EQUIPMENT MORTGAGE.
RUSSELL SAGE AND THE ST. LOUIS, ALTON
AND TERRE HAUTE RAILROAD
COMPANY
to
SAMUEL J. TILDEN AND THOMAS DENNY,
Trustees.
$150,000.
Bonds Mature March 1, 1880.
Interest at ten per cent, per annum, payable
March and September.
Dated March i, 1870.
This Indenture, made this first day of March, in the year
one thousand eight hundred and seventy, between Russell
Sage, of the City of New York, of the first part, the St. Louis,
Alton and Terre Haute Railroad Company, of the second
part, and Samuel J. Tilden and Thomas Denny, both of the
said City, of the third part :
2
Whereas, The said party of the second part is à Railway
Company created and existing under the laws of the States of
Indiana and Illinois respectively, and as such is operating as
the owner thereof, a railroad known as the Belleville branch
of the St. Louis, Alton and Terre Haute Railroad, and has
engaged to operate, as the lessee thereof, a certain other rail¬
road running or to be run, in connection therewith, which is
known, or to be known, as the Belleville and Southern Illinois
Railroad ;
And Whereas, For the purpose of operating and carrying
on the business of said railroads, respectively, the said party of
the second part has contracted to purchase from the said party
of the first part certain locomotives, tenders, cars and other roll¬
ing stock and equipment, to be supplied by the said party of the
first part, from time to time, as the same shall be required by
the said party of the second part, at certain prices to be agreed
upon and between said parties, and a schedule whereof shall
upon each such purchase be annexed to this indenture, which
schedule shall identify and describe the property so purchased
by stating the following particulars, or such of them as may
be applicable thereto, viz. : the number, where, and by whom
built, name, size of driving wheel, in inches, and such other
peculiarities, if any, as may be necessary, sufficiently to iden¬
tify and describe the locomotive, tender, car or other rolling
stock so purchased.
And Whereas, In payment for the purchase money of the
property aforesaid, the said party of the second part has re¬
solved to issue a series of one hundred and fifty certain bonds
or obligations, bearing date on the first day of March, 1870,
and payable in ten years from date, and has reserved the right
hereafter to increase the amount of said bonds to three hundred
3
thousand dollars for the purposes of said purchases ; which
said bonds are to be secured to be paid, with the interest
thereon, bv a first and paramount lien upon the property to be
purchased as aforesaid.
And Whereas, The said bonds to be issued as aforesaid
are all of like tenor and in the form following :
UJSriTED STATES OF AMERICA.
States of Indiana and Illinois.
No. $1,000
St. Louis, Alton and Terre Haute Railroad Company.
Ten Per Cent, Equipment Bonds.
Know all men by these presents. That the St. Louis, Alton
and Terre Haute Railroad Company is indebted to Russell
Sage, of the City of New York, or bearer, in the sum of one
thousand dollars, lawful money of the United States of
America, which the said Companj' hereby promises to pay to
the said Russell Sage, or to the bearer hereof, on the first day
of March, in the year one thousand eight hundred and eighty,
at the office or agency of said Company, in the City of. New
York, with interest thereon from the date hereof at the rate of
ten per centum per annum, payable semi-annually at the said
office or agency, in the City of New York, upon the first days
of March and September in each year, upon the presentation
and surrender of the annexed coupons as they severally be¬
come due ; and it is hereby expressly declared and agreed that
in case default shall be made in the payment of any half-
yearly instalment of interest on this bond, which shall become
due and be demanded, and if such instalment of interest shall
remain unpaid and in arrear for the period of ten days after
the maturity thereof, the principal of this bond, as well as
4:
of each of the bonds of the series of which this bond is one,
may be declared and made to become due and payable imme¬
diately, in the manner and with the effect provided in the deed
of trust or mortgage hereinafter mentioned.
This bond is one of a series of one hundred and fifty bonds
of one thousand dollars each, numbered consecutively from
one to one hundred and fifty inclusively, and amounting in the
aggregate to one hundred and fifty thousand dollars, all of
which are of similar tenor and date, issued by the St. Louis,
Alton and Terre Haute Railroad Company to secure the pay¬
ment of the purchase money of rolling stock and equipment
acquired and to be acquired for use in the business of the
Belleville branch of the railroad of said Company, and of
the Belleville and Southern Illinois Railroad, heretofore leased
by it ; and the said Company reserves the right to increase
the aggregate amount of said bonds to not exceeding three
hundred thousand dollars, by a further issue of similar bonds
to an amount not exceeding one hundred and fifty thousand
dollars, to be used for the same purpose.
