Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-04-30

AAAA NAiit uIlA NnN NNlnt WIS 0NNlNNu
october 2S 1891. The decree required
the purchaser 10 deposit $4,000 to Sc
cure any deficiency that might exist
IN the revenue derived from the opera
ton Of the road. 20 pay claims nd
Judged TO have a prior lien TO the mort
gage.
ON June IA. isss. stanton was injured
on the East Line aud Rcd Ilivcr rail-
road. sued the company IA March,
lNN9. and recovered a judgment pcccm-
Der 9. 1889 on November @ 1883. Stan
ton presented his Judgment to the mas
ter In the case OF the state W. East
Line and Red River Railroad company.
which waa allowed as slNth-class
claim, 10 be paid by the receiver, In
the final decree thu character Of claim
to which Stgstona belonged was not
mentioned, that claim not having boon
presented Before the filing OF the plea
by the trustee the receiver had paid
out Of the earnings FOR hetterments OF
the road Sii.q7S, and there remained In
his hands OF the net earnings $685.
From the beginning OF the receivership
90 october l. 1892 the receiver had In
vested in hettermcnts 100000 OF the
earnings S2asS5
The property was sold under the de-
cree and purchased by the trustee, who
deposited $4,000 on his bid. In March.
1899, the court approved the allowance
OF Stnnton's judgment, but reserved It's
classification. On December -. 1892,
II clasacd It aa OF the sixth class. II
was also ordered that stanton was on
titled to priority In payment out OF the
net earnings over the debts secured by
the mortgage, and IN case the oarn-
ings should not pay all claims holding
priority over stanton's thcn Il should
be paid out OF the $4,000 Deposited on
the bid, From this the receiver and
the trustee appealed aud the court of
civil appeals affirmed the case.
Il IL claimed that Stnntona judy
ment ~ void because rendered after
the Judgment das0lvlng the corpora
lion. No Judgment can be entered
against Il corporation after dissolution.
But Stanton'a judgment wae obtained
pending an appeal from the Judgment
FORGETTING the charter OF the road. The
appeal suspended the judgment of for
felture and the existence OF the corpor-
alton did not terminate until affirm
ance by the supreme court.
2. II has been held that court OF
equity IN appointing n receiver FOR
railroud company, upon the application
OF a murtgngee In a proceeding 70 fore
close, may In the exercise Of a sound
discretion impose such terms as to the
disposition of the earnings IN the re-
ceivere hands ma may seem reasonable
and Just. U01 u s.. baD. In the cNcr-
elise OF this discretion courts have
taken large liberties with the legal
rights Of mortgaEecH, but no ease IL
found where any court hne gone 10 the
extent OF giving preference out OF the
earnings OF a road TO a cluim like Stun-
toms over the mortguEc debt In this
case the mortgages did not cause the
recelVcrahip. The state dissolved the
corporation and took charge OF It's
effects and undertook 20 distribute
thom. The mortgaEcos could DO moth.
ing but come IN and receive their legal
rlrhts No cquitica exist In favor Of
stanton lie Il dependent solely upon
the net NJ the twrnty-ilrst Legislature
QitwH 1850, p. b6l. by the terma OF
this statue Stantun'a Judgment WIS
entitled to priority over appellants
mortgage IN the application OF the earn
inHH Of tho road while In the receivers
hands, provided the mortgage creditor
did not have "A right IN the cummings
which the legislature could not take
away. The mortgages had no Hen
upon the earnings Of the road while II
remained In the hands Of the mort
gagor The lien upon the earnings de-
pended solely upon the terms OF the
mortgage and until the trustee took
steps To appropriate the earnings no
lien attached He did not take
posseaninn and took no steps 10 fore
close until June rs, 1891, when he inter
Ncucd IN the states suit. From that
date the lien Of the mortgage attached
10 the earnings eubicet 10 such eN-
penditures and claims by law ARE given
preference to 1t. In so fnr as thc lcglH-
lnture underworld 10 give preference
Ia the earnings 10 claim which before
So enactment had no Hen ON such
earnings. in preference 10 the lien Of "A
mortgage nude before the act was
passed. the law violated the Obligation
Of a contract and was void. us contrary
70 the constitutions Of tho United States
and Of TcNuH
D. When tho trustee FIRST filed his plen
che receiver had ON hand SaaN earnings.
To this appellee had a right " the
settlement had been made and So far
aa tile murtgageou were concerned the
court might have ordered that money
paid TO Stanton. But Stnntpn'n right
was subject 20 the claims that might
arise against the receiver In he opera
ton OF the road. aud the court had The
right 20 hold the money to meet such
claims 40 there might arise.
T. The deposit OF $4,000 was Il part
Of the purchase price OF the property.
In ordering Stanton TO be paid out Of
this deposit the court erred, ana FOR
this error the court OF appeals should
have reversed the Judgment The indg-
ment is reversed with Instructions 20
cnuse the earnings during the receiver
ship to be applied 10 unpaid claims.
II any, against the receiver, which are
designated In tho FIRST Ave clauses
named In the statute; and n there re-
mains SUFFICIENT OF such earnings then
10 pay OFT all claims Of the sixth clause.
n there should not be sufficient, then
pay pro rata, and In no event apply
the deposit money 10 payment OF the
aixth-clnas OF claims. opinion by
Brown, j.
western Union Telegraph company
w. Henry A. Linn, writ of error from
the third district; Failure TO deliver
IN reasonable time the following
message. Grace r. very low, Can you
come and bring Maudc2 Kate" Grace
was a sister and she died on the SAM
day that the mesaage was delivered 20
the company The message vas re-
oeived al the office at Austin at G p. m,
OF the day OF It's date, bat not delivered
until next day ut o. Soon after receiy-
ing the message plaintiff received
another thai mis- sister VIA dead.
II wsa then too late to reach the
place for the funeral, The second mes
sage could not aifect the liability under
the nrst. II II be granted that the
company was affected with notice OF
The death before the delivery Of the
frat meH1agc. by the delivery 60 the
agent VI the second, Htill q appears