Mayor and City Council of Baltimore v. Baltimore & Ohio Rail Road Company
21 Md 50
CASE SUMMARY
PROCEDURAL POSTURE: Appellants, mayor and city council of the City of Baltimore (city) sought review of the orders of the Circuit Court of Baltimore City (Maryland), which
dissolved an injunction and denied the city's petition to obtain an injunction to enjoin defendant railroad from making a loan to or purchasing certain mortgages from another railroad for
the purpose of constructing a roadbed.
OVERVIEW: The railroad sought to construct a roadbed between its main line and a station operated by the other railroad for the benefit of goods and passengers. To accomplish
that purpose, the railroad loaned money to the other railroad, which was secured by corporate bonds and a mortgage of the other railroad's property, and sought to purchase prior
mortgages to the property. The city held a prior mortgage to the property and sought to enjoin the construction of the roadbed, contending that the railroad was acting beyond its
corporate powers. The railroad contended that it had the power to advance and appropriate money to construct the roadbed under the supplement to its charter, Act of 1836, ch. 276,
and to purchase the prior mortgage as a mortgage creditor of the other railroad to prevent a foreclosure and the loss of its own mortgage claim. The court affirmed the orders of the trial
court. The court held that the trial court properly denied the city an injunction because the railroad possessed the express power to subscribe for or aid in the construction of the roadbed
under the Act of 1836.
OUTCOME: The court affirmed the orders of the trial court dissolving an injunction issued to the city and denying the city's petition for an injunction to enjoin the railroad from
lending money to another railroad or from purchasing prior mortgages to property for the construction of a road bed
Appellate Court Records:
COURT OF APPEALS (Docket) Mayor and
City Council of Baltimore v. Baltimore & Ohio Rail Road Company, 1863, December Term no. 192, p. 151 [MSA S412-8,
1/66/14/39].
COURT OF APPEALS (Briefs) Mayor and
City Council of Baltimore v. Baltimore & Ohio Rail Road Company, 1863, December Term no. 192 [MSA S375-35, 1/64/12/6].
Trial Court Records:
BALTIMORE CITY CIRCUIT COURT
(Equity Docket A) Mayor and City Council of Baltimore v. Baltimore & Ohio Rail Road Company, 1863, 5A, p. 187 [MSA T55-5,
3/3/14/33].
BALTIMORE CITY CIRCUIT COURT
(Equity Papers A) Mayor and City Council of Baltimore v. Baltimore & Ohio Rail Road Company, 1863, box no. 487 [MSA T53-522,
3/12/4/43].
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