The Somerset reporter., 1893-11-23
Important Litigation in Relation
to the Somerset Railroad


Our readers are assare that the town
of Arson holds 81 300 Of bonds Of the
spun.i sci l;ailroaa company secured by
"A iir-t mortgage on the rnad aud rolling
stock. bearing date .July ]. l-7l. and
duly recorded and ihi,t thr town t.
gether with other iaIli-holer- holding
in all about S1s.6UJ 9i boud-. . titiOncd
the supreme Conrt Of the state to APP
point two neW trustees to fill the vacan-
cirs under the mortgages Of July |,
ISL, Occasioncd by The death of Hon.
stephen u. Lindsey. un April = lss4.
aud by the death of Daniel Holland.
Esp, on May 5. ls9n. The mortgage
was made to Lewis Pierce. Daniel IIol-
land and Stephen -. Lindsey a trustees
to secure bond, to th" amount of sl5o,-
900, about $500. 900 of which were sold
and the proceeds used in constructing
said railroad. The Hon. Lewis Pierce
of Portland, is the only survivor of the
original mortgages and trustees.
The petition in equity Tor the appoint
ment of new trustees in order to enforce
the mortgage of July /. ISL. became
necessary because the parties who had
possession of the road and were receiv-
ing an income of about 100000 yearly
from ii, refused to pay the interest on
the bond, secured by thar mortgage.
and. on the contrary. were wrongfullv.
applying that income in payment of the
second mortgage bonds for s225, 900
which they claimed to have put on the
railroad property on Oct. 10. ls>1. and
secured by "A second mortgage Of that
date.
The petition for the appointment of
lao
by the toWu Of AuSon aud others. wa,
entered in the supreme Court in kennr-
hrc County at its Oct. term. $500. and
the parties who had possession uf the
road appeared aud opposed the appoints
ment OF trustees A. prayed for. claimed
that they had formed a new corporation
called the somerset Hallway" which
in some way, had acquired the whole
in some way, had acquired the whole
title OF the Somerset Railroad propert Y ::
and that the mortgage OF July /, ISL,
was dead. and that, therefore. no new
trustees could be appointed to enforce
| its provisions. Evidence was taken.
and the case Nas argued before the Law
Court in June. 1891, aud on Aug. l3.
| ls92 The opinion of the Court. prepared
| hV Mr.. Justice Whtehouse. WIS an
nouncrd. holding the mortgage of July
| !. 1871, Il valid and subsisting security,
and directing the appointment of new
trustees to enforce its provisions. As
prayed for in the petition of the town.
At the October term, 1892, of Court in
kennehec County, new trustees were
duly appointed, viz, Hon. Herbert NJ.
Heath of Augusta, in place of Mr.. Lind
sey, and Hon. franklin NJ. Drew of Lew
istnu in plnpp pf Mr. III oil l1DI
At the terms of the supreme Court in
Somerset and kenncbec Counties next
following these appointments. the trus-
tees brought writs of entry to recover
the Somerset Railroad property against
the parties still insisting upon holding
possession of it, Notwithstanding the
adverse decision of the full Court: and
last week at PORTLAND the writS of en-
| try We're tried and reported to the full
| Court, as also a bill in equity brought
| by the ''SomerSet Railway" against The
| trustees. in which they ask to have the
| trustees enioincd from pr scouting said
wrts of entry. and also ask To have the
mortgage of July |. ISL. set aside and
declared void; and that the new corpor-
alton. called the "Somerset Railway,
may be declared valid; and HAT the
bondhod"rS under the mortgage of
July /, ISL, including the town of An
son, may be compelled to surrender
their bonds to the new corporation and
take stock in ii to the amount of their
| bonds
All the suits are to be argued together
at the Law Court in Cumberland toun-
| ty. at the July Term, 1891, when it is to
be hoped this litigation may he finally
| ended
The whole controversy is. in fact be-
tween the first and second mortgage
| bond-holders,
Whether the Law Court will reverse
their former decision. ard now declare
the mortgage of July /, 1871, void,
which only year ago they held valid.
and whether they will compel first
mortgage bond-holdcrs to surrender
| their priority to second mortgage bond
holders, may well be doGbted,--inSoH
| -idrDcdtc.