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WOODSTOCK IRON CO. V. RICHMOND & DANVILLE EXTENSION CO., 129 U. S. 643 (1889)

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U.S. Supreme Court

Woodstock Iron Co. v. Richmond & Danville Extension Co., 129 U.S. 643 (1889)

Woodstock Iron Company v. Richmond and Danville Extension Company

No. 180

Argued February 1, 1889

Decided March 5, 1889

129 U.S. 643

ERROR TO THE CIRCUIT COURT OF THE UNITED

STATES FOR THE NORTHERN DISTRICT OF ALABAMA

Syllabus

The Richmond and Danville Extension Company contracted with the Georgia Pacific Railway Company to construct that company's road by the nearest, cheapest, and most suitable route from Atlanta to Columbus for a consideration chanroblesvirtualawlibrary

Page 129 U. S. 644

of $20,000 a mile. J., who was a director in and vice-president of the Extension Company and also a director in the Railway Company, negotiated and concluded on behalf of the Extension Company a contract with an Iron Company that had a large plant and extensive mines at Anniston, by which the Railway Company agreed to deflect its road to Anniston, thereby lengthening it about five miles, and the Iron Company agreed to give a right of way through its property and to convey to the Extension Company certain tracts of land, valued at $20,000, and to pay to it $30,000 in money. Among the motives for making the contract, urged upon the Iron Company by the Extension Company, was the statement that if it was not entered into, the railroad would be constructed by way of a rival establishment at Oxford, abort three miles distant. The Extension Company folly complied with the terms of its contract. The Iron Company failed to comply in part with its undertakings, whereupon this suit was brought.

Held:





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