The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-12
UNITED STATES SUPREME COURT.
DECISIONS.

Tho Supreme Court Of tho United states has rem.
dered the following decson:--
scArAcITy FROM NORTHUMBERLAND lssuE-As-
4
No. III Horace ). Johnson, appellant, vs. Charles
". Harmon--Appeal from tho Supreme Court oil tho
bistrict OF Columbia THIS was "A oil in equity in.
voivng among other questions the validity OF trust
decd gwen by tue conpl nant CHE appellee herel
secure Gotta a notes The G. mpaiuant CHARGES i'm ma
bill that he WAS intoxicated wnen he executed Inc
deed ana notes as 10 DO incapable oil understanding
what doing The Coar, below, after coa-
siderable testimony had been takeu directed an
issue to try the question whether the compla nauk
the OF the execution o the deed Of trust and
notes, capable oi executing valid deed con-
tract. The directed was tired resulted
IN verdict for the compainant-nimey. that he
was capable of executing valid doed contract
Tho defendant took Dil OF exceptions 10 the charge
gwen by the judge VINO irled the issue, which
came 90 TO be heard upon tho exceptions aud they
ovcrruled subsequently, u nnal hearing was
had upon tho peadings. evidence snd verdict, and
decree Rendered Tor tho complainant direct the
trust deed and in question be vacated and set
aside From that decree tnis appeal was and
the only assigned to the charge gwen Dy
Judge TO the jury the trial OF tho Iogncd issue.
Tins Is totally nadmssiDIe. bill OF exceptions
cannot he taken ON the trial OF egncd ISSUE dirscod
by court OF equity. or. II taken, car only be used
OH motion Tor new trial made to SAID
court. q Daniels Chan. tract., Sd Amer ca Arm
strong Armstrong, Mylne n n. AZ; e1 parte
Story IL Peters, 3ia SEQ the casos trials on
fegned issucs collected In Graham X Waterman on
tried Tor the purpose Of Informing tue CONSCIENCE Of
tho Chancellor and aiding him to como to n proper
one, or tor any other reason desires now trial,
IN his discretion 10 order II but he may proceed with
the cause though dissatisfied with the verdict, and
decree contrary thereto II in his the
Jaw and the evdeucc so require. decree equity,
therefore, when appealed from does not stand fall
according 70 the legality or gaty OF the proccedrg
tho trial OF iegned Issue III tho cause; Tor the
verdict may or may not nave been the ground OF tho
decree IL the duty oil the court first instance
to d. eide las was done here) upon the whole case,
peadnas, evidence and VERDICT giving TO Tue latter
much effect as II rs worth. An appeal from the de-
ri mn he n ia m nmefv
the whole case-and cannot be made to turn on the
correctness or ,ncorrectness OF the Judges rulings ~
the trial OF the ieigncd issue. Affirmed.
Mr. Justice Bradley delivered the opinion,
:, No a4o Richard Sullivan, trustee. aud Frederick
Railroad Company and Jonu Patton, trusiee-Appeal
from the Circuit Court Of the United States for ths
road Company was authorized to bniu railroad from
Portland TO Augusta, both IN the State OF Maine on
the 3oth Of April 1850 that portion OF tho road be-
miles In length, was mortgaRed TO Rue Williams John
Pattcn and j. Carroll trustees To secure the pay.
ment OF s2o2, 400 advanced to the company
by the ccstuis que trusts. The debt
represented by certificate, bearing interest AZ
tho rate OF ten per cent per annum. On the LIST OF
November, 1850, the company morIgagsd tho whole
line Of the road 10 the Commissioners OF the Sinking
Fund 10 secure $500 900 lent 70 the company by other
parties On tue 17th of October 1851, the road and
franchises mort John Paiicn, Joseph Nc
keene and 81 = Haaar in trust to secure bonds issued
by the company to the amount OF $3.50 900. known
FIRST mortgage tonds on tho 10th OF October 1852,
the road and franchises were mortgagcd TO the same
bonds 70 the amount Of $50 ooo known as he second
mortgage bonds. In the progress OF the work on tho
ROAD tho company issued certificates Oh preferred
STOCK known a old preferred stock, to tho amount
OF $40, 900. On this stock dividends Of ten
per cent per aunum were 10 be paid.
Two hundred thousand dollars OF It In amount 10
avcrred TO be still outstanding On the TN oil October
1852, proposition was made BY inc company to tho
following efioct:-
The company was to weive its existing right 10
redeem At pleasure Its road from North Yarmouth to
Portland, and to mako II irredecmable until November
lah no Enlh lpf Inn. al.ata .af,,
debtedness would, by endorsement thereon authorize
the trustees, alter paying tho holders three
sentod y such certificates, 30 pay semi an ualy
TO tho treasurer oil the company Tor the usa
tue income (or in,ercsp which tho stockhooers are
now entitled TO receivc--viz, two per cent-to be
bed by HIM and appropriated, AZ Tar rs may be. re-
CURED the may 90 to the Of interest
such preferred soc. holders shall surrender their
old certificates stock and certificates OF
preferred stock bearing per cent interest
come somi- annually lieu OF five per cent, as now
stipulated. Said payment OF three per the
OF said certificates and OF the balance aforesaid
the by SAID trustees semiannuaIly be
In full Of the aunua, income OF two per cent to
which SAID certificate holders now entitled"
II was ordered by the company that II the proposed
arrangement shou ID be made with the North Yarmouth
certificate h0l iers tho fund thereby saved should DO
applied In pay of tho dividcnds accrung the
new certificates VI preferred STOCK as also proposed
Authority Was given to the president OF the company
20 issue such new certificates OF preferred stock and
TO waive the right to redeem the North Yarmouth
road until November 1870, tho time named in tho
proposition. None OF the holders Of Tho preferred
stock acce pied this proposition until September l.
1903 The nrst new certificate bears cate thai
day. Tho other certificates wcro issued subsc-
quently On tue 10Th OF December, 1853, the ompany
ordered three per BE- pad the LIST OF Janu-
airy then next all the holders 0l the certificates
tor tho preferred stock The company became nope
iessIy insolvenl The trustees OF the second mort
gage forecosed that mortgage The foreclosure
perfected and became absolute Ia May 1867 In NO.
vember, 1862 tho bondholders under that mortgage
formed q corporation by the name Of the Portland
and Kennsbeo Company Tho trustees conveyed to
this company The company went into possession
and has since been in and operated road
aud claimed ~ own H. THIS bill 10 flied by the com.
plainanis rs holders Of the rev certificates Of
preferred stock tor themselves and IN behalf
Of the other holders not before the Court.
The claim Is 10 recover the tour per por annnm
reinqusned by the North Yarmouth holders OF certiu
Gates oil indebtedness pursuant TO the proposition VI
tho original company. ana winch proposition was also
to give the holders OF the certificates OF preferred
stock what Is CLAIMED by this bill The decree dis
missed the bill, here affirmed the Court finding
the proceedings regular and that there privty
between the compainanis and the corporation and
thai the latter dd succeed the liabilities the
old corporation.
Mr. Justice swayne delivered the opinion.