The payment of the principal and interest of this bond is
secured by a certain deed of trust or mortgage bearing even
date herewith, duly executed and delivered by the said Rus¬
sell Sage and the said Company to Samuel J. Tilden and
Thomas Denny, of the City of Hew York, trustees, and which
conveys to the said trustees the locomotives, cars and other
equipments acquired and to be acquired for the purposes
aforesaid in the said deed described. It is hereby agreed by
the said Company that in case of default in the payment of
the principal or interest of this bond, it will waive, and it does
hereby waive, the benefit of any and all extension, stay and
5
appraisement laws, whether now existing or hereafter en¬
acted.
This bond shall pass by delivery, or by transfer upon the
books of the Company in the City of New York, or at such
other place as the Company may keep transfer books ; but
after a registration of ownership, certified hereon by the
transfer agent of the Company, no transfer of this bond, except
upon the books of the Company, shall be valid unless the last
transfer shall have been to beaiw, and transferability by
delivery thereby restored, and this bond shall continue subject
to successive registrations and transfers to bearer, at the option
of each holder.
This bond shall not become valid or obligatory until the
same shall have been authenticated by a certificate endorsed
thereon and duly signed by the said trustees or their suc¬
cessors.
In Witness Whereof, The said Company has caused its
corporate seal to be hereunto affixed and the same to be
attested by the signatures of its President and Assistant Sec¬
retary, and has also caused tlie coupon hereto annexed to be
signed by its Assistant Secretary, this first day of March, in
the year one thousand eight hundred and seventy.
President.
Secretary.
SEAL
ST. L., A.
& T. H.
R. R. Co.
Now, therefore, this indenture witnesseth, That the
said party of the first part, in consideration of the premises
6
and of the sum of one dollar to him in hand paid, at or before
the ensealing and delivery of these presents, the receipt
whereof is hereby acknowledged, and in order to secure the
payment of the principal and interest of the bonds aforesaid,
or such of them as shall or may from time to time be issued
and disposed of as herein recited and provided, and every part
of the said principal and interest, as the same shall become
payable, according to the tenor of the said bonds, has granted,
bargained, sold, assigned,•transferred and set over, and does
by these presents grant, bargain, convey, assign, transfer and
set over unto the said parties of the third part, and the sur¬
vivor of them, and their and his successors and successor in
the trust by these presents created, all and singular the loco¬
motives, tenders, cars, and other rolling stock and equipment
specified or to be specified in the schedule or schedules an¬
nexed or to be annexed to this indenture as hereinbefore pro¬
vided, or which shall or may be purchased as aforesaid. And
also all the right, title, interest, property, possession, claim and
demand whatsoever, as well in law as in equity, now held, or
hereafter to be acquired, of the said party of the first part, in,
to and concerning any and all such locomotives, tenders, cars,
and other rolling stock.
To have and to hold the same, And oacli and every por¬
tion thereof, unto the said parties of the third part, and the
survivor of them, and their and his successors and successor in
said trust, to the only proper use and behoof of the said parties
of the third part, and the survivor of them, and their and his
successors and successor, but in trust, nevertheless, for the
uses and purposes hereinafter set forth, that is to say :
Article First. Until default shall be made in the pay¬
ment of the principal of the said bonds, or some of them, or
7
in the payment of the interest to accrue on the said bonds, or
some of them, or in the fulfillment of the covenants, or some
one of them, hereinafter set forth on the part and behalf of
the said party of the second part, to be kept or performed,
the said party of the second part and its assigns shall be suf¬
fered and permitted to have the actual possession and use of
the said locomotives, tenders, cars, and other rolling stock
which may be purchased as aforesaid.
