The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1898-05-10
THE G. ?. AND Y. Y.
THIS RAILROAD TO BE SOLD As
AN IRE
Tire Circuit Court Of Appeals SO De-
eides-The Opinion by Jadge GOff.
Jadge PurneH Dissents.

Tire Circuit Court Of Appeals so De-
eides-The Opinion by Jadge Gof.
Jadge PurneH Dissents.
(Raleigh News and Observer, May 5th.)
The long delayed Cape Fear and Yad-
kin Valley railroad case has at last
been decided by the Uriter States cir
cult court of appeals.
The opinion is very long and was
written by Judge Golf, Judge PurneM
dissenting. There are two points dec4d-
ed in the opinion:
l. That the past due interest coupons
are TO be paid before the principal Of the
bonds.
2. That the road shall be sold as an en-
tirety.
'concIudinp as we do that a sale by
divisions would under the circumstances
of this case be inequitable, it follows, we
think, that the double method insisted
upon by the appellants would be improp-
er for the reason among others, that as
the court would not confirm a divisional
sale, the bids could only be used as Il
mode of ascertaining the relative value
of the different interests, for which pur-
pose they would, in our opinion, for the
reasons given, be useless.
The duty of the court in directly the
method Of sale in a case like this is both
difficult and delicate. The interests APP
pealing TO it, each and all Of them en-
titled to the same careful consideration,
are many and conflicting. Here is "A
struggle between the holders of the three
series of bonds, IL contest as to a part OF
the property between those claiming IN
der the first mortgage and those under
the consolidated mortgage, an effort by
the bondholderS under the latter to save
from the general wreck some little part,
if possible. of their unfortunate invest
ments, and here also in submission to the
courts decree are the interests of the
m~ortgagor and the rights Of the public"
Mercantile Trust Company, of Balti-
more. the trustee in the second mortgage,
known as the consolidated mortgage"
dated October !, 1889. was made a party
defendant, and subsequently when it re-
signed it's trust, William A. Lash was
substituted as trustee under the mort
gage, and as defendant in the suit. A
cross-bill was filed by said Lash as trus-
tee of the second or consolidated mort
gage, in which he prayed that it also
might be foreclosed. TIL first mort
gage covers all of the railroad lines, eX-
cept the branches, while the second or
consolidated mortgage embraces all of
the lines in the first, and also includes
given to secure the separate series of
bonds. designated, respectively, as Sc
Ties A. Series B." and Series c."
bonds. Each series Of bonds has a first
lien upon a certain designated division
Of the railroad. and "a second lien upon
the other two divisions. The main line
from Wilmington to Mount Airy is two
hundred and forty-eight and ~one-quarter
miles line. division A" is that portion
of the road which lies between Green's
boro and Fayetteville and Fayetteville
and the South Carolina line, about IA
miles in all, of which 46A miles is made
up of the line from Fayetteville to the
South Carolina line; on this division Sc
ries A" bonds are a first lien. and they
ade also a lien in common with Series
c. bonds, but subordinate to Series B"
bonds, upon that portion of the road sit
uated between Greensboro and Mount
Airy, and also a lien in common with
Series 81 bonds. but subordinate to
Series CO. bonds, on that portion Of the
road between Fayetteville and Whining
ton.
Division b" is that portion of the
road situated between Greensboro and
Mount Airy, about 20 miles in length:
on this division Series B" bonds are a
common with Series {" bonds, but SUBJ
ordinate to Series A" bonds upon that
portion of the road which lies between
etteville, and Fayetteville and the South
Carolina line, and also a lien in common
with Series A" bonds. but subordinate
the road between Fayetteville and Will
mington.
Division c. is that portion of the
road between Fayetteville and
ton. about 81 miles in length. On this
division Series c. bonds are a first lien,
and they are also a lien in common with
Series B. bonds. but subordinate TO
Series A" bonds, on that portion which
lies DetWeen Greensboro ana fdyelueNllle
and Fayetteville and the South Carolina
line, and also a lien in common with Sc
ries B. onds. on that portion of the
road located etween Greensboro and
Mount Airy.
The cape Fear and Yadkin Valley Rail-
way Company is the successor to the
Western Railroad Company. a corpora
ton created by an act of December "a.
1852. passed by the general assembly OF
North Carolina. That portion of the
Cape Fear and Yadkin valley railway
no wknow as Division A. had been
constructed and operated by the Western
Railroad Company. Those parts of the
road now called divisions "B" and C
were uiIt by the Cape Fear and 4ad-
kin Valley Railway Company, whose cor
porate existence dates from March J..
1879. 1t also constructed a number OF
branch lines, in aid of both its local and
through business. now known as the
Factory branch. the Madison branch, the
Granite branch, the Furnace branch, the
Aldrich Quarry branch. and the Buff
Quarry branch. The South Carolina Pa
cifc railway. which is ten and One-half
miles long. running from Bennettsville to
the North Carolina line. has been leased
and is now operated by the Cape Fear
and Yadkin Valley Railroad Company.
On the day that the bill was filed in
the court below John Gill was appointed
receiver of the Cape Fear and Yadkin
Valley Railway Company. and he has
been in the custody and control of all of
its property. under the orders of the
court from that date.