Page:Federal Reporter, 1st Series, Volume 10.djvu/268

 256 rSDEBAL BEPOBTBB. �securing the payment of the principal and interest of the sums of money for which such bonds shall. from time to time, be issued and accepted as afor»- said." �" Sec. 9. Each of said companiea shall make provision for the punctual redemption of the said bonds so issued as aforesai.l to them, respectively, and for the punctual payment of the interest which shall accrue thereon, in such manner as to exonerate the treasury of this state from any advances of money for that purpose; and the tolls and inconie which shall accrue from the use of their said roads, respectively, when the same or any part thereof shall be constructed, after paying the repairs and the necessary expense of operat- ing the same, and conducting the business thereof, shall be and are hereby plelged for the payment of said interest." �" Bec. 11. In case the said companies, or either of them, to which bonds shall as aforesaid be issued, shall make default in the payment of either interest or principal of the said bonds, or any part thereof, no more bonds shall there- after be issued to such delinquent company, and it shall be lawful for the Governor to sell their road and its appurtenances, by auction, to the highest bidder, first giving at least six months' notice of the time and place of such sale, by advertisement, to be published once in each week in the paper which shall publish the laws at .JefEerson City, and in two public newspapers printed in the city of St. Louis; or to buy in the same at such sale, for the use and benefit of the state, subject to such disposition in respect to such road, or its proceeds, as the legislature may thereafter direct." Legis. Acts 1850-1. p. 265. �Between July 1, 1854. and July 1, 1857, inclusive, bonds to the amount of one and a half million dollars, redeemable in 20 years, were issued and received by the company under the provisions of said act. The coupons were payable January Ist and July Ist of each year. On December 10, 1855, another loan of credit of one and a half million dollars was made to said com- pany on the same terms and conditions as that of 1857. �Under this act of 1855 bonds were issued to the Hannibal & St. Joseph Eailroad Company, to run for 30 years, at 6 per cent, interest, payable Janu- ary and July Ist, as follows: $500,000, dated ISTovember 10, 1856; $1,000,000, dated February 28, 1857. �On February 20, 1865, the Missouri legislature passed an act, the flrst sec- tion of which is as follows: �" Section 1. The Hannibal & St. Joseph Eailroad Company is hereby author- ized to issue its bonds, signed by the president and countersigned by the sec- retary of the company, in sums of $1,000 each, with coupons attached, bearing interest, payable semi-annually, at the rate of 6 per cent, per annum, and hav- ing not less than 10 years to run, and to the amount of three millions of dol- lars ; the payment of the same, with the accruing interest, to be secured by a mortgage or deed of trust, conveying to three trustees to be named therein, by and with appropriate forms of expression, and for the purpose of securing the payment of said bonds and interest, and for no other purpose, on the road of said company, with all its franchises, rolling stock, and appurtenances; sub- ject, however, to all the liens and liabilities existing in favor of the state by virtue of any law of the state at the time said bonds may be issued and deliv- ered." �The remaining sections, so far as material, are set forth in the opinion of the court. The bonds issued under the act of 1851 were renewed, with one exception, under an act passed March 21, 1874, and the reuewal bonds wilJ ��� �