South Carolina Railroad v. Peoples' Saving Institution

64 Ga. 18
CourtSupreme Court of Georgia
DecidedSeptember 15, 1879
StatusPublished
Cited by5 cases

This text of 64 Ga. 18 (South Carolina Railroad v. Peoples' Saving Institution) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Carolina Railroad v. Peoples' Saving Institution, 64 Ga. 18 (Ga. 1879).

Opinion

Warner, Chief Justice.

The above stated cases were argued together here upon the following abstract of facts as contained in the record thereof:

The Peoples’ Saving Institution, a corporation created under the laws of the state of South Carolina, and doing business in the city of Charleston, on the 9th day of July, 1878, levied an attachment against the South Carolina Railroad Company, as a non-resident corporation, returnable to October term, 1878, of the superior court of Richmond county, on two lots of land, situate in said county, on the track with right to use horse power thereon, extending from lot first levied on through Washington street, Augusta, to the Georgia Railroad track, as granted under certain contracts with the city council of Augusta, and others, dated August 10, 1852, July 31, 1857, and June —, 1869, notice of the levy being served July 10, 1878, on F. K. Huger, in possession of property as agent of defendant, at the'office of defendant, and under said attachment caused process of garnishment to be served July 9, 1878, on the Geoi’gia Railroad and Banking Company, and on the Charlotte, Columbia and Augusta Railroad Company, and on July 10th on F. K. Huger, individually, and as agent at Augusta of the South Carolina Railroad Company, on July 16th on the Southern Express Company, and July 17, 1878, upon Wellington Stevenson. On the 21st of October it filed its declaration on said attachment, alleging, among other things, that said South Carolina Railroad Company was indebted to plaintiff $6,485.94, with interest from June 14, 1878, on a judgment obtained in the court of common pleas of the county of Charleston, South Carolina. The above men[20]*20tioned contracts are fully set forth in the bills of exceptions.

The Georgia Railroad Company and the Charlotte, Columbia and Augusta Railroad Company answered, denying any indebtedness. Their answers were traversed and exception taken to the latter. F. K. Huger answered, denying any indebtedness individually, and as agent stating disposition of effects in accordance with the orders of his superior officers. To this answer plaintiff filed a traverse and exceptions. The Southern Express Company answered, admitting an indebtedness of $1,108.72, and Wellington Stevenson an indebtedness of $30.00.

On the 25th of July, 1878, George W. Williams and others, all residents of Charleston, South Carolina, levied an attachment against the South Carolina Railroad Company, returnable to October term, 187S, of the superior court of Richmond county, upon the same property mentioned as the subject matter of levy in the first attachment; also on the bridge across the Savannah river, with the abutments, piers and privileges thereof. Notice of this levy was served upon Frank K. Huger, in possession of the property as agent of defendant, at the office of the defendant, July 25, 1878. On the 21st of October, 1878, they filed their declaration on said attachment, alleging, among other things, an indebtedness to plaintiffs of $43,065.21, besides interest.

An order was taken during the term allowing defendant further time to file pleas to both of the aforementioned cases, which, in pursuance of the order, were filed on the 28th of February, 1879, being sworn to by John H. Fisher, receiver of the South Carolina Railroad Company.

The material facts as set forth in the pleas are, that Cyrus Gatewood et al. filed on the 5th day of July, 1878, a bill in the United States circuit court for the district of South Carolina against the South Carolina Railroad Company, and other defendants, among whom were the plaintiffs in the second above named attachments; for the foreclosure of a [21]*21mortgage, usually known as the second mortgage of the South Carolina Railroad Company, and the appointment of a receiver. On the same day the court issued its order, which was served on the same day on the South Carolina Railroad Company and the plaintiffs named in the second of the foregoing mentioned attachments, enjoining the delivery of any property of said company, save to a receiver to be appointed by the court. On the 26th of July, 1878, the complainants in said bill amended the same, making the Peoples’ Saving Institution a party defendant to said bill, and on said 26th of July the said Institution was served with a copy of same, and said Institution has since appeared and answered. On the 19th of September, 1878, the said | United States circuit court for the district of South Caro- I lina, appointed John H. Fisher receiver, with directions to ! defend all existing actions against the South Carolina Rail- / road Company, and all that might thereafter be brought/ against the company or himself.

The order appointed him receiver of the entire property embraced in the trust deed (the mortgage) set forth in complainants’ bill, and this embraced all the property described in the levies of the attachments, and also of all the earnings and income of or from said property, whether the same may have accrued before or since the 5th day of July, 1878.

On the 31st of July, 1878, the complainants in said bill filed their auxiliary bill in the United States circuit court! for the southern district of Georgia, and on the 10th day of December, 1878, the said circuit court for the southern district of Georgia passed an order appointing the said John H. Fisher receiver of all property embraced in the trust deed (a mortgage) mentioned in complainants’ bill, as is in the state of Georgia, and of all the earnings or income of or from said property, whether the same may have accrued before or since the 5th day of July, 1878, and with all the powers, privileges, rights, liabilities and duties imposed upon said receiver by the circuit court of the United States for the district of South Carolina.

[22]*22It is declared to be the intent and meaning of this order to confirm and adopt the order of the appointment of the United States court for the district of South Carolina, so far as the circuit court for Georgia has jurisdiction in the premises.

The receiver is also directed to make a report of his actings and doings under the Georgia confirmatory order to the United States court for South Carolina.

The mortgage for the foreclosure of which the bill was filed, was a second mortgage of the South Carolina Railroad Company, dated 1st day of October, 1872. It conveyed to the trustees therein named the entire property of said company, whether in Georgia or South Carolina, for the purpose of securing the mortgage bondholders, subject to the lien of the first mortgage of said company, bearing date the first day of July, 1808. These appear as set forth in the amended bill, made a part of the bills of exceptions in these cases. All of the bonds provided for by said mortgages or deeds of trust have been issued and are now outstanding.

The attachment of the Peoples’ Savings Institution was based on a judgment obtained by said Institution in the court of common pleas for the county of Charleston and state of South Carolina, on the 14th day of June, 1S78, (see declaration in attachment) for $6,485.94. This judgment was a balance due on a note dated October 6, 1877, (long subsequent to the execution of the second mortgage) payable January 7, 1878, for $14,000. Said note was secured by a pledge of 56 second mortgage bonds, each bearing plainly printed on its face and indorsed on its back, second mortgage bonds of the South Carolina Railroad Company.” They were received as security for said note, with full knowledge that they were bonds secured by a second mortgage of its property.

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Bluebook (online)
64 Ga. 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-carolina-railroad-v-peoples-saving-institution-ga-1879.