72 Me. 83 | Me. | 1881
Tbe three parcels of real estate in Bangor referred to as tbe Hinckley, Lord, and Lord and Yeazie lots, tbe European and North American Eailway Company, in tbe fall of 1870, contracted in writing to purchase. Possession was then taken by tbe corporation, and has been retained by those in charge of tbe railroad from that time to tbe present. Tbe payments required by the contracts were made by that company, and afterwards by tbe consolidated company, and by tbe trustees under each mortgage during tbe period of their possession. Tbe premises have been used and improved at considerable expense for depot grounds; tbe principal improvements having been made before consolidation.
Tbe contracts were assigned by tbe European and North American Eailway Company, September 12, 1870, to Jewett, Woods and Emery, to secure them against liability as indorsers on tbe first three of tbe notes given in each instance for tbe purchase money. But those notes were paid at maturity, tbe liability of tbe indorsers was at an end, and their right to bold tbe collateral ceased. Tbe assignment bad served its purpose. Tbe interest it conveyed was commensurate only, in degree and in duration, with tbe liability it secured.
Tbe course of reasoning employed in tbe previous case, Hamlin et al. Trustees, v. Jerrard, leads directly to tbe conclusion, that tbe mortgage to tbe complainants in tbe first of these bills in equity, as trustees, operated upon tbe inchoate right of tbe
Nor do we think a different rule applies, as to the payments made by the consolidated company upon these contracts during the period of its possession. Such payments stand upon the same footing as improvements made by that company upon the buildings and grounds. Its position, in reference to the plaintiffs as trustees and to the mortgaged property, is in some respects more truly defined by saying that it is its predecessor in title under a new name (and something more), than by regarding it merely as the assignee of the original company. It took the entire property, subject to incumbrances, and assuming the debts.
It is not doubted, that an interest in these contracts passed to the consolidated company by the terms of the articles of union. It would be to that company that the conveyances should be made, when the terms wrere fulfilled on which the contractors were obliged to give the deeds, unless a legal foreclosure of the plaintiffs’ mortgage had changed their interest as mortgagees into an absolute title. But a conveyance to the consolidated company, prior to foreclosure, would inure to the benefit of the plaintiffs, to the extent of their mortgage.
The Crosby lots were purchased and paid for by the European and North American Railway company, and the deed was delivered to them, before consolidation. The object of the purchase was to secure adequate terminal facilities and space for engine and car bouses, and other railroad accommodations. The road was located to and upon them, but was built only to within about four hundred and seventy yards, and the time for building under the charter, has expired. Eor all that appears, they were bought in good faith, in the exercise of the best judgment of the officers then, and for railroad purposes, at a time when the company bad a right and expected to build to them. The mortgage took effect upon them. That the expectations of business have not been realized, that the right to use them in direct connection vyith the road, without further legislative authority, has expired, does not relieve them from the incumbrance. They are claimed still, on grounds that the evidence would scarcely enable us to deny, to be necessary for the fixture development of tbe railroad. We could not say from the testimony, that the purchase was, at the time, an extravagant and unreasonable one. The case of a railroad holding more property for its own purposes than its present needs demand, is entirely different from .one in which the company buys
The complainants in the first bill are entitled to an injunction against all the respondents named therein and in the amendment, restraining them from any interference with the complainants’ possession and control, as mortgagees, of the real estate therein described, and from any resistance of the complainants’ title to the same, to the extent of the trusts declared in the mortgage; the injunction to be made perpetual and without the limitation just stated, if the interest and title of the complainants has or shall become absolute by a legal foreclosure. The second bill is dismissed.
Decree accordingly.