Shaw v. Railroad Co.’s Empirical Analysis

Citation profile

30 federal appellate · 8 district · 44 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 134 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The power of the courts ought never to be used in enabling railroad mortgagees to protect their securities by borrowing money to complete unfinished roads, except under extraordinary circumstances. It is always better to do what was done here? whenever it can be; that is to say, reorganize the enterprise on the basis of existing mortgages as stock, or something which is equivalent, and by a new mortgage, with a lien superior to the old, raise the money which is required, without asking the courts to engage in the business of railroad building. The result, so far as incumbering the mortgage security is concerned, is the same substantially in both cases, -while the reorganization places the whole enterprise in the hands of those immediately interested in Its successful prosecution. The hare fact that some of the trustees were holders of bonds secured by their trust is not sufficient, of itself, to make them incompetent to consent to such a decree as was rendered. Prom the whole case it is apparent tiiat from the beginning their conduct was governed by (lie wishes of a very large majority of bondholders. If there was anywhere the slightest evidence of fraud pr unfaithfulness, their conduct would be carefully scrutinized. The acts of trustees, when personally interested, should always be open and. fair. Slight circumstances will sometimes be considered sufficient proof of wrong to justify sidling aside what has been done; but when everything is honestly done, and the courts are ”

   3 later decisions quote this exact passage · from the majority
   e.g. Central Trust Co. of New York v. Marietta & N. G. R. · Symmes v. Union Trust Co.

2. ““As bondholders claiming under the mortgage, they can have no interest in the security except that which the trustee holds and represents. If the trustee acts in good faith, whatever binds it in any legal proceedings it begins and carries on to enforce the trust, to which they are not actual parties, binds them.””

   3 later decisions quote this exact passage · from the majority
   e.g. Pollitz v. Farmers' Loan & Trust Co. · Bowling Green Trust Co. v. Virginia Passenger & Power Co.

3. ““The trustees had an undoubted right to commence these suits when they did, and it is apparent from the whole record that all their proceedings, both before and after the sale, were in the interest of their beneficiaries generally, since one hundred and eighty in number, representing in the aggregate-eight million out of the eight million five hundred thousand dollars of bonds outstanding, accepted the result and exchanged their bonds for stock in the new corporation. To allow a small minority of bondholders, representing a comparatively insignificant amount of the mortgage debt, in the absence of any pretense even of fraud or unfairness, to defeat the wishes of such an overwhelming majority of those associated with them in the benefits of their common security, would be to ignore entirely the relation which bondholders,, secured by a railroad mortgage, bear to each other. Railroad mortgages are a peculiar class of securities. The trustee represents the mortgage, and, in executing his trust, may exercise his own discretion within the scope of his powers. If there are differences of opinion among the bondholders as to what their interests require, it is not improper that he should be governed by the voice of the majority, acting in good faith and without collusion, if what they ask is not inconsistent with the provisions of his trust.””

   2 later decisions quote this exact passage · from the majority
   e.g. Bowling Green Trust Co. v. Virginia Passenger & Power Co. · Wright v. Pitts