United States Supreme Court Cases & Opinions

U.S. Supreme Court

Wallace v. Loomis, 97 U.S. 146 (1877)

Wallace v. Loomis

97 U.S. 146

Syllabus

1. The provision in the Constitution of Alabama which declares that "corporations may be formed under general laws, but shall not be created by special acts, except for municipal purposes" does not prohibit the legislature from passing a special act changing the name of an existing railroad corporation, and giving it power to purchase additional property.

2. A party is estopped from denying the corporate existence of a company when, by holding its bonds, he acquires a locus standi in the suit brought to foreclose the mortgage made to secure their payment.

3. The sale of a bankrupt's property under proceedings in involuntary bankruptcy cannot be invalidated by the fact that he, before their commencement, had promised to pay in full his debt to a creditor who, at his instance, instituted them.

4. The Act of Congress approved March 2, 1809, 2 Stat. 534, provides that in case of the disability of a judge of the district court of the United States to perform the duties of his office, such duties shall be performed by the

Page 97 U. S. 147

Justice of the Supreme Court allotted to the circuit which embraces the district. By the second section of the Act approved April 10, 1869, 16 id. 44, the same power is conferred upon the circuit judge.

5. Where bonds of a corporation, as prepared for issue and sale, promise payment in lawful money, and, as such, were guaranteed by a state, a stipulation that they shall be paid in coin, subsequently endorsed on them by the corporation in accordance with the requirement of purchasers from it, is supplementary and subsidiary, and binds only the corporation itself.

6. A court of equity having jurisdiction of the subject matter and the parties, when it takes charge of a railroad and its appurtenances, as a trust fund for the payment of encumbrances, has power to appoint managing receivers of the property, and, for its preservation and management, authorize moneys to be raised, and declare the same chargeable as a paramount lien on the fund.

The facts are stated in the opinion of the Court.