Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-10-19
ELECTRIC LIGHT CASE.
Abstract of the supreme Court Opfn-
ion demanding the Case for
New Trial

In re the Santa Fe Electric company e
al, appellants, vs.. Charles @. Hitchcock
appellee, Judge Collier handed down tn,
opinion of the Territorial Supreme court
concurred in by Chief Justice Smith ant
Associate Justices Hamilton and Bantz
remanding the case to the lower court
with directions to enter decree therein
modifying the decree appealed from, &C
that the appellee may have his decree Of
foreclosure against the appellant as to al
property embraced in tho deed of trust
given by the Santa Fe Electric company
to the appellee and providing for the sale
thereof, "and further if it shall appear
that upon a sale thereof deficiency re.
mains to be paid upon the decree as here.
tofore entered, that deficiency decree be
entered against said the Santa Fe Electric
company and the Santa Fe Gas & Electric
com pany together with the sureties upon
the appeal bond given in this cause to the
extent of said appeal bond or 80 much
thereof as may be necessary, and that the
said decree be in all other respects af-
firmed, except that the said deficiency
decree shall not be taken as prior in lien
to the deed of trust given by said the
Santa Fe Gas & Electric company to the
said Illinois Trust & Savings bank, with
costs of this appeal to be paid by each
party respectively as incurred, and the
decree to be entered in this court shall
provide that in further proceedings in the
District court said court may enter and
make all orders interlocutorY or final as
may be necessary in furtherance hereof
1t appears from the opinion that the
appellee filed his bill of foreclosure
against the Santa Fe Electric company
and the Santa Fe Gas & Electric COM
pany, two domestic corporations, and the
Illinois Trust & Savings bank, foreign
corporation with no resident agent, or
April %, 1895; that the domestic corpora
tions pleaded to the suit; that service by
publication was made on the foreign
corporation, and that decree pro CON
fesso was entered as to it prior to the
| final decree in the court below against al
| of the defendants.
The bill was for the foreclosure of q
$4,000 mortgage given by the Santa Fe
Electric company to the appellee herein
The property covered by the mortgage
was specified parcels of real estate
future to be acquired property of every
description, all the tolls and incomes
arising therefrom, the franchise or fran.
chises of the company, and all its wires
poles and other property of every de.
scription, whether real, personal or
mixed
1t further appears that when the mort
gage was given the Santa Fe Electric
com pany was engaged in generating and
distributing electric light; that it paid in
terest on the obligation above mentioned
up to October Is, 1894; that the prop.
erty embraced in the deed of trust was
worth about $4,000.
The Santa Fe Gas & Electric company
was Joined as defendant upon the theo-
ry that it was an extension and enlarge
ment OF the old company, and the Illi-
nois Trust & Savings bank was joined
for the purpose of establishing the pri-
GRITTY of the appellee's mortgage.
The facts in the case are substantially
as follows At the time the mortgage
was given the SAINTS Fe Electric com
pany was the owner Of the property
mentioned therein, the Improvements
and machinery on the real estate were
being constantly operated and derived
their chief value from the fact that they
we're so in use.
In August, 1894, the Santa Fe Gas g.
Electric company was organized under
practically the same management as that
of the Santa Fe Water & Improvement
COMPANY, it being the intention to oper-
ate the electric plant by water power and
thus make the new electric company a
"valuable customer of the water com
pany," and in furtherance of this plan the
organizers of the new COMPANY began to
acquire stock in the old Gas and Electric
ompanies, paying cash for same and
part cash and stock in the new compan
for the remainder, and Representing that
the purpose was to pay the debts Of the
old companies"
"Credtors were to be offered stock in
the new concern, and. if the plan had
completely succeeded, the old comps
was to go entirely out of existence in
name as we'll as in fact. Appellee, how
ever, would accept nothing but cash for
his obligation, and stookholder in the
new company said that this blocked the
scheme and We were unable to carry it
out as fully and completely as we de-
sired to do, for the reason that this mort
gage had to be disposed of in some way,
and for that reason the two organiza-
tions have been continued"
The opinion continues to recite that,
having acquired large majority of the
stock of the old companies, the new com-
pany proceeded to effect new organlza-
tion, and since that time but one office has
been maintained by the two com
panies In the payment Of the old in
debtednesa, other than the mortgage in
debtedness, the promoters of the new
company advanced about $4,000 to the
old company, and the old company also
leased its poles, wires and other fixtures
to the new company for 800 per year.
This lease became effective on April /,
1895, and since then the business Of the
old company has been carried on by the
new company. The new company for
purposes of economy, being ableto op.
crate its plant by water power, soon
after closed down the old plant.
Judge Collier continues that "the tes.
timony cannot be carefully read in this
case without its producing in the mind
conviction that fraud was perpetrated
upon the complainant. There can be no
reasonable doubt that, but for the inter-
ference of the new company, the assets of
the old could have been made to satisfy
compliments claim"
The quoted clause is the essence of the
opinion and was the point upon which
the case seems to have turned.
The opinion is enriched by wealth of
authorities.