Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-11-14
A BIG CASE.
Important Litigation Affecting the
Santa Fe Southern Road Heard
Before Judge Laughlin.
The Burned Bridge to Be Replaced by
New One Immediately-De-
tails of An Interesting
Suit.

The case of the Farmers Loan q Trus
company against the Texas, Santa Fe &
Northern railroad company, the Santa Fe
Southern Railway company and the me-
chanics lien creditors has been on trial
before Judge Laughlin for two days and
was flashed late yesterday afternoon
The status of the case as presented to
the court was as follows:
The plaintiff by its counsel, Messrs. c.
W. Waterman and j. H. Knaebel of Den
yer, ask for the foreclosure of the mort
gage given to secure $4,000 of bonds
claimed to have been issued by the Texas
Santa Fe & Northern Railroad company
Judge Warren and Mr.. Gilderseeve,
who represented the opposition, claim
that only $4,000 was
LEGITIMATE ISSUE
and that 100000 was issued after the
Texas, Santa Fe & Northern Railroad
company had been sold to the Santa Fe
Southern Railway company and we're not
! issued for the benefit of the Texas, Santa
Fe & Northern Railroad company and did
not become assets of the latter company,
therefore being illegal.
Judge Warren contends that only $75,-
900 was legally issued, of which Mr.. Gill
dersleeve owns $4,000 and is willing that
decree may be had on the basis of the
$4,000, which
by the plaintiff. Judge Warren resisted
the plaintiffs motion to proceed to final
hearing now until the defense has an OPP
portunity to take evidence to show that
the 100000 issued was fraudulent.
Judge W. B. Sloan, who represents the
mechanics liens and Judgment creditors,
commended, on behalf of his clients, that
they are entitled to decree of sale, and
that his clients have the first lien on the
the property, and must be first satisfied
out of any proceeds of sale. He further
contends that the plaintiff is foreign
corporation aud
HAS NOT FILED
its articles of incorporation with the
secretary of the territory nor elsewhere in
the territory, nor does the bill show that
any of the proceeds of any of the bonds
were ever expended for the use of the
Texas, Santa Fe q Northern Railroad
hence it can have no priority
over general creditors, and certainly not
over mechanics liens creditors, who have
DEGREES in their favor. This is claimed
on the basis of section 1928 Of the COM
piled laws, which says that the liens pro-
vided for in that act shall be preferred to
any mortgage.
Mr.. GIldersleeve has filed cross bill |
in which he sets forth the alleged illegal
issue of the 100000 in bonds and
CHARGES CALLUsIoN
between the two railroad companies. He
sets up that he, as a judgment creditor,
and other creditors would be defrauded,
and Santa Fe county in particular, as it
has issued $150,000 in railroad aid bonds.
The court is asked to direct an inquiry in
that particular, SO that Santa Fe county
and all creditors may be protected.
The foregoing are some Of the most
important points in controversy. Mr.. I.
j. Helm, superintendent of the road,
APPEARED BEFORE THE COURT
yesterday and stated the immediate
necessities of the road, especially as to
the construction of the burnt bridge. Mr.
Helm said that there was $4,000 of the
amount previously allowed by the court
on hand and that an additional sum would
be required 1t was then agreed by all
the counsel that additional receivers GER
tifcates might be issued to repair the
road and that Mr.. Helm could go to work
at once, regardless of the present con-
troversy between the parties. This will
be good news to the people of Santa Fe
as the loss Of the bridge has greatly in
jured the travel and trade with this city
from that direction.
In order to raise his question as to
THE LEGAL RIGHTS
of the trust company, Judge Sloan with
drew his answer under leave of court and
filed a demurrer covering his contentious