Keelyn v. Carolina Mut. Telephone & Telegraph Co.

• Decision Date: 26 October 1898
• Citation: 90 F. 29
• Court: U.S. District Court — District of South Carolina
• Parties: KEELYN v. CAROLINA MUT. TELEPHONE & TELEGRAPH CO. AMERICAN BONDING & TRUST CO. OF BALTIMORE CITY v. SAME et al.

90 F. 29

KEELYN v. CAROLINA MUT. TELEPHONE & TELEGRAPH CO.

AMERICAN BONDING & TRUST CO. OF BALTIMORE CITY v. SAME et al.

United States Circuit Court, D. South Carolina.

October 26, 1898

Mordecai & Gadsden, for employes, etc.

E. W Hughes, for purchaser.

SIMONTON Circuit Judge.

This case comes up upon claims made by persons who have furnished supplies to the Carolina Mutual Telephone & Telegraph Company and others who have been employed by it. The supplies are of material essentially necessary in keeping up and maintaining the telegraph lines. The employes are ladies who have been employed at the telephone exchange and the superintendent in charge. It is admitted that these employes are not protected under the labor acts of the general assembly of South Carolina. If they can be protected at all, it must be under the doctrine established in Fosdick v. Schall, 99 U.S. 235. This was the first of a series of cases which recognize that claims may exist against an insolvent railroad company which are superior to the lien of a mortgage debt. The theory is that railroads are a peculiar property, of a public nature, discharging a great public work. They cannot be built without the interposition of the sovereign power. When built, they serve a great public purpose. Railroads connect distant points. That they are common carriers is but a small part of their office. They are not only the arteries of trade. They civilize, develop, and enrich large sections of country. Cities, towns, and villages, farms and factories spring up on their line. They make intercommunication of vital importance to thousands. They are the means of transporting troops, munitions of war, and supplies promoting and preserving tranquility in times of peace, and connecting and creating strategic points in times of war. They are public highways. Public interest-- the highest public interest-- requires that when constructed they be kept up,-- be kept, as the phrase is, a 'going concern.' Being so important, the courts look with favor upon everything which keeps a railroad a going concern. To this end, the first application of its earnings must be made. The stockholder subscribes, and the bondholder lends, his money with knowledge of this. Neither of them can get anything until the current expenses are paid. Upon this assurance, all persons who furnish labor and supplies are encouraged to give credit to the railroad and to contribute to keeping it a going concern; and if,...