The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-01-14

NONlng large sum OF money, was ueiiNcs-
ed Yesterday by Judge Staples:
WitiIdmSOn'S AdR'r rs Graham et ais.
Abb0H iron Company rs. same.
The original h'll In tins case was filed IN
July, 1876. i'm the Circuit Court OF Alexan.
dria, by John &. Graham, on behalf OF hlm-
self and other creditors. against the WASH
ing,on C,'y. Virginia Midland and Great
Southern Railroad Company. After setting
out the several deeds of trust constituting
liens on tie a T.. tue hill charges the in
solvencv Of the company. IL alleges that
the current MT r. venues OF The road are ln-
sufficient TO satisfy The annual interest upon
its indebtedness. And II asks that re-
cciyer be appointed by the Court to take
charge oi the property. 10 collect H. rents.
tolls. income, and pr0nis: that an account
OF the assets be taken. Il sale OF The property
be ordered, and proper distribution Il the
proceeds be made. ara Tor general relief.
On The 18th OF July, 1876. an order was
entered in The cause conformably 10 The
~ aver Of the bill. cuj0minG The cOn1any
from farther operating The road, aud ap'
pointing John :. Barbour receiver. Otuer
orders wcrc entered from time 10 tir1e, but
they need not be specially mentioned here.
a. they have no matcria! bearing upon the
matters in controversy.
In the pro@rtSS II the cause ore OF the
apcellanls Nhe Abbmi Iron Company fled
H. Tetlion asking TO be- ptd balance oI
about SO 600 due that comuany for iron
rails furui.ned the railroad company IN
MAY and July, 1914. whioh rails we're III
Use ar the time of the appointment OF the
receiver.
The reason assigned by the Officer o; The
company for the failure 10 pay tDis ciiInl
was that. aI;er PAYNE f'r labor and mate
rial 10 operate The road. lbCy were com
pellcd 10 reserve H> revenues Il p1y past
due interest on the company's mortgage
debts.
The other appellants also iiled retiilon>
asking 10 be paid for lumber furnished,
and for services rendered as eoploNcS ~
The comDlny prior to the appOntmen of
receiver. All the claims thus asserted
against he company i0r maleral and sup
Pile, furnlSbed, and for salaries and wage
of cmDl1leS, amount 10 about 1000, eX-
elusive OF interest.
Upon this sta,e Oi facts the question
arises whether tOeSe claims, not having Dcen
raid Dv TIE company Out OF the current
rev, nucS of the road, a. they ought to have
been paid are now eutliItG 10 be paiu from
the net revenues in The hauds of tie re-
cciVcr in preference 10 The debts due tue
mortgage creditors.
The appcIlee>' contention 90 state The
proposition in general terUn~) i that when
tue mOTtgagee takes possession OF ne mott
gagged csta'e he l. entitled, H. iucid NJ
thereto. tu Inc rents ana prnuiS, 10 be ap-
Piled in satisfaction Of Bis dt ut. that by the
appointment of z receiver The Court taxes
possession for him, mat The old~r OF ap'
pOntmPnt l. IN the nature II an equtaD'e
execution for his bpDc6 and the apuei-
lanis beng merely creditors at large, Wild
out lien upon the earuing> oi TIE roid III
the hands Of a receiver. cannot lcsa'ly
claim Inev shall he applied TO the payment
of unsecured debts.
On the other maud, 1t l. insisted Tor me
appt liaIt> tnat the commOn-laW d0c'lin
relating 10 ordinary i0Or'St@eS "i real
estate cannot be looked to for anal 9ies ana
precedents tC guide the cOutis IN the in'eT-
pretatIOn aud effect TO be given 10 mort
cages OF r,irOad property; hat the 'atter
are comparatIyely OF modern origin ana
development. and the jurisdiction o1 the
equity courts in the appointment OF Ie-
ceivers in >uch cases must be exercised WIN
reference TO TIE rights not Ouly Of the
tors having equal or superior eqnlles.
In Illustration Of this point, u >sal1 lhat
IN the cast Of an ordinary mortgage the
creditor, a. a general rule. does not so mucn
RELY on the rents aud prOti's as upon the
corpus OF the estate that r"ualrs ana I'M
ur0yements are not essen ial o his security,
incv are not invited by him, and he Danhot
hc held to have authorized them by bis ST.
leuce OI hi~ acquIeScence.
With respect 10 railroad NOR gage The
ease is enti ely different. ii the mortgage
debt l. ever paid il must he from he earn
ings OF the road. Ii there is Il foreclosure
and sale and The road is purch2~ q t'y the
mortgage. ~ is usually done. his
reliance l. az last upon The tolls aDd earnings.
That CONSTANT repairs, requirements. ana
additional equipments are necessary, which
musl brst be- pl,d for before the mortgage
creditor is entitled TO ary!hIng: a"d IN
taking the mortgage he impilediv agrees
that The current debts made in The Ordinary
course OF business shall he pad from tne
current receipts before ne has any clam
upon the income: and If not 20 paid before
the appointment OF a receiver, tbey ou&ht
to be paid Within reasonable limits from
the net income OF the road alter Sucb az
poinLmenr. 10 sustain these positions The
counsel RELY upon some recent deciSl"Ds OF
the courts, especially the cases OF r sdick
as. Schali, 9 QUO, 225, and Hail Is. Frost,
reported in The same volume, a. laying
down a different rule with resp CT 10
railroad mortgages, and ~ fuly >u>-
tanning the appellants preten>ion,. These
decisions, II j. GAINED, ought 10 be re-
garded H. binding auibOrity because they
were made after q general invitation To ihe
bar Of ihd court Interested ~ like eases TO
prese Mt lTieis on the subj ect and after
most patient helring aud IN" most search
inc ami able arguments from the best legal
minds OF tue country. tue court arrive ut
conclusion on tie >ui yet.
Opinion Of Bughes j., in AtIeeguS N Go. Us.
Petersburg Railroad Company. 8. HugOess
Re , 3l3.
la the 6rst-named ease, FOSdick Us.
schaI, Chef Justice Waite, Speaking Tor
the whole court, lays down the following
.'Wben cour, OF chancerv is asked by
railroad mort gagees To appoint II receiver
pcpding proceedings for foreclosure. the
ColrI 10 The exercise Of sound discretion
NAV as q condition Of issuing tue NJ cessary
order impose such terms In reference 10
the payH ent from the income during me
OF on Standing dtb,> for labor,
supplIes, equipments or pere'anrn' lD'
prOscments OF tie m0rtgag'd property, AS
NAV Gnder the cIrcua,s'"nces m the p'r-
licuist case appear Ia be reasonable. III no
such order Is made al he ime the receiver
is appointed, IL may be dane at any time
during ibe progress of ibe Cause. ~ re-
quired. en- the due administration of Justice
and he enforcement of ibe equities of The
respective parties.
"WbeR the current earnings n araItroad,
which ought IN equity 10 have been en-
nioYed 10 DaN current deNLs eOnIracled be-