Central Trust Co of New York v. Grant Locomotive Works Same v. Grant Dayton v. Grant Locomotive Works Same v. Grant, s. 1,277

• Decision Date: 21 April 1890
• Docket Number: No. 1,278,Nos. 1,277,1,282,No. 1,280,1,281,Nos. 1,279,s. 1,277,s. 1,279,1,278,1,280
• Citation: 10 S.Ct. 736,135 U.S. 207,34 L.Ed. 97
• Parties: CENTRAL TRUST CO. OF NEW YORK v. GRANT LOCOMOTIVE WORKS et al. (two cases). SAME v. GRANT, (two cases. DAYTON, F. W. & C. R. Co. v. GRANT LOCOMOTIVE WORKS et al. SAME v. GRANT
• Court: U.S. Supreme Court

135 U.S. 207

10 S.Ct. 736

34 L.Ed. 97

CENTRAL TRUST CO. OF NEW YORK v. GRANT LOCOMOTIVE WORKS et al. (two cases).

Nos. 1,277, 1,281.

SAME

v. GRANT, (two cases.

Nos. 1,279, 1,282.

DAYTON, F. W. & C. R. Co.

v. GRANT LOCOMOTIVE WORKS et al.

No. 1,278.

SAME

v. GRANT.

No. 1,280.

April 21, 1890.

On August 1 and 2, 1883, upon a creditors' bill brought by Granville D. Braman, a judgment creditor of the Toledo, Cincinnati & St. Louis Railroad Company, Edwin D. Dwight was appointed receiver of all the property of the company in Illinois, Indiana, and Ohio, by orders made in the circuit courts of the United States in districts of those states. August 14, 1883, the Central Trust Company filed its bill in the United States circuit court for the southern district of Ohio against the Toledo, Cincinnati & St. Louis Railroad Company, the Cincinnati Northern Railway Company, and the said Braman and another, asking a foreclosure of certain mortgages therein described. This cause was numbered 3,554. In October, 1883, the Central Trust Company filed its bill in the same court against the Toledo, Cincinnati & St. Louis Railroad Company, the Toledo, Delphos & Burlington Railroad Company, and the said Braman for a foreclosure of certain mortgages therein set forth, which cause was numbered 3,578. On October 25, 1883, one William J. Craig was appointed receiver of the mortgaged property in each of these causes, took possession of it, and superseded the possession of the former receiver, Dwight. October 27, 1883, the Grant Locomotive Works and the American Loan & Trust Company by leave filed their intervening petition in No. 3,578, set- ting up a contract between the Toledo, Cincinnati & St. Louis Railroad Company and the Grant Locomotive Works for the leasing and conditional purchase chase by and sale to the railroad company of 10 locomotives, Nos. 57 to 66, for the price of $105,000, payable in installments, the title to the locomotives remaining in the Grant Locomotive Works until payment was fully made; that the whole purchase price was represented by bonds of the railroad company, made payable at the office of the American Loan & Trust Company at Boston, and certified to by said trust company as trustee; the default of the Toledo, Cincinnati & St. Louis Railroad Company; and praying a surrender of the 10 locomotives, and the payment of all arrears due for rent, interest, and repairs up to that time, under said contract, and also of any deficiency that might arise upon a resale by them of the said 10 locomotives, and for other relief. On the same day, R.S . Grant filed in No. 3,554 his intervening petition, alleging a similar contract with the Cincinnati Northern Railway Company in respect to other locomotives at the price of $90,558.97, of which $18,558.97 was paid in cash, and the remaining $72,000 was made payable in monthly installments, represented by bonds of the Cincinnati Northern Railway Company, the payment of which was assumed by the Toledo, Cincinnati which was assumed by the Toledo, Cincinnati & St. Louis Railroad Company, upon consolidating with the former company, in 1883, the title to the locomotives remaining in the said Grant until payment in full was completed; the default of the Toledo, Cincinnati & St. Louis Railroad Company; and praying for the return of the locomotives, the payment of all arrears due for rent, interest, and repairs up to that time, and also of any deficiency that might arise upon a resale of the said locomotives, and for other relief.

