Morris v. Cheney

Citations

• 51 Ill. 451

Syllabus

<p>1. Equitable assignee—how far protected. Courts of law will recognize and protect the rights of the assignee of a chose in action, whether the assignment be good at law, or in equity only. In equity, all contracts and agreements may be assigned, and the interest of the assignee will constitute a defense to a proceeding by garnishment.</p> <p>3. So where a railroad company, having a claim for unpaid subscription to the stock of the company, transfers the same by.its authorized agent, the purchaser will be protected in equity, and his right to the proceeds of the claim will not be affected by the fact that there may not have been a formal written assignment thereof.</p> <p>3. Railroad corporation—of its power to dispose of its choses in action. A railroad company having a claim for an unpaid subscription to its stock, has the power to sell it, or make a contract to dispose of it, for the purposes of the road, as much as to assign a promissory note. Such a corporation has the power to contract for the sale of any of its securities, choses in action, or assets, for the purpose of raising means to construct or equip its road, or to pay its indebtedness.</p> <p>4. But the power to sell such securities does not include the power to mortgage them. So the act of the legislature of Wisconsin in relation to the execution of mortgages by railroad companies, does not authorize such companies in that State to mortgage their stock subscriptions as security for the payment of their bonds.</p>