Mason v. Hartford, P. & F. R.

19 F. 53, 1884 U.S. App. LEXIS 2010
CourtU.S. Circuit Court for the District of Massachusetts
DecidedJanuary 18, 1884
StatusPublished

This text of 19 F. 53 (Mason v. Hartford, P. & F. R.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mason v. Hartford, P. & F. R., 19 F. 53, 1884 U.S. App. LEXIS 2010 (circtdma 1884).

Opinion

Nelson, J.

This is a bill of revivor and supplement filed by the administrators of Earl P. Mason, to revive a suit abated by his decease, and to bring in as defendants parties who have succeeded to the interest of some of the original defendants. The facts and proceedings in the suit, so far as it is necessary to state them, are as follows:

The original bill was filed in this court by Earl P. Mason in December, 1871, against the Hartford, Providence & Pishkill Railroad Company, whoso road and franchises had been previously conveyed to and formed part of the railroad of the Boston, Hartford & Erie Railroad Company, the assignees in bankruptcy of the Boston, Hartford & Erie Railroad Company, adjudicated bankrupt by the district court of this district in March, 1871, the trustees under mortgages of the Hartford, Providence & Pishkill Railroad made prior to the consolidation, tho trustees of the Berdell mortgage of the Boston, Hartford & Erie Railroad, made subsequent to the consolidation, and the treasurer of the state of Connecticut. The object of the bill was to enforce against that part of the Boston, Hartford & Erie Railroad in the states of Rhode Island and Connecticut, which was formerly the Hartford, Providence & Pishkill Railroad, a lien claimed by the plaintiff to exist on account of certain preferred stock issued by the Hartford, Providence & Pishkill Railroad Company in 1854, before tho consolidation, the certificates of which stock contained a clause that the par value thereof was “demandablo by the holder of the same from the company, at any time after April 1, 1865,” and a demand of payment made upon the company in March, 1871. To that bill answers were filed in 1873, and replications were filed October 15, 1875.

[54]*54On July 27, 1875, the trustees under the Berdell mortgage conveyed the whole railroad to the Hew York & Hew England Railroad Company.

On July 21, 1875, the district court, upon the application of the assignees, made an order authorizing and directing them to sell and convey their interest as assignees in the Boston, Hartford & Erie Railroad to the New York & Hew England Railroad Company, and in the order directed, at the request of Mason, that the deed of conveyance should contain a proviso and. condition that “nothing in the same should he construed to affect the rights of any person or corporation, if any, holding stock, whether common or preferred, in the Hartford, Providence & Eishkill Railroad Company.” In pursuance of this order, the assignees on July 28, 1875, conveyed their interest in the road to the Hew York & Hew England Railroad Company by a deed which contained the proviso and condition above mentioned, and also contained a stipulation by the grantee that it would assume the defense of this and of other suits then pending against the assignees, and would protect them therefrom.

On September 21, 1876, before any further proceedings were had in the suit, Earl P. Mason died intestate, and July 25, 1881, the present plaintiffs took out administration upon his estate in this district. The present bill was filed March 23,1882, against the original surviving defendants, the Hew York & Hew England Railroad Company and Aldrich, Cooley & Gardener, who have been appointed trustees under the mortgages of the Hartford, Providence & Eishkill road, in place of three deceased defendants in the original bill.

In December, 1875, Earl P. Mason joined with the Boston & Providence Railroad Company and others, as owners of stock in the Hartford, Providence & Eishkill Railroad Company, in filing a bill in equity in the supreme court of Rhode Island, against the Hew York & Hew England Railroad Company and others, to set aside, as unauthorized and void, the conveyance of the Hartford, Providence & Eishkill road to the Boston, Hartford & Erie Railroad Company. That suit terminated March 12, 1881, by the entry of a final decree dismissing the bill.

The bill of revivor states the proceedings subsequent to the death of Earl P. Mason, and prays that the original suit may be revived for the benefit of his administrators. To this bill the Hew York & Hew England Railroad Company filed a demurrer to part, and plea to the residue, and three other defendants filed a plea to the whole bill. The case was heard upon the pleas and demurrer, and upon certain agreed facts which were made part of the case by stipulation of the parties.

1. By the demurrer of the New York & New England Railroad Company, objection is taken to the jurisdiction of the court for want of the requisite citizenship of the parties. Objection to the jurisdiction of the court, when the defect appears of record, may be taken at any stage of the proceedings; and the record in this case shows that in the original suit, and also in the bill of revivor, citizens of Rhode Island appear both as plaintiff and defendant. But we are of opinion that in this case jurisdiction does not depend upon the citizenship of the parties. By section 4979 of the Revised Statutes the several circuit courts have concurrent jurisdiction with the district courts “of ail suits at law or in equity brought by an assignee in bankruptcy against any person claiming an adverse interest, or by any such person against an assignee, touching any property or rights of the bankrupt transferable to or vested in such assignee.” By this section jurisdiction [55]*55is conferred upon the circuit courts to ascertain and adjust all liens and other specific claims upon the property vested in the assignee, claimed hy any person adversely to the assignee as representing the general creditors, without regard to the citizenship of the parties. This has been settled by repeated decisions of the supreme court. Smith v. Mason, 14 Wall. 419; Marshall v. Knox, 16 Wall. 551; Lathrop v. Drake, 91 U. S. 516; Eyster v. Gaff, Id. 521; Burbank v. Bigelow, 92 U. S. 179; Dudley v. Easton, 104 U. S. 103. This case comes within the very letter of the statute. The plaintiff sets up, and seeks to enforce against a part of the railroad which was transferred to the assignees, by virtue of their assignment, a lien alleged to have been created, under the laws of Rhode Island and Connecticut, by the issue of preferred stock.' That this court has jurisdiction to determine its validity, and if found valid to enforce it against the property, is clear. Nor is the jurisdiction affected by the change of interest created by the conveyance made under the order of the district court. Having once acquired jurisdiction of the subject-matter and the parties, the court will retain it for all purposes within the scope of the equities to be enforced. Ober v. Gallagher, 93 U. S. 199; Ward v. Todd, 103 U. S. 327. The'conveyance to the New York & New England Railroad Company was made expressly subject to any lien which can be enforced against the road in this suit, and the case must therefore proceed as if no such conveyance had been made.

. 2. At the hearing of the Rhode Island suit, the present plaintiffs, the Rhode Island administrators of Earl P.

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Related

Smith v. Mason
81 U.S. 419 (Supreme Court, 1871)
Marshall v. Knox
83 U.S. 551 (Supreme Court, 1873)
Fretz v. Stover
89 U.S. 198 (Supreme Court, 1875)
Lathrop v. Drake
91 U.S. 516 (Supreme Court, 1876)
Burbank v. Bigelow
92 U.S. 179 (Supreme Court, 1876)
Ober v. Gallagher
93 U.S. 199 (Supreme Court, 1876)
Ward v. Todd
103 U.S. 327 (Supreme Court, 1881)
Dudley v. Easton
104 U.S. 99 (Supreme Court, 1881)

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Bluebook (online)
19 F. 53, 1884 U.S. App. LEXIS 2010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-hartford-p-f-r-circtdma-1884.