Harmony Way Bridge Co. v. Leathers

187 N.E. 432, 353 Ill. 378
Illinois Supreme Court·Decided October 21, 1933·No. No. 21888. Decree affirmed.·Published·Cited by 11 cases

Opinion

Mr. Chief Justice Orr

delivered the opinion of the court:

Erom a decree of the circuit court of White county-rendered in February, 1933, in favor of the Harmony Way Bridge Company, appellee, upon a bill in chancery filed by the bridge company, Edgar Leathers and Nellie Leathers, his wife, have appealed.

By its bill appellee sought to establish a constructive trust, or in the alternative asked that a certain deed conveying right of way to the State of Illinois for Bond Issue Route 139 be reformed so as to correctly describe all of the land desired by the State. In addition to various affirmative defenses, appellants in their answer denied holding the land in trust, averring that they purchased it for their private use and benefit alone.

The Wabash river, a portion of which is the boundary between Illinois and Indiana, flows approximately north and south between White county, Illinois, and the city of New Harmony, Indiana. For many years a ferry had been operated between New Harmony and the opposite Illinois shore. The land in Illinois opposite New Harmony is bottom land several miles wide, subject to inundation by the periodic rises of the waters of the Wabash river. A gravel roadway traversing these bottom lands to the ferry landing is subject at those times to overflow. Under the one hundred million dollar bond issue, Route 139 was to be constructed from Crossville, in White county, easterly across the river bottom to the river’s edge. Various efforts were made to construct a highway bridge connecting the Illinois shore with New Harmony. One Illinois corporation, the Harmony Way Bridge Company, succeeded in having all but one of the concrete piers for the bridge built by the Nashville Bridge Company, which had the contract for the building of the piers and bridge. As the bridge company organized under the laws of Illinois did not sell its bonds the pier work could not be paid for when completed. An agreement was reached with the Nashville Bridge Company and the Illinois corporation which provided for the incorporation of the Harmony Way Bridge Company under the laws of Delaware, the Nashville Bridge Company taking preferred and common stock of the Delaware corporation in payment for the pier work and first mortgage bonds for the steel work. This scheme was carried out, with the result that the Nashville Bridge Company owned the majority of the stock of the new corporation and nearly all of the company’s bonds. The State of Illinois insisted that Route 139 should terminate at the edge of the river rather than at the west approach of the bridge. On the other hand, it was to the financial interest of appellee that Route 139 should terminate at the west approach of the bridge and not continue on to the river’s edge, for if it could divert all of the traffic across the bridge the corporate income would be greater. From the record it appears that the ferry was an active competitor for traffic because of tariffs approximately one-half of those established by appellee. Access to the ferry was had by turning north at the west approach of appellee’s bridge and then proceeding east to the water’s edge. This was the old established route, existing long before the bridge was built. However, after work was started to erect the bridge a flood stage of the Wabash river washed out some of the Illinois shore, including a public highway along the river bank, so that a new approach to the river’s edge was deemed necessary by the State at a point south of the bridge. It was over this new way to the river’s edge that this dispute is centered.

Appellant Edgar Leathers (who will hereafter be separately referred to) was elected a director of appellee in November, 1929, when it was chartered under the laws of Delaware. He continued to serve as such director until in March, 1931. Ulys Pyle has been secretary and director and Roy Clippinger president and director since appellee was organized. B. B. Askew and R. W. Williams, of Nashville, Tennessee, were members of the board of directors of appellee as representatives of the Nashville Bridge Company. O. P. Vincent was for a time treasurer of the bridge company, holding such office at the time of the execution of a certain escrow agreement dealt with at length later in this opinion. Appellant was also vice-president of the bridge company for a time prior to the annual stockholders meeting in March, 1931, and had also acted as superintendent in charge of the bridge.

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Harmony Way Bridge Co. v. Leathers, 187 N.E. 432, 353 Ill. 378 (Ill. 1933).

187 N.E. 432 (Harmony Way Bridge Co. v. Leathers) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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