The weekly Floridian. [volume] (Tallahassee, Fla.) 1867-19??, 1882-09-05

many past due coupons of the cancelled
bonds.
After the sale of the P. & g., and Tai
lahassee Railroads in 1869, there was, we
say, an outstanding Indebtedness in princi-
pal of bonds of 1922, ,l75. The annual inter-
est falling due on this amount was $5O,-
esq, and each coupon as it matured itself
bore interest, at the rate of seven per
cent. per annum, amounting say to $3,-
500 per annum.
RAILROAD AND 1. 1. FUND LITIaATIoNs. =
Now il is true that had the entire price
bid for the Pensacola & Georgia and Tai
lahassee Railroads, when they were sold
in 1869, been promptly paid, the Internal
Improvement Fund would have been
thereby relieved of all burden as TO the
p. & G. and Tallahassee r. r. coupons,
or interest on them, except the coupons
which had matured anterior to March
2Oth, 1869, of which there was, however,
outstanding a considerably larger amount
than was then supposed, but balance of
&463I75.37, to-wit: $4l2, 400 for the p
IL G. and $5O,775 on the Tallahassee
Road, which should have been paid was
not, nor was any part of it ever received
by the Trustees until the present summer.
The Trustees under the Stearns admins.
tration did obtain judgment against the
j. p. il N. r. r. Co., in Duval Circuit
Court, in 1874, but as the Supreme Court
of the State made a decision which was un-
derstoOd by some to establish the doctrine
that under the Constitution of 1863 Cir
cult Court could not sell property lying be-
yond the territorial limits of the circuit, it
was, We may say, regarded by many as a
legal impossibility to sell the railroads
from Lake City to Quincy and from Tai
lahassee to St. Marks under the decree of
that Circuit Court, as they lay entirely
outside of that circuit, and extended
nearly through two other circuits 1t is
a question whether the process of our
courts, as then constituted, could have
been made effectual to practical sale of
the roads last mentioned, except by piece
meal. Any how, no sale was ever made
under such decree
After the failure to pay the balance Of
the purchase money of the p & G.. and
Tallahassee Roads, +. c. Anderson and
other holders of bonds of these companies
began,sin 1872, a suit in the L. S. Circuit
Conrt at Jacksonville, and obtained de-
cree against the J. p. & NJ. r. r. Co.
then operating the roads, for the sale
of the roads to pay such balance. In the
latter part of 1873, the State of Florida
began suit in the U. s. Supreme Court,
and in December, A. ID. 1875, obtained
decree enjoining sale by Anderson and
others under their decree No sale of the
roads was made by Stearns' administra-
tion, under any Of its powers, although
they were advertised.
In the spring of 1877, after Governor
Drew came into power, the sale of the
roads was advertised, but was enjoined
by Judge Bradley in the suits of
North Carolina Railroad Company Soon
after this injunction was granted the hold
ers of the Florida State bonds, issued in
1870 and known as the Little6ed bonds,
began in the United States Court at Tai
lahassee suit subsequently transferred
to Jacksonville), in which they claimed,
as against the Trustees and everybody
else, first lien on the whole line of rail-
road between Chattahoochee and Lake
City and Quincy and St. Mirks.-
This suit, known as the Schultz case,
came on for final trial in May, 1879, and
in it it was decreed that the Trustees had
on the roads from Quincy to Lake City
and from Tallahassee to St. Marks the
first lien for the balance of purchase
money stated, towit: 63,l75.37 and
interest from March goth, 1869, and the
holders of the Littletield bonds the sec
ond lien; and that they should be sold to
pay these liens. The decree, however,
provided that sale should be first made
to pay the second lien, and the purchasers
should have twelve months after such sale
in which to redeem the first or Trustees
lien. A sale Of the last-named roads did
take place in September, A. d. 1879, but
owing to an appeal taken to the United
States Supreme Court where. in the win
ter of 1881, Judge Bradley's decree Of
May, 1879, was affirmed, the sale of Sep
tember, 1879, was not confirmed until
July sth, 1881, latter the sale to Disston,)
and the year within which the balance of
purchase-money was to be paid did not
expire till July 9Th, 1882. Thus is ex-
planned briefly the delay in attempts to
collect the balance of purchase-money.
But what about the Internal Improve
ment Fund litigation? For the interest
annually accumulating from 1869 to 1882
on the 1922, l75 of bonds, as well as for
interest on the coupons, and the very
large amount of outstanding coupons
maturing prior to the sales of the differ
ent railroads on the bonds which were
cancelled at such sale, it is plain then there
was no relief, in view of the above rail
road litigation, except through the Fund.
Unless the sales of land were sufficient to
pay them, they had to remain unpaid and
continue bearing interest from their ma
turity.
During Governor Reeds administration,
the Trustees, with at least one exception,
Colonel r. II. Gamble, took into their
heads the idea that the lands could, under
the guise of sales at nominal prices, say
10 cents an acre, be applied to purposes
of aiding immigration and to the i'm
provement of navigation along the wa
ter-ways on the Atlantic coast in this
State. Contracts were made with COM
panies and proposed to convey to them
large bodies of the lands of the Fund in
consideration OF a nominal money value,
and the introduction of immigrants or
the improvement of the Atlantic coast
line waterways. 1t is immaterial and
would occupy too much space to go into
details as to these contracts. At this
time the ordinary sales Of land were linn
tied and the coupons were selling at very
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