Southern Ry. Co. v. Dunlop Mills

• Decision Date: 10 November 1896
• Docket Number: 158
• Citation: 76 F. 505
• Parties: SOUTHERN RY. CO. v. DUNLOP MILLS.
• Court: U.S. Court of Appeals — Fourth Circuit

76 F. 505

SOUTHERN RY. CO. v. DUNLOP MILLS.

No. 158

United States Court of Appeals, Fourth Circuit.

November 10, 1896

Willis B. Smith and Henry Crawford, for appellant.

Wyndham R. Meredith, for appellee.

Before SIMONTON, Circuit Judge, and HUGHES and MORRIS, District judges.

SIMONTON Circuit Judge.

This case comes up on appeal from the circuit court of the United States for the Eastern district of Virginia.

This is an intervention in the case of the Central Trust Company of New York against the Richmond & Danville Railroad Company. By stipulation of counsel, the following constitutes the claim The claim of Dunlop Mills is for $102.99. Between January 14 and April 23, 1892, supplies were furnished by these mills to the Richmond & Danville Railroad, and used by it in its operation, amounting to $4,975.84. Two acceptances were given by the railroad company,-- one April 25, 1892, for $2,109.03 at 4 months; the other, at 60 days, dated June 15, 1892, for $2,969.50,-- making a total of $5,078.50, which included $102.99 interest. The principal sum has been paid in full by the receivers, and the balance due is for interest on this running account between the dates January 14th and the giving of these acceptances, and is not for any interest during the time of the receivership.

The special masters reported that the claim is entitled to be paid prior to the mortgage debt, under the Virginia statutes (Acts 1891-92, p. 362, c. 224). They were also of opinion that there had been no diversion of funds which would justify a preference of this account over the mortgage debt. Both parties excepted. The circuit court sustained all the exceptions, except that made to the finding of the special masters with regard to the diversion. The court overruled the special masters on this, and gave the Dunlop Mills a decree for $102.99. The case comes here assigning this as error. It will be observed that the account originally amounted to $4,975.84 for supplies furnished between January 14 and April 23, 1892. For this claim two acceptances were given,-- one on April 25, 1892, for $2,109.03; and the other on June 15 1892, for $2,969.50,-- making a total of $5,078.50. These have been paid by the receivers under the order of court directing them to pay supply accounts incurred within six months prior to their appointment. The present claim is for interest on the running account between January 14th and the dates when...