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      "The Peoria and Springfield Railroad Company v. William F. Bryan et al."
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      {
        "text": "Pee Curiam.\nWe find one error in this case that must reverse the decree, and which also renders it unnecessary to examine the merits of the cause. Upon examination of the cross-bill filed by the defendant company we find that it sets up new matter which is intimately connected with the subject-matter of the original bill, and which if true as alleged entitles the defendant to affirmative relief.\nThis cross-bill was stricken from the files by the court below, and the defendant, upon special application to the court was refused the right to re-file and prosecut\u00e9 it.\nWe are unable to say that all the facts were as fully shown as they would have been if the defendant had been allowed to investigate the same under the allegations of its cross-bill.\nThe case is very like that of Jones v. Smith, 14 Ill. 229, upon this point, where such action of the court was held erroneous.\nFor this error the decree will be reversed, and the cause remanded.\nDecree reversed.",
        "type": "majority",
        "author": "Pee Curiam."
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    "attorneys": [
      "Mr. B. S. Prettyman and Messrs. Bloomfield & Hughes, for plaintiff in error;",
      "Messrs. Hopkins & Morbon, Mr. L. W. Jambs and Mr. William F. Bryan, for defendants in error,"
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    "head_matter": "The Peoria and Springfield Railroad Company v. William F. Bryan et al.\nPractice in chancery\u2014Cross-bill \u2014Where the cross-bill of the defendant sets up new matter which is intimately connected with the subject-matter of the original bill, and which if true as alleged entitles the defendant to affirmative!relief, it is error to strike it from, the files and refuse leave to defendant to refile and prosecute it.\nError to the Circuit Court of Peoria county; the Hon. J. W. Cochran, Judge, presiding.\nOpinion filed January 7, 1880.\nMr. B. S. Prettyman and Messrs. Bloomfield & Hughes, for plaintiff in error;\nthat the assignee of commercial paper secured by mortgage, tabes it subject to all defenses in a court of equity that exist between the maker and payee, cited Olds v. Cummings, 31 Ill. 189; Haskell v. Brown, 65 Ill. 29; Thompson v. Shoemaker, 68 Ill. 256; Bryant v. Vix, 83 Ill. 11; Sargent v. Howe, 21 Ill, 148; Kleeman v. Frisbie, 63 Ill. 482.\nA defense at law could be interposed to these bonds, because they have never been transferred by indorsement: Peck v. Bligh, 37 Ill. 319; Garvin v. Wiswell, 83 Ill. 215; First Nat. Bank v. Strang, 72 Ill. 559; Smith v. Bridges, Breese, 18; Mayo v. Chenowith, Breese, 200; Sappington v. Pulliam, 3 Scam. 385; Walters v. Short, 5 Cilm. 252; Adams v. King, 16 Ill. 169.\nThe bonds were void for want of delivery to the payee: Ed-war Is on Bills, 188; Chamberlain v. Hopps, 8 Vt. 94; Hunt v. Weir, 29 Ill. 83; Foy v. Blackstone, 31 Ill. 538; Ludwig v. McKee, 32 Ill. 28.\nThe bonds were detained by collusion, and fraudulently divided between T. and his partner: Chipman v. Tucker, 38 Wis. 43; Roberts v. McGrath, 38 Wis. 52; Roberts v. Wood, 38 Wis. 60.\nWant or failure, in whole or in part, of consideration, may he set up as a defense to the bonds on a foreclosure; Wearse v. Pierce, 24 Pick. 141; Conwell v. Clifford, 45 Ind. 392; Smith v. Newton, 38 Ill. 230; Weaver v. Watson, 48 Ill. 125.