General Electric Co. v. Sapulpa & I. Ry. Co.

1915 OK 978, 153 P. 189, 49 Okla. 376, 1915 Okla. LEXIS 58
CourtSupreme Court of Oklahoma
DecidedNovember 23, 1915
DocketNo. 0462
StatusPublished
Cited by6 cases

This text of 1915 OK 978 (General Electric Co. v. Sapulpa & I. Ry. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Co. v. Sapulpa & I. Ry. Co., 1915 OK 978, 153 P. 189, 49 Okla. 376, 1915 Okla. LEXIS 58 (Okla. 1915).

Opinion

SHARP, J.

On the 11th day of September, 1912, there was filed in the district court of Creek county an action by one E. C. Wallace against the Sapulpa & Interurban Railway Company, numbered 2621 on the docket of said court, on account of an indebtedness owing by the latter to the former, and in chambers, on the same day, on the application of said plaintiff, the district judge of said court appointed R. V. Miller, of Sapulpa, receiver of all and singular the property and assets of said railway *378 company within the state. , ,Qn the. 16th day of October following, a default judgment was rendered in favor of plaintiff. On the 15th day of April, 1913, the Fidelity Trust Company, of Kansas City, Mo., as trustee, filed in the district court of said county its petition, naming as defendants the Sapulpa & Interurban Railway. Company, R. V. Miller, receiver, St. Louis Union Trust Company, as trustee, of St. Louis, Mo., General Electric Company, S. E. Carter, and numerous others, said action being numbered 2959. Plaintiff’s petition alleged: That prior to and on the 1st day of February, 1908, the defendant Sa-pulpa & Interurban Railway Company had partially constructed and was operating a line of street railway in the city of Sapulpa, and was engaged in constructing and building said line of street railway, and the interurban extension thereof from said city to the town of Kiefer in Creek county. That on said day said railway company executed its 50 bonds, each for the sum of $1,000, by the terms of which said defendant promised to pay.the holder thereof the sum of $1,000, 10 years from date, interest thereon to be payable at the rate of 6 per cent, on the 1st days of February and August of each year, from date thereof, which interest installments were evidenced by coupons attached to each of said bonds. That in order to secure the payment of the principal and interest to . become due on said bonds, according to v their terms, at the same time and place, and as a part of the same transaction and contract, said railway company duly executed and delivered to the plaintiff, as trustee, a certain deed of trust, whereby it conveyed to plaintiff, as such trustee, all of said defendant’s franchises, right of way, railroad equipment, and other property, consisting of four certain lots in the city of Sapulpa, its municipal *379 franchise from said city, and all its right of way, roadbed, and tracks in said city and in Creek county; also all side tracks, switches, depots, depot grounds, rolling stock, power plant, pole lines and wire, and all equipment used in connection with its line of electric railway in said city and county. That thereafter the bonds of said company were duly made, executed, and delivered, and certified to by trustee, as provided for in said deed of trust. That afterward, for a valuable and valid consideration,, the defendant St. Louis Union Trust Company became the lawful holder of all of said 50 bonds, and the interest coupons attached thereto, and had been ever since, and was on the date of the institution of said action, the lawful holder thereof. The petition alleged that the covenants contained in said deed of trust had been broken; that the railway company had failed to pay its maturing interest coupons, and was in arrears for taxes for the years 1908, 1909, 1910, 1911, and 1912, in the sum of $11,039.62. The petition contained many other allegations not necessary here to recite, and concluded with a prayer asking that the railway company be decreed to. pay plaintiff, as trustee, the principal sum of $50,000, due on said bonds, together with interest thereon at the rate of 6 per cent, per annum from the 1st day of August, 1909; that said deed of trust be decreed to be a first lien upon all of the property, real, personal, and mixed, rights, franchises, lands, titles and railway described in said deed of trust, and then owned or subsequently acquired by said railway company, prior and superior to any other liens whatsoever; that the court allow the plaintiff a just and reasonable compensation for its services as trustee; that plaintiff’s attorneys be allowed a reasonable fee for their services in said foreclosure proceedings; and' that the rights, interests, and claims *380 of the other defendants be ascertained and adjudged, and be decreed junior, inferior and wholly subject to the rights and hen of plaintiff, as trustee, under said deed of trust; and that said defendant railway company and all other defendants impleaded therein, and all other persons whomsoever claiming through, by, or under them, or any of them, be forever barred and foreclosed of and from all right, title, interest, estate, equity of redemption, and claim of, in and to said franchises and. property real, personal, and mixed, and every part thereof, described in said deed of trust. On the 11th day of July, 1913, the defendant railway company, by its receiver, filed its answer, which consisted of a general denial, and a specific denial that said defendant was indebted to the plaintiff in the sum of $50,000, or any other sum, and further alleged that the railway company was the owner of property acquired after the execution of the deed of trust, and which was not included within its terms, and specifically charged that the only property included in the deed of trust was that owned by the railway company at the time of the execution of said deed of trust, and none other. On the same day, plaintiff trust company filed its motion for judgment on the pleadings against defendant railway company. This motion does not appear to have ever been acted upon.

On the 12th day of June, 1913, there was filed in said latter action the answer and cross-petition of the defendant General Electric Company. Said answer consists of a general denial, as well as certain specific denials, and sets up the following judgments by reason of which it claimed a first and paramount lien on all the property of said railway company: (1) A judgment in favor of said electric company against said railway company, *381 rendered by the District Court of the United States for the Eastern District of Oklahoma, on the 1st day of March, 1913, in the sum of $38,405; (2) a second judgment in the United States District Court for the Eastern District of Oklahoma, rendered on the 14th day of April, 1913, in favor of said electric company and against said railway company, in the sum of $7,341.42; (3) a judgment rendered in the district court of Creek county, March 21, 1913, in favor of said electric company and against said railway company, in the sum of $1,000. On August 7th following the defendant S. E. Carter filed in said action an ánswer in which it was alleged: That on the 7th day of July, 1910, he loaned to the said railway company the sum of $25,000, which loan was evidenced by two notes of even date therewith, one in the sum of .$15,000, the other in -the sum of $10,000, each maturing 12 months from date, the proceeds of which loan were by said railway company used in the extension of its line of railroad. That at the time of the making of said loan it was represented to said Carter that it was the purpose and intention of said railway company to issue first mortgage bonds in the sum of $2,000,000, $275,000 of which would become immediately available for the purpose of paying and securing the company’s present obligations, including the Carter loan. That thereafter a deed of trust, duly executed by said railway company and by the St.

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Cite This Page — Counsel Stack

Bluebook (online)
1915 OK 978, 153 P. 189, 49 Okla. 376, 1915 Okla. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-co-v-sapulpa-i-ry-co-okla-1915.