Evening journal., 1890-01-03
OVER TWO MILLIONS.
ELIZABETH 3. M'cOMB GETS JUDO
MENT FORA FORTUNE.
A Suit Against the Southern Railroad AS
ISOLATION, Involving 9n0 Bonds Of
$1,000 Each. Decided in Favor Of the
Plaintiff.


$1,000 Zach. Decided in Favor Of the
Plaintiff.
A case involving over So. 900, 900 was
decided in the Superior Court yesterday
afternoon. Mrs. Elizabeth B. McComb
was the plaintiff, and the verdict was the
largest ever granted In this state The
corporation, against which judgmentwas
obtained, is defunct, but settlement of
the matter, which has been pending
many years, has been secured.
The case was that of Elizabeth b.
McComb vs.. The Southern Railroad Asso
citation. George II. Bates ESQ, and
Mayor Austin Harrington represented
the plaintiff, and Senator George Gray,
the defendant.
Mr.. Bates opened the case for the plant.
i'll, by stating TO the court and jury the
ground Of the action
IL involved 900 bonds of the Mssiss-
ippi Central Railroad Company. of the
vaue of 81 900 each, dated December 10.
1873 The bonds we're due IN eleven
years and to each was attached twenty
two coupons, bearing interest at z per
cent. The coupons we're for $35 each.
The Mississippi Central Railroad was
leased and operated by the Southern
Railroad Association, as part Of
thorough line between New Orleans
and Chicago, connecting with the Mis-
sissippi Central at its northern ter
minus, was the New Orleans, Jackson
and Great Northern road The two were
afterwards consolidated under the name
Of the New Orleans, st. Louis and
Chicago Railroad Company. and made
connection with the Illinois Central
road, which ran on to Chicago.
The Mississippi Central road was ex-
| tended 118 miles northward towards the
Ohio river by the Southern Railroad As
sociation. La payment Of the debt in
CURED thereby, the Mississippi Central
road issued the bonds On January 20,
1874, the Southern Railroad Association
| guaranteed the bonds, and the present
suit was on the guarantee Subsequently,
the Southern Railroad Association ap-
propriated number of tie guaranteed
bonds to purchase a controlling interest,
$4,000 or 80, 600 shares, of
the capital stock OF the New
Orleans, jackson and Great Northern
railroad. which was afterwards consoli-
dated, as stated, with the Mississippi Cen
trail The stock OF the New Orleans,
jackson and Great Northern was to be
taken at 75 cents on dollar. The guar
anteed bonds exchanged for it was TO be
taken at par The bonds involved in the
suit were part Of those so exchanged
The Southern Railroad Association had
a floating debt of $500, 600, which it wish
ed to liquidate. To do this. a plan was
carried ont, by which all stockholders Of
the Southern Railroad Association, whu
would pay in, 40 percentum in cash Of the
amount of his stock, were given the guar
anteed bonds to the full value of such
stock
In the suit of the Rogers Locomotive
Works against the Southern Railroad
Association, in the United States Court
for the Southern District of New York
a similar case to this. the validity of the
guarantee was discussed. Judge Shipman
in an elaborate opinion, decided that ths
guaranteed bonds, used for the purchase o
the New Orleans, Jackson and Great North
ern Road were valid. Those distributes
to stock holders In the plan to liquidats
the floating debt of $500, 600 were throw
out. Judge Shipman held that they wer
not intended to be guaranteed, because
company should not attempt to pay of
debt Of $500, 900 by increasing its deb
$2,000, 000
The claim Of the plaintiff was for th
amount Of the principal and coupons, witt
interest on both from maturity Tn
total amount claimed was 50, 204, 100
The bonds, in tive bulky packages. tn,
charter of the Southern Railroad Asso
citation and other papers we're put in evi
dence. Several of the bonds, which ar,
probably not worth the paper they ar
printed on, were handled by the cour
and Jury. The Southern Railroad Asso
citation is defunct and the suit was simpl
to get judgment
Joseph l. Ocheltree was the only wit
ness in the case. He was employed 1
the Office Of the late Henry @. Nc Comt
when he was president Of the Souther
Railroad Association, and was assistan
to Mr.. Calhoun. when he was secretar
! Of the same and when the Mississippi
Central bonds were exchanged as stated
The exchange of the 800 bonds for IA, 90
shares Of New Orleans, Jackson an
Great Northern stock was proved b
him.
Senator Gray said thst the suit wa
similar to the case decided in New YorH
When the suit was brought in 1896, ther
was some defence on the ground of th
right Of the company TO guarantee th
bonds at par, but Judge Shipman's deeii
ion had settled the matter, and the pows
! Of the corporation to fix, the guarante
was not questioned He had no evidenc
to offer.
Chief Justice Comegys instructed th
jury to render verdict for the plaintiff
which was done without leaving the bo,
for the full amount claimed.
Court then adjourned until o'cloc
this fnorning