Central Trust Co. v. Grant Locomotive Works

In Central Trust Co. v. Grant Locomotive Works, 135 U. S. 207, 10 S. Ct. 736, 34 L. Ed. 97 (1890), the court made two orders directing its receiver of certain steam railroads to retain and pay for several locomotives necessary to the operation of the property by the receiver. The order provided that such payment should be regarded as operating expenses and entitled to payment prior to mortgages existing before the receivership. These orders were made without notice under the erroneous impression of the court that all parties consented thereto. After the term at which the orders were made, the court entered an order setting the above orders aside. Several terms later and after sale of the entire property under foreclosure of the mortgages, the court determined that it lacked jurisdiction to enter the order annulling the two purchase orders, because the term within which those orders were entered had expired. Therefore, it entered a fourth order annulling the order setting aside the two purchase orders. The question arose whether the two purchase orders were final in an appealable sense. The court (page 224 10 S. Ct. 742) said: "We think they were final. They determined the ownership of the locomotives, and the right to their possession; that they were essential to the operation of the roads by the receiver, and should be purchased by him; that certain designated amounts should be paid for the rentals and the purchase price, which amounts were made a charge upon the earnings, income, and property of the Toledo, Cincinnati & St. Louis Railroad Company, and especially of the particular divisions named; and that the amounts should be paid by the receiver, and any balance remaining unpaid at the date of the foreclosure and sale of the railroad or the particular division should be a first lien thereon, and the sale be made subject thereto. They were therefore final in their nature, and made upon matters distinct from the general subject of litigation, the foreclosure of the mortgages. "In Trustees v. Greenough, 105 U. S. 527 26 L. Ed. 1157 an appeal from an order for the allowance of costs and expenses to a complainant, suing on behalf of a trust fund, was sustained. In Hinckley v. Gilman, Clinton & Springfield Railroad Co., 94 U. S. 467 24 L. Ed. 166 a receiver was allowed to appeal from a decree against him to pay a sum of money in the cause in which he was appointed. In Williams v. Morgan, 111 U. S. 684, 4 S. Ct. 638 28 L. Ed. 559, a decree in a foreclosure suit, fixing the compensation to be paid to the trustees under a mortgage from the fund realized from the sale, was held to be a final decree as to that matter; and in Fosdick v. Schall, 99 U. S. 235 25 L. Ed. 339 a decree upon an intervening petition in respect to certain cars used by a railroad company under a contract with the manufacturer was so treated. There was a fund in court in that case, but in principle the orders here are the same. And see Farmers' Loan & Trust Co., Petitioner, 129 U. S. 206, 213, 9 S. Ct. 265 32 L. Ed. 656."