Page:Federal Reporter, 1st Series, Volume 5.djvu/657

 TILLEY V. SAVANNAH, FLORIDA & WESTERN R. 00. 645 �shares of the capital stock of the Savannah, Florida & West- ern Eailroad Company, for which he had paid the sum of $10,000 in cash ; that the said Savannah, Florida & West- ern Eailroad Company had its origin as foUows : By a decree of the United States circuit court for the southem district of Georgia, the property, franchises, rights, privileges, and im- munities of the railroad corporation known as the Atlantic & Gulf Eailroad Company were sold on November 4, 1879, to Henry B. Plant and his associates; that the purchasers of said railroad and property of the Atlantic & Gulf Eailroad Company were the honafide owners of $1,416,000 of the sec- ond mortgage bonds of said company, to satisfy which such sale was made, and that their cash bid at the sale was $300,- 000, which sum was paid in hand ; that said sale was made Bubject to the lien of a mortgage executed by said Atlantic & Gulf Eailroad Company to secure certain bonds issued and sold by it and known as its first mortgage bonds, and that said lien amounted at the time of said sale to about $2,700,- 000; that said Plant and his associates, under the provisions of an act of the legislature of Georgia, approved February 29, 1876, had formed the said defendant corporation, the Savannah, Florida & Western Eailroad Company, and to it was conveyed under the orders of said court the property and franchises, rights and immunities, of the said Atlantic & Gulf Eailroad Company; that the act by virtue of which the said Savannah, Florida & Western Eailroad Company was organized and said conveyance made declared that upon the sale of the property, franchises, rights, and immunities of any railroad company in the state of Georgia the railroad company formed by the purchasers thereof should possess ail the powers, rights, immunities, privileges, and franchises in respect to such railroad which were promised' or enjoyed by tiie corpo- ration which owned or held such railroad previous to such sale under or by virtue of its charter and any amendments thereto, and of other laws of the state. Acts 1876, p. 118. �The bill further charged that at the time of making and issuing the said first mortgage bonds, subject to which the Atlantic & Gulf Eailroad was sold, the state of Georgia was ����