Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1880-02-12

t4n& FfCI:GS that IuI!:s Tbs! yea II ~Lici!
il;'''y 81 lu0 c.aI:is D-tOTa nc originated,
INC ''2ohlai.n trustee so far from showing a
r-rt1forco for lEoftgsgeos over claims for labor
snd SupiiIrs, 10! only paid to thst class of cred
lsHrs y sum oHual to tho sm0unt of such claims
lhc"frc's daring that yoar, hut in addition there
la p"G out y! Tho not income the sum Of $751;
as "2 Upon Tins Ect income tho mortgages
have All undoubtet lien, (Hale w. Frost, 3th)
50 i;i::t for tha year ending Sept 18th, 1875 dur.
lu* which bloat of theso claims accrued rs
havn @Itcaly stssed, the facts show, rathor di.
version from than or diversion 10 the mortgages
For tho year ending Sept. 30!h, 1876, tho Same
state OF facts exist, though not TO the sane tx.
tout Tho amount paid TO tho unsecured credit.
oIs gain trenches upon the net income for thai!
year. ard IL IS shown atlirmstivoIy that thsro
~a9 80 DIVERSION of funds for the benefit Of
mortgage cr, dlL0Is 1t may DO said | think
safely that Tor the whole period embraced in the
statement set out on page 500 Of Commissioner
Sherrerd's report, returned to this term, that
there Is 10 evidence of any diversion Of the cur.
rent funds 10 tie debt luLd, that during that
period sum much less than tho net income
was paid to mortgages; that sum more than
equal to the amount of Indebtedness croattd for
labor supplies and materials WAS paid out in
liquidation ot demands Of that character and
that during the period embraced tho general
floating debt OF the road contracted for such
purposes was diminished. Where then. AID
when, and Tor whose benefit. and to what extent,
| did The "Ccmmon trustee" divert the funds
committed 10 his kecrirg. Primarily says tho
| eonrt III F,Jilvk ". Schall the fund belongs 10
! the nl1ig.Gcr. The burden is upon thoss
Calamity against his legal lien. by their oon-
trrcS The mortgages were entitled TO all the net
earnings o! the road. Within eight years they
have r, cei0tL less than they We 70 entitled to
and YAK ii;sy arc now required TO m3kc 70. thu.
| lien 80 Gthc1s
uae:d the Prep. s;tinn can tc maiuiait Ell
that c!rlniS Il tho o?ass now being considored
En7o SUPERIOR and exclusive equity upon the
iTn*S revenues Ct q railroad, and that all other
Glasses OF otodlt0ra. when they receive money
q the road, mast first ascertain that NO floating
| dcDi 'XlSls upnn pain Of being thcloattcr 10.
qured 10 mako restitution should tho Iold DO
c1mn embarrassed and pa; Gto the hands of O
receiver nn!rts Srch proposition can DO msin
tHlnet, then thibk tho demands hero pre-
icrEtH must bo rejected. Such a proposition
would be absurd aud prepostcrous. That
within reasonable limits tho principles OF Eos
| uick anu SeiHlI may be safely and wisely fol-
Owed, ! 90 not question. tut whom in order Ia
apriS the tqaity yGu have 10 trace it through
tho transaction ri years to find whom the
wrtnE' nj 8! n!leation Of funds was maio end
nf@n "Aoni inc responsibility is to be- fastened,
'hr principle becomes too vague anil s.alowy
10 ;"!n practical ruia sud would lead 10 mast
rrrhMltuS consequences. Railrcal securities
are u Eoilihlo nud psss from hand 70 hand al!
most ~ readily As money, ard if they arc to be
tainted With an ludctt rmlnAto equity of this
| character unaF ccrlancd M to amount and I'm
certain AZ TO tho time 81 It's nnl0ro mont, it il
| Al f,Nr l..,l -
| Hqlc! s might hr.
am therefore. as to Ills question Of ori,.-
on, that
| lat. f!"TiGnsrfs arc entitled tn the funa IN
al hrttrf hight has harn ahcwn.
-. That claimants hive fnilcd to sl,atain tin
hHrhrn ni proof placed upon Il en- by FoEd'ak
~. SnhMll and thcir frlilinnA nlr.l hn ,lrni. i