Des Moines Ft Co v. Wabash, St Co

• Decision Date: 19 May 1890
• Citation: 34 L.Ed. 243,10 S.Ct. 753,135 U.S. 576
• Parties: DES MOINES & FT. D. R. CO. v. WABASH, ST. L. & P. R. CO. et al
• Court: U.S. Supreme Court

135 U.S. 576

10 S.Ct. 753

34 L.Ed. 243

DES MOINES & FT. D. R. CO. v. WABASH, ST. L. & P. R. CO. et al.

May 19, 1890.

Charles E. Whitehead, for appellant.

W. H. Blodgett, Wager Swayne, and Wm. Rush Taggart, for appellees.

MILLER, J.

This is an appeal from a decree of the circuit court of the United States for the southern district of Iowa, dismissing the intervention by appellant in a larger and more important suit, involving the sale of a railroad owned by the Des Moines & Northwestern Railway Company. As the petition of intervention is the first paper found in the record of the case before us, we are somewhat at a loss to understand the nature and character of the original suit, in which the appellant sought to intervene. It is to be inferred, however, that the original suit was by the Central Trust Company of New York against the Des Moines & Northwestern Railway Company, formerly the Des Moines, Adel & Western Railroad Company, to foreclose a mortgage in which that company was mortgagor and the Central Trust Company was trustee or mortgagee. The Wabash, St. Louis & Pacific Railway Company was also party to that suit, on the ground that it had a lease of the road of the Des Moines & Northwestern Railway Company, under which it asserted rights paramount to everybody except the Central Trust Company. The Des Moines & Northwestern Railway Company was originally chartered as the Des Moines, Adel & Western Railroad Company, with the purpose of building a railroad from the city of Des Moines, in the state of Iowa, in a north-westerly direction, to Panora, in the county of Guthrie. The appellants' road from Des Moines to Ft. Dodge pursued the same line in a north-westerly direction from Des Moines city to Waukee, which was the point of the departure of the Adel road in its more westerly direction. The Ft. Dodge Company, having completed its road from the city of Des Moines almost entirely to Ft. Dodge before the Adel Company had fairly commenced its work, the former had a part of its road running between Waukee and the city of Des Moines, which was a very considerable railroad center.

As the Adel Company was limited in its means, and desired to push its road westward from Waukee through Adel to Panora, it was natural that it should enter into arrangements with the Des Moines & Ft. Dodge Company for the use of its road from Waukee to Des Moines, or for a traffic arrangement. It accordingly, on the 18th of November, 1879, entered into the following agreement in writing, which is the foundation of the claim in regard to which the Des Moines & Ft. Dodge Railroad Company intervenes in the suit already mentioned; 'This agreement, made the 18th day of November, 1879, between the Des Moines and Fort Dodge Railroad Company, of the one part, called for convenience the 'Des Moines Company,' and the Des Moines, Adel and Western Railroad Company, called for convenience the 'Adel Company,' witnesseth, that the Des Moines Company, being desirous of obtain- ing all the Des Moines business of the Adel Company for a long term of years, in consideration of the contract on the part of the Adel Company, hereinafter contained, doth hereby agree and covenant with the Adel Company, and grant and give unto it the following easements, rights, and privileges, as follow: First. Out of the earnings on all through business from the Adel road delivered to the Des Moines road, and by it delivered to the Rock Island road, and on all west-bound business delivered to the Adel road at Waukee, the Adel road shall have five-sevenths, (5-7,) and the Des Moines road shall have and retain two-sevenths, (2-7,) the local freight for the Adel road on west-bound business being included, but these divisions not to apply to business from beyond Panora. Second. On the freight on all local business from Des Moines to any point on the Adel road, or from any point on the Adel road to Des Moines, the Adel road shall receive two-thirds, (2/3,) while the Des Moines road shall receive one-third, (1/3,) including the local freight on both roads, but freight from beyond Panora not to be included. Third. All car-loads of freight coming from or going to any point on the Adel road beyond Panora shall be hauled by the Des Moines road from Waukee to Des Moines, or from Des Moines to Waukee, at five dollars ($5.00) the car-load, standard-guage cars, and the Adel road shall be entitled to receive all the freights and draw-backs earned thereon. In case through freight shall hereafter be reduced from what they are now, a proportionate reduction shall be made on the rate of hauling. Fourth. On all passenger business taken at the regular tariff rates from the Adel road to or from Des Moines, the Des Moines road will pay over to the Adel road one-tenth (1-10) of its receipts therefrom. Fifth. The Des Moines road will allow the Adel road the joint use of all its station-houses and station facilities at Waukee on its paying its proportion for its maintenance, to be arranged by the superintendents of the two roads. Sixth. The Adel road to have equal privileges at Des Moines, and equal rates on all construction material, with those enjoyed by the Des Moines road; and every facility or rate or increased rate obtained from the Rock Island road shall be enjoyed and shared by the Adel road, and the Des Moines road will haul its construction material at half its local rates from Des Moines to Waukee. This to apply to all material hauled since the first of July last. Seventh. Uniform rates shall be maintained by both roads at all competitive points,...