St. Louis Merchants' Bridge Terminal Ry. Co. v. Continental Trust Co.

Citations

• 111 F. 669
• 13 Ohio F. Dec. 806
• 1901 U.S. App. LEXIS 4414

Syllabus

<p>1. Railroads—Preferential Debts—Rental of Terminal Property.</p> <p>A debt incurred by a railroad company for the rental of terminal property, under a 40-year lease which provided for its forfeiture, together with all improvements placed on the property by the lessee, on default in payment of rent, is not a debt of the income, and entitled to preferential payment from the net income of a receivership, under the usual order directing payment by the receiver of such claims accruing within six months; nor does the fact that the lessee covenanted to pay the taxes on the property render a claim of the lessor for taxes paid a preferential debt,—such taxes, as between the parties, being merely a part of the. rental.</p> <p>2. Appeal—Review-Findings of Master.</p> <p>Where the transcript on appeal does not contain all the evidence before a master with respect to a claim in controversy, the report of the master thereon cannot be set aside on any question of fact.</p> <p>8. Railroads—Preferential Debts—Original Construction.</p> <p>A claim against an insolvent railroad company, made by a lessor to such company of terminal property, for the construction of new tracks thereon, which by the terms of the lease were subject to forfeiture to the lessor on default in payment of rentals, is not one for current repairs, nor for ordinary operating expenses, which entitles it to preferential payment from current income, hut one for original construction, and not preferential.</p>