The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1879-04-12
An important Dccisisn.

su- ,reme Court OF the United States. = No.
Ran.-t,ctobcr term, 1915 w illtnm =. II.
Fosdick. James D. Fish, Frederick W.
unidekoper, and others, appellants, Us.
Tho Southwestern Car Company, inter-
yener. Appeal from the Circuit Court OF
The United States for the Nofthcrh LIS
trict of Illinois.
Mr. ch,ef-Jus.ice Waite delivered The
opinion OF the Court.
This appeaI presents another petition OF
,ntervent,on flled in TIE su,t OF Fosd'ck g
Fi.h rs. The Chicago, Danylile and WIN.
cenues Railroad Company. Tue genera
focts appearing in that suit are stated IN Inc
Gaze of Eosdick Us. Scbali, Just decided.
The claim OF this interviewer, like tnat OF
Schal|. arises out OF a contract for the sale
Of cars made with the railroad company on
the 10th OF january, 1875-a few days pc
fore the appointment OF the receivers IN tne
State court. The price was secured by tne
notes of the company on long time, Dns .ne
title az the cars was to remain in the Vehoo,
until the notes were paid. The cars all ,au
mon them marks indicating the ownership
OF the interviewer. e,oa
The netition OF Intervention was hied
January O., 1876. 1t set out the particulars
NJ the contract, and asked that the receiver
might be authorized 10 pay the price ana
keen the cars, as they were necessary lor
the profitable equipment Of the road. EOS
dick n Fish and the Intervening bondholo-
crs answered. and without denying the ma
terial avermeuts in the petition claimed tbat
Notwithstanding the conditions OF The SAFE
the lien OF the mortgages was paramount W
The title or the interviewer. The petition
was referred to master to take testimony
and report, but before any report was
brought to the attention of the court, II, IN
deed, any had been fled decree OF SAFE
was entered in the principal cause IN such
form as to direct sale OF the cars IN qlles-
ton MS part OF the railroad. After the sale
bad been made and confirmed, report nn-
der the order OF reference in the petition OF
intervention was filed. This report was 10
the effect that the title Of the cars had never
passed out of the vendor; that The price
agreed to be paid-$l2, 750-wa> rcasonabie'
that no part OF it had been PAID; mat tue
cars had been in use on the road since Jan'l.
ary, 1875, for which no compensation nao
been made, and that these cars or similar
ones were needed for the business OF the
railroad.
Fosdick, Fish, and the Intervening bond
holders excepted on the ground that Tue
lien OF the mort cages was I'aian'"h' w ~
title of the interviewer. Upon the nearing
the exceptions were overruled, and as the
cars had been included in the foreclosure
sale, the clerk was directed to pay the pur.
chase-price to the interviewer from lhe fund
10 court. From this decree the present ap-
peal has been taken. :,
According to the decision Just made in
the case OF Schall, the lien OF the mortgages
upon the cars now in question was subject
to the paramount claim Of the car company
for the price. The intervening petition on
file when the foreclosure sale was made was
notice to the purchasers that the rights they
acquired under the sale would be subject o
the claim Of the car company, rs finally de-
termined in the further progress OF the
cause. A restoration OF the cars might,
therefore. have been decreed to the inter
vencr, notwithstanding the sale. Instead
OF that, the payment Of the price from the
fund in court has been ordered. We do not
that objection is made TO This if
the claim Of the interviewer is superior to
that OF the mortgages, as we hold it to be.
The decree OF the Circuit Court is af-
tirmed.