Chicago, M. & St. P. Ry. Co. v. Wabash, St. L. & P. Ry. Co.
Court of Appeals for the Eighth Circuit
Appeal from the Circuit Court of the United States for the Eastern District of Missouri. This was a suit by the Central Trust Company of New York against the Wabash/ St. Louis & Pacific Railway Company and others to foreclose a mortgage on the properly of the railway company. The Chicago, Milwaukee & Si. Paul Railway Company filed an intervening petition for a claim under certain (raffle contracts.
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Appeal from the Circuit Court of the United States for the Eastern District of Missouri. This was a suit by the Central Trust Company of New York against the Wabash/ St. Louis & Pacific Railway Company and others to foreclose a mortgage on the properly of the railway company. The Chicago, Milwaukee & Si. Paul Railway Company filed an intervening petition for a claim under certain (raffle contracts. On December 5 and December 29, 1883, contracts providing, among other things, for a pooling and division of competitive traffic, were entered into by and between seven railroad companies, to wit,…
1Opinion of the CourtCaldwell, Circuit Judge
(after stating the facts). The design of the contract on which the appellant rests its claim is not left to presumption or conjecture. Its purpose is apparent on the face of the instrument. Its object was not to avoid ruinous com*997petition by entering into an arrangement to carry freight at reasonable rates, but its evident purpose was to stifle all competition for the purpose of raising rates. By the terms of the contract, all of the roads are to be operated, as to through traffic, “as they should be if operated by one corporation which owned all of them.” These seven corporations were made…
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