New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-07-08
Il DECISION BY JUDGE GRESHAH
THE NOTED WABASH DECISION CARRIED TO ONE OF
cnNclrSInNS


ITS LOGICAL CONCLUSIONS
Cb,caro July An important decree by Judge
Gresham carrying out still further his famous de-
cisIon In the Wabash case was entered here to-day,
II having been ordered by him Just before his de-
parturc East The decree Is in favor Of the plaintiffs
Brown d Patton, in the matter Of their claim for
rental for the use of the Toledo Peoria and Western
Railway by the receiver Of the Wabash. The amount
of the decree is 1857 100 Judge Gresham in render
ing the decision says:
l. The Wabash Company has a lcashold interest and
no more I'm the property of the Toledo, Peoria and
western Railroad and by the terms Of the lease
that interest was liable to be forfeited for the
payment OF rent. The wabash Company agreed TO
pay as part Of the rent the interest, II became
due upon the first mortgage bends of the Toledo,
Peoria and Western. The mortgage which the Wabash
Company executed and which was forecloscd bound
the leasehold interest in the Toledo Peoria and West
ern property and nothing more. The relations be-
tween the Wabash and the Toledo, Peoria and Western
at the time Humphreys and Tut were appointed re-
ceivcrs under the orders Of the court were invested
with the entire estate of the wabash Company In
Guiding its leaschoId interest in the Toledo, Peoria
and Western property. The receivers thus became
asslgnces Of the lease, and such liable for the
rent.
Q. The Wabash suit begun TO preserve intact
the Wabash system for the benefit OF that company
and Its creditors and stockholders. In order 10 do
leases including that OF the Toledo Peoria and West
ern and the action of the court including the APP
ponmcnt Of the receivers plainly Indicated that the
rent would be paid upon the leased lines. AT the
time the latter suit begun neither rent under
lease of the Toledo, Peoria and western, nor In
terest on its first mortgage bonds In arrears and,
therefore, neither the Toledo, Peoria and Western nor
the its first mort had any right to de-
mand possession OF tho leased property. II was at
all times in the power OF the court which appointed
the receivers direct them to surrender possession
of the leased property.
g. The Tccevership embraced only the property OF
the Wabash Company and the court took possession
of the property Of the Toledo, Peoria and western,
not for the benefit Of the Wabash Company and us
creditors ard stockholders. No part of the expenses
of the rccevorship can therefore, be properly charge
able against the Toledo, Peoria and Western property
a. The Toledo, Peoria and Western property was
operated by the receivers from May rs, 1854 TO June
TO- 1885, and the rent which accrued during that
period applicable tn the payment Of interest on me
first bonds amounted 10 SJ2l OoO 40, winch
amount is que from tho receivers 10 the trustees In
the first Toledo, Peoria and Western mortgage less
s90,57l II already paid by the receivers on that
account.
s. The right OF this court 10 decree upon the claim
of the trustees in the first mort gage OF the Toledo
Peoria and Western for rent and for the use OF the
leased property during the time II In the pos
session OF Humphreys and Tut, receivers IS pro
vidcd for and recognized in the orders and DEGREES
OF the court in the Wabash suit at st. Louis
decree Will, therefore, be entered against the
receivers for the rent which accrued during their
possession Of the leased properly, less S9051 L. the
amount already paid stated which amount so
decreed 10 be due shall be made charge upon
the property OF the receiycrShp as part OF the fc-
ownership expenses.
tror oth,y R1fl4rau Mans rec E0hth pd1s)