James Et Al v. Railroad Company

• Decision Date: 01 December 1867
• Citation: 18 L.Ed. 885,6 Wall. 752,73 U.S. 752
• Parties: JAMES ET AL. v. RAILROAD COMPANY
• Court: U.S. Supreme Court

73 U.S. 752

18 L.Ed. 885

6 Wall. 752

JAMES ET AL. v. RAILROAD COMPANY.

December Term, 1867

APPEAL from the Circuit Court for Wisconsin; James, Brewer, Greenleaf, Justice, and others, being the appellants, and the Milwaukee and Minnesota Railroads appellee.

Messrs. Cary and Carlisle, for the appellants; Messrs. Cushing and Stark, contra.

Mr. Justice NELSON stated the case and delivered the opinion of the court.

The bill before us is a creditor's bill, filed by four different judgment creditors, against the defendants, to set aside as fraudulent and void against creditors the sale under a mortgage made to Barnes, 21st of June, 1858, for two millions of dollars, by the La Crosse and Milwaukee Railroad Company, which sale took place on the 21st of May, 1859, and under which the defendants' company was organized; and that the company be perpetually enjoined and restrained from exercising any control over the property or franchises mentioned in said mortgage, or from interfering in any manner with the road or its franchises; and, further, that the said company be decreed to take nothing under the sale, and that the property and franchises of the La Crosse and Milwaukee Company may be sold and applied, after discharging all prior liens, to the satisfaction of the judgments of the complainants.

The complainants consist of the firm of F. P. James &Co., who are the owners of a judgment against the La Crosse and Milwaukee Company for $26,353.51, recovered in the District Court of the United States for the District of Wisconsin, on the 5th of October, 1858, in favor of Edwin C. Litchfield, and which came to the complainants by assignment.

Nathaniel S. Bouton, who recovered in the same court a judgment against the same company for $7937.37, on the 5th of April, 1859, and which judgment came to the firm of F. P. James & Co., by assignment; Philip S. Justice and others, who recovered a judgment in the Circuit Court of Milwaukee County against the same company for $235.33, and E. Bradford Greenleaf, a judgment in the same court against the same company for $840.06. These judgments were liens on the La Crosse and Milwaukee Railroad, subsequent to the mortgage to Barnes, already referred to, which, with the sale under it, is sought to be set aside as fraudulent and void against creditors.

The mortgage was given to secure the payment of an issue of bonds for two millions of dollars, on the 21st of June, 1858, and which were issued accordingly by the president and secretary, and were made payable in thirty years. One thousand bonds of one thousand dollars each, fourteen...