Pfister v. Milwaukee Electric Railway Co.
Wisconsin Supreme Court
APPEAL from the Circuit Court for Milwaukee County. Plaintiffs are holders of the bonds of the defendant railway company, and they bring this action to enforce an equitable lien on the property of the defendant for the amount of such bonds, under and by virtue of a mortgage executed by the company on such property to a trustee to secure the payment of the bonds.
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APPEAL from the Circuit Court for Milwaukee County. Plaintiffs are holders of the bonds of the defendant railway company, and they bring this action to enforce an equitable lien on the property of the defendant for the amount of such bonds, under and by virtue of a mortgage executed by the company on such property to a trustee to secure the payment of the bonds. The history of the transactions through which plaintiffs became the holders of such bonds is set out in the complaint, and is sufficiently stated by Mr. Justice Pinney in the opinion in the action in these defendants against the…
1Opinion of the CourtLyon, C. J.
The learned circuit judge held that the bonds
in question were issued in violation of sec. 1753, R. S., and were therefore void. So much of the section as is applicable to this case is as follows: “ No corporation shall issue . . . any bonds . . except for money, labor, or property, estimated at its true money value, actually received by it, equal to seventy-five per cent, of the par value thereof; and all . . . bonds issued contrary to the provisions of this section . . . shall .be void.”
We are clearly of the opinion that the circuit judge ruled correctly. The object of the statute is to…
2Cited by13 opinions
- Illinois Trust & Savings Bank v. Pacific Railway Co.California Supreme Court · 1897
- Kemmerer v. St. Louis Blast Furnace Co.Court of Appeals for the Eighth Circuit · 1914
- Mudge v. Black, Sheridan & WilsonCourt of Appeals for the Eighth Circuit · 1915
- Atlantic Trust Co. v. Woodbridge Canal & Irrigation Co.U.S. Circuit Court for the District of Northern California · 1897
- Mowry v. Farmers' Loan & Trust Co.Court of Appeals for the Seventh Circuit · 1896
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