Article Second. The said party of the second part, for
itself, its successors and assigns, has promised and agreed, and
does hereby covenant, promise and agree to and with the said
parties of the first and third parts, severally and respectively,
that the said party of the second part shall and will at all
times hereafter, until the bonds aforesaid issued and to be
issued, shall have been fully paid and discharged, with all in¬
terest to accrue thereon, pay and discharge all taxes, assess¬
ments and other liens which shall or may be levied, assessed
or imposed, or become lawfully chargeable upon the said roll¬
ing stock, or any portion thereof, after the purchase and de¬
livery of the same, and that the said party of the second part
and its assigns, shall and will keep the said rolling stock in
good order and condition, and to that end from time to time
make, or cause to be made to the same, any and all such repairs
f
and replacements as shall or may be necessary for the purpose
of keeping the same in such condition ; and if the same, or
any portion thereof, shall be destroyed by fire or other acci¬
dent while in the possession or use of the said party of the
second part, or its assigns, it or they shall and will replace the
property so destroyed by other similar property, equal in all
respects to the same, and such similar property shall be sub¬
ject to the lien and operation of these presents in the same
8
manner and to the like extent as if originally included in the
schedules annexed or to be annexed hereto.
Article Third. In case default shall be made in the pay¬
ment of any interest which may accrue on any of the said
bonds, issued or to be issued according to the tenor hereof, or
of the coupons thereto annexed, or in case default shall be
made in the fulfillment of any of the covenants or agreements
herein set forth to be by the said party of the second part per¬
formed or kept ; and if such default shall continue for a
period of thirty days, it shall and may be lawful for the said
parties of the third part, or the survivor of them, or their or
either of their successors or successor, personally, or by their
attorneys or agents, to enter into and upon any and all lands and
premises of the said party of the second part, or its assigns, or
any other place or places where the said hereinbefore described
property may then be and thereupon to take possession of the
said locomotives, tenders, cars and rolling stock, or any part or
parcel thereof, and after taking such possession, or without
taking such possession, it shall be lawful for the said trustees
or trustee hereunder to sell and dispose of, all and singular, the
said locomotives, tenders, cars and equipment, or any part or
parcel thereof, at public auction, either in the city of St. Louis
or in any place where the property so taken possession of may
be then situate, as the said trustees or trustee may in their or
his discretion deem advisable and may appoint; but prepara¬
tory to any and every such sale the said trustees or trustee
shall give public notice of the time and place thereof by ad¬
vertisement to be published not less than three times a week,
for two weeks, in one or more newspapers in each of the cities
of New York and St. Louis ; and the said trustees or trustee
may adjourn any such sale from time to time, in their or his
9
discretion, and if so adjourning may make the same, without
further notice at the time and place to which the same may be
adjourned ; and upon any and every such sale being made as
aforesaid, the said trustees or trustee making the same shall be
authorized to deliver to the purchaser or purchasers of the
property which shall be sold, and execute and deliver to him
or them any and all instruments of sale, assignment or transfer
which shall or may be necessary or proper to vest in him or
them the title thereto.
And it is hereby declared and agreed that any and every
sale of said property which may be made as aforesaid, shall be
a perpetual bar, both in law and equity, against the said par¬
ties of the first and second parts, and each of them, as well as
against any and all other persons lawfully claiming or to claim
the said property, or any part or parcel thereof, or any interest
therein, by, from, through or under the said parties of the first
and second parts, or either of them. And after deducting
from the proceeds of such sale just allowances for all expenses
thereof, and all advances or liabilities which shall or may have
been made or incurred by the said trustees or trustee in respect
to the said property, including attorneys' and counsel fees and
all other expenses, advances and liabilities which may have
been made or incurred by them or him while the said property
shall have been in their or his possession, in respect thereto or
the sale thereof, as well as just and reasonable compensation
for their or his own services, it shall be lawful for the said
trustees or trustee to apply the proceeds of such sale to the
payment of the principal of such of the aforesaid bonds as may
be at that time unpaid, whether or not the same shall have
previously become due, and of the interest which shall at that
time have accrued on the said principal and be unpaid, with-
10
out discrimination or preference, but ratably to the aggregate
amount of such unpaid principal and accrued and unpaid in¬
terest, and if, after the satisfaction thereof, a surplus of the
said proceeds shall remain, then to pay over the said surplus
to the said party of the second part, or its assigns, or to render
the same as any court of competent jurisdiction shall order.
