Terre Haute & Indianapolis Railroad v. Peoria & Pekin Union Railway Co.

167 Ill. 296
CourtIllinois Supreme Court
DecidedJune 23, 1897
StatusPublished
Cited by5 cases

This text of 167 Ill. 296 (Terre Haute & Indianapolis Railroad v. Peoria & Pekin Union Railway Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terre Haute & Indianapolis Railroad v. Peoria & Pekin Union Railway Co., 167 Ill. 296 (Ill. 1897).

Opinion

Mr. Justice Craig

delivered the opinion of the court:

In the conclusion of appellant’s argument reliance is placed upon three grounds to reverse the decree of the circuit court dismissing the bill, which are stated as follows: “First, appellant is entitled to the benefits and subject to the burdens of the Genis contract, and that appellee was proceeding in violation of the said contract when restrained by the writ of injunction herein; second, that appellee, in its relations to appellant, is a de facto union depot corporation, and amenable to the provisions of the Union Depot act against discrimination; and third, that appellee, if not subject generally to the provisions of the Union Depot act, is, by reason of its actings and doings in the premises, within the spirit and policy of this State against extortion and discrimination and in favor of uniformity and equality.”

The Genis contract is quite voluminous, occupying twenty-five pages of the printed abstract. The beginning of the contract is as follows: “This indenture, made this first day of February, Anno Domini one thousand eight hundred and eighty-one, between the Peoria and Pekin Union Railway Company, a corporation under the laws of the State of Illinois, party of the first part, and Louis Genis, as receiver of the Illinois Midland Railway Company, the said Louis Genis contracting as receiver of the Illinois Midland Railway Company, as aforesaid, and under the order of the Circuit Court of the United States for the Southern District of Illinois, for himself and his successors, as such receiver, and for said Illinois Midland Railway Company, or any purchaser of property of said company under decree of foreclosure that may be made by said court, if such company or purchaser shall desire to avail themselves of the same; whereas,” etc. The contract gave the receiver the use of the tracks and terminal facilities of the Peoria and Pekin Union Railway Company in and near the city of Peoria during the term of the receivership of Genis or his successor, with the right of the Illinois Midland Railway Company, or any purchaser or owner, at the termination of the receivership, to extend the contract for a period of fifty years from February 1, 1881.

The rights and privileges of Genis and his successor as to the use of the terminal facilities are fully set out in the contract, in consideration of which the party of the second part agreed to pay §13,000 per annum. There were also provisions for the payment of certain other sums for switching, etc., which have no special bearing on the questions involved. The contract also provided that any purchaser of the property in charge of the receiver,' under any sale made by virtue of any mortgage or deed of trust, or at any judicial sale thereof, might, at his option, by such sale acquire the rights of the party of the second part under the agreement, and be subject and bound by all its provisions.

The receiver, upon the execution of the contract, entered upon the use and occupation of the terminal facilities, as provided for in the contract, and continued to use the same from the date of the contract until about the first day of February, 1887, when the property of the Midland Railway Company was sold under a decree of foreclosure of the United States Circuit Court and purchased by the Terre Haute and Peoria Railroad Company. The latter company took possession of the property so purchased and the terminal facilities enjoyed by the receiver under the Genis contract, and operated the road from February, 1887, to October 1, 1892. It is admitted in the answer that the Terre Haute and Peoria Railroad Company enjoyed the use of the tracks and property mentioned in the Genis contract from 1887 to October 1, 1892, and paid the fixed rental charge of §13,000 per annum, payable in equal monthly installments. Whether there was any special agreement made by and between the Terre Haute and Peoria company and the Peoria and Pekin Union company in regard to the adoption of the Genis contract, except what may be inferred from the use of the terminal facilities and the payment of rent, does not appear. It does appear, however, that the following correspondence was had between the two companies:

“Decatur, Ill., February 7, 1887.
“T. B. Burnett, Gen. Supt. P. & P. U. Ry., Peoria:
“Dear Sir—The Illinois Midland railway having been turned over to the purchasers at the sale of September 30, 1886, the same will be at once given in charge of the company formed to operate it, herein known as the Terre Haute and Peoria Railroad Company. I desire to give notice of intention to call for a conference with reference to a change in running arrangements now existing with your company, so soon as the transfer is officially made to the last above named company. This notice is given with the understanding that you consider my present arrangement with your company a contract.
“Yours truly,
D. H. Conklin.”
“Peoria, Ill., February 21, 1887.
“D. H. Conklin, Esq., Gen. Man. T. H. & P. R. R., Decatur:
“Dear Sir—Referring to your letter of the 7th inst., the contract between this company and the receiver of the Illinois Midland railway provided that the purchaser of the property under the receiver’s charge, at any judicial sale, might, at his option, continue the contract for the full term of fifty years from February 1, 1881. As your company is the purchaser at judicial sale of the property, our company would like to be informed, as soon as may be convenient, whether you wish to take advantage of this option or not, which will decide whether there is a contract subsisting between us or not.
Yours tiuly,
t. b. Burnett, Gen. Supt.”
“Decatur, Ill., March 6, 1887.
“T. B. Burnett, Esq., Gen. Supt. P. & P. U. Ry., Peoria:
1 ‘Dear Sir—My note of 7th was intended as notice of desire to seek a modification of the Illinois Midland contract with your company, and which runs to its successor, the Terre Haute and Peoria railroad. I had hope of being able to spend a day with you before this, but care of new material now arriving keeps me here. It is possible I can get over and see you next week.
“Yours truly,
D. H. Conklin.”

Here the matter seems to have been dropped, and the Terre Haute and Peoria company continued in the possession and enjoyment of all the rights provided for by the Genis contract and paid the rents provided therein, which were received and accepted by the Peoria and Pekin Union company as it had previously received them from the receiver.

As has been seen, the Genis contract expressly gave any purchaser of the property under any sale made by virtue of a mortgage or deed of trust or any judicial sale, the right to acquire all rights held by the receiver under the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
167 Ill. 296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terre-haute-indianapolis-railroad-v-peoria-pekin-union-railway-co-ill-1897.