\nThe present bondholders get no better rights than the parties from whom they received them: Schafer v. Reilly, 50 N. Y. 61; Mullison\u2019s Est. 68 Pa. St. 212; Craver v. Wilson, 14 Abb. Pr. 274; 1 Jones on Mortgages, \u00a7 612.\nNo indebtedness arose, because the contract was not completed: Finegan v. Engle, 8 Fla. 413; Boody v. Rutland R. R. Co. 24 Vt. 660; Cox v. W. P. R. R. Co. 44 Cal. 18.\nT., as director of the railroad company could not waive any of its rights against T. G-. & Co., of which he was a member, so as to estop the railroad company: Bank v. Norton, 1 Hill, 572; Salem Bank, v. G. Bank, 17 Mass. 1; Fulton Bank v. N. Y. & S. Canal Co. 4 Paige, 127; Boom v. City of Utica, 2 Barb. 104; Wright v. Ga. R. R. Co. 34 Ga. 330; Stewart v. Huntington, 11 Serg. and R. 267; Crump v. U. S. Mining Co. 7 Gratt. 352; Walworth v. F. L. & T. Co. 14 Wis. 325; Blen v. B River Co. 20 Cal. 602; Farmers\u2019 Bank v. McKee, 2 Pa. St. 318; Bacon v. Miss. Ins. Co. 31 Miss. 116; Olney v. Chadsey,\n7 R. I. 224; Brown v. Appleby, 1 Sandf. Ch. 158; McEvers v. Lawrence, Hoffman\u2019s Ch. 172; 1 Abb. Dig. Cor. 528.\nA ratification of unauthorized acts of its officers can only be made by the corporation itself: State of Illinois v. Delafield, 8 Paige, 527; Jewett v. Alton, 7 N. H. 253; Reg. v. Overseers, etc. 40 E. L. & Eq. 145.\nNone of the acts of the company\u2019s officers constitute an estoppel: Bigelow on Estoppel, 480; Ball v. Hooten, 85 Ill. 159; Chandler v. White, 84 Ill. 435; St. J. Mfg. Co. v. Daggett, 84 Ill. 556; Wade v. Bunn, 84 Ill. 117.\nAppointment of a receiver suspends corporate functions: High on Receivers, \u00a7750; Gravestein\u2019s App. 49 Pa. St. 310.\nIt was error to order a sale of the railroad on credit, without redemption: Rev. Stat. 1874, 623; Farrell v. Parler, 50 Ill. 274; Wolf v. Hogden, 24 Ill. 525; Karnes v. Lloyd, 52 Ill. 113.\nIt was error to strike the cross-bill from the files: Higgins v. Curtiss, 82 Ill. 28; Jones v. Smith, 14 Ill. 229; McConnell v. Hodson, 2 Gilm. 640; Ballard v. Underhill, 3 Scam. 453; Hill\u2019s Chancery, 175.\nMessrs. Hopkins & Morbon, Mr. L. W. Jambs and Mr. William F. Bryan, for defendants in error,\nagainst the right to interpose defenses to the bonds in the hands of an assignee, cited 1 Daniell on Negotiable Instruments, \u00a7 834; 2 Jones on Mortgages \u00a7 1485; Carpenter v. Logan, 16 Wall. 271; Endicott v. Supervisors, 16 Wall. 458; Taylor v. Perry, 6 Allen, 86; Pierce v. Force, 47 Me. 507; Reeves v. Smiley, Walker\u2019s Chancery, 248; - v. Grayville, 2 Mich. 387; Bloomer v. Henderson, 8 Mich. 395; Fisher v. Otis, 3 Chand. 83; Martin v. McCullom, 4 Chand. 153; Croft v. Bunster, 9 Wis. 503; Cornell v. Hutchins, 11 Wis. 353.\nThe railroad company has contracted itself out of its right to set up equities: Green\u2019s Brice on Ultra Vires, 163; McElrath v. P. & S. R. R. Co. 55 Pa. St. 206; Sappington v. Pulliam, 3 Scam. 386; Rumball v. Met. Bank, 20 Eng. R. 194; Crouch v. Credit Foncier, 6 Eng. R. 107; Johnson v. Stark Co. 24 Ill. 85; City of Pekin v. Reynolds, 31 Ill. 530; Jones v. Nellis, 41 Ill. 482; Garvin v. Wiswell, 83 Ill. 215; Smith v. Johnson, Breese, 18; Mercer Co. v. Hackett, 1 Wall. 83; Gelpecke v. Dubuque, 1 Wall. 206; Mussey v. Lardner, 2 Wall. 205; White v. V. & M. R. R. Co. 21 How. 577; Commonwealth v. Pittsburg, 34 Pa. St. 519; Commonwealth v. Allegheny Co. 37 Pa. St. 237; 2 Parsons on Notes, 33; Storey on Prom. Notes, \u00a7 43; 1 Daniell on Negotiable Instruments, \u00a7 99; Illinois v. Delafield, 8 Paige, 527; Bank of Rome v. Rome, 19 N. Y. 30; Brainerd v. N. Y. & N. H. R. R. Co. 25 N. Y. 496; Andrews v. Pond, 13 Pet. 65; Bell v. Bruen, 1 How. 169.