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170
14 S.Ct. 63
37 L.Ed. 1041
CAREY et al.
v.
HOUSTON & T. C. RY. CO. et al.
No. 912.
November 13, 1893.
Railway Company, and that, having obtained such control, the rights of
the holders of the stock should be effectually shut out and barred, and the
absolute control be acquired by the syndicate, so that the railway might be
run solely in its interest, and that of the Southern Pacific Company. The
bill then set up in detail certain proceedings alleged to be fraudulent and
collusive, which culminated in the decree complained of, and a sale
thereunder, and proceeded:
'Complainants further allege that, as they are advised and believe and
charge, the said decree was and is absolutely invalid and void, and beyond
the power of the court to grant; that there was no foundation for said
decree, or jurisdiction in the court to award it, and that the same was
entered by consent and agreement, and without any investigation or
adjudication by the court, but was the result of agreement, simply, and
was procured, as complainants allege on information and belief, by
collusion and fraud on the part of said Huntington and his associates, and
the directors and officers of said Houston & Texas Central Railway
Company, and was and is a part of the scheme to acquire possession of
said railway in the interest of said Huntington and the said Southern
Pacific Company, without regard to the rights or interests of the holders of
the stock of said company No. 1, and in direct disregard of the provisions
and terms of the mortgages; that the defenses interposed, that the principal
of the mortgages had not become due, and that the said railway could not
be sold without a sale first of the lands, and the other defenses interposed,
were substantilly abandoned and withdrawn, as part of the said wrongful
and fraudulent scheme herein referred to; that the said defenses were
never submitted to the court for adjudication or determination, nor was
evidence heard or offered to sustain the same, but the decree was the
result of the agreement which the bondholders had made with the said
Southern Pacific Company and Central Trust Company, and the rights of
the stockholders were not considered or protected by any of the parties to
the record in said cause, nor submitted to the court for adjudication or
investigation, nor were the stockholders in any way advised, or permitted
to be informed, of the transaction herein complained of.
'Complainants further allege that, as they are advised and believe, the said
decree is void for the further reason that there was and is in the said
decree no finding by the court fixing the amount due from the Houston &
Texas Central Railway Company, No. 1, under said several mortgages, at
and prior to the recording of the said decree, and fixing the amount which
the said company was required to pay to redeem its franchises, property,
and rights from the lien of the said mortgages, nor was there, nor has there
been, any judicial inquiry into that matter, and that the said decree
court by that court for decision, nor was any application made to the
circuit court for such certificate, so far as appeared from the record.
A motion to dismiss the appeal having been made by appellees, appellants
objected that the extracts from the record printed by appellees in support
of their motion were insufficient for its proper decision, and moved for a
postponement of the consideration of the motion, and to be allowed to
make oral argument.
J. Hubley Ashton, Chas.
H. Tweed, and Adrian H. Joline, for the motion.
Jefferson Chandler and A. J. Dittenhoefer, opposed.
[Argument of Counsel from pages 175-178 intentionally omitted]
Mr. Chief Justice FULLER, after stating the facts in the foregoing
language, delivered the opinion of the court.
cases 'in which the jurisdiction of the court is in issue; in such cases the
question of jurisdiction alone shall be certified to the supreme court from the
court below for decision,' and 'any case that involves the construction or
application of the constitution of the United States.'
4
In order to bring this appeal within the first of these classes, the jurisdiction of
the circuit court must have been in issue in this case, and, as appeals or writs of
error lie here only from final judgments or decrees, must have been decided
against appellants, and the question of jurisdiction must have been certified. We
do not now say that the absence of a formal certificate would be fatal, but it is
required by the statute, and its absence might have controlling weight, where
the alleged issue is not distinctly defined. This record contains no such
certificate, nor was it applied for, nor does it appear that the jurisdiction of the
circuit court was in issue. Appellants, by filing their bill, invoked the
jurisdiction of the court below over the entire case. The defendants did not
contest that jurisdiction, and the court adjudicated accordingly. This is
conceded, but it is contended that the question of jurisdiction was in issue,
because the bill attacked the jurisdiction of the circuit court over the
foreclosure suit, or its jurisdiction to make the decree of foreclosure and sald of
May 4, 1888, passed in that suit. But the fifth section of the act of March 3,
1891, does not authorize a direct appeal to this court in a suit upon a question
involving the jurisdiction of the circuit court over another suit previously
determined in the same court. It is the jurisdiction of the court below over the
particular case in which the appeal from the decree therein is prosecuted, that,
being in issue, and decided against the party raising it, and duly certified,
justifies such appeal directly to this court. This suit to impeach the decree of
May 4, 1888, and to prevent the consummation of the alleged plan of
reorganization, was a separate and distinct case, so far as this inquiry is
concerned, from the suit to foreclose the mortgages on the railroad property;
and no question of jurisdiction over the foreclosure suit, or the rendition of the
decree passed therein, can be availed of to sustain the present appeal from the
decree in this proceeding.
The collusion and fraud charged in the institution and conduct of the prior
litigation, and in the procurement of the decree against the railway company,
and in the other transactions in respect of which relief was sought against the
defendants, seem to form the gravamen of the case; but whether the bill be
treated as a bill of review, an original bill of the same nature, or an original bill
on the ground of fraud, it was a distinct proceeding, in which the moving
parties were shifted, and the fact that it put in issue the jurisdiction in the
proceedings it assailed would not change the appeal from this into an appeal
from the prior decree.
In order to hold this appeal maintainable, as within the second of the abovenamed classes, (the fouth class in the enumeration of the statute,) the
construction or application of the constitution of the United States must be
involved, as controlling, although, on appeal or error, all other questions would
be open to determination, if inquiry were not rendered unnecessary by the
ruling on that arising under the constitution. Horner v. U. S., 143 U. S. 570, 12
Sup. Ct. Rep. 522.
It is argued that the record shows that complainants had been deprived of their
property without due process of law, by means of the decree attacked; but
because the bill alleged regularities, errors, and jurisdictional defects in the
foreclosure proceedings, and fraud in respect thereof, and in the subsequent
transactions, which might have enabled the railroad company, upon a direct
appeal, to have avoided the decree of sale, or which, if sustained on this bill,
might have justified the circuit court in setting aside that decree, it does not
follow that the construction or application of the constitution of the United
States was involved in the case, in the sense of the statute. In passing upon the
validity of that decree, the circuit court decided no question of the construction
or the application of the constitution, and, as we have said, no such question
was raised for its consideration. Our conclusion is that the motion to dismiss
the appeal must be sustained.
Appeal dismissed.