And it is hereby declared and agreed that the receipt or
receipts of the said trustees or trustee making such sale shall
be a sufficient discharge to the purchaser or purchasers of the
said property, or any portion thereof, for his or their purchase
money, and that such purchaser or purchasers, his or their
heirs, executors or administrators, shall not, after payment of
such purchase money and delivery to him or them of such
receipt, be liable to see to the application of such purchase
money or any part thereof, upon or for the trusts and purposes
of these presents, or in any manner howsoever to be answer¬
able for any loss, misapplication or non-application of such
purchase money, or any part thereof, or be obliged to enquire
into the necessity, expediency or authority of or for any such
sale.
Article Fourth. At any sale of the aforesaid property, or
any portion thereof, whether made by virtue of the power
herein granted or by judicial authority, the trustees or trustee
hereunder for the time being may, in their or his own discre¬
tion, and not otherwise, bid for and purchase, or cause to be
bidden for and purchased, the property so offered for sale, or
any portion thereof, in behalf of the holders of the bonds
secured by this instrument which shall be then outstanding, in
the proportion of the respective interests of such bondholders,
at a reasonable price, if but a portion of the said property shall
be sold, or if all of it be sold, at a price .not exceeding the
11
whole amount of such bonds then outstanding, with the interest
accrued thereon.
Article Fifth. In case default shall be made in the pay¬
ment of interest on any of the bonds aforesaid, and that such
interest shall remain unpaid and in arrear for the period of
ten days after the same shall become due and be demanded
according to the tenor of said bonds or the terms of any cou¬
pon thereto annexed, then, and in every such case, the princi¬
pal of all the bonds secured hereby shall, at the option of the
trustees or trustee for the time being, become immediately due
and payable, anything contained in the said bonds, or either of
them, or anything hereinbefore set forth to the contrary in
any wise notwithstanding ; but a majority in interest of the
holders of the said bonds may, by an instrument in writing
«
signed by such majority, instruct the said trustees or trustee to
declare the said principal to be due, or to waive the right so to
declare, on such terms and conditions as such majority shall
deem proper, or may annul or reverse the action of the said
trustees or trustee in the premises, at any time before the said
trustees or trustee shall have actually sold the said property, or
some portion thereof pursuant hereto ; Provided^ always^
that no action of the said trustees or trustee of the said bond¬
holders shall extend to or be taken to affect any subsequent
default or to impair the rights resulting therefrom.
Article Sixth. The parties of the first and second parts,
respectively, shall from time and at all times hereafter, and as
often as thereunto requested by the trustees or trustee for the
time being hereunder, execute, deliver and acknowledge any
and all such further or other deeds, conveyances and assur¬
ances in the law, for the better assuring unto the said trustees
or trustee upon the trusts herein expressed, the rolling stock
12
hereinbefore described or intended so to be, and any rolling
stock or equipment by which the same or any part thereof
may be replaced or substituted pursuant hereto, as by the said
trustees or trustee, or by their or his counsel learned in the
law, shall be reasonably advised, devised or required ; and in
particular the said parties of the first and second parts shall
and will, upon any and every purchase of said property by the
said party of the second part, annex hereto a schedule thereof,
specifying the particulars hereinbefore mentioned ; Provided^
always^ that either of said parties shall be authorized to annex
such schedule and to do any and every matter and thing
necessary or proper to bring the property so purchased under
the lien and operation of these presents before or simul¬
taneously with the delivery thereof to the said party of the
t
second part.
Article Seventh. And the said party of the second part
hereby covenants and agrees to and with the said party of the
first part and to and with the said parties of the third part
that the said party of the second part, or its assigns, shall and
will w^ell and truly pay the principal and interest of said bonds
as the same shall become due, and well and truly do, keep and
perform any and every matter and thing hereinbefore men¬
tioned to be by the said party of the second part, or its assigns,
done, kept, or performed.
Article Eighth. It is hereby expressly declared and agreed
that in case the said party of the second part, or its assigns,
shall well and truly pay the principal and interest of the said
bonds, and every of them, and do, keep and perform every act
and thing hereinbefore mentioned or expressed to be by it
done, kept or performed, then, and in such case, all the right,
title and interest of the said parties of the third part in or to
13
the property aforesaid, or any portion thereof, under and by
virtue of these presents, shall cease, determine and become
void ; otherwise the same shall be and remain in full force and
virtue.
