New-York tribune., 1900-01-30
SUPREME COURT DECISIONS.
TWO RULINGS ON THE RIGHTS OF RAIL
ROADS CREDITORS.

Washington, Jan Elm the United States su-
prene Court to-day two decisions were handed
down by Justice Harlan in involving the
question of the right Of preference over the mort
gage holders of insolvent railroads by the creditors
of such roads whose debts contracted in con-
nection with the current conduct of the roads
The first of these that of the Southern
Railway Company against the Carnegie Steel Com
pany. This suit involved Indebtedness con-
tracted by the Richmond and Danville Railroad
Company. whose property was subsequently alb
soTbed by the Southern. 10 the Carnegie company
for two purchases of steel rails made by the rail-
road company within year prior to the appoint
ment of a receiver OF the Danville company The
Carnegie company asserted that this condition OF
affairs gave It an equitable lien and preference
over mortgage creditors, because the indebted
ness was contracted in the operation OF the road road
The United States Circuit Court of Appeals ac-
cepted this view OF the case, and Justice Haran's
opinion sustains that view affirming the decision
In the other case. that of the Lackawanna Iron
and Coal Company against the Farmers Loan and
Trust Company, an opposite concluslon, was
the Lackawanna company was sustalneu as @ tne
contract contained no promise to pay out OF any
between the creation of the debt and the appaint-
ment of receiver, and for other reasons. not
negie case. This case came from the Circuit Court
JUSTICE PecRham announced the opinion of the
Court in the OF the United States against the
the United States Circuit Court of Appeals for the
Ninth Circuit. The suit was brought originally by
the Government to obtain an Injunction to prevent
the boom company from continuing the use Of a
certain boom which 1t had constructed across the
Nooksack River, in the State of Washington and
TO secure the removal of the boom. The decision
Of the Circuit Court of Appeals was favorable to
the boom company. but Justice Peckham's opinion
reverses that decree.
The, petitions for certiorari fled by the To-
ledo, st. Louis and Kansas City Railroad Company
against the Continental Trust Company, and Dana
Rose also against the Continental Trust Company
(known the Glover Leaf cases.. were refused
by the Court in decision announced by the Chief
Justice The involve the bonds Of the rail-
road company and were decided in the court below
favoraby to the trust company. The purpose of
the motion of the railroad company to secure
review by the Supreme Court. but this is denied
The Court entered supplemental decree in the
naval prize money cases, involving the Spanish
schooner Lola and the Spanish smack PaQuete
Habana. These cases were decided by the Court
earlier in the present month. the opinion then re-
| versng the decisions Of the Florida courts with
directions to enter DEGREES for the payment Of
damages 10 the owners OF the vessels. The decree
to-day issued modified the former decree so as to
require the intent of the former opinion to be
to direct the payment only of compensatory dam
ages. This was done to prevent eXorbitant de-
mands
| Chief Justice Filler announced that a recess for
| three weeks would be taken from next Monday