The Federal Reporter (Annotated), Volume 172: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. October-November, 1909. Page: 18
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172 FEDERAL REPORTER.
3. RAILROADS (5 190)-FORECLOSURE OF LIENS--REFERENCE FOR ACCOUNTING.
Where, on an accounting to determine the net earnings of a line of
railroad operated as a part of a consolidated system for a period of
over 14 years, the report of the railroad company covering a short part
of such time was unsatisfactory and showed earnings far below those
of the period immediately following, the master was justified in reject-
ing such report and allowing earnings for the short time equal to the
average made during the entire time covered.
[Ed. Note.-For other cases, see Railroads, Cent. Dig. 5 623; Dec.
Dig. I 190.'*]
4. RAILROADS ($ 190*)-FORECLOSURE OF LIENS-REFERENCE FOB ACCOUNTINa.
The action of a master as confirmed by a Circuit Court, stating an
account to determine the net earnings of a line of railroad composing
a part of a consolidated system, during a period of years, in disallowing
certain credits and deductions, claimed by the railroad company, and in
approximating the amount of other items of debit and credit not clear-
ly shown by the evidence, affirmed.
[Ed. Note.--For other cases, see Railroads, Cent. Dig. 5 623; Dec.
Dig. 5 190.*]
Appeal from the Circuit Court of the United States for the North-
ern District of Ohio.
This is an appeal from the final decree of the Circuit Court for the North.
ern District of Ohio, in equity, upon the report of the special master on the
accounting directed by the Supreme Court under its mandate in the foreclo-
sure suit of Jessup et al. v. Wabash, St. Louis & Pacific Railway Company, sus-
taining the validity of the lien asserted by James Compton as against the so-
called "Ohio division" of the Wabash system, on account of his ownership of
a large block of the series of equipment bonds issued in the year 1862 by the
Toledo & Wabash Railway Company. Compton v. Jessup, 167 U. S. 1, 17 Sup.
Ct. 795, 42 L. Ed. 55.
In the cases of Adelbert College of the Western Reserve University et al. v.
Wabash Railway Company et al. (No. 1,907), and Cyrus F. Pierson et al. v.
Same Defendant (No. 1,908), decided by this court at the same time with this
case (171 Fed. 805), both which cases involved claims upon other equipment
bonds of the same series as those held by Compton, a history is given of the
issue of that series of equipment bonds and of the prior litigation in respect
thereto, including the litigation over the Compton claim. The earlier history
of that litigation will also be found in the statement of facts accompanying the
opinion of this court in Compton v. Jessup, 68 Fed. 263, 15 C. C. A. 397, as well
as in the opinion of the Supreme Court in the same case (167 U. S. 1, 17 Sup.
Ct. 795, 42 L. Ed. 55). The Compton Case, as now presented, differs from the
cases of Pierson and the Adelbert College, just decided by this court, in this
important and controlling respect: By the decision of the Supreme Court of
May 10, 1897 (Compton v. Jessup, 167 U. S. 1, 17 Sup. Ct. 795, 42 L. Ed. 55),
it was determined: That complainant had by virtue of the decree of the Su-
preme Court, of Ohio of May 1, 1888 (Compton v. Railway Co., 45 Ohio St.
592, 16 N. E. 110, 18 N. E. 880), a lien upon the Ohio division of the Wabash
system on account of his ownership of such equipment bonds; that such lien
was subject only to two prioi underlying mortgages, both given before the con-
solidation of 1875, the one on September 8, 1853, by the Toledo & Illinois jail-
road Company to the Farmers' Loan & Trust Company, trustee, to secure a
bond issue amounting to $900,000, and the other given on October 5, 1858, by
the Toledo & Wabash Railway Company to E D. Morgan, trustee, to secure
an issue of bonds amounting to $1,000,000; that Compton's rights as such lien-
holder had been saved by the terms of the decree of the Circuit Court of the
United States for the Northern District of Ohio, of March 23, 1889, which
foreclosed the earlier mortgages, both divisional and otherwise, upon the Wa-
bash Road; and that the Wabash Company, which had taken over the railroad
property frbm the committee which had purchased it at the foreclosure sale,
"should be regarded as a party in possession under the express terms of the
'For other cases see same topic & i NUMBas in Dec. & Am. Digs. 1907 to date, & Rep'r Indexes
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The Federal Reporter (Annotated), Volume 172: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. October-November, 1909., legislative document, 1909; Saint Paul, Minnesota. (https://digital.library.unt.edu/ark:/67531/metadc38218/m1/29/: accessed April 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.