Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-02-10
TENNESSEE RAILROADS.
somethfBg About the Suits Now Pend
ing a gafDst Them Before the
Supreme Court
To Obtain Payment OF IN Bonds Issues
by Them that were Endorsed
by the State.

NEW YoRK, February IA World re-
porter called yesterday upon MIR. Edward
L. Andrews, one of the counsel in the suits
pending against certain railroads in Ten
nessee, and now on appeal in Washington
at the instance of combination OF bond
holders, and asked him the nature and pres
ent condition OF the suits instituted by the
Committee of Tennessee bondholders.
"Iu 1872" he replied, "Messrs. Eugene
Kelly & Co., E. d. Morgan & Co., Peter
Geddes and others prosecuted bills in equity
in the United States Circuit Courts for the
several districts of Tennessee. The obj ct
of these suits Is to enforce statutory liens,
inspired by the General Assembly of Tennss-
see, on the railroads receiving aid 10 State
bonds. 1t was always expected that the ques-
tions involved would bs tried before the Su.
preme Court of the United States. La the frs,
instance the cases were presented 10 district
Judge, and the bondholders promptly ap-
pealed to Washington. As it would require
two years TO reach the causes in the present
crowded condition of the docket a motion TO
advance them for hearing at the present
term of the Supreme Court has been noticed
BY the Bondholders' Committee. These are
the same suits in which Charles OConor
gave an opinion referred TO by the World
some months ago, and we're brought in pur-
suance of his written opinion"
"What will be the next step in the pro-
ceedingsW
"Tne application to advance is 10 be heard
on Monday, the 5,h of March, one OF the
regular motion days Of the Supreme Court"
"What are the relations OF these suits 10
the question of the settlement Of The State
debit"
"The tendency of these litigations forms
an important factor in the financial affairs OF
Tennessee. There is large party, il not
the dominant one, which is opposed TO any
acceptable compromise of the State debt uu-
til the final decision OF the issues in these
causes. The State bonds received by the
railroad companies of Tennessee both before
and since the war form the major portion OF
her debt. The railroad companies claim 10
have settled with the State BY the purchase
at deprecated prices and the delivery to the
State of a quantity OF her obligations.
However, the present Legislature seems to
have objections 10 the 6nalty OF this ar
rangement, as the measure Which apparently
meets with most favor with it proposes 10
pay tbe State debt proper in full and the
issues to railroads at the rate OF Fifty per
cent. OF the principal and three per cent. in
interes. in new obligation without security.
Indeed, the journals of the last session
OF the Legislature contain many pro-
tests against the State paying any
thing at present on the bonds Issued
to railroads. The position taken by the
professionals is that it was never intended that
The State should pay anything on these is
sues, but that the railroads should pay them,
principal and interest. 1t has, therefore,
become condition precedent TO any arrange
ment of Tennessee's finances that a decision,
one way or the other, should. be had upon
the liability of the railroad property for The
satisfaction of this debt"
"What has become of the late compro-
mise, and how will the bonds issued under it
be afectedw
"The present Assembly is inimical to that
measur Should the occasion arise, it is
probable that steps will be taken to secure
the return 10 the owners of such Tennessee
bonds issued to railroads as may have been
delivered to Mr.. Polk and his fellow funding
commissioners in exchange for the new COM
promise bonds"
The amount of State bonds issued TO rail.
roads, as appears by the circular of Messrs.
Kelly, Terry and associates, is as follows:
East Tennessee, Virginia and Georgia
COmpanys system. S55oU,OUU
Fortytwo per cent. accrued interest 1,491, 900
Total S. Ol0 900