Galveston Railroad v. Cowdrey’s Empirical Analysis

Citation profile

52 federal appellate · 8 district · 63 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 224 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““As to the first point, without attempting to review the many authorities on the subject, it is sufficient to state that, in our judgment, the first, second, and third deeds of trust or mortgages given by the Galveston Railroad Company to the trustees, estops the company, and all persons claiming under it and in privity with it, from asserting that those deeds do not cover all the property and rights which they profess to cover. . Had there been but one deed of trust, and had that been given before a shovel had been put into the ground towards constructing the railroad, yet, if it assumed to convey and mortgage the railroad, which the company was authorized by law to build, together with its superstructure, appurtenances, fixtures, and rolling stock, these several items of property, as they came into existence, would become instantly attached to and covered by the deed, and would have fed the estoppel created thereby. No other rational or equitable rule can be adopted for such cases. * * * Mr. Pulsford, as holder of the fourth mortgage, is an assignee of the railroad company, claiming under it, with full notice of the other mortgages. He is in privity with the company, and is bound by the estoppel. As to the other point, — giving priority to the last creditor for aiding to conserve the thing,— all that is necessary to say is that the rule referred to has never been introduced into our laws except in maritime cases, which stand on a particular reason. * * * By the common law i”

   4 later decisions quote this exact passage · from the majority
   e.g. Manhattan Trust Co. v. Sioux City & N. Ry. Co. · Illinois Trust & Savings Bank v. Doud

2. ““A mortgagee of the property, acquired and to be acquired, and of the in come of a quasi public corporation, such as a railroad company, obtains a lien ui>on the net income of the company after the current expenses of operation incurred in the ordinary course of business are paid, and impliedly agrees that the gross income shall be first applied to the payment of these current expenses, before the net income to which he is entitled arises. * ⅞ ⅛ The class of claims which may be awarded a preference in payment over the prior mortgage debt in equity is limited to claims for current expenses incurred in the ordinary ceñirse of the operation of the mortgaged property within a limited time before the appointment of a receiver. It does not include claims for money loaned, or for material or labor furnished to make necessary beneficial and permanent additions or improvements to the mortgaged property. * ⅜ s The test of a preferential equity of a claim is its consideration. If its consideration was a current expense of the operation of the mortgaged property, which inured to its benefit, and which was incurred in'the ordinary course of its business, within a limited time anterior to the appointment of the receiver, the claim may he preferred. The Supreme Court has refused to apply the principle of the civil and maritime laws of awarding priority to «the last creditor who furnished repairs and supplies to a vessel to the distribution of the proceeds of the foreclosure of mortgages ”

   1 later decision quote this exact passage
   e.g. Atlantic Trust Co. v. Dana

3. ““If any class of bondholders wish to pontest the proceedings of a prior mortgage, they have a perfect right to intervene in the suit and file a cross bill setting up the matter of objection. All bondholders, including the complainants themselves, have to establish their claims in the case before it is finally closed, and before a distribution of the assets can be made. And any ' bondholder proving his claim may contest the claim of any other bondholder.””

   1 later decision quote this exact passage · from the majority
   e.g. Central Trust Co. v. California & N. R.