On December 6, 1883, Craig, as receiver, by his attorney, filed his answer to the intervening petitions, admitted the agreements and the defaults in payment, and further answered that all the locomotives were in his possession, and were necessary to the operation of the railroads by him; and prayed that the court would make such order as would enable him to retain the possession and use of the locomotives. On the 17th of December, 1883, the attorney of the receiver notified the judge of the court that there was no reason why judgment should not go upon the intervening petitions, and that there was no objection to the draft of decrees, as the receiver had only resisted claims for damages, and these had been waived. On the 22d day of December, 1883, of the October term, two orders were entered in each of said causes, Nos. 3,554 and 3,578, in favor of the intervening petitioners. The two in favor of R. S. Grant in No. 3,554 were as follows: 'The said couse came on to be heard upon the petition and the answer of the receiver thereto, and upon the evidence submitted on behalf of said petitioner. And it appearing to the satisfaction of the court that the receiver has in his possession Grant locomotive No. 73, and is using the same in the operation of said Cincinnati Northern Railway Company between Cincinnati and Dayton, Ohio, and that said locomotive is one of the ten covered by the agreement of lease set out in said petition, and was acquired by said railway company under the terms of said agreement, and was so held at the date of the appointment of the receiver herein; and it further appearing that the present receiver or his predecessor took the said locomotive, with its tender, into his possession as such receiver on the 1st day of August last, and has had the same in continuous use and possession since that date, without having made any of the monthly payments of rental as provided in said indenture of lease, or other compensation, for the use thereof; and it further appearing that the said locomotive is, in the judgment of the receiver, necessary to the proper operation of said railway, and should be acquired as part of its permanent equipment, and that the value of said locomotive as fixed in said agreement of lease is reasonable, and that the petitioner, R. S. Grant, the owner of said locomotive and tender, is willing, upon receipt of the contract price, or upon being adequately secured therein, to transfer the title of the same to the receiver; and the matter being fully heard by the court, and upon due deliberation thereon,—it is hereby ordered, adjudged, and decreed that the receiver pay to the said petitioner as rental for said locomotive and tender, and in full for all claims for rental, interest, and repairs, down to the 1st day of December, 1883, the sum of $770.48, the same being the amount due to said date under the terms of said lease; and the further sum of $7,520, balance in full as purchase money for said locomotive and tender. And it is further ordered that the receiver pay said several amounts, as part of the oe rating expenses of the said railway, out of any money not appropriated for the payment of current labor, supplies, and taxes. And it is further ordered and decreed that the said several amounts, with interest thereon at the rate of six per cent. from the 1st day of December, 1883, shall be a charge upon the earnings, income, and all the property of the said Toledo, Cincinnati and St. Louis Railroad Company, and especially of the said Cincinnati Northern Railway Company, as ahead of the first mortgage or other bonded debt of said company, or either of them; and any balance of said several amounts remaining unpaid at the date of the foreclosure and sale of said railways shall be a first lien thereon, and the said sale shall be made subject thereto.' The second order commenced: 'The said cause came on to be heard upon the petition, and the answer of the receiver thereto, and upon the evidence submitted on behalf of said petitioner. And it appearing to the satisfaction of the court that the receiver has in his possession Grant locomotives numbered 67, 68, and 72, with their tenders, and is using the same in the operation of the said Southeastern Division of the said defendant company's railroad, between Dayton and Wellston, Ohio, and that the said locomotives are three of the ten covered by the agreement of lease set out in said petition, and were acquired by said railway company under the terms of said agreement, and were so held at the date of the appointment of the receiver herein.' This order continued in the terms of the preceding one, and decreed certain amounts for rentals, interest, and repairs down to December 1, 1883, and a further sum in full as purchase money fro said locomotives and tenders, and concluded as follows: 'And it is further ordered that the receiver pay said several amounts, as part of the operating expenses of the said Southeastern Division, out of any money not appropriated for the payment of current labor, supplies, and taxes. And it is further ordered and decreed that the said several amounts, with interest thereon at the rate of six per cent. from the 1st day of December, 1883, shall be a charge upon the earnings, income, and all the property of the said Toledo, Cincinnati and St. Louis Railroad Company, and especially of the said division, prior to the 1st mortgage or other bonded debt of said railroad or said division thereof; and any balance of said several amounts remaining unpaid at the date of the foreclosure and sale of said railroad or said division shall be a first lien thereon, and the said sale shall be made subject thereto.'

Upon the 7th day of March, A. D. 1884, the same being one of the days of the February term, 1884, of the court, these orders were suspended by an order of court; the petitioner objecting. On the 15th day of March, A. D. 1884, the Central Trust Company filed its petition in the cause, which it prayed might be taken as an answer to the intervening petition of Grant, and also as a petition for rehearing and review of the orders of December 22, 1883, which it further asked should be annulled and set aside. On the 10th day of April, of the April term, 1884, an order was entered in the circuit court as follows: 'This day this cause came on further to be heard upon the intervening petition of R. Suydam Grant, filed in this cause October 27, 1883; and the court, being fully...