what that further sum is an &c.
counting must be had. The question to be
settled by the accounting is, how much would
the State have lost il the provisions OF the act
of March. 1881, had been compiled with. That
act provided for the investment of s.. 900, 900.
paid in by the compliments on the Goth of
June, 1881. First, in the $3.50 bonds of the
State as rapidly as they were subject to call
Second, any portion of said fund that could
not be invested in the 500 option bonds be-
cause none were subject to call, was to be in
vested in bonds either of the State or of the
Of settiement would be 10 hold the State liabs
for whatever could have been saved by the
prompt execution of said act by taking up
such $50 option bonds of the State as were
subject 10 call when the money was paid to
the State, and inve sting the remainder of the
fund in the bonds of the United States
calculation can be made and the exact
sum still to be paid by the conplainants in
order to fully indemnify and protect the state
can be ascertained. For the purpose of stat
ing an account upon this basis and of deter
mining the sum to be paid by the complain
to John X. Cravens. one of the Masters of this
Court. The said Master will examine and
consider the proofs on file, and. if necessary.
will take further testimony upon the subject
of this reference, and will report to the next
term of the court. in determining the time
when the investment should have been made
under the act of March, 1881, the Master will
allow a reasonable period for the time of the
receipt of said sum of s., 00O0 06 by the Treas
would have been required for that purpose
had the officers charged with the duty OF
making said investment used reasonable dill
gence in its discharge.
N Gull pOHuCuI SechluS OOScIuUi Sllte
tenden's views on the subject got the fol-
lowing statement: "It requires the road to
pay the defaulted interest, for which have
advertised the road for sale, and no injunc-
ton will be granted against future adver-
tisements until that is done. The case is
then referred to a Master commissioner to
report what the difference is between the
State and the road in accordance with the
opinion of the court. What that report will
be can not say-can not therefore give an
opinion what the State will do. The report
when made may settle the difficulty at once,
or may open the matter to prolonged litiga-
tion upon one side or the other. I hope
when made it will be so equitable and just
to the road as we'll as to the State that it
will be accepted by both sides. In one
sense the road and the State are one. and
each should desire the welfare of the other.
The opicion Of Judge McCrary fully vindi-
Gates the course / have pursued in not re-
leasing the lien. 1 said from the beginning
of the trouble that the 1000, 200 was not
enough to satisfy the demands of the State"