Anglo-California Trust Co. v. Oakland Railways

This is an appeal, on the judgment-roll alone, by the Oakland Railways, one of many defendants, in an action brought by the plaintiff, as trustee of a note issue, to recover the amount of the notes and to foreclose the collateral transferred in trust to secure their payment. The findings are comprehensive, and the pertinent facts clearly appear therefrom.

The defendant Oakland Railways was the controlling stockholder of the San Franciseo-Oakland Terminal Railways, which latter corporation was formed by the consolidation of four previously existing railroad corporations. On or about the twelfth day of August, 1912, Oakland Railways executed and delivered to the plaintiff, Anglo-Califomi-a Trust Company of San Francisco, as the trustee thereunder, a certain trust agreement to secure the payment of an issue of six per cent collateral trust notes in an aggregate principal amount of $2,500,000. At the same time, as a part of the transaction, and pursuant to and in accordance with the terms of the trust agreement, the Oakland Railways made and executed one hundred notes, by the terms of each of which notes the Oakland Railways, for value received, promised to pay the bearer thereof, at…