\nBeing payable to the holder or bearer, the payee of the bonds is any person who comes into lawful possession of them: 1 Parsons on Bills, 30; 1 Daniell on Negotiable Instruments, \u00a799; Story on Prom. Notes, \u00a7 43.\nHaving been negotiated in the ordinary course of business, without notice, the bonds are unaffected by any irregularities in their delivery: Jones v. Nellis, 41 Ill. 482; Shipley v. Carroll, 45 Ill. 285; Clark v. Johnson, 54 Ill. 296; Garvin v. Wiswell, 83 Ill. 515; Murray v. Lardner, 2 Wall. 110; Stanton v. A. & C. R. R. Co. 2 Woods, 523; 1 Daniell on Negotiable Instruments, \u00a7 769; 2 Parsons on Notes, 42.\nThe burden of proof is upon defendant to show that plaintiffs are not Iona fide holders of the bonds: Swift v. Tyson, 161 Conn. 1; Murray v. Lardner, 2 Wall. 110; 2 Daniell on negotiable Instruments, \u00a7 1503; 1 Parsons on notes, 255.\nThe assignee of a note secured by mortgage takes the latter subject only to the same defenses as the instrument, to secure which it was made, is subject: 1 Jones on Mortgages, \u00a7 834; 1 Hilliard on Mortgages, 171: Carpenter v. Longan, 16 Wall. 275; Mercer county v. Hackett, 1 Wall. 83; City of Elizabeth v. Force, Monthly Jur. Dec. 1878; Cushman v. Stone, 69 Ill. 516.\nThe same is true of railroad bonds and mortgages: Palmer v. Forbes, 23 Ill. 301; McElrath v. P. & S. R. R. Co. 55 Pa. St. 306; 2 Story\u2019s Eq. Jur. \u00a7 1047; Galveston R. R. v. Cowdrey, 11 Wall. 477; Perry on Trusts, \u00a7 749.\nA railroad bondholder, if denied his remedy upon his deed of trust, is without recourse; he cannot levy an execution upon the railroad: Pennock v. Coe, 23 How. 117; Ammanet v. N. A. & P. T. Co. 13 Serg. & R. 212; Susquehanna Co. v. Bonham, 9 Watts & S. 27; Janus v. R. & G. P. R. Co. 8 Mich. 91; 2 Bedfield on Railways, 553.\nIf the bonds got into circulation and reached the hands of innocent holders by the fault or negligence of the railroad company, there is still a valid delivery and the loss must fall upon the corporation whose negligence caused it: Shipley v. Carroll, 45 Ill. 285; Jones v. Nellis, 41 Ill. 482; Harvey v. Smith, 55 Ill. 224; Yocum v. Smith, 63 Ill. 321; Clark v. Johnson, 54 Ill. 296; Garvin v. Wiswell, 83 Ill. 215; Murray v. Lardner, 2 Wall. 110; 2 Parsons on Contracts, 42.\nCorporations, like individuals, cannot defeat claims their own conduct has superinduced: Supervisors v. Schenck, 5 Wall. 772; Galveston R. R. Co. v. Cowdrey, 11 Wall. 476; Zabriskie v. C. C. & C. R. R. Co. 23 How. 400; 2 Black, 722; 1 Daniell on Negotiable Instruments, \u00a7 859.\nIt was the duty of the corporation to use all reasonable effort to protect purchasers from investing in securities claimed to have been fraudulently issued; 3 Cent. Law Jour. 24; Bigelow on Estoppel, 501; Kneeland v. Gilman, 24 Wis. 49; Town v. Parkersburg R. R. Co. 17 Am. Rep. 545; President, etc., Gloucester Bank v. Salem Bank, 17 Mass. 45; Higgins v. Ferguson, 14 Ill. 269.\nThe railroad company is estopped by recitals in the bonds: Johnson v. County of Stark, 24 Ill. 85; President, etc. Keithsburg v. Frick, 34 Ill. 405; Supervisors, Mercer Co. v. Hubbard, 45 Ill. 139; Rumbell v. Met. Bank, 20 Moak, 280; State of Ohio v. Van Horn, 7 Ohio St. 327; Cook v. Tullis, 18 Wall. 332; Hoyt v. Thompson, 19 N. Y. 218; Trundy v. Farrar, 32 Me. 225; Supervisors v. Schenck, 5 Wall. 782; Com\u2019rs Knox Co. v. Aspinwall, 21 How. 545; Peterson v. Mayo, 17 N. Y. 453; Bank v. Dandridge, 12 Wheat. 