Peoria Waterworks Co. v. Peoria Ry. Co.

181 F. 990, 1910 U.S. App. LEXIS 5623
CourtU.S. Circuit Court for the Northern District of Illnois
DecidedSeptember 30, 1910
DocketNo. 24,193
StatusPublished
Cited by2 cases

This text of 181 F. 990 (Peoria Waterworks Co. v. Peoria Ry. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Northern District of Illnois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoria Waterworks Co. v. Peoria Ry. Co., 181 F. 990, 1910 U.S. App. LEXIS 5623 (circtndil 1910).

Opinion

SANBORN, District Judge.

Bill for injunction against injury to water mains by electrolysis. The case was twice referred to Mr. Wean as special master. His findings of facts and legal conclusions on both references, filed April 30, 1910, follow:

"(1) On the 8th day of January, 1894, the Atlantic Trust Company of New York filed a bill in the United States Circuit Court for the Northern District of Illinois, Southern Division, to foreclose a mortgage of the Peoria Water Company, a corporation of the state of Illinois, upon the waterworks system and plant of said company in Peoria, 111., securing outstanding bonds of the company, which suit was duly removed to the Northern Division of said District. On the 8th day of January, 1894, Cornelius B. Gold of New York was appointed receiver in said cause, and on the 20th day of July, 1897, a decree of foreclosure and sale was entered by this honorable court, in and by which decree a special master in chancery was appointed and directed to make sale of the property of said defendant on terms mentioned in said decree, provided the amount found in said decree to be due from the said defendant should not be paid as in said decree provided. In accordance with the provisions of said decree, the said property was by the special master offered for sale on the 14th day of January, 1898, and on that day was struck off to William D. Bar-hour, Edward Oothout, and Herbert -C. Warren, constituting the authorized committee of the holders of the bonds of said defendant Peoria Water Company. The said William D. Barbour and Edward Oothout were at that time and at the time of the filing of the petition of the receiver herein both citizens of the state of New York, and the said Herbert C. Warren was at said times a citizen of the state of Connecticut. On March 4, 1898, the special master filed a preliminary report of his proceedings up to that date, which were approved and confirmed by order of this court, but at that time payment had not been completed by the purchasers., the deed had not been delivered, the property had not been surrendered. The decree of foreclosure specifically provided that the receiver should remain in possession of the mortgaged property, and continue to operate the same after the sale and until the surrender thereof. While affairs were in this condition, and on the 21st day of March, [992]*9921898, the said Cornelius B. Gold, receiver, presented his petition, in which it was alleged that the railway companies therein named were destroying the plant and property in his custody as receiver by electrolysis; the prayer of said petition being for an injunction operative after a reasonable limit of time against the further operation of electric cars until the defendants have made use of such appliances as will prevent the grounding of electric currents and their coming in contact with the pipes and mains of the waterworks system. The petition recited that the receiver was a resident and citizen of the state of New York. It recited the sale to the members of the bondholders’ committee, and that the petition was filed not only on the receiver’s behalf for the protection of his possession and custody as receiver, but for the use of the purchasers, their successors, and assigns, and that the said purchasers were citizens of other states than the state of Illinois. On the same day the petition was filed a rule to show cause was entered by the court, and service of the same was made upon the defendants on the 26th day of March, 1898, as. appears by the return of the United States marshal now on file in the office of the clerk of this court. On the 11th day of April, 1898, the defendant railway companies answered the petition upon the merits, but alleged in such answer that at the time of the filing of the receiver’s petition aforesaid the title, custody, ■ and control of said property had become divested in this court and in the said receiver, and had passed to the purchasers at the sale of said property, and that this court toy reason of such sale and transfer of title to said property had no further interest in the protection of the same, that the said receiver had no further right or authority to act as receiver of this court in connection therewith, and that any adjudication made by this court of the questions and matters complained of by said Gold, as receiver, ‘in his bill of complaint herein,’ would not be binding upon the real parties in interest or the owners of the said property. Subsequent*to the filing of the answers above mentioned, the purchasers hereinbefore named complied with their bid by surrendering the old bonds and coupons, and assigned their interest to the Peoria Waterworks Company, a corporation organized under the laws of New Jersey. At the request of the purchasers, a deed was made to their assignee, the "Peoria Waterworks Company, by the said special master, which deed is dated the 13th day of July, 1898, and was filed in the Recorder’s Office of Peoria County, Illinois, on the 5th day of August, 1898. After the delivery of this deed, the special master again reported his doings to the court in a report filed the 4th day of August, 1898. On the 4th day of August, 1898, the court entered an order confirming the report last above mentioned, in and by which order there was set forth the pendency of the proceeding against the railway companies, and the discharge of the receiver was ordered to be without prejudice to such suit. By order of court made on the same day, the Peoria Waterworks Company, a corporation of New Jersey, then the owner of the property, was, by amendment, substituted for the receiver, as complainant in said petition, and thereafter, as hereinabove stated, evidence was taken by agreement of the parties in the cities of Peoria and Chicago, 111., Cincinnati, Ohio, New York City, Brooklyn, and Albany, N. Y., Philadelphia and Pittsburg, Pa., Milwaukee, Wis., and Terre Haute, Ind. On August 26, 1899, by consent, there was filed an amendment to the said petition, and on the 17th day of October, 1899, by consent of parties, an amendment was filed to the answer of the- Central Railway Company and the Peoria & Prospect Heights Railway Company, which amendment relates wholly to the merits of the case made by said petition as amended.
“(2) The Peoria Waterworks Company, complainant as aforesaid, is the owner of an ‘improved, enlarged, and extended’ system of waterworks in the city of Peoria, 111., which system includes about 85 miles of mains and 5,000 service pipes, and is operating the same under an ordinance passed by the common council of the city of Peoria on the 4th day of May, 1889, and amended on the 23d day of July, 1889, and the 5th day of August, 1890. The preamble of said ordinance is as follows: ‘An ordinance, for an improved, enlarged and extended system of waterworks, for the city of Peoria, Illinois, and its inhabitants, and to supply them with water for all public and private purposes, and to sell to John G. Moffett, Henry C. Hodgkins, John V. Clarke, and Charles T. Moffett, doing business under the firm name of Moffett, Hodgkins [993]

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Bluebook (online)
181 F. 990, 1910 U.S. App. LEXIS 5623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoria-waterworks-co-v-peoria-ry-co-circtndil-1910.