New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-23
IMPORTANT RAILROAD DECISION.

WASHINGTON, March 22.-The United States
Supreme Court to-day decided the case Of The Pacific
Railroad Company OF Missouri, appellant, against
George Z. Ketchum. ct al; appeal from Tho Eastern
District OF Missouri.
This was an appeal from decree q foreclosure and
sale entered on the 9th OF January. 1876. The main
points as stated by the appellants are is follows;
Early in 1872, certain stockholders Of the Atlantic
and Pacific Railroad Company obtained controliinG
interest in the sock Of the Pacific Railroad Company
OF Missouri. They thereupon elected Board
Of Directors for tho latter company in their
own interest These directors leased the Pacific
Railroad Of Missouri 10 the Atlantic ana Pacific
Company. practically in perpetuty subsequently
they tine directors aforesaid) issued bonds 20
amount of s4OO0.0oO. in the name OF the Pacific Rail
road Company OF Missouri secured by third mortgage
upon It's property This is the mortgage whose fore
closure in the Court below gave to the m
CATION.
tits alleged 10y large proportion OF the stockholders
that tae Board Directors elected by the Atlantic and
Pacific people, while the latter had temporary control Of
the read corrupty and fraudulenty permitted default
In the payment OF the interest the Aforesaid third
mortgage bonds in order 70 lay foundation for fore
closure proceedingsj that then, instead OF re
sisting the suit for foreclosure, they admitted
the truth OF this really false allegation made
by the complainant Kctchum as to the In
sovency of the road. and consented to sale ereo In
order that the pa rites they ncOlusOn
and who wished buy the be able TO reeze
out" the stockholders. and obtain the property for
tlthe OF Its value. . "a
The stockholders further maintain that the Pacific
Railroad Company of Missouri never III
solvent They further set forth that pending
this confirmation Of the sale they petiiicned
the Circuit leave 60 plead, answer or demur
but The Circuit Court refused ali relief Finally In 1877
this Court allowed the stockholders TO take the pres
ent appeal 10 the name OF the corporation.
This Court holds first, that II has Jurisdiction OF the
appeal even although the decree below rendered By
consent; second, that II distinctly app IN
the record that the Pacific Railroad Company
of Missouri assented. through us solicitor, 10
the decree OF foreclosure and salei third, that
while II may be under the peculiar provisions
Of the coInpanys charter the Stockholders have
court OF supervisory power over the dOinW
OF the directors, they cannot On appeal correct
errors arising from the latiers acts fourth,
that competent for the parties to the suit below
agree that decree should be entered for sale OF
the mOrgagcd properly without any specific hnnues Of
the amount due account OF the mortgage debt, aud
without naming daY for pIYmen and with
such provisions as TO the manner OF payment as they
81 NTH, that IN accordance with the construction
gwen by this Court to the Act OF March 81, 1875 I'm
Mey er AIT. Construction Company Circuit Court
had proper jurisdiction OF this The Court fails
reced appeal ana the decree is therefore affirmed
The ChiefJustlce delivered the opinion This decision
shuts Old stockholders OF the Pacific Railroad OF
Missouri and confirms The title OF the present holders
OF that property derived through the foreclosure sale