Blanks v. Farmers' Loan & Trust Co.

• Decision Date: 07 April 1903
• Docket Number: 1,197.
• Citation: 122 F. 849
• Parties: BLANKS et al. v. FARMERS; LOAN & TRUST CO., et al.
• Court: U.S. Court of Appeals — Fifth Circuit

122 F. 849

BLANKS et al. v. FARMERS; LOAN & TRUST CO., et al.

No. 1,197.

United States Court of Appeals, Fifth Circuit.

April 7, 1903

E. T Lamkin and W. F. Millsaps, for appellants.

E. B Kruttschnitt, E. H. Farrar, B. F. Jonas, and Harry H. Hall for appellees.

This controversy grows out of the cause entitled 'The Farmers' Loan & Trust Company, Trustee, Complainant vs. The Vicksburg, Shreveport & Pacific Railroad Company et al., Defendants,' No. 216 of the docket of the United States Circuit Court for the Western District of Louisiana, the style being the result of an order of consolidation of the several causes numbered 215, 216, and 217 of the docket, in equity. The common object of these causes was the foreclosure of certain mortgages upon the property of the Vicksburg, Shreveport & Pacific Railroad Company, securing two several bond issues, and incidentally for the appointment of a receiver. The attitude of the appellants here was originally that of interveners, but under the order of consolidation they were made to stand as defendants. On October 7, 1901, there was a decree of foreclosure as to the granted lands of the defendant company, and, the cause having been retained for that purpose, there was a further amendatory order on December 7, 1901. Pursuant to this decree, there was a sale, on February 1, 1902, of the granted lands, comprising selections certified and uncertified, reserved mineral rights, funds unappropriated arising from sales of lands, notes for the purchase price of certain other sales, and other notes for rents, etc. At this sale, Cyril C. Harvey, 'for account of himself and associates' became the purchaser of all the property, for the aggregate sum of $115,900. On February 28 and on March 4, 1902, respectively, Robert B. Blanks, and Mrs. Fannie K. Newman, surviving partner in community and testamentary executrix of Charles Newman, deceased, filed exceptions to the master's report, opposing the confirmation of the sale, and charging various irregularities in the conduct of the same, as well as that the price at which the property was sold was grossly inadequate. Upon the issues created by the answer of the defendant company, and 'C. C. Harvey, representing bondholders purchaser,' the matter was heard at chambers in the city of New Orleans, by consent of counsel, on April 17, 1902, when the following decretal order was passed: 'This cause came on this day to be heard at chambers, in the city of New Orleans, by consent of counsel, in the matter of the opposition of Robert B. Blanks, and Mrs. Fannie K. Newman, surviving partner in community and testamentary executrix of Charles Newman, deceased, to the confirmation of the sale of the land grant lands of the defendant railroad company and other property herein sold February 1, 1902, pursuant to decree of this court, and was argued by counsel. Whereupon, and upon consideration whereof, it was ordered that the hearing herein be postponed until Friday, May 2, 1902, at 11 o'clock a.m., at chambers in the city of New Orleans, at which time if the said opponents, or either of them, shall make, or cause to be made, a bid larger by ten thousand dollars ($10,000.00) than the bid heretofore made by C. C. Harvey, representing certain bondholders, the court will open the bidding, and allow further bids to be made before the judge signing this order, and at chambers; otherwise will refuse to open the bidding, and will confirm the sale heretofore made.'

On May 14, 1902, was passed the following decree confirming the sale: 'The above cause came on to be heard on Thursday April 17th, at chambers in the city of New Orleans, by consent of all counsel of record in the matter of the exception of Robert B. Blanks, and of the opposition of Mrs. Fannie K. Newman, surviving partner in community and testamentary executrix of Charles Newman, deceased, to the confirmation of the sale of the land grant lands of the defendant railroad company, and other property, herein sold on the lst day of February, 1902, pursuant to a decree of this court. There were present Messrs. E. T. Lamkin and W. F. Millsaps, solicitors for exceptor and opponent; Mr. E. B. Kruttschnitt, solicitor for the Central Trust Company; Mr. Harry H. Hall, solicitor for C. C. Harvey, purchaser for account of certain holders of the mortgage bonds resting upon said lands; and said cause was argued by said counsel. Whereupon, and upon consideration whereof, it was ordered that the hearing therein be postponed until Friday, May 2, 1902, at 11 a.m., at chambers, in the city of New Orleans, at which time, if the said exceptor and opponent, or either of them, should make, or cause to be made, a bid larger by ten thousand dollars than the bid heretofore made by Cyril C. Harvey, representing certain bondholders (which bid for the aggregate of all the property sold on February 1, 1902, under said original decree of sale, was $115,900.00), the court would open the bidding and allow further bids to be made before the judge sitting at chambers, and otherwise would refuse to open the bidding and would conform the sale heretofore made on February 1, 1902. And thereupon, on Friday, May 2, 1902, the said hearing was postponed without action, upon the application of Mr. E. T. Lamkin, solicitor for exceptor and complainant, he being unable to appear in the city of New Orleans on that day, until Tuesday, May 13th, at 11 a.m., when the court met at chambers, in the city of New Orleans, in pursuance of the agreement and consent of all counsel and the order of the court; and thereupon Mr. E. T. Lamkin, solicitor for Robert B. Blanks and the Mississippi Valley Realty Company, tendered to the court and deposited with Mr. Wm. Grant, special master, a certified check for $10,000.00, and the said adjudication of February 1, 1902, was thereupon declared and considered to be open for further bids. And thereupon said Mr. E. T. Lamkin, solicitor for said Robert B. Blanks, exceptor, and said Mississippi Valley Realty Company, made a written bid for $125,900.00, accompanying the said bid with the above referred to certified check for ten thousand dollars, payable to Wm. Grant, special master, the balance of the bid to be paid within the time and manner stipulated in the original advertisement and decree. And thereupon Mr. Cyril C. Harvey, representing certain bondholders, the adjudicatee under the sale of February 1, 1902...