Red River Furnace Co. v. Tennessee Central Railroad

113 Tenn. 697
CourtTennessee Supreme Court
DecidedDecember 15, 1903
StatusPublished
Cited by10 cases

This text of 113 Tenn. 697 (Red River Furnace Co. v. Tennessee Central Railroad) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red River Furnace Co. v. Tennessee Central Railroad, 113 Tenn. 697 (Tenn. 1903).

Opinion

Mr. Chief Justice Beard

delivered the opinion of the Court.

The present bill was filed by taxpayers of the city of Clarksville, in Montgomery county of this State, impeaching a subscription of $100,000 made by that city to the capital stock of the Nashville & Clarksville Railroad Company, which afterwards, by an act of the legislature, had its corporate name changed to the Tennessee [704]*704Central Railroad Company, and asking that tbe city of Clarksville be enjoined from issuing its bonds in payment of this subscription. Demurrers were interposed by tbe two defendants, challenging tbe legal sufficiency of all tbe grounds upon wbicb complainants asked relief. Upon tbe bearing of tbe cause on demurrer, a decree was pronounced by tbe chancellor dismissing tbe bill on tbe ground that chapter 276, p. 796, of tbe Session Acts of tbe Legislature of 1903, bad cured all tbe irregularities complained of therein. Upon appeal this decree was reversed by tbe court of chancery appeals, and tbe case is now before us for review.

It appears from tbe recitals of tbe original bill and tbe amendments thereto that 'the Nashville & Clarksville Railroad Company, a corporation organized and existing under tbe laws of Tennessee, on tbe 21st day of June, 1901, addressed a written communication to tbe mayor of tbe city of Clarksville, in wbicb it was stated that this company proposed “to construct a standard-gauge steam railroad from a point within tbe corporate limits, connecting with tbe tracks of tbe Tennessee Central Railroad or those of tbe Nashville Terminal Company, and crossing tbe Cumberland river ... in a northwest direction, to a point in tbe county of Montgomery, Tennessee, at a line between tbe States of Tennessee and Kentucky,” and asking a subscription to its capital stock by tbe city of Clarksville in tbe sum of $100,000, upon certain conditions, of wbicb those material to this litigation may be summarized as follows:

[705]*705First. That the construction of the line of railroad should be commenced at Nashville within six months, and completed to Clarksville within twenty-four months, from date of subscription.

Second. That' no part of the subscription should become due and payable until the railroad was constructed and put in operation within the period of time stipulated as above, and substantially on the line as shown on the plan or map attached to the communication, and when this was done the subscription should become due and payable.

Third. “ Payment for the stock subscription of the city to be made at the option of the city “in cash or in its twenty year coupon bonds, bearing interest at not less than four per cent, per annum,«payable semiannually.’’

A meeting of the board of mayor and aldermen of the city of Clarksville was held on the 5th day of July, 1901, at which this communication was- submitted, and thereupon a resolution was adopted declaring it to- be sense of the board “that an election should be held by the qualified voters of the city of Clarksville to determine whether or not the city, in its corporate capacity, shall make the subscription asked for by the Nashville & Clarksville Railroad, in the amount and upon the terms and conditions set forth in the application,” and fixing the 8th day of August, 1901, as the date of the election, which should “be held according to the laws of the State [706]*706regarding elections, by the duly qualified election officers, who thereafter should make the returns, showing the votes cast for, and those against subscription.”

On the 6th of July, 1901, the commissioners of registration of Montgomery county gave the statutory notice that on the 8th day of August, 1901, an election would be held at two voting places named in the notice between the hours of 9 a. m. and 4 p. m., at which the qualified voters of the city of Clarksville should vote in order to determine whether or not the city of Clarksville should make a subscription to the capital stock of the Nashville & Clarksville Railroad Company, upon the “terms and conditions of the application or proposition submitted by the railroad company to the municipal authorities, Avhich application ®r proposition was by the commissioners appended to the election notice.

The'election thus ordered was held on the day appointed, and in due time a return of the same was made by the commissioners of registration to the board of mayor and aldermen, of that city, in which they reported at this election held “in accordance with the law as found in chapter 3, p. 57, of the Acts of the Legislature of 1887, and by resolution of the board, there was cast a total of 904 votes of the qualified voters .of the city of Clarksville, of which total 681 votes were for, and 223 were against, the subscription.” They further reported that, in addition to this total 88 votes were cast which “were rejected and thrown out by the judges of the election as illegal.” .

[707]*707On tbe 15th of August, 1901, at a meeting of the board of mayor and aldermen of that city, this report of the commissioners was submitted and was approved; and in consideration of the fact that it appeared to the board that the election was fair,' and that more than three-fourths of the votes cast were in favor of subscription, it was therefore resolved that the “mayor of Clarksville be, and he is hereby, authorized and directed, in the name and for and on behalf of the municipality, . . . to formally subscribe for one hundred thousand dollars of the capital stock of the Nashville & Clarksville Railroad Company, upon the terms and conditions of the proposition submitted,” and hereinbefore set out.

This formal act of subscription was clone by the mayor on the 15th day of April, 1902.

The original hill and the amendments thereto charge various irregularities as of an invalidating character in the holding of this election. The principal grounds of assault are:

(1) That the termini of the railroad to be constructed were not sufficiently definite.

(2) That the line of the contemplated railroad was not located in the application with sufficient certainty.

(3) That the city of Clarksville lacks power to malee the subscription.

(4) That the election was- ordered by resolution, when it should have been by ordinance.

(5) That, in giving the public notice calling the elec[708]*708tion, the commissioners styled themselves “commissioners of election.”

(6) That the election was void because held at only two voting precincts, when'there were ten wards in the city.

(7) That there were 88 ballots cast which the officers of the election rejected without giving any reason therefor,

(8). That the ballots were not in proper form.

(9) That certain persons (naming them, 15 in number) voted in the election, “For Subscription,” about one-half of whom were disqualified by reason of their conviction of infamous crimes, and the remainder had been bribed by the railroad company to vote for subscription.

In addition, it is charged that the railroad had not been completed within the period of time fixed in the application or proposition, and that chapter 276, p. 796, of the Acts of 1903, ratifying and approving the subscription, was unconstitutional and void.

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Bluebook (online)
113 Tenn. 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/red-river-furnace-co-v-tennessee-central-railroad-tenn-1903.