Fogg v. Blair - 133 U.S. 534 (1890)
U.S. Supreme Court
Fogg v. Blair, 133 U.S. 534 (1890)
Fogg v. Blair
Argued January 24, 27, 1890
Decided March 3, 1890
133 U.S. 534
APPEAL FROM THE CIRCUIT COURT OF THE UNITED
STATES FOR THE EASTERN DISTRICT OF MISSOURI
A liquidated claim against a railroad company, not converted into a judgment, which another railroad company, purchasing its road and property, agrees with the selling company to assume and pay as part of the consideration does not thereby become a lien upon the property so as to take priority over the lien of a mortgage made by the purchasing company to secure an issue of bonds.
On the 16th of February, 1867, the St. Louis and Keokuk Railroad Company was incorporated by the Legislature of Missouri to construct and operate a railroad from some suitable point on the North Missouri Railroad, not exceeding thirty miles west of St. Charles, in St. Charles County, to some point near the mouth of the Des Moines River, on the northern boundary of the state. Under its charter, the company located its road between the points designated, and constructed a portion of it, and graded other portions, and in this work expended several hundred thousand dollars. The appellant, Josiah Fogg, held a demand against this company for work and advances on its account, and on the 22d of September, 1870, an adjustment and settlement of the amount was had between them, and it was found that the company was indebted to him in the sum of $9,547.75. Afterwards, on the 13th of June, 1872, a corporation known
as the "St. Paul, Hannibal and Keokuk Railroad Company" was formed under the general law of Missouri to construct and operate a railroad with one or more tracks from the City of St. Louis to a point near the northeast corner of the state, opposite to Keokuk, in Iowa, with a branch in Lincoln County, to its coal fields, from a point near Troy, and a branch up the valley of Mill Creek, from a point where the line crosses the creek. To this new corporation the old corporation, upon the request and direction of the holders and owners of a majority of its stock, on the 4th of March, 1873, sold and transferred its entire road and all the branches, buildings, machinery, and appurtenances belonging to or connected with it.