Caylus v. New York, Kingston & Syracuse Railroad
New York Supreme Court
Appeal from a judgment entered upon a demurrer, in favor of tbe defendants. This action was brought by certain bondholders of the New York, Kingston and Syracuse Railroad Company against that corporation, its president and directors, and the Farmers’ Loan and Trust Company.
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Appeal from a judgment entered upon a demurrer, in favor of tbe defendants. This action was brought by certain bondholders of the New York, Kingston and Syracuse Railroad Company against that corporation, its president and directors, and the Farmers’ Loan and Trust Company. The complaint alleged, among other things, that the corporation defendant, having a mortgage for $2,000,000 on its road and the bonds to which it was collateral issued to various parties, obtained leave from the legislature to extend its road, and entered into a contract for the performance of that work; that plaintiffs…
1Opinion of the Court
Brady, J.:
The bonds which were delivered to the plaintiffs by the contractors, the Litchfields, were designated “consolidated first mortgage gold bonds,” and the mortgage referred to necessarily became a part of them in determining exactly what they were represented to be. The mortgage, on inspection, would have disclosed the fact that the design was to substitute them for bonds previously issued and secured by mortgage, and would have dictated the propriety, as a matter of security, of ascertaining whether the holders of the old bonds were willing to make the exchange or accept the…
2Cases cited2 opinions
- Marsh v. FalkerNew York Court of Appeals · 1869
- Wakeman v. DalleyNew York Supreme Court · 1865