HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.trials/abje0001 and id is 1 raw text is: (fitriit Tottt114d
EASTERN DISTRICT OF TEXAS (AT GALVESTON.)
CALVIN C. CAMPBELL AND PARKER H. FRENCH ]
VS.
THE TEXAS AND NEW ORLEANS RAIL ROAD COM- On Bill in Equity.
PANY AND OTHERS. J
The Texas and New Orleans Railroad Company, a corporation of the
State of Texas, on or about the 1st of November, 1858, executed 1,500
bonds of $1,000 each, and to secure the payment thereof executed two
several trust deeds and one mortgage of the same date. By one trust
deed the company conveyed to Congreve and Lowery, trustees, 1,200 sec-
tions or square miles of the public lands to which the company would be
entitled under the laws of the state on the completion of their road, the
certificates for which were receivable from time to time, as portions of
the road should be completed. By the other trust deed the company
conveyed to the same trustees 120 sections of the same lands and so much
of its free lands and city lots, &c., as would, with the 120 sections, be
valued at $600,000. The special object of this deed was to secure the
payment of the interest on the bonds and a sinking fund of two per cent.
during the construction of the road. By the mortgage the company con-
veyed and mortgaged to the same trustees the road bed, right of way,
and the whole and entire line of the railroad constructed or to be con-
structed from the city of Houston to the Sabine river, a distance of 110
miles or thereabouts.
The mortgage had a clause declaring that whenever the company should
procure from the state a certain loan of $6,000 per mile out of the school
fund (to which it would by law be entitled on performing certain condi-
tions and which it was declared the intention of the company to obtain)
and should execute to the state its bonds therefor, said bonds should
constitute a lien upon the property mortgaged prior and superior to the
title and interest of the trustees, the same as if it had been imposed and
taken effect prior to the making of the mortgage.
The state loan thus provided for was in fact made upon about 70 miles
of the road, situated east of Trinity river, to the amount of $430,500,
but for the portion of the line between Trinity river and Houston, being](ViewImageLocal?handle=hein.trials/abje0001&div=1&collection=&method=preview&ext=.png&size=3)