Page:Federal Reporter, 1st Series, Volume 3.djvu/682

 STETEK3 V. L. J; N. B. 00. C75 �general assemHy, conferred in 1869-70, to 'snable the aided companiea to repay to the state the bonds loaned to them. The holders of the last-mentioned bonds claim to have a fiist lien upon the roads, and appear in these suits, with the de- fendant companies, to eontest the lien claimed by complaîn- ants and their associate bond holders. �The interest of the state debt was in default from July, 1861 to 1866, during the civil war, when the priee of her bonds had depreciated in value to less than 50 per cent, of their face. The storm of war left the railroads of the state •without money, credit, or rolling stock, and their roads and bridges going to decay. The first legislature of Tennessee, after the storm had passed, assembled in 1865, when the state and the railroad companies were alike in a condition of bank- ruptcy. Provision was now made by the state to f und ail her overdue bonds and interest coupons outstanding into new bonds. In 1866 and 1867 the state issued additional bonds to some of these railroad companies to aid them to build bridges and repair their roads, the state reserving a lien, and imposing terms and conditions like those in the act of 1852, but somewhat modified. �In 1869-70 none of the principal of the railroad aid bonds issued under the acts of 1852, or acts amendatory thereof, had matured, but now the general assembly of the state, to enable the respective companies to repay any part of the principal of their indebtedness for bonds loaned io them, passed an act permitting payment in any of the outstandin;j bonds of the state. �To obtain money to purchase state bonds for surrender, they were severally authorized to issue mortgage bonds upon their respective roads and equipments, corresponding in de- nomination with the state aid bonda, and deposit them with the comptroUer of the state, to be by him delivered to the Com- pany or its agent whenever and as Tennessee state bonds were by the company surrendered and cancelled. These mortgage bonds were by law declared to be a first lien on the road and equipments of th« company issuing them,. and as evidence to the purchaser the comptroUer was required to and ����