Lexington weekly intelligencer., 1883-01-13

ooAn VI VcsVSVS0SVS ~ P~y uAouo Va " """s
the company claimed to owe the state,
for bonds issued by the state. under
the acts of 1851 aud 1856. The fund |
commissioners refused 10 receive that
sum 40 q payment in full but express |
ed willingness to receive aud receipt |
for the same, in part payment of the
amount duo under the act of 1865.
This course was finally adopted. and,
on the Goth day of June, the company |
paid to the state treasurer IS O9O, 600,
OF which 500, 900 was to be used TO
pay the interest maturing in ten days |
thereafter: aud the remaining So, ,O00,-
00to pass into the state treasury. TO
the credit Of the company. Gu the
payment of the money. the treasurer
executed his receipt to r. G. Ralston,
Hemau Dowd and Oren Root, trus-
tees, in form as agreed upon between
the parties. In order to oblige the
company aud avoid the cost and dan.
ger of transmitting so large sum of
money from New Yolk 10 Jefferson
City and return, the treasurer went
to New York and received the money
and deposited il In the National Bank
OF Commerce, in accordance with All
arrangement made with the Bank of
Commerce, of st. Louis. Subsequent
to the payment OF the money, Mr..
E ,sley, Who represented himself as
the attorney of the Hannibal and St.
Joseph railroad company, and of cer-
tain persODs as trustees in the mort
gage-executed by the Hannibal and
St. Joseph railroad company to the
Farmers Loan aud Trust Company,
to the amount of So ,O0O, ,OO0-sppeared
at my Office and demanded, under the
act of 1865, that |, as governor, exc
cute q release Of the statutory lien of
the state, created by the acts of 1851
aud 1856. This refused TO do, as the
company had not, in my opinion, paid
the full amount Of its liability to the
state. The company, claiming that
the amount paid covered the whole
sum due to the state. instituted pro.
ceeding against the governor, Ill the
supreme court Of the state, to compel
him to assign to the company's trus-
tees the lien of the state, as provided
in the act of 1865. This application
having been denied by the court, the
company thereupon, filed in the court
an application tor mandamus against
The treasurer Of the state to compel
him to amend his receipt and pat it
in such form as TO fully discharge
the company from all further obliga-
tiODs to the state, by reason of the
sta'e's loan OF credit to said company.
This application was also denied; and
the company refusing to pay the ill.,
,terest maturing January l, 1882, !
proceeded to advertise the road and
its sppurtahances tor sale, as provid-
ed BY the act of 1851. Thereupon the
com pany filed it's bill in equity. in the
United States circuit court At Jeffer-
son City. alleging that the payment
made was q full discharge of the COM
pa,Iy. and again asking that the gov
ernor be ordered and required, by a
decree OF the court, to assign the
state's lien on the road and appurte-
nances to the trustees, and to enjoin
the sale of the road. This court.
after . thorough and exhaustive
examination of the subject, held
that the payment made was not
u discharge Of the obligations Of the
company, under the provisions of the
several acts, under " hich the loan of
credit was made, and, consequently,
refused the injunction. The company,
with unf1agging zeal 10 wrong the
state, thereupOn amended its bill,
praying the same relief as originally
asked, and, in case that should be
denied, asking the alternative relief of
repayment of the 90 900, 900. On the
tinal hearing of this bill at Keokuk,
To-, by Judge McCrarv, ali interlocu-
tory decretal order was made, pre-
scribing legal rules, BY which the
amount due by the company to the
state may be ascertained, and refer
ring the whole matter to master in
cnancery-Hon. John X. Cravens, of
Kansas City-with directions to take
All account thereof and report the
result arrived at to the court at an
early day. In accordance with the
agreement OF counsel OIL both sides,
sanctioned by the master, testimony
has been taken aud arguments made
before the master by the respective
attorneys, and am informed that the
report will probably be made at the
adjourned term Of the court, to be
held in Jefferson City on the. first
Monday in March next. So far, the
courts, state and federal, have uni
formly held that the company has not
yet discharged its obligations to the
state, and the federal courts at each
hearing have required the company to
pay the matured interest on the
bonds. In 90 doing those courts have
sustained the position held by the
fund commissioners from the begin
ming Of the controversy, they cou-
tending that the amount paid on the
10th day Of June. 1881, was not "a
sum OF money equal in amount to all
Indebtedness due or owing by said
company to the state, and aIl liabili-
ties incurred by the state, by reason
Of having issued her bonds and loaned
the same to said company - loan of