Court Opinion

ID: 8122286
Source: CourtListenerOpinion
Date Created: 2022-09-09 14:59:18.111674+00
Date Added: 2024-06-11T16:39:03.803391
License: Public Domain

McKennan, C. J.,
(orally.) I concur in what Judge Butler has said. The object of the proceeding whereby the property of the company was placed in charge of the court, and the character of the court’s authority respecting it, we have heretofore had occasion to explain very fully. We hold the property of the railroad company to preserve it, — to keep it in its present condition while the proceedings under the bill of foreclosure are being prosecuted to their termination. I entertain considerable doubt of the authority of the court to make the order asked for, and this of itself is sufficient for me; but I agree with Judge Butler in all he has said respecting the inexpediency of making the order, even if we had authority so to do. The property should pass, with as little delay as is reasonably practicable, into the possession and control of owners who will best be able to determine how it should be managed, and what measures relating to it are most *4likely to promote their, interests. To the extent that the earnings of the road are required to keep it up, in stock and equipments, and to preserve the property, the receivers have authority so to apply such earnings; hut to borrow money to enable them to continue to .pay interest to bondholders I consider unwise.
Petition disallowed.