The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1895-11-07
MORE o. P. LITIGATION.

R. H. Graham and other labor creditors
under the Oregon Pacific receiversilip
have appealed to the supreme court, and
ask Judgment against the plaintiff in the
original suit, the Farmers Loan & Trust
Co, for the amount of their several
claims. The appellants are represented
by Geo. G. Bigham, of Salem, and tie
Trust Co., by J. r. Biyson, of this city.
The appellants contend that the receiver
is an officer of the court, and that tile
expenses of the receivership as between
the parties are disbursements and these
payments are to be provided for in the
same manner as otlier disbursements.
That the receiver having been appointed
upon the petition of respondent to pre-
serve the property for the benefit of re-
spondent it is liable for the payment of
the expenses of the receivership, and
that the court has authority to render
jud gment against respondent for the pay
ment of the receivers expenses as asked
in petitioners petition.
This case, it is said, is without prece
dent, for the reason that in the history of
such litigation there has always been
sufficient funds arising from the sale of
the property involved to pay the legiti-
mate court expenses. In this case, how
ever, the court has incurred over a mil
lion and a quarter of Indebtedness, and
has but $780, 900 with which to settle the
same. Perhaps under the circumstances
the court is not censuratle, for like
everyone else connected with the suit, he
has labored under misapprehension OF
the value of the property involved. With
an.investment of SIS, 900, ,oco, it was hard
ly fair to presume that at the lowest fig
ure the road would sell for less than 1o
per cent Of its cost, which amount would
have been sufficient to more than pay all
the court expenses.
The appellants, realizing that at best
they will receive but few cents on the
dollar for their earnings from the pur.
chase money, do not propose to die with
out struggle. There seems to be no
| dispute as to the amount of the claims,
so that the only difficulty to be encoun.
tered will be, to fasten the responsibility
of the payment of their claims upon the
respondent, the Farmers Loan & Trust
Co. This the appellants believe they
will have no trouble in doing Among
the Corvallis attorneys there is a diversi-
| ty of opinion regarding the matter; some
i Claiming there is absolutely nothing i'll
, the case. Others take he ground that
respondent wanted the property cared
| for, for its ultimate benefit. 1t asked the
| court to take charge of and manage the
property for its use. It encouraged the
court in incurring the present obliga.
tions, and now leaves the matter for. the
court to worry with. The following from
the appellants brief seems to be strongly
in their favor: Trustees under railroad
mortgages have an inherent and equita.
BILE right to be reimbursed all expenses
reasonably incurred in the execution oi
the trust and for such expense they have
a lien upon the trust property. This
| right goes even further than this, for il
the trust property prove insufficient tc
reimburse the trustees for their proper
expenses and reasonable conpensations
| they may call upon the bond holders il
| whose behalf the trust was created
to pay them"