, 1859-02-11
Important to Holders Of Railroad
Bonds.


4 bill in cE4ncery was filed few DAYS siuce in
tile Circuit Court Of the United States tor the Dis
1tict Of Michigan, hy Edward " Dunbam. rs
mort .sgee {n Trust far bondholdss) OF the Mich.
isao Southern 4nl Northern Indiana RAi11oal
Company to enioin Joseph E. Earl and tue Sheriff
OF tue County ot Branch from selling large quaa
1ity Of wood collected by said rail Dad company
in their sheda aod on their station ground 1T
Bronson in Branch County. for the use Of their
engines upon which the Sheriff had levied by
virtue Of IN execution issued upon ju12m. Mt re-
covered By Earl against said railroad company in
the Circuit Cnurt ot that county.
The mortgage, in terms, includes tue railroad
and its appurtenlnces. engines. cars, aud all roll
inS stock and personal property Of the company
which they possessed at the date Of the mortgage,
as well as all proper y to b. ot1eFtcords acquired,
b. it for the use and operation Of the road, etc.
The mortgage was recorded in the Office Of the
Register OF Deeds Ia each OF the counties through
for the injunction was, By direction OF The Court,
given to the. defendant, and yesterday WAS ap-
pointed for the hearing Of The application.
The complainant appeared By hia solicitor, A.
H. Blker, Eq.. aud Hon. Warner Wing, aud the
defene ant, Earl and rae shend, by T. Romeyn,
E-q.; and on hearing the parties, bis Honor Ross
Wilkins, Dl trict Judge, ordered that an irjunc-
ton issue in the case, according to the prayer Of
the bill.
The Judge, In granting the order for injunction,
conceded that the power Of the company 10 pledge
the franchise and properly Of the corporation i'm
plies as an incident Thereto, the power to pledge
everything that may be necessary 10 the enjny-
menk Of the t17rch,>e and road, and upon which
its real vAlue depends and that it could not have
been intended BY the Legislature merely to confer
the power to pledg. the naked track and tEanchi-,
which belonged to the corporation, without the
hight also to pledge such things as were incident
al indispensable to ils nsa aud enjoyment, and
without which IL would Be Of nd value.
The corporation was authorized to pledge not
ouly the existing property Of the rad. bat tie
CO. poiate rights and franchises. and the railroad
itself ~ an entire thing.
The Judge beld, that to render uch pledge
efrectual, il was Necessary it should embrace all
such future acquisitions Of the otporation a.
proper accessories to thu thing pledged or essen-
Iial to lis enjoyment OF what value would the
railroad be without the cars On the road, or the
fuel necessary to run thems
The bombs OF the company were redeemable in
twenty years. New cars and euXines and ma
te1iak oil alt kinds would from time to time be-
come Necessary. and fuel would all The time have
to be- pur hased as it was needed-. The Judge
held that lhtse articles we're included In the uetd
Of mortgage and as the business Of the rpad could
not be carried On Without them, the power to
pledge the road itself. With It's profits aud p:ivi
Iege= and the rights and franchises Of the eo!por
aton, casri+d along with It the implied authority
to pledge all such future acquisitions of toe com
psny as were necessary for tie fun aud complete
operation OF tho read itself.
This view Of the case Is in accordance with the
opinions Of the Supreme Court Of New York, the
Court Of Appeals Of Kentucky. the Supreme Court
Of Cincinnati. and Of Judge Mclean. The opinion
of Judge Wilkins WIS not put on the ground that
The mortgage covered The wood as personal pro-
perty simply, but that, though not attached to
the freehold ii q fixture, II was nevertheless
necessary eIem-nt OF the road, as indispensable
tile use aat enjoy ment OF the thing conveyed,