Year: 1879

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lengthy opinion was yesterday rendered by
Judge Speir. of the Superior Court in the suit OF
Russell Sage and N A. Cowdry. trustees against the
Union Trust Company and the Missouri. Kansas and
Texas Railway Company. recently tried before him in
the Special Term The action is brought for an ac-
count of the administration of trust fund estab
lished for the payment of q debt. originally
900. of which there is claimed to be due about
$25OO.000. The plaintiffs claim that the trust fund
was established and secured by mortgage executed
by the Union Pacific Railway Company (southern
branch) to the plaintiffs to this After
ward the name of the Union Pacific Railway Company
southern branch was changed to that of the Mis-
souri, Kansas and Texas Railway Company. The
mortgage covered the railroad proper and also
a quantity Of adjacent lands which had
been granted by act Of Congress to the rail-
road company. After tho change OF name the
railway company extended it's railroad and acquired


large amount of property beyond the limits of the
original Union Pacific (southern branch road In this
extension it absorbed and became consolidated with
several other railroad companies. and assumed the
mortgaged Indebtedness then existing against each Of
them and thcreupon issued consolidated mortgage.
subsequently, the lst of September. ls7s the rail-
way company issued another mortgage. In Decem-
ber 1874 suits Of foreclosure in the United States
courts in Kansas, Missouri and Texas were COM
menced on the second mortgage by individual bond
holders Hereunder making the trustee thereof party
defendant subsequently oiis OF foreclosure on the
same United States courts In March, 1876 settle
ment of the litigation was agreed upon. and on the
27th April 1876. order was made by the United
States courts directing the receiver who had been
appointed by those courts in the suits the second
mortgage transfer the possession of the morgaged
property to the Union Trust Company. and the Sec
ond mortgage suits were discontinued. On the 18th
of July 1876 possession transferred to the trust
IN, mn and ain Than
the trust company has been In the possession and
administration Of the property and railway COM
pany in trust the several bondhoders interested


Judge Speir in his opinion holds that 1t is quite
apparent that it the intention Of the parties to
the mortgage to the plaintiffs and bondholders that
the wild lands referred to should be sold rapidly
possible and the proceeds Of the sales applied.
first, to the payment Of the Union Pacific mort
gage bond holders and second to the payment of the
consolidated mortgage bond holders and II anything
be left it should revert to the railroad company The
complaint alleges that the railroad company and the
receiver, while in possession have sold some of the
lands and received large sums of money therefor
without the plaintiffs having joined in any such SALE
and the plaintiffs demand from the trust COM
pany account OF the proceeds of such sales. The
Judge says plaintiffs mortgage lien upon the lands is
not in any way affected, is there anything which
prevents the defendants from selling their interest in
the lands and from receiving the proceeds Of such
saes After discussing at some length the plaintiffs
right to an account Judge Sper says that upon the
complaint and proofs he thinks the plaintiffs
company not satisfied with the Judgment that
the plaintiffs not entitled to account, seeks on
its own behalf an affirmative judgment of the Court
1t asks that in all where the receiver
company may have negotiated sold lands, whether
for money or bonds-and they shall request the plain
tiffs to join in the deeds OF such lands-that the
plaintiffs shall do upon receiving bonds secured
by the plaintiffs mortgage at their par value equal
in amount to the consideration given by tho pur-
chasers, whether such bonds shall have actually been
given by the purchasers, or eash mas havex been
given by the purchasers ana Inc Donus purchased
by the railway company receiver or trust company;
and. second. that it may be adtudged that the
true construction of the trust deeds under the
axisf sf1pH ia mt fha r1at
proceeds of the sales OF lands after deducting
from the gross proceeds the expenses attendant
upou their sale and the paid for their preserva
ton shall be paid to the plaintiffs. as trustee. and
upon their receiving such net proceeds they shall
Join in the execution OF deeds. On these claims


ud.e sper snys that it is plain that tho trust COM


pany as trustee, is not bound to and will not sell
such land ut its own expense aud that the means OF
having the expenses must be derived in some way
from the revenue of the mortgaged property. The
sale the lands must cease unless some provision
be made from the revenues. The testimony is that
the revenues not sufficient to pay It, Under all
the circumstances Judge Speir, in conclusion, says


that the trust company entitled to relief. but the
specific relief and to what extent may be deter
mined the settlement Of the order to be entered.


THE GREAT BOND STREET FIRE.
In the suit of Robbins & Appleton against the
Fireman's Fund Insurance Company of San Fran
cisco to the contrbutive share Of their loss
| the goods of the American Watch Company
destroyed by the great Bond street fire In 1877. and
which been trial for several days before Judge
ship-'an and jury. in the United States Circuit
Court. & inc &sary Yesterday afternoon. after very
prlet ABSENCE, retufa,d verdict in favor Of the
This case has been strenuously Fought tho Court
having permitted the defendants to Introduce ali
their evidence to ascertain whether the AniericaI


Watch Company had satisfied the insurance effected
their goods by Robbins n Appleton. This is the
third verdict obtained by the plaintiffs their suits
brought against the four insurance companies who
refused to pay their loss the ground that their
policies were not contrbutory


WINTER MADE GLORIOUS SUMMER.
The suit brought by William Winter to set aside .
trust deed made by himself to Daniel Birdsal tried
before Judge Potter. the facts OF which have been
published. reached yesterday u conclusion Q verdict