70 F. 641 | U.S. Circuit Court for the District of Southern New York | 1895
Motion is now made; upon the report of the special master, filed November 7, 1895, to confirm and make absolute the sale of the railroad, property, and franchises of the Yew York, Lake Erie & Western Railroad Company, under foreclosure of the second consolidated mortgage, of which the Farmers’ Loan & Trust Company is trustee. No opposition is made by any
. Park claimed that by special contract, made when he loaned to the defendant railroad the money for which he sued, he was given an express lien upon accrued earnings and income. He did not seek to disturb any liens superior to his own, but' it was competent for the court, by decree in his suit, to sell thq property subject to all superior liens, and distribute the proceeds equitably among all entitled thereto. The jurisdiction of the federal courts to take possession of railroad property, and appoint receivers, under circumstances such as were shown in the Park case, and, in advance of application, to foreclose mortgage, is abundantly supported in the following cases: Brassey v. Railroad Co., 19 Fed. 669, 670; Central Trust Co. v. Wabash, St. L. & P. Ry. Co., 29 Fed. 623; Railroad Co. v. Humphreys, 145 U. S. 113, 12 Sup. Ct. 795; Sage v. Railroad Co., 125 U. S. 361, 8 Sup. Ct. 887; Brown v. Iron Co., 134 U. S. 530, 10 Sup. Ct. 604; Scott v. Neely, 140 U. S. 106, 11 Sup. Ct. 712; Hollins v. Iron Co., 150 U. S. 380, 14 Sup. Ct. 127.
Having acquired jurisdiction of the property, ‘and having appointed receivers with the express consent of the defendant railroad, the court does not lose jurisdiction when other persons interested therein come in, and are made parties, even though some of them be citizens of the same 'state with those whose interests in the same property are adverse to the.interveners; for, when property is in the actual possession of a federal circuit court, this draws to it the right to decide upon conflicting claims as to its ultimate possession and control. Morgan’s L. & T. R. & S. S. Co. v. Texas
The Farmers’ Loan & Trust Company intervened in the Park suit, and filed a cross bill, and its independent suit to foreclose was consolidated with Park’s suit. There seems no good reason, then, why the court which originally acquired jurisdiction to care for and dispose of the property in a controversy between citizens of different states should not retain such jurisdiction to dispose of the claims of all parties appearing, whatever their citizenship.
The motion is granted.