Hatcher v. Toledo, Wabash & Western Railroad

Citations

• 62 Ill. 477

Syllabus

<p>1. Statute—construction—retrospective. The intention must be clearly expressed that a statute should retroact upon prior contracts and rights, before this court will so construe it. If the intention be doubtful, the construction will be that it operates prospectively only.</p> <p>2. Same—consolidating railroads. The act of 1867, which provides that, in case of consolidation of two or more railroad companies, the consolidated company shall be liable for all debts of each company entering into the arrangement, is not retrospective, but was designed to apply to companies which might consolidate after its passage.</p> <p>3. Consolidation op railroads—liability for debts by subsequent legislation. A railroad company being authorized by its charter to borrow money and secure its payment by mortgage or deed of trust of its road, property, and income, but not of its franchise, executed a deed of trust on its road, property, rights, and franchise, under which the trustees sold and conveyed the same to certain parties, who organized a new company under the old name. Subsequently, a special act of the legislature was passed authorizing the president of the old company to transfer the corporate franchise to the purchasers, which he did, and the old corporation ceased to exist: Held, that the purchasers at the ■ trustee’s sale having acquired a valid title to the property of the corporation without liability for any of its debts which were not a prior lien, tlieir rights could not be taken away or impaired by subsequent legislation; and having consolidated with another company prior to the act of 1867, the consolidated company was not liable for the debts of the first-named corporation.</p> <p>4. Curative legislation. Where a railroad company has made a mortgage or sale of its corporate franchise, without authority in its charter, the same may be ratified and rendered valid by subsequent legislative enactment. The right to object to such transfer is one affecting the public a