Atwood v. Shenandoah V. R. R.

Citations

• 85 Va. 966
• 9 S.E. 748
• 1889 Va. LEXIS 112

Syllabus

<p>1. Railroad Companies&emdash;Bonds &emdash; Mortgages &emdash; Case at bar.&emdash;Under its charter and the circumstances of this case;</p> <p>Held :</p> <p>The Shenandoah Valley Railroad Company was authorized to issue the $1,560,000 of bonds under the first mortgage ; in placing the said bonds as security for the general mortgage bonds, the company violated no rights of the first mortgage bondholders ; as to the said $1,560,000 of bonds, both sets of bondholders stand upon the same footing ; there was no over-issue of bonds ; the failure of the trustee to certify the last-mentioned bonds as directed, affects not their validity; the principles controlling fiduciary relations have no application; the transaction was merely a lending of money on one side and a borrowing on the other.</p> <p>2. Idem&emdash;Charter from several States&emdash;Separate corporations.&emdash;Railroad through several States and incorporated in each, is a separate corporation in each, and governed by the laws of each within the respective jurisdictions.</p> <p>3. Powers&emdash;Performance&emdash;Equity.&emdash;Execution of a mere power in donee cannot be compelled, but equity will aid a defective execution. Power coupled with a trust, is imperative and must be executed. Want of a trustee cannot avoid a trust, nor can any act or omission of the trustee.</p> <p>4. Equitable Jurisdiction and Relief&emdash;Trustees&emdash;Performance of duty.&emdash;Equity will either compel trustee to perform his duty, or disregard its omission under the canon that “ equity considers that done which in good conscience ought to be done.”</p> <p>5. Chancery Practice&emdash;Supplemental bills&emdash;Newly discovered evidence.&emdash; Where supplemental bill seeks no discovery, alleges no new matter, and tenders no new issue, leave should not be given to file it. If after commission closed, new evidence is discovered as to facts stated in original bill, the court should be applied to for leave to examine new wi