Gress v. Village of Fort Loramie

Citations

• 100 Ohio St. (N.S.) 35

Syllabus

<p>Street and interurban railways — Purchaser at judicial sale — Duty to operate under franchise — National banks — Authority to operate railway — Ultra vires may be pleaded, when — Jurisdiction of court of equity — To authorise discontinuance of service.</p> <p>1. The obligation of the original grantee of a franchise to operate a street railroad is assumed by the purchaser of the road when sold “as a going concern” at judicial sale.</p> <p>2. A national bank is without power to obligate itself to operate a street or interurban railroad.</p> <p>3. A national bank is not estopped by its purchase and temporary operation of a street or interurban railroad from pleading its want of power to operate such road.</p> <p>4. A court of equity having taken jurisdiction for the purpose of enforcing the performance of a contract to operate a street or interurban railroad, will retain jurisdiction for the purpose of authorizing the owner of such road to discontinue its operation, where no contractual obligation is found to exist and there is no prospect that the road can be made to earn a fair return, upon the investment.</p>