The Pensacola journal., 1914-08-20

|
! bama & Tennessee Railroad
Inferentially it seems to have been
the understanding that the amount
contributed by the Southern Improve
ment Company would not be availa BILE
or payable by the Pensacola, Alabama
| & Tennessee Railroad Company until
| such time as the financial problems of
| the two companies were satisfactorily
adjusted.
The ultimate facts and circum-
| stances Of the case point conclusively
| to the creation of an equitable lien in
| favor of the Southern Improvement
| Company, upon the stock and bonds
| of the Pensacola. Alabama & Tennes-
see Railroad Company, or their avails.
The question of whether or not this
| lien could at this time. after the lapse
| of SO many years be asserted Is re-
| solved upon such a great amount of
| testimony and circumstances that any
extended review thereof is trnpracti
cable.
| 1t Is sufficient to say that the in
terest that the Davis estate claims was
never positively repudtated. but was
| recognized at different times and up
as late as April 10. 1903, at meeting
| of the stockholders of the Southern
Improvement Company, in the South
| ern Hotel in ST. Louis, Mo, by a, reso-
! luton which contemplated the presen-
tation of the claims of all Of the stock
| holders of the Southern Improvement
| Company to the Pensacola & PerGido
Railroad Company and the Pensacola.
| Alabama & Tennessee Railroad Com
pany with a view of collecStng cash
| if possible to the full extent of the
| amount originally subscribed and paid
| into the treasury of the Southern I'm
provement Company.
It is apparent that the Davis inter
| tests had notice of this action Of the
stockholders of the Southern Improve
ment Company and it may have had
the effect of lulling the representative
of the Davis estate into the belief that
the mana cement of the Southern I'm
provement Company would in good
faith discharge the claims Of the Da-
Wis estate.
There has been no such change Of
the properties or the rights OF inno-
cent purchasers intervening as would
invoke the doctrine of laches against
equitable relief.
DISHMAN HAS NO RIGHTS.
As to the rights of the estate Of
c. H. Dishman, the situation Is quito
different and I think the rule of laches
dence it is obvious that c. H. Dish
man was either party to or had
knowledge of the transactions and
course Of dealings which looked to the
deprivation of the legal and equitable
rights of the Southern Improvement
Company or its stockholders, because
OF its advances for the benefit of the
Pensacola, Alabama & Tennessee Rail
road Company
Even after the property rights Of
the Southern Improvement Company
had apparently passed to the Pensa-
cola, Alabama & Tennessee Railroad
Company and Mclaughlin, c. H. Dish
man made a voluntary transfer Of his
rights, title and interests in those COR
pO-iatiops. and voluntary admis-
sions to business associates that he had
no interest in such corporations. His
whole course Of conduct during the
last years Of his association with these
enterprises, and his acqutescence in
the transfer Of all property Of the
Southern Improvement Company to
Mclaughlin and the Pensacola, Ala
bama & Tennessee Railroad Company
at different times without reservation,
is so wholly inconsistent with the
claim presented by the cross-bill filed
herein as to close the door Of equity
against his representative.
THE DAVIS CLAIM.
It follows from the above observa-
tions that the heirs of David Davis
should not be excluded from their
right to persue their equitable lien
against the property or its avails in
the present corporation to the extent
Of the original subscription of ten
thousand five hundred dollars paid into
the treasury Of the Southern Improve
ment Company by David Davis, de-
cea sed.
Having concluded that there is an
equitable lien in favor Of the Southern
Improvement Company on the stocks
and bonds of the Pensacola, Alabama
& Tennessee Railroad Company or its
avails, a court Of equity may revive
or give effect to the same in favor Of
such stockholders as have not been
guilty of laches.
The corporate entity of the Southern