Page:Federal Reporter, 1st Series, Volume 8.djvu/133

 CLAFLIN V. BOOTH CAROLINA E. CO. 110 �ir. D. Porter, G. R. Walker, Uayne d Ficken, A. T. Smythe, Buist e Buist, T. M. Hanckel, J.N. Natham, M. P. O'Connor, W. A.Pringle, Joseph W. Barnwell, Charles S. Campbell, Thomas M. Mordecai, Siinons d Sirnons, Edward Magrath, Bryan & Bryan, C. B. Mlles, L. C. Northrop, and MeCrady ce Sons, for respondents. �Waite, Chief Justice. This is a suit in equity by holders of bonds of the South Carolina Eailroad Company, secured by what is known as the second mortgage, to foreclose that mortgage, sabject to the lien of prior encumbrances. It naturally divides itself into six partSj which, for convenience, will be considered Beparately. They are : (1) The first mortgage ; (2) the second mortgage ; (3) the syndicate ; (4) the sales of parts of the mortgaged property; (5) the attachments' in Georgia; (6) the wharf property. �1. As to the first mortgage : �The original name of the South Carolina Eailroad Company was the Louisville, Cincinnati & Charleston Eailroad Company. In that name, and under the authority of an act of the general assembly of South Carolina, passed December la, 1837, the company issued bonds,, payable part in London and part in Charleaton, to the amount of £450,000, which fell due January 1*1866. The payment of these bonds, principal and interest, was guarantied by the state, and secured by statutory mortgage to the state on all the property and funds of the company in South Carolina. The name of the com- pany was changed in 1S43, and thereafter itwas known as the South Carolina Rajlroad Company. In 1885 it became apparent that these bonds could not be met at maturity. Accordingly the general assem- bly of the state, on the twenty-first of December, 1865, passed an- other act, petitioned for by the company, authorizing the issue of other sterling bonds for the principal and. interest of the first, and to be substituted for them. As the substitution was made the new bonds were to be guarantied by the state, and this guaranty was to have the effect of continuing the original statutory mortgage in force the same as if no change had been made. Some exchanges were «ffected under this authority, but, on the whole, the scheme was a fail- ure. In addition to the bonds thus put out, the company was in debt for other bonds, issued in 1849, amounting in all to $175,000, which were to fall due, some on the first of January and some on the first of October, 1868. Under these circumstanoes, after negptiation with the bond holders, itwas — ��� �