THE FARMER'S WAR AGAINST MONOPOLIES. 233 



longer or shorter period will ensue, immediately upon 

 the opening of the line, during which the bondholders 

 will have to forego interest. 



INSUFFICIENT SECURITY FOR BONDHOLDERS. 



" 24. In continuation of the foregoing, I have yet to 

 mention in what manner the rights of the bondholders 

 are to be guarded under such critical circumstances. 

 The mortgage of July 1st, 1870, executed by the rail- 

 way company to the trustees, as representatives of the 

 bondholders on the other side to which the bond- 

 holders have to submit stipulates that, in case the 

 company should not be able to fulfil their obligations 

 respecting the payment of interest on the bonds, and (1) 

 the delay in the payment has lasted three months, the 

 trustees shall have the power to sell so much land out 

 of the area of the company as will be necessary to re- 

 alize the amount required to pay the interest ; (2) when 

 the delay in the payment has lasted six months the 

 trustees shall be empowered to take charge of the line 

 and work it themselves, and to make all the necessary 

 arrangements for that purpose ; (3) when the delay in 

 the payment has lasted three years, the trustees shall 

 be empowered to sell the line, and all the possessions 

 pertaining to it, for the benefit of the bondholders. 

 These stipulations, however, if acted upon, would do 

 the bondholders little good. With reference to the 

 powers conferred upon the trustees by Article 1, it is 

 difficult to see what advantage would be gained for the 

 bondholders by making use of them. If the land were 

 saleable the company could and would sell to pay the 

 interest on the bonds, and it will only be on account of 

 the land not being saleable, shortly after the opening 



