Fidelity Insurance, Trust & Safe Deposit Co. v. Shenandoah Valley Railroad

Citations

• 86 Va. 1
• 9 S.E. 759
• 1889 Va. LEXIS 1

Syllabus

<p>1. Constitution—Title of act—One object.—Act of March 21,1877, amended April 2,1879, entitled, “An act to secure payment of wages and salaries of certain employes of railway and other transportation companies,” providing that employes and persons furnishing to such companies supplies, cars, and engines, is, as to the cars and engines, void, being repugnant to section 15, article 5, Virginia constitution, which requires that “no law shall embrace more than one object, which shall he expressed in the title.”</p> <p>2. Contracts— Construction.—In determining the real character of a contract, courts will always look to its purpose, rather than to the name given it by the parties. TIervey v. Locomotive Works, 93 U. S., 654.</p> <p>3. Debts—Novation—Discharge.—It is well settled that no mere change in the form of the evidence of a secured debt, will discharge the debt, unless so intended; but that where one security is accepted in satisfaction of another, the debt is discharged. And this will in general be determined by the surrender or retention of the original security.</p> <p>4. Engines and Cars— Vendor—General creditor.-—Vendor of cars and engines to such company, retaining title as security before a receiver has been appointed, is entitled to be paid by the receiver for their use, and to exhaust his lien thereon, but as to balance of his debt he is only a general creditor.</p> <p>5. Sujíkogation—Extinguishment of debts—Case at bar.—Certain bankers held coupons of a railroad company. They furnished company money to pay wages and other, preferred debts, and received its promissory notes. To fund this indebtedness, bonds were issued,' secured on its income and guaranteed by another company, whereof the bankers took, at sixty per cent., the amount of their debt, received prior mortgage bonds as collateral, and surrendered the coupons which were cancelled, but there was no expressed agreement that their original claims were extinguished: held, the bankers were not subr