Postal Tel. Cable Co. v. Vane

80 F. 961, 26 C.C.A. 342, 1897 U.S. App. LEXIS 2278
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 12, 1897
DocketNo. 302
StatusPublished
Cited by1 cases

This text of 80 F. 961 (Postal Tel. Cable Co. v. Vane) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Postal Tel. Cable Co. v. Vane, 80 F. 961, 26 C.C.A. 342, 1897 U.S. App. LEXIS 2278 (7th Cir. 1897).

Opinion

SHOWALTER, Circuit Judge.

On the 4th day of October, 1884, the Bankers’ & Merchants’ Telegraph Company of Indiana, a corporation created under the laws of that state, exhibited its bill in the circuit court of the United States for the district of Indiana against the Bankers’ & Merchants’ Telegraph Company of New York, a corporation organized under the laws of the state of New York, wherein it averred that the New York company was a principal or parent corporation, “with auxiliary or subordinate corporations, under the same name, for local convenience and requirements, in the states of [962]*962Massachusetts, Connecticut, New Jersey, Pennsylvania, Delaware, Ohio, Indiana, Illinois, Michigan, Tennessee, Kentucky, Texas, New Hampshire, and elsewhere, and likewise in Baltimore, in the state of Maryland, and in the District of Columbia.” It was further averred “that all the said corporations so existent are separate and distinct corporations of each of the states aforesaid, and are controlled and managed by, and wholly identified with, the said Bankers’ & Merchants’ Telegraph Company of New York, with local organization, for purpose of convenience, in conformity with law; the capital stock of said corporations being largely in possession of the said principal, parent, or head corporation.” The bill went on to allege, in substance, that the New York corporation had constructed and operated, as part of its telegraph system, the telegraph lines of the complainant in the state of Indiana; that, in the construction and management of these lines of complainant, the New York company had incurred debts to divers persons and corporations; “that the said debts, or portions thereof, are claimed to be in law and equity just obligations against the property of complainant,” but that a large portion of the general indebtedness of the New York company was not chargeable upon the property of the complainant, and that the New York company was wholly insolvent; “that the value of your orator’s property consists in its being kept together and intact, to be operated as a whole, without a break or division^ in connection with the property and lines of said Bankers’ & Merchants’ Telegraph Company of New York, and under one head or management, and that, owing to the peculiar nature of the business, the management has to be centralized and managed accordingly; that, owing to the said intimate relations between your orator and the said Bankers’ & Merchants’ Telegraph Company of New York, and owing to its management, operation, and control of your orator’s lines and property, the accounts and business thereof have been so blended together that it is impossible for your orator to state, it having no information with respect thereto, what proportion of said property is the property of your orator, and what proportion thereof is distinctly the property of said Bankers’ & Merchants’ Telegraph Company of New York;” that a suit had lately been commenced by one Austin G. Day, in the supreme court of the state of New York, wherein Richard S. Newcombe and James Gr. Smith had been duly appointed receivers of the said New York company, and all its assets, property, and effects had become vested in said receivers. Among other things, it was prayed in the bill that said Newcombe and Smith be appointed receivers of the telegraph property of complainant and defendant in the state of Indiana; in other words, that the receivership in New York be by the order of the court extended so as to cover the property of the complainant and defendant in the state of Indiana. On the day of the filing of this bill, namely, the 4th of October, 1884, an order was made in said cause, whereby Newcombe and Smith were appointed receivers “of all and singular the lines, property, and assets, real, personal, or mixed, of the complainant, the said Bankers’ & Merchants’ Telegraph Company of Indiana, and respondent, the said Bankers’ & Merchants’ Telegraph Company of [963]*963New York, with the usual powers and duties of receivers,” etc., “including the power and authority to demand, sue for, collect, receive, and take into their possession all the goods, chattels, rights and credits, moneys and effects, lands and tenements, of every kind' and description, belonging to said complainant and respondent, or either of them, situated within the jurisdiction of this court, and manage and hold the same under the authority of this court.” The usual provision for a bond and an injunction followed in the order.

It may be assumed, from the showing of the record, that a corporation called the Merchants’ Telegraph Construction Company, or receivers thereof acting in its behalf, had, prior to the time of the appointment of the receivers by the New York court, seized in some way for debt the lines of the Bankers’ & Merchants’ Telegraph Company of New York, situated in Ohio. On the 3d day of November, 1884, the following order was entered in the supreme court of New York in the case of Day against the Bankers’ & Merchants’ Telegraph Company of New York:

“Upon the order herein, dated October 30, 1884, wherein John E. Ward, Esq., was appointed referee to take the testimony and proofs, and report thereon, with his opinion, in the matter of the Merchants’ Telegraph Construction Company, upon reading and filing said order, the petition of the receivers of the Bankers’ & Merchants’ Telegraph Company, upon which said order was granted, the referee’s oath herein, the testimony and proofs taken before said referee, and his report and opinion thereon, and due deliberation having been had thereon, and it appearing satisfactorily to the court that it is for the best interest of the Bankers’ & Merchants’ Telegraph 'Company, and those therein interested, that a redemption of the lines mentioned in said report should be had at once, it is, on motion of Joseph Fottreca, counsel for said receivers, ordered:
“(1) That the receivers of the Bankers’ & Merchants’ Telegraph Company be, and they are hereby, instructed to at once issue special receivers’ certificates, in an amount not exceeding one hundred and fifty thousand dollars, to be payable at such time as said receivers may think best, not exceeding two years from their date, and to be redeemable by said receivers at any time within said period, to bear interest at the rate of six per cent, per annum, payable semiannually, and to contain such conditions as may be deemed necessary and requisite, said issue of said certificates to be secured by a trust deed, in the nature of a first mortgage lien, for $150,000 on all the lines of telegraph at and between Freeport, in Ohio, and Hammond, in Indiana, and at and between Pittsburg, in Pennsylvania, and Indianapolis, in Indiana, with a branch to Cincinnati, in Ohio, and to cover all the intermediate points, and to be prior as a redemption debt-to every other lien, claim, or incumbrance thereon.
“(2) That of said issue of $150,000, an amount of $130,000 in said certificates, so secured, be delivered to said Merchants’ Telegraph Construction Company, or to such persons as it shall designate, in full liquidation and payment of the indebtedness of the Bankers’ & Merchants’ Telegraph Company to it, in relinquishment of the possession and substitution of the receivership of said construction company.
“(3) That the balance of said $150,000 in duplicate, to wit, $20,000, to be applied to the completion of the lines between Pittsburg and Indianapolis, and that the said receivers have such power and authority with reference thereto as is necessary to finish the construction thereof and place the same in working order.

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Related

In re Postal Tel. Cable Co.
85 F. 853 (Seventh Circuit, 1897)

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Bluebook (online)
80 F. 961, 26 C.C.A. 342, 1897 U.S. App. LEXIS 2278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/postal-tel-cable-co-v-vane-ca7-1897.