Clopton v. Philadelphia & Reading Railroad
Supreme Court of Pennsylvania
Appeal from the Court of Nisi Prius. This was a bill in Equity by John Clopton against The Philadelphia and Reading Railroad Company, brought to January Term 1366. Clopton, the plaintiff, a British subject residing in London, was the holder of coupon bonds of the defendants, secured by mortgages dated respectively May 31st 1843 and November 7th 1849. The interest is at the rate of 6 per cent, payable semi-annually.
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Appeal from the Court of Nisi Prius. This was a bill in Equity by John Clopton against The Philadelphia and Reading Railroad Company, brought to January Term 1366. Clopton, the plaintiff, a British subject residing in London, was the holder of coupon bonds of the defendants, secured by mortgages dated respectively May 31st 1843 and November 7th 1849. The interest is at the rate of 6 per cent, payable semi-annually. The condition of the mortgage is:— “ Provided always, nevertheless, that if the Philadelphia and Reading Railroad Company, their successors or assigns, shall and do well and truly…
1Opinion of the Court
The opinion of the court was delivered, by
Strong, J.
The single question presented for adjudication is, whether the defeasance in the mortgages of the defendants amounts to an engagement of the mortgagors to pay, in addition to interest, the state and United States taxes chargeable upon the holders of the bonds secured by the mortgages ?
The taxes are a charge upon the principal of the debt, though to be collected out of the interest, and the holders of the bonds are liable to the charge in consequence of their being such holders ; but the plaintiff insists that the mortgagors have contracted…
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