The Daily times. [volume] (Richmond, Va.) 1886-1889, 1889-04-12
IMPORTANT OPINION.
A slit INVOLVING TWO MILLION
DOLLARS.
CONTEST BETWEEN FIRST AND
SECOND MORTGAGE CREDI
TORS
rnF END on A VERY CELEBRATED
CAsg.
The ridoii,v Trust Company Against the
Shenandoah Valley Railroad Com
pnny Case That Took Three
Weeks fo Argue.

An opinion was Yesterday delivered in
the supreme Court In the case of the
Fidelity Trust Company against the
shenandoah Valley Railroad Company
and others.
This noicd case. one OF the most i'm
porani ever before The Court of APP
peal. az igcinia, involving in los various
branches more than two millions of dol
lars. Wa. decided yesterday hy The Court
of Appeals the main branch of the
case grew out of controversy be
feecn what is known as the
first mortgage creditors and the
general mort .are creditors touching
the ,ali 'ity and priority Of Sl,4io.OOo
Of the bonds of the ShcdandOan Valley
RailrOa Company These bonds hal
been issued hv inc company, and pledged
as colafcr -ccgrit, 90 The gcncralm0ri-
gage bondhOldcrs.
The Count of Appeals. in the decision
rendered Yesterday, sustained thc validity
Of the bond and the claims Of HE gen
eral mortgage, and affirming the de
cision of Judge Henry T. Blair. Of the
Circuit Court of Roanoke. Judge Rich
ardsOn delivered ihe opinion OF the
court. which occupied Am hour in his dc
livery. and was very able and elaborate
decision of ai num1ous and c0mph-
Gated -.ue~ involved in the case.
Another branch 0i The case arose out
Of the claim of what il known as the
Car Trust or Equipment Companies,
fora lien upon tlc franchises. the body
aaa earnings IF the road for the sum Of
fse bundled and seyeniy-iiye thousand
dollars due upon certain conditional
sale, or leases ON rolling stock. This
lien was asserted under the act OF the
Legislature Of 1879
The Court of Appeals held that this
act i- unconstitutional, because II does
not conform 90 the constitutional prOyi-
sion. which requires the Obiec,s of the
act Z Doe stated in the title. The Equip
menf or Gar Trust Companies therefore
had mo- lien upon the road but they are
authorized % take immediate possession
Of Che entire rolling stock, and
equipment OF the company, which
was believed % Doe ample security
for the Car Trust creditors
Another question I'm The case arose
ont of lhc claim of what is known as
TIE income creditors, 10 De substituted
10 the lien Of me mortgage crcdi 0rs iO
the extent of their advances for the
payment a coupons and supplies
furnished the road The Court OF
Appeals was of the opinion that
This claim could not bc sustained, mas
much ms the income bondhoiders had sur
rendered their securities and accepted
income bonds I'm full discharge OF the
same The opinion was delivered in
both cas by Judge Lewis
THIS ends the celebrated railroad case
which has attracted so much attention,
and was atgu "a about three weeks by
lawyers on both sides of great ability
and learning.
The first mortgage creditors were rep
resented bv Judge " ". Crump and
Bev J. Cump. OF Richmond, Mr.
Lambcrt0n. of New York, and
Mr. Lccdon of phila ielphia. The gen
cral mortgage creditors were represented
by Judge Waller II Staples and Frank
T. Clark. of Baltimore The Fidelity
Trust Company by Judge Robertson, of
Virginia. and Mr. Bullet, of Philadel-
phia all of whom participated in the
argument before ;he Court OF Appeals.
Same counsel also argued the ques-
iions arising in the Car Trust and the In
come Bond eases.
The only counsel present during the
delivery of the opinion were Mr. Ira
verse counsel for the railroad company
Judge W W Crump and Bcy T. Crump
for the first bondholdefs; and Judge
Waller r. Staples, for the general mort
gage creditors.