Article Ninth. It is hereby declared and agreed that it
shall be the duty of the trustees or trustee for the time being
hereunder to exercise the powers of entry and sale hereinbefore
granted, or to take appropriate proceedings in equity or at law
to enforce the rights of the holders of the bonds secured to be
paid by these presents, upon requisition in writing made to said
trustees or trustee by any holder or holders of the said bonds
to the amount of fifty thousand dollars, and a proper indemni¬
fication by the person or persons making the same against the
costs and expenses to be by such trustees or trustee thereby
incurred.
Article Tenth. It is mutually agreed by and between the
parties hereto, that the words trustees'' and ''trustee'' as
used in these presents, shall be construed and understood to
mean the persons, or in case there is but one trustee surviving
or continuing in office, the person who, for the time beings
may be charged with the execution of the trusts of these
presents, whether such persons or person be the parties of the
third part or one of them, or their or one of their successors or
successor in the trust created by these presents. And it is fur¬
ther agreed that each of the said trustees shall be entitled to
just compensation for all the services which he may hereafter
render in this trust, to be paid by the said party of the second
part or its assigns, or allowed out of any trust funds coming
into the possession of said trustees by virtue of these presents ;
and that the said trustees, or either of them, may at any time
and without notice to any party but the said Company or its
14
assigns, apply to any court of competent jurisdiction for the
allowance of such compensation. And it is further agreed
that said trustees, or either of them, or their or either of their
successors or successor, may resign and be discharged of the
trusts created by these presents, by giving notice in writing to
the parties of the first and second parts to these presents at
least three months before the time mentioned therein for such
resignation to take effect or such shorter notice as may be
accepted by tlie said parties of the first and second parts, and
upon the due execution of the instruments hereinafter required.
And it is further agreed that the said trustees or eitlier of
them, or their or either of their successors or successor, may
be removed by a majority in interest of the holders of the
aforesaid bonds, by an instrument in writing signed by such
majority in interest of said holders ; that in case at any time
hereafter the said trustees, or either of them, or their or either
of their successors or successor, shall die or resign, or be
removed as herein provided, or by a court of competent juris¬
diction, or shall become incapable or unfit to act in the said
trust, a successor or successors to such trustees or trustee may
be appointed by a majority in interest of the holders of said
bonds then outstanding, which appointment shall be made by
an instrument in writing signed by such majority in interest of
said holders ; and the trustees or trustee so appointed shall
thereupon become vested with the same powers and authorities
as if appointed by these presents without any further assur¬
ance or conveyance ; and upon the resignation or removal of
any trustee, and an appointment in his place in pursuance of
these presents, all the powers and authorities of the trustees so
resigning or being removed shall cease ; but nevertheless such
trustee so resigning or being removed, shall, on the written
15
request of the new trustees or trustee who may be appointed,
immediately execute a good and sufSeient instrument of transfer
and release to vest in such new trustees or trustee, upon the
trusts herein expressed, all the right, title and interest of such
resigning or removed trustees or trustee, in, to and concerning
the property covered by or intended to be included in the lien
of these presents.
In Witness Whereof, the said party of the second part
has caused its corporate seal to be hereunto affixed, and the
same attested by the signatures of its President and Assistant
Secretary, and the said parties of the first and third parts have
hereunto set their respective hands and seals, the day and year
first above written.
Kussell Saoe. [seal.]
Signed, sealed and delivered in
the presence of
Charles Nettleton.
St. Louis, Alton and Terre Haute Kailroad
.Company, by
Charles Butler,
President.
G. H. Gurley,
Assistant Secretary.
Samuel J. Tilden. [seal.]
Thomas Denny. [seal.]
U. S. Int.
B,ev.
Stamp.
$50.
- Seal
St. L., A.
& T. H.
R. R. Co.
1862.
U. S. Int.
Rev.
Stamp $200.
U. S. Int.
Rev.
Stamp $50.
16
Acknowledged by Charles Butler, President; G. H. Gurley,
Assistant Secretary ; Samnel J. Tilden and Thomas Denny,
trustees, and Russell Sage, before Charles Nettleton, Commis¬
sioner for the State of Illinois in the City of New York, May
28, 1870.
The original mortgage bears no evidence of having been
recorded. (August 2, 1879.)