70; 4 Otto, 202; 1 Daniell on Negotiable Instruments, 316.\nThe authority of an agent to bind a corporation need not be shown by a resolution, but may be implied from facts and circumstances: Angell & Ames on Corporations, 281; Kneeland v. Gilman, 24 Wis. 49; Argentine v. San Francisco, 16 Cal. 255; Hooker v. Bank of Rochester, 30 N. Y. 84; Howe v. Keeler, 27 Conn. 538; Town v. Parkersburg R. R. Co. 17 Am. Rep. 546; Hart v. Stone, 30 Conn. 94.\nThere was no error in the decree that the railroad should be sold on credit without redemption: Rev. Stat. 203; 1 Jones on Mortgages \u00a77; Warner v. Helm 1 Gilm. 220; Johnson v. Donnell 15 Ill. 97; Homer v. Zimmerman 45 Ill. 14; Sheldon v. Patterson, 55 Ill. 507; Wilson v. Geisler, 19 Ill. 49; Vansant v. Allmon 213 Ill. 30; Edgerton v. Young, 43 Ill. 464.\nThe laws of Illinois existing at the time of the execution of the deed of trust entered into and became a part of the contract: Bronson v. Kinzie, 1 How. 311; McCracken v. Hayward, 2 How. 412; Constitution, Art. 2, \u00a7 14.\nBailroad turnpikes, etc., are not subject to seizure and sale on execution at law, unless made so by statutes: Stewart v. Jones, 40 Mo. 140; Youngman v. E. & W. R. R. Co. 65 Pa. St. 278; Ammanet v. President, etc., 13 Serg. & R. 210; Shamokin R. R. Co. v. Livermore, 47 Pa. St. 465; Gue v. Tide Water C. Co. 24 How. 257; Leedom v. P. R. R. Co. 5 Watts & S. 265; Susquehanna C. Co. v. Bonham, 9 Watts & S. 265; Seymour v. M. & C. T. Co. 10 Ohio, 476; Plymouth R. R. Co. v. Colwell, 39 Pa. St. 337; Bruffett v. G. W. R. R. Co. 25 Ill, 353; Titus v. Mabee, 25 Ill. 257; Hatcher v. T. W. & W. R. R. Co. 62 Ill. 477; Thomas v. Armstrong, 7 Gal. 286; Munroe v. Thomas, 5 Cal. 470; Wood v. Truckee T. Co. 24 Cal. 474; W. & L. T. Co. v. Vimout, 5 B. Mon. 1; Railroad Co. v. James, 4 Wall. 650; Freeman on Executions \u00a7 179; Borer on Judicial Sales \u00a7 514; 2 Eedfield .on Bail ways, \u00a7 553; Covington Drawbridge Co. v. Shepherd, 21 How. 125; James v. P. & G. P. R. Co. 8 Mich. 91; Mills v. Co. Com\u2019rs, 3 Scam. 53; Palmer v. Forbes 23 Ill. 301.\nFranchises are personal trusts and a sale on execution would not confer upon the purchaser the title to, or right to use them: Hatcher v. T. W. & W. R. R. Co. 62 Ill. 477; Gue v. Tide Water C. Co. 24 How. 257; Bruffett v. G. W. R. R. Co. 25 Ill. 353; Winchester & L. T. Co. v. Virmont 5 B. Mon. 1.\nPower to mortgage the road includes the power to mortgage the franchise: Hatcher v. T. W. & W. R. R. Co. 62 Ill. 477; Joy v. J. & M. R. R. Co. 11 Mich. 155; Pierce v. M. & St. P. R. R. Co. 24 Wis, 551; Allen v. M. R. R. Co. 11 Ala. 454; 2 Redfield on Railways, 459.\nThe franchise is not a part of the \u201c lands, tenements and hereditaments\u201d of a railroad, else ejectment will lie for its possession, which is not true: Tyler on Ejectment 37; Wood v. T. Co. 24 Cal. 486; W. P. R. R. Co. v. Johnston, 59 Pa. St. Truckee, 394; Constitution, Art. 2, \u00a713.\nThe court is the vendor in sales of this kind and may impose such terms as it deems equitable: Rev. Stat. 203; Andrews v. Scutton, 2 Bland, 629.\nThe right of the court to require previous deposits in such sales, is unquestionable: Dills v. Jasper, 33 Ill. 262; Ward v. Mann, 3 Sumner 318; 2 Daniell\u2019s Ch. Pr. 1272.\nOnly that which works an injury can be assigned for error; Arenz v. Reihle, 1 Scam, 340; Schlenker v. Risley, 3 Scam. 483"
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