Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1879-03-19
Supreme Court OF the United States.

No GIL BpIeai f!on Inc Clrcult CoulG vi tnI
Uoited States fJr The nortnern district OF
Illinois. Chicago, D,nvllle and Vincennes
Railroad.
Chef JUS ic, Wsi 10 delivering the opinion
in this case says: The possession taken by the
receiver il oily that IF the court whose otboer
be in, and adds nothiCg to the previously exist
log title o! The mortgagees; DO holds pending
the litigation for the beoef: of WhoDsoeVer in
the cod it shall be tcuod 10 corosrD, aud 10 the
meantime the curt proceeds TO dettrmioe the
it would if 20 change Of possession hsd taken
place.
Aasin he says: We have DO doubt that when
coor: If cbancery is asked by railroad mort
eseces 20 appoint o receiver OF railroad Prop
er!y pendicg proc; edi5gs for foreclosure the
court il the tx,rcss Of Z scu1d judicial dlscre
ton may, O.. d coadition Of Issuing the neces.
ssry order, i'm pose such terms in reference to
the payment from the income during the re-
ceivership CT outstanding dcbts for labor, sup :
plies. equipment or permanent improvement OF
the pougsged property as may under the cir
cunstsrces CT the particular case appear to be
reasonable Railroad mortgages aud the rights
of railroad mortgages ATE comparatively new
10 the history Of judicial proceedings. They
are peculiar in their character and Affect peeu
liar Interests. The amounts involved are gen
orally la7ge, aud ihe rights Of tho parties often
Lim,s complicated ard conflicting. II rarely
happens that foreclosure is carried through
to The end y,l;h0nt some Concessions by some
parties from their strict legal rights IN ORDER 10
secure advantages that could not otherwise be
cblaioed, and wki:i. it is supposed will operate
Tor the general good e. ell who arc Interested.
Tits results almost SIS matter CT necessity from
the peculiar circumstances which SURROUND such
li,gstloc. The business of ali railroad companies
is dopn to greater or les extent on credit ibis
credit is longer or shorter as the necessities OF
the case require, aud when companies become
pecuoi.r'lv embarrassed it frequently happens
that deL.s far labor. supplies and equipment
and improvements are permitted to accumulate
IN order that bonded interest may be paid and
a disastrous foreclosure postponed, if not al
together av0iicd La tLla way The daily and
muathly esrulugs which ordinarily should 20 10
pay tbs daily and monthly expenses are kept
from those to whom lr equity they balon2, aud
used 10 pay his morteaged debt. The iuccme
cut of which the mortgage is to be paid ls the
net income obtained by deduc,ng from the
gross earoirgs what is required for necessary
operatiog aud managing expenses. proper toulp
ments and ust fIl improvements. Livery rallo4c
7nortgagee IN accepting his security lDpliedly
asrcrs ttat the current debts uado IN the or
doaIy course OF business shall be PAID from the
current receipts before be has 8Iy calm uDuD
the income. IF for the convenience Of the mo
meot something is tGkYD from what may not
be called .hc currcat dobt iuud, snd
put iuto that which belongs to tbs mortgage
creditcrs il certainly is not inequitat!a tor the
CouFf, when asked by TIE Mortgages, to take
pus ession OF The future Income, and hold
i. for their benefit, tor!q1lre as CONDITION
of such sn order that what Is due from the
earnings 10 tbs current debt shall DO paid By
the Court FROM the future current receipts d.
fore sDytniog derigad from that soutce goes to
the mortgages. 10 this way tho Court will
ouly Go what. il q receiver shnuld NOT Eo ap-
pointed. The con- parry ought itself 10 do, for
ever though the mortgage usy in tern5 give a
lieu upoo Inc prG6,s aod inoome uatil possession
Of he Dortga2ed premises Is actually taken or
something equivalent, the whole ear6laGs be-
long to the company, and a!e subject to its
control.
Che mortgage has lis stric. rights which he
may enforce II tho ordinary Tay. II ho ssks
10 fayols he need grant none; bu. /. he calls
upon a court Of chancsry to mt forth is extra
ordinary powers and grsst hin purely equitable
relief, he may, with prorrety, bs required to
submit to tho opera,iohs a rule. when slwavs
APPLIES IN such cases. aud do equity IN order TO
get equity The appointment .. receive; Is Lot
d la.Ler Of strict llGht-such an applchtlon al
Ways calls for the exercise ofjudiClal discretion,
and the chancellor should 70 mould bis order
that while .voring one, Injustice is rot done to
another If this cannot DO accomplished, the
apple 4lion should ordinarily bs denied.
We thirk $50 that if no such order Is made
when the receiver is appointed, and it appears In
tho progress of toe csu,e thst bonded interest
hiss been paid, additional equipments provided,
or lasting and valuable improvements made out
of srnines which ought in equity TO have bean
employed to keep do,cn dedts for labor, supplies
AMI the like u ls within tn. power OF TITO court
t. US. lp.. lncnue Of thN rfceiv@rshiD to dis
charge o6Hgati MS 7chich bit jor tho diversion Of
funds 1Uoutd hare been paid IN the ordinary
course Of business TITS not because tae C! editors
~ wLoln SUCH debts Arc due have in law lien
upon the mortsGgnd property or the income
but because il sse1se the othc ers Of the company
are trustees Of the earnings for the Deauft ot the
dferun. class o. creditors and the stockholders,
and if they give 10 ole class CT CREDITORS that
which properly belongs to onolner, tae court
may, on an adjustment Of the eccouE,s, so nse
the income which comes icto.its OWL hsncs as II
practicsblo to restore the parties to their original
equitable rights. While ordinarily this power ls
confined to tha appropriation Of the income OF
the leceiye!ship and tho proceeds OF noueyed
assets tia. have baen taken troco the company,
csses may aTis3 where equity Will require Toe
use Of the proceeds Of the sale OF the mort-sgeo
properly il the ssmo va7. Thus it often hsp-
pens t. st IL the course Of The sdministratio OF
the cause .hs court is called upon TO take income
which otherwise would be applied 10 tho psy.
mont Of old debts for current expenses. and Use
it TO MAKO permsrent Improvements on the
fixed property, or 10 buy additional equipment.
In this wy tie value Of tia roItgsgeu property
is cot unrequea.lE materially increased.
SHERIFF SALE OF DRY GooDs.-We will
cpsu TO. morrow, Saturday, March l5th, Iarse
lot of goods, purchased a. a shcrlf's sale, 10
Washington, Yesterday, such as Edeioe. In
serlugs, Cnttous. Calicoes, ChevIot, Dress
Goods aud Notions. These goods have been
bou.h: ct big sacrifice, and as the quantity Of
each is cEy i'll small lots we advise our Gus
toners 10 call early aGd pr3ou7c bargain.
mar l4-lw ISAAC Iceberg.
THE WAnQUIs.-Cns Marquis Spring Ulster
is entirely PEG 10 ca, si1alo breasted, button
to the ,hros,, With genuine buffalo bore but.
toes caa OILY BE- tad at KATzENsTEIN' Fash
iooabIe CiotLiag Establishments, $40 7Lh street
nesr Pepusy;v1Gii Avenue. Price from 5000