Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1853-04-23
District Court-rmportant Decision.

'uCe Datttey Judges Ous, OtafkWehtner anu
IHtmphreyvillc, held lis regular session 10 this
place las. week. Amongst the coses disposed
of was one asking an additional injunction, by
'certian citizens Of Bellevue, restraining the
Mad River and Lake Erie Rail Road Compa- |
my from changing the line Of theirroad, which
at seems, they we're endeavoring 10 accom-
plish by speeches Of cIrcumlocution, and in
'dc6ance Of an existing injunction. The evil
'dence eIicited, which we have neither time
nor room here TO recapitulate, exhibits mis-
'erably laid aud poorly executed scheme to
wrong the citizens Of Bellevue and circum-
vent an existing order of the Court The fol
lowing is The substance or main points of the
decision made By the Court, all the Judges
cvnourring:
hartley, q j., held. The 'complanauts
in this case claim " have made contracts with
the Mad River and Lake Erie Rail Road Com
pany. which that company is about to violate
A contract was made by defts with compl'ts
to locate said Rail Road through the town of
Bellevue, the compPts having alright to side
tracks, and two ware houses connected with
track for continued use. Bomplainants are
still in possession Of the property, and that the
company is about to change its location. In
answer to the original Bill, respondent admit
ted the facts, and set up that the new route
offered greater facilities and advantages than
the line through Bellevue. A provisional In
junction was allowed. After the allowance of
the Injunction, the Mad River and Lake Erie
Rail Road Company abandoned the changing
OF its location, and the officers of said Road
commenced an organization under the San
dusky City and Indiana charter. Respon-
dents claim that there was an organization un-
der this charter. A SUPPLEMENTAL Bill was
fled by compPts setting up that said organi-
zatlon was mere pretence. Respondents
answered that they were not interested in
building this Road; but claimed the right of
connection Herewith
The existence of q Company, and its ergani-
zation under a charter, must be a bona 6de
organization to carry cut the intention of the
charter The fact may be Inquired into
without impeaching the charter. The ques-
tion here is one Of fact, whether there is such
Company orgarized, and whclher it has an
existence within the provisions Of the law?
The facts in the case show, and the organiza-
ton Of the Company leave no doubt, that the
purpose and object of this Mad River and
Lake Erie Rail Road Company, was to ac-
compsh the same object that had been sought
by the change of location. This ia admitted ;
but claimed to be legally done. The organi-
zation was somewhat has;y, and soon after
Injunction was allowed
The capital stock of the Sandusky CITY and
Indiana Rail Road Company was three mill
ion dollars. The amount of bonds issued was
S350,oo0, but only about SOL 600 stock was
subscribed. 1t does not appear that this was
paid up.-Stockholde gave their notes with
out interest, and it does not appear that the
notes were ever paid. They were left in the
hands of the Treasurer of the Mad River and
Lake Erie Rail Road Company.
The Treasurer Of the Mad River Company
advanced tue means upon the bonds of this
new Company, which have been used in the
construction Of this new Road The Presi-
dent of the Mad River Company has exer-
csed the chief control in the construction Of
this Road, and procured and furnished the
Rails and Spikes-The officers of the new
Road have had no salary; and the Superin-
tendent of the Mad River Road does not even
know whether he subscribed $4,000 or $780,
00e TO the capital stock of the new Road
The construction train, used in building said
road, belonged to the Mad River Company,
and the whole thing was managed by them
aRd for their use; and family, the new road
made perpetual lease of their road to the
Mad River Company for ninety nine years
and renewable forever, stipulating to transfer
all right, name and subSance TO it, and the
Mad River Company stipalate to pay all La
bilities incurred in the construction of said
Road, and to procure cars and all means of
running said road, build the side tracks &c
New, what is left of the Sandusky City and
Indiana Company ?--ghere is nothing left
of it. and the whole thing amounts to nothing
more than mere security Of the Mad River
Company TO accomplish what they first set
out to do: and in this, have they carried out
the purpose of the law, the charter of the
Ssndusky City and Indiana Rail Road Com
pany?
The charter of that company was granted
for the the purpose of an independent, sepe-
rate, legal existence. The organization got
up by the Mad River Rail Road Company
was only to favor an organization in connec-
tion with the Mad River Company. 1t is al
ways within the province of a court of Chan
Gerry to prevent this crcuity, and to examine
into this kind Of organization for such a pur-
pose. The Mad River Company had entered
into a solemn agreement with complainants-
they had received from compliments 70 lots
on the town plat of Bellevue, which had been
conveyed by deed from compIainants, and the
right of way for over one mile through com
plainants lands. Complainants had subscri-
bed and paid $1,000 of stock. which they
still hold. and had paid an additional $500 in
cash, and under the agreement h CONSTRUCTED
their side tracks and ware houses, and were
to have perpetual right TO do business in con-
nection with the track of said road. These
rights are sacred and however the public, or
the Mad River Company may be interested,
a Court of Chancery will still protect the
rights Of these complainants.
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