Savannah morning news. [volume] (Savannah) 1868-1887, 1882-07-15
FiasI Decision IN = peculiar Case
a verdict that Explnlns Erssxy-


thing
Thcre has 8ust been decided in the srpe-
nor Court q case OF considerable interest
IN which the great principle involved was
the priority Of the bonds issued by the
Savannah and Charleston Railroad Com
pany, and their lien upon the property
this side Of the river.
The various interests concerned were well
renresented and the following lawyers were
engaged in the case: Mr.. Brawley, Of the
firm OF BrawleY q BarnwelI Messrs. Win
oste. Hsnckel and Young, Of Charleston,
Nezsrs. Chisholm s. Erwin, r r Richards,
J. r. esussy aud Capt. Robert Fall'gant, Of
thfs city. The case was argued On Thurs
ds7. and yesterday, the jury, under the in
s,ruceion OF the court, rendered the follow
ing verdict, which fully explains the case,
and We present Il in full:
We, the Jury, do find and decree as fol-
lows:
First. That the claim Of William Rems-
hart, under q judgment obtained IN the
SUPERIOR court Of Chatham county, and
under which he mas interviewed 10 this
csuse-which said claim amounts 70 the sum
OF S46s, with interest on said sum at The
rate Of seven per centum per annum from
the Dist dayo of July, 1850, and costs Of suit
the principal, interest and costs now
Amounting 70 the sum OF 81 236 81, is the
fret lien upon all the property and railroad
NJ the Savannah and Charleston Railroad
Company in the State Of Georgia; which
said property and railroad Is that mentioned
IN the pieadiDgs In this cause. and the said
judgment Is to be paid 10 full, in preference
70 al other liens and claims whatever.
Second. That the claim Of Robert Oliver,
a. 7-FFfg - arrfa "a Ia 10 81
railroad was operated in Georgia By the
receiver appointed by this court, for which
claim the said Robert o liver mas obtained a
verdict in this court, and judgment thereon
for the principal sum Of $50, with interest
on said sum at the rate OF seven per ceDtum
per snnum from April Is, 1882, and costs OF
suit: the principal, interest and costs now
amounting 10 the sum Of Sl12 -, Is the
second lien upon all OF the said property;
and the ssi1 judgment is to be paid il Iui'
TO preference to all Otber liens ana claims
ghs.ever. except only the sad judgment Of
said William Remshart.
Third. That the claim Of Daniel Callahan
ard Henry NJ. Dranes surviving copartners
OF the late firm Of Mcdowell, Callahan q
Co. under a Judgment obtained in the
Superior Court Of Chatham county, and
under which they have answered, aud filed
an amended answer by way Of cross bill IN
sum Of S34 DOL 19 and & l0I 10, as principal
Sums, with interest thereon at the rate Of
seven per centum per anDum from the lllh
davs Of March and October, a. D. 1870, and
costs Of suit; the principal, interest and
costs now amounting TO the sum OF
S66, $50 % as principal and interest, and
s costs OF suit, is the third lien upon all
0! said properly and railroad in the State Of
Georgia: and the said judgment is TO be
In FFu1f n. al ~
and claims whatever, except only the said
judgments OF William Rsmshart and Robert
o liver, nereinbefore provided for.
Fourth. That the claim OF Henry G. Can
ningham, to whom was referred the auditing
OF the receiver returns, IS to be NEXT paid :
said claim amounting TO the sum Of two
hur dred and fifty dollars.
Fifth. That all court costs and expenses
due to the officers Of this court, upon the
said Gro bill Of Daniel Callahan and Henry
N. Drane, surviving cOpartners as aforesaid,
shall be next paid.
Sixth. That upon the payment Of the said
! judgment claims, and the said claim Of
Henry G, Cunningham, and court costs
aforesaid, the purchaser at the sale In South
Carolina OF the said railroad, known as the
Savannah and Charleston Railroad, and
properly, both in South Carolina and IL
Georgia, to wit: The Charleston and Savan-
3
ed 10 said cause, and is row In possession Of
the said railroad and property in South Caro-
lima, and of the railroad and property 10
Georgia under the decretal order OF this
| court as 70 the railroad and property in
| Georgia 1, shall thereafter own, possess aud
enjoy, absolutely to aud for its own use for
| ever, aud wholly freed and discharged Of
| and from all liens and claims whatever, all
( OF the said railroad and property in Georgia
/ - IND Oh a int
Seventh. That the said purchaser, to wit:
| Tae Charleston and Savannah Railway Com
pang, having paid to George A. Mercer, the
/ solicitor of the trustees Of the per cent.
mortgage bondholders, the sum OF three
| thousand four hundred and fifty dollars, has
/ fully satisfied the claim OF said solicitor for
( sll counsel fees IL said Cause.
Eighth. That the purchaser OF said railroad
and property at the salein South Carolina, to
wit: The Charleston aud Savannah Railway
! Company, which has interviewed herein, be-
/ came such purchaser under decree OF sale,
whereby the whole railroad between
| Charleston, South Carolina, and Savannah,
/ Georgia. and entire property and franchises
/ Of the defendant corporation both IN GeOr-
| gia and in South Carolina, was sold and
| conveyed to said purchaser, subject only to
the liens and claims hereinbefore provided
J to be paid: and all creditors OF said defend
/ ant corporation, and others holding or claim
| ing liens, by statute, mortgage, or otherwise
/ Except those hereinbSfofe provided to be
/ paid were parties TO the litigation In South
| Carolina in which said decree Of sale was
! passed, and they are forever estopped from
| litigating in the courts Of this State with
said purchaser, or In anYWise disputing with
| said purchaser conc erning the TILE acquired
by said purchaser above named at said sale
OF said entire railroad, property and fran
| chises, and this estoppel is especially april
| cable TO the six per cent, seven per cent.
| and eight per cent. bondhoiders and their
trustees who were parties 10 the litigation
in South Carolina, and proved their respect
i've liens, and who are represented in this
! litigation in this court.
Ainjb. That more Of the mortgages, six per
| cent, seven per cent. o. eight per cent,
| have been properly recorded in Georgia;
| the record Of said liens-if any record there
be-is INVALID and void and the same as nc
| record. TheIe Wss no constructive notice
| Of said record to bind anyone, and the 1udg
| ment liens and claims hereinbefore provided
| to be paid, have priority not only because
the railroad and property was sold In South
! Carolina expressly subject to said judg-
ment, liens and claims, tut also by reason
OF the defect Of registry Of said mortgages
| and liens ss spcge mentioned. the priority
! of the liens Of the six per cent, seYen pei
| cent. and eigh per cent. bonds is therefore
determined irrespective Of the said alleged
| priority by reason Of the alleged record In
| Georgia Of tho seven per cent. and eight pei
cent. mortgages, and tnel priority IS deter
mined hereby to be according TO the law o.
Georgia as follows:
First. The six per cent. bonds had
/ prior lea scd claim upon the railroad
| and property in Georgia, to she seEen
| and eight per cent. bonds and mortgages
Second. The seven per cent. bonds anC
mortgage eoLae nezt after the sic per cent
bonds. Third. The eight per cent. bond
and mortgage were and are inferior both Il
the six per cent. bonds and to the seven pei
cent. bonds and mortgage; especially as th'
mortgage and bonds show that notice wa
had ~ the holders Of the fact that the si1
per cent. snd seven per CENT. bonds we're t
be paid in preference 70 such eight per cent
bonds. A, VI, BARBEE, foreman.
July IA, 1882.
1