Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-02-27
THE EAST LINE ROAD.
The Receivership Confirmed-An Import
suit-Its Outcome.

The Receivership Confirmed-An Important
suit-Its Outcome.
The suit referred to in the Dallas cor
respondence this morning as entered
upon the equity docket of the Federal
court and styled the Fidelity Insurance
Trust and Safety Deposit Company of
Pennsylvania VS.. the Missouri, Kansas
and Texas Railway Company, the East
Line and Red River Railway Company
and the Mercantile Trust Company of
New York, is based on a statement sub
stantially thus:
The East Line and Red River railway company
executed to plaintiff deed of trust to secure an
issue of per cent. gold bonds, payable on the
lst day of June, 1910, with interest payable
semi annually, said issue not to exceed $1,000
per mile on completed road. By the terms Of
this bond issue the road, then completed and to
be constructed distance OF 200 miles from JEFF
feTson and all the property of the company then
existing and to be acquired was conveyed to
plaintiff; the number o. bonds authorized to be
issued were 81 in bonds of $1,000 each, and
further issues were authorized at the rate of
$1,000 per mile as additional road should be con-
Structed in sections not less than ten miles.
That there have been certified and delivered
and are now outstanding 1851 of these bonds.
That the East Line and Red River company ex-
ecuted to the Missouri, Kansas and Texas rail-
way company certain indenture or contract of
date Nov. rs, 1881, and conveyed to it all its
property, franchises and corporate rights, the
said conveyance being made by virtue of author
ity conferred BY section of an act of the legis-
lature OF Texas approved August Z, 1870, entitled
g An act in relation to the Missouri. Kansas and
Texas railway company, late the Union Pacific
railway company, southern branch and also
by virtue of the charter powers of the East Line
and Red River railway company.
5. That the said Missouri, Kansas and Texas
railway company, by a deed Of conveyance in
trust, delivered all its property to the MerCan-
s1nf 81 To
therein referred TO not exceeding 81 ) 900 Goo
except that the extensions and branches were
constructed or acquired additional bonds might
be issued not exceeding $50, 900 per mile upon
road so constructed or acquired.
6. That the Missouri, Kansas and Texas on
the first day of December, 1880, leased to the
Missouri Pacific railway company ali its lines
then owned and to be afterward acquired: and
the East Line and Red River was thereafter
ooerated by the Missouri Pacific railway COM
Fexas M
That on June s, 1883, the Mercantile trust
company Of New York began suit in equity in
the circuit court OF the United States for the
district of Kansas under the mortgage made by
the Missouri, Kansas and Texas railway COM
pany to the Mercantile trust company, to fore
close the mortgage and to appoint receivers for
said mortgaged property, default having been in
payment on such bonds, IN which suit the Mis-
sohri. Kansas and Texas and Missouri Pacific
railway com panies were made parties, which re-
suited IN the appointment OF George A. Eddy
and n. @. Cross, receivers of the Missouri,
Kansas and Texas road and that orders subse-
quently passed by the courts extended and con-
hrnled the feceivership to include the East Line
road.
With This statement OF the case the plaintiff
asks for equitable relief, declaring the mort
gage to be first lien upon all the property par
ticularly described in the mortgage and upon
the forty-three miles of road thereafter con-
structed, aud that the amount of Indebtedness
be fixed and determined. The plaintiff have
leave to enter upon mortgaged premises of
their receivers, to be appointed by your
honorable court, and TO use, Operate
aud work said line of railway for the