Larrison v. Peoria, Atlanta & Decatur Railroad

77 Ill. 11
CourtIllinois Supreme Court
DecidedJanuary 15, 1875
StatusPublished
Cited by19 cases

This text of 77 Ill. 11 (Larrison v. Peoria, Atlanta & Decatur Railroad) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larrison v. Peoria, Atlanta & Decatur Railroad, 77 Ill. 11 (Ill. 1875).

Opinion

Mr. Chief Justice Walker

delivered the opinion of the Court:

This was a bill in chancery, filed by appellants, in the Logan circuit court, on behalf of themselves and other taxpayers, against the railroad company, town collectors and others, to restrain the collection of a tax.

The bill alleges that the town auditors in the towns of Atlanta and Oran, on the 12th of August, 1873, made a certificate that there ivas due certain sums, to be paid for interest on bonds issued to aid in the construction of the railroad. The bill charged that there was issued by the authorities $37,000 of bonds, and that the town authorities had delivered a portion, and that the president of the railroad company had possessed himself of another portion, without the consent of the.supervisor or town clerk; that the town auditors had certified that the interest on the bonds was a town charge, and delivered the same to the county clerk, to be extended as a tax on the real and personal property in the town; and that the county clerk claims that he, in the discharge of his duty, is compelled to extend the same on the taxable property in the towns.

The bill charges that the railroad company claims to be organized under a special law of the General Assembly, under which the officers acted izz constructing the z*oad, but "complaizzants deny that it was ever constitutionally adopted by the General Assembly, and claim that all acts pez-formed izi the levy of this tax aze therefore void; that the z-oad is not completed, azzd the officezs of the company z-epresented that they would proceed promptly to construct, the railroad from Peoria, by way of Atlanta, to Decatur, and that any bonds that should be voted therefor should be faithfully devoted to the cnnstvuctiozz of the z’oad, azzd the company had, or soozz would have, sufficient funds for that puz-pose; that all of these representations were false, and were made knowing them to be false, and with intent to cheat and defraud the town and taxpayers, and to obtaizz the bozzds without a valuable consideration thez’efor.

It is chaz-ged that it never was intended in good faith to complete the z’oad; that it is not completed; that the work has not been prosecuted promptly and in good faith; that the officers of the company still hold the bonds, or have convez-ted them to their own use, and that they have sold the franchises and abazidoned the construction of the road. On filing the bill, a temporazy injunction was issued staying the collection of the tax.

The railroad company, Dunham, Dills, Lambert and the towzi of Atlazzta answered the bill, the answer being; verified bv the affidavit of Dills and Dizzzham, to be used on a znotiozz to dissolve the injunction. Prior to the hearizzg of that znotiozz, complainants moved to suppress the answer, because, so far as it related to the railroad company, it was not under the seal of the company, and was not signed by one of its officers; and as to the answer of the town of Atlanta, because it Avas not signed by an officer of the toAvn. This motion Avas overruled. The answer denies all of the material allegations of the bill.

Subsequently, a motion to dissolve the injunction came on to be heard, on bill, answer and affidavits filed. The court dissolved the injunction and the bill Avas dismissed, and complainants bring the case to this court by appeal.

The ansAA'er, amongst other things, stated that the bonds Avere not in the hands of the company, but had been sold and delivered to innocent purchasers. And this and other allegations in the answer Avere fully sustained by the proof, and appellants make no point on that question in their argument, but insist that the court erred in refusing to strike the ansAver from the files, and in assessing damages for the Avrongful suing out of the injunction.

The ansAAer Avas called for Avithout oath, and Avas only sworn to for the purpose of being used as an affidavit on the motion to dissolve. Such an answer has always been held to be a mere pleading, only denying the allegations of the bill and putting complainant to his proof, and to disclose any special defense he may rely upon. And 'although it is more regular to require a corporation to ansAver under seal, Ave feel no inclination to reverse a cause on that ground alone. "Where the evidence sufficiently sustains a full ansAver, to which there is no objection, we would not be Avarranted in reversing because one of the defendants had failed to attach its seal. There is no suggestion that this ansAver is not sufficient as to Dunham, Dills and Lambert. It sets up the entire defense, Av'nich applies as well to the railroad company and the toAvn of Atlanta as it does to them, and the same is true as to the officers having charge of the collection of the taxes.

Had the railroad company set up a defense peculiar to themselves, then it would have been different. The proceeding was virtually against the bondholders, and the railroad was but a nominal party; and had the railroad company made no effort to answer, but had been defaulted, still the court would not have continued the injunction against the collection of the monev to pay the interest to the bondholders, unless it had been apparent from the evidence that the bonds were void, or some equitable grounds were shown against the bondholders. And as the evidence required the dissolution of the injunction, even if the railroad company had been defaulted, we must decline to reverse on the ground that the answer of that company was not under seal. It might be treated as a nullity, and as not being on file, and still the dissolution would be correct.

The objection taken to the answer of the town of Atlanta, is, that it was not signed by an officer of the town. This is answered by the case of Fulton County v. Miss. and Wabash R. R. Co. 21 Ill. 338, where it is held that a defendant need not write his own name to his answer. Here, the name of the corporation was written, and there is nothing to show that it was unauthorized, nor are we aware of any rule of practice that requires the president or any officer to sign his name, in addition to that of a municipal corporation, to an answer to a bill or other instrument. That is done, as their charters authorize, in the name of the corporation.

On examining the evidence, we find that it sustains the finding of the damages decreed by the court on dissolving the injunction. The sum allowmd was reasonable, and was shorvn to be so by the evidence. The statute authorizes it, and the court was required, on the evidence adduced, to allow the damages and render a decree therefor.

We now come to the consideration of the question, of whether the charter of the railway company, under which this subscription was made, and the bonds issued and taxes levied, was constitutionally adopted. It appears from a certified copy of the journals of the Senate that, on the 28th of January, 1869, Mr. Nicholson introduced Senate bill No. 453, for “An act to incorporate the Peoria, Atlanta and Danville Eailroad Company,” which was read a first time, and on his motion the rule was unanimously dispensed with, the bill read a second time, and referred to the Committee on Eailroads. It also appears that Mr. McManus, from the Committee on Eailroads, to which was referred Senate bill No. 453,for “An act to incorporate the Peoria, Atlanta and Decatur Eailroad Company,”' reported the same back as amended, and recommended its passage as amended.

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Bluebook (online)
77 Ill. 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larrison-v-peoria-atlanta-decatur-railroad-ill-1875.