Crawshay v. Soutter and Knapp - 73 U.S. 739 (1867)
U.S. Supreme Court
Crawshay v. Soutter and Knapp, 73 U.S. 6 Wall. 739 739 (1867)
Crawshay v. Soutter and Knapp
73 U.S. (6 Wall.) 739
1. Where there had been a foreclosure and sale under a railroad mortgage to secure certain bonds, exceptions to the sale were refused to be entertained in favor of such of the bondholders as had been parties to a scheme under which the sale bad been made for the formation of a new company and had surrendered their bonds in exchange for stock and bonds of such new association.
2. Where as to a bondholder differently situated, the decree below, in confirming the sale, had imposed the condition of payment to him by the new company of the full amount of his bonds of the old company, principal and interest, such decree was affirmed without considering the abstract validity of the exception taken by him.
These were two appeals from the Circuit Court for Wisconsin, one by Crawshay and Oddie and one by Vose, to review an order confirming the sale of a railroad under a mortgage. The case was shortly this:
Soutter and Knapp, surviving Bronson, were trustees for the benefit of bondholders of a mortgage called a land grant mortgage given by the La Crosse & Milwaukee Railroad Company on a part of its road. The mortgage had been foreclosed, and as is frequent in such cases in Wisconsin, a new company, named the St. Paul, was formed by the purchasers, here the bondholders. Among the bondholders were Crawshay, Oddie, and Vose, the appellants. The two former surrendered all their bonds and took certificates of stock. The latter (who had been appointed by his co-creditors a trustee to organize the new company), however,
yet had in his possession bonds for $5000, for which he held certificates of the trustees entitling him to a corresponding amount of stock in the new company. A difference arose between him and his co-trustees; and the court having confirmed the sale of the old road under the mortgage, he, Crawshay, and Oddie appealed from its action. The confirmation had been made subject to payment by the new company of his debt, principal and interest.