The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-07-08
JUDGE aREsHAM's DECREE.
Another Very Important Decision Cred
itod TO Him.

Anothef very important Decision Cred
tied to Him.
CnICAdo, ILL.,, July An important
decree 10y Judge Gresham, carrying out
still further his famous decision in the
Wabash case, was entered here today, it
having been ordered 10y him just before
his departure east The decree is in favor
the plaintiffs, Brown and Patton, in the
matter Of their claim Tor rental for the usc
OF The Toledo, Peoria u Western railway
Ivy the receivers Of the Wabash. The
amount Of thu decree is S257, 200. Foster
Il Thompson, OF New York, were the 81.
licitors for Brown aud Patton. Judge
Gresham, in rendering the decision, says.
|. The Wabash company has lease
hold interest and no more, in the property
OF the Toledo, Peoria Il Wcstcran rail
road, aud by the terms Of the lease that
interest was liable To bc forfeited for the
MOI. paymcnt OF rent. The Wabash com.
pany agreed TO pay rs part of the rent the
interest m II became due upon the lirst
mortgage bonds of the Toledo. pcoria 4
Western. The mortgage which the
Wabash company executed and which WIS
A'lNA lHAAl ibNll' wv lNtNfliNltl lllltINhl III
the Toledo, Peoria Il Western property
and nothing more. The relations between
the Wabash and the Toledo, Peoria Il
Western at the dine Humphreys and Tut
were appointed receivers were those Of
lessor aud lessee, and the receivers under
the ord crs of the court were invested with
the entire estate oi the Wabash company,
including its lcaschoids interest in the
Toledo, Peoria Il Western property. The
receivers thus became the assignccs NJ the
lease, aud, IA such liable Tor tie rent.
.. The Wabash suit was commenced to
preserve intact the Wabash system Tor the
benefit Of that company aud its creditors
and stockholders. la order 10 do this, II
was necessary Ia prevent the forfeiture oi
leases, including that OF the r., T. x W,
and the action OF the court including the
appointment OF the receivers plainly indi.
Gated that the cnt would he paid upon
leased lines. At the time the latter suit
was commenced neither rent under the
lease ol the r., T.. Il W, nor interest ON
It's first mortgage bonds, was In arrears.
and, Therefore, neither the r., T.. Il W,
nor the trustees IN It's hpt mortgage, had
any right Ia demand possession uf the
leased property. TWAS at all times in the
power ui the court which appointed the
receivers tU direct them Ia surrender pos.
session oi the leased property.
y The pcciycuhip embraced only tho
property ui the Wabash company, aud tie
court took Possession OF the property ui
the +. l.. a W, not for the benefit of tho
Wabash company aud its creditors aud
stockholders. No part Of the expenses Of
the rccciNcnhip can, therefore, be- prop
crly chargcaho against the 4. T.. x W.
property.
!. The T. T. 4 W. property was opcmt.
ed 10y the receivers from Nav ~, 1854, TO
June TO- lNNj, aud the rent which accrued
during that period applicable Ia the nav
mcnt ui interest on iint mortgage bonds
amounted 10 sl2l $50. u, which amount tx
due the receivers Ia the trust, and In the
iirst I. l.. n ". mortgage less spD.b7i.i7
already paid 10y the receivers on that nc.
count.
D. The right Of this court 10 decree upon
the claim ol the trustees In the inst mort
gage Of the Toledo, Peoria 4 Western fot
rent for the use OF the leased property dur.
ing the time Il was in the possession Of
llumphrios aud Tut ~ receivers. is pro.
yidcd for and recognized in the urlcn aud
DEGREES II tho court la the Wabash suits
at ~. Louis.
A decree will, therefore, be- entered
against the receivers for the rent which ac-
crucd during their possession oi the leased
property, less iG,i1l.l7, tho amount al
ready pad ~ stated, which amount 80 de. |
creed Ia be- duc shall be- made q charge I
upon the property ~ the fccciyrnhip ns .
part Of the ruCp,yCu,hip CNpvnaUH