Bestor v. Wathen

Citations

• 60 Ill. 138

Syllabus

<p>1. ContRact — in respect to the location of a railroad. Two persona owning a tract of laud on tlie line of a railroad, contracted witli the president of another road then being constructed, and a firm of individuals who had contracted to build that road, to lay the land off into town lots, and, after selling lots to the amount of $4800, to convey to the president of the road and to the construction company an undivided half of llib remaining lots. The president and the individuals composing the construction company were to pay no money, but agreed to “aid, assist and contribute to the building' up of a town on said land:” Held, that if this contract was made to secure the- location of the road at a place where it would not be of the greatest benefit to the stockholders, of the road,.then .it was in the nature of a bribe, and can not be enforced; or, if the place where the parties agreed the road should be located, which was afterwards done, was the route best calculated to promote the interest of the stockholders and the public, and the officers of the company were professing to hesitate between it and another line to procure the agreement, that was a fraud, and the contract can not be enforced in equity.</p> <p>3. When the legislature grants a company a charter for the purpose o£> constructing a railway, the grant is made because it is supposed the road will bring certain benefits to the public; and when subscriptions are made to build such a road, it is with the understanding that the officers entrusted with its construction will so locate the line and establish its depots as to bring the highest pecuniary profit to the stockholders, compatible with a proper regard to the public convenience. These alone are the considerations t.'hich should control tlie action of the president and directors of the road, and só far as they permit their official action to be swayed by their private interest, they are guilty of a breach of trust towards the stockholders, and a bre