Sherwood v. Atlantic & Danville Railway Co.

26 S.E. 943, 94 Va. 291, 1897 Va. LEXIS 76
CourtSupreme Court of Virginia
DecidedFebruary 11, 1897
StatusPublished
Cited by18 cases

This text of 26 S.E. 943 (Sherwood v. Atlantic & Danville Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sherwood v. Atlantic & Danville Railway Co., 26 S.E. 943, 94 Va. 291, 1897 Va. LEXIS 76 (Va. 1897).

Opinion

Keith, P.,

delivered the opinion of the court.

Sherwood and others presented their petition to this court praying that a writ of mandamus might issue requiring the Atlantic & Danville R. R. Oo. to replace its tracks from Shoulders Hill to its former terminal station in the city of Portsmouth, and re-establish it as the terminal station of its line, and to establish and maintain.its general offices, freight and passenger depots, within the city of Portsmouth, Ya.

To this petition the Atlantic & Danville R. R. Oo. Sled its answer, and depositions were taken upon behalf both of petitioner and respondent.

.From the pleadings and proofs it appears that the Atlantic & Danville R. R. Oo. was incorporated by an act of the General Assembly of Yirginia, approved April 21, 1882 (Acts [293]*2931881-2, p. 467), as amended by acts of February 24, 1886 (Acts 1885-6, p. 214), and May, 1887 (Acts of the Extra Session, 1887, p. 188). By its charter the railroad company was empowered, among other things, to construct, equip and maintain a railway “from any point on its main line east of the town of HicKsford, through the counties of Greenville, Sussex, Southampton, Nansemond, Isle of Wight, and Norfolk, or any and all of them, to a point on the Elizabeth river in or near the city of Norfolk, or in or near the city of Portsmouth; and also to construct branch roads in this State, none of which shall exceed sixty-five miles in length.” The road from a point on the main line east of Hicksford through the counties just mentioned to West Norfolk, a point on Elizabeth river in Norfolk county, was constructed and put in operation by virtue of the charter and the several acts amendatory thereof. On the 7th of September, 1887, the railroad company executed a mortgage conveying all its works, property and franchises then owned, or thereafter acquired, to the Mercantile Trust Company, as trustee, to secure the payment of the bonds and coupons of the railroad company. After the completion of the road to West Norfolk, a point on Elizabeth river in the county of Norfolk, about seven miles distant from Shoulders Hill, negotiations were entered into between the railroad company and the city of Portsmouth, by which, in consideration of the city of Portsmouth agreeing to subscibe fcr $150,000 of the capital stock of the company, and to issue the bonds of the city payable in thirty years in payment of said subscription, the railroad company undertook to lay down its track from Shoulders Hill, which was also about seven miles from the city of Portsmouth, and to establish its terminals upon the property of the Seaboard Cotton Press Company in the said city, and to locate its general offices, freight and passenger depots, round houses, shops and freight yards, within or adjacent to the city limits. The railroad company further agreed to abolish the passenger transfer [294]*294business then existing between Norfolk and West Norfolk, and to do its passenger and local freight business through Portsmouth exclusively.

In pursuance of authority conferred upon it by the General Assembly, the city of Portsmouth ordered an election to be held to ascertain the sense of the voters upon this proposition. The election was held, the offer of the company was accepted, the bonds were issued, the road was built from Shoulders Hill to the Seaboard Cotton Press Company, and the offices, freight and passenger depots, and shops, were located in accordance with the contract, which seems to have been executed fully and in good faith by both of the parties thereto for some years thereafter. This arrangement appears to have been advantageous to the city of Portsmouth. The company, however, never prospered. From causes which need not be discussed it became embarrassed, and finally bankrupt, and on the 3d of January, 1891, JB. N.ewgass & Co., having obtained a judgment against it for a very large sum, instituted in the Circuit Court of the United States for the Eastern District of Yirginia, a suit for the sale of the property for the purpose of satisfying their judgment, and caused the property to be placed in the hands of Alfred P. Thom and Charles B. Cromwell, as receivers of the said Circuit Court. In the mean time, default having been made in the payment of the interest upon the bonds secured by the mortgage to the Mercantile Trust Company, that company became co-plaintiff in the suit; and such proceedings were had in the cause that on the 20th of November, 1893, a decree was entered for the sale of all the property and franchises of the Atlantic A Dan-ville Railroad Company.

Pursuant to the terms of the decree, a sale was made on the 3d of April, 1894, and at the sale B. Newgass A Co., one of the complainants, and O. H. Edinger, became the purchasers, and the sale was confirmed by a decree entered on the 26th day of April, 1894. By this decree Alfred P. Thom, [295]*295who, by the death of Charles B. Cromwell, had become the sole receiver of the property, was ordered to continue to operate the line of railway after the sale and until the conveyance and delivery of it was made to the purchasers, at their risk and for their benefit.

On August 1, 1894, an order was made in the cause which directed that the premises and property should be delivered to the purchasers, and that a conveyance should be executed of all the works, property, and franchises of the railroad company. On the 2d day of August, 1894, a conveyance was executed in accordance with the terms of the decree, and the purchasers adopted in the deed the corporate name of the Atlantic & Danville Railway Company, the name of the old corporation, in accordance with the statute of Yirginia in such cases made and provided, and the Atlantic & Danville Railway Co. became a corporation in the State of Yirginia, and has since operated said railway.

After the sale had been made and confirmed to the purchasers, and before the execution of the deed, to-wit, on the 16th day of June, 1894, the purchasers requested the receiver to *ake immediate steps to abandon the Portsmouth terminal, which request the receiver submitted to the court; and thereupon the court entered a decree that the receiver “be and is hereby permitted to abandon the city of Portsmouth as the terminus of the Atlantic & Danville Railway Company, and the use of the street leading to the terminus in said city, and so much of the route between Shoulders Hill and Portsmouth as he may think advisable.” This order was entered on the 16th day of June, and on the 27th day of June, 1894, the re« ceiver, pursuant to the order, abandoned the city of Portsmouth as the terminus of the railway company, and the line leading to its terminal station in the city, and removed from the city of Portsmouth all the railroad tracks of the company, its shops, and round houses, and from that time the company has failed and refused to replace the tracks and to establish [296]*296and maintain the said offices, shops, and round houses within the limits of the city of Portsmouth.

It further appears that the purchasers were fully informed at the time of the purchase of all that had taken place between the city of Portsmouth and the railway company with respect to the subscription to the stock, the issue of the bonds and of the consideration moving from the railway company.

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Bluebook (online)
26 S.E. 943, 94 Va. 291, 1897 Va. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sherwood-v-atlantic-danville-railway-co-va-1897.