Wilson v. Mitchell

43 Fla. 107
CourtSupreme Court of Florida
DecidedJanuary 15, 1901
StatusPublished
Cited by9 cases

This text of 43 Fla. 107 (Wilson v. Mitchell) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Mitchell, 43 Fla. 107 (Fla. 1901).

Opinion

Carter, J.

A bill in equity was filed September 14, 1895, in the Circuit Court of Leon Cocunty by Samuel B. O. Wilson, suing in behalf of himself and other holders of certain bonds who might come in, prove their claims and share in the costs of litigation, against Henry L. Mitchell, Governor of the State of Florida, William B. Lamar, Attorney-General of said State, W. D. Bloxham, Comptroller of said State, C. B. Collins, Treasurer of said State, [109]*109L. B. Wombwell, “who,” the bill alleges, “áre sued' as the trustees of the Internal Improvement Fund of the State of Florida, a body corporate created and existing under the laws of Florida.” The bill alleges that complainant is the owner of two bonds for $1,000 each issued by the Florida, Atlantic & Gulf Central R. R. Co., on April 26, 1859, in accordance with the provisions of the Internal Improvement Act, and that said bonds were part of an issue of like tenor and date limited to $10,000 per mile of said road, and that the Internal Improvement Fund was especially charged with the payment of the interest coupons attached to the bonds; that the railroad company paid to the Trustees of the Internal Improvement Fund for several years after said issue of bonds large sums as a sinking fund, for the redemption thereof, the precise amount being unknown to complainant; that in 1868 said railroad company having made default in the payments to said trustees as required by the terms of said internal improvement act, they caused the roadbed, iron, equipments, workshops, depots and franchises of said company to be seized and sold for payment of the arrears then due to the sinking fund, said sale being made in accordance with the provisions of section 3 of said act; that they received the sum of $111,000 from said sale, $83,200 of which they invested in the purchase of bonds of said company of the issue before mentioned with coupons attached; that said trustees then purchased all of said bonds except twenty-nine, and that twenty-one or twenty-two are still’ outstanding, seven having been subsequently purchased by the trustees; that after said sale the railroad company ceased to have any organization or corporate existence and its property and fran[110]*110chises passed into the hands of another corporation and was operated by said last named corporation and its successors down to October, 1885, when it went into the hands of a receiver of the United States Court; that for five or six years last passed said railroad property has been owned and operated by the Florida Central & Peninsular R. R. Co.; that from the date of the sale of said road in March, 1868, down to its seizure by a Receiver of the United States Court on the first day of October, 1885, no attempt was made by the Trustees to enforce on the part of the owners of said road the payment of one-half of one per cent, semi-annually to the sinking fund as required by section 3 of said act, nor have they ever attempted to annul said contract of purchase as it was their duty to do, in case of failure to make said payments; that by the terms of section 2 of said act the individual property of each of the directors of the Florida Atlantic & Gulf Central R .R. Company was made liable in an action of debt to said Trustees for the amount due and unpaid with twenty per cent, interest until paid, but said trustees have never sought to hold the individual property of said directors liable; that the only effort ever made by said trustees since the sale in 1868 to discharge the duties imposed upon them by the law under which said bonds were issued and which said duties were prescribed for the protection of the holders of said bonds, was the commencement of a suit in chancery in the Circuit Court of Duval county, on February 19, 1889, against the Florida Central & Peninsular R. R. Co., the present owners of the road, and said suit has been permitted To drag along ever since and never has been brought to a hearing; that said bonds were due and [111]*111payable on September 1, 1892, and if the trustees had discharged their duties in accordance with the provisions of said act from the time of their issue until the time they became due and payable, they would have been in possession of ample funds to have paid all of said outstanding bonds, when the same became due; that appellant demanded payment from said trustees of his said bonds, and on July 16, 1895, they paid his $319.17 upon each but refused to pay the balance, and that the balance of the principal, with interest from September 1, 1892, still remains unpaid.

The bill prays that an account be taken as to what is due appellant and such other holders of the same issue of bonds as may come in, ¡make thifemselves parties and prove their claims, and that an account be taken of the sinking fund in the hands of the trustees or which should be in their hands if the trustees had discharged their duties in accordance with the provisions of said act and that the trustees be required to pay the balance of the principal and overdue interest upon the bonds of appellants and all other bonds of that issue outstanding whose owners should come in, prove their claims and share in the costs of the suit, and for general relief. A copy of one of the appellant’s bonds was attached and made part of the bill.

On December 2, 1895, a paper purporting to be the plea of Henry L. Mitchell, Governor; William D. Bloxham, Comptroller; C. B. Collins, Treasurer; Lucius B. Wombwell, Commissioner of Agriculture, and William B. Lamar, Attorney-General, of the State pf Florida, as Trustees of 'the Internal Improvement Fund of said [112]*112State, to the whole bill was filed, 1 which alleges that the parties named were the Trustees of the Internal Improvement Fund, each being such trustee in and by virtue of the said several offices held by them respectively, and not otherwise; that the said Bloxham had been Comptroller since May 1, 1890, Womb well, Commissioner of Agriculture, and Lamar, Attorney-General, since the first Tuesday after the first Monday in January, 1889, and Mitchell, Governor, and Collins, Treasurer, since the first Tuesday after the first Monday in January, 1893; Bloxham, Wombwell and Lamar having each begun a second term of their respective offices on the day last mentioned; that all of the Florida, Atlantic. & Gulf Central R. R. bonds purchased by the Trustees of the Internal Improvement Fund at any time with, said $111,000, or any part thereof, were cancelled under the provisions of the third section of the act of the legislature mentioned in the bill,' except seven, of the twenty-nine bonds mentioned in the bill, said seven bonds having been purchased between February 4th, 1882, and May 18th, 1884, with a part of a balance of $5,000 of said $111,000, by predecessors of defendants in said trust and incorporated by them into the sinking fund of the then outstanding twenty-nine Florida, Atlantic & Gulf Central Railroad bonds; that said seven bonds and the other investments made of said $5,000 and the income from such investments are all the assets or funds which have at any time been received or held by defendants applicable to the payment of the principal of said outstanding Florida, Atlantic & Gulf Central Railroad Company bonds, and the payment made by defendants as, stated in the bill' on each of the bonds now ' sued on [113]

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Bluebook (online)
43 Fla. 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-mitchell-fla-1901.