James L. High

A Treatise on the Law of Receivers (Law Classics) James L. High

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1894 Excerpt: ...to the mortgage bondholders. Nor is such expenditure by the receiver limited to the actual operation and management of the property; and reasonable expenses incurred by him in completing the road for operation, thereby preserving the property and rendering it productive for the-benefit of the mortgage bondholders, have been allowed 1 Miltenberger v. Logansport R 434; McLane v. PlacerviUe & & V. Co., 106 U. S., 286; Union Trust Co. R Co., 66 Ca1., 606. v. Illinois Midland R Co., 117 U. S., priority over other claims against the company, including those of the bondholders.1 And when, under authority of the court, the receiver has constructed a branch line of road out of the income of the receivership, thereby largely increasing the revenues and profits of the road, and no complaint is made by the parties in interest until more than two years after such action, the court will not entertain objections to such expenditure.2 So damages for goods lost in transportation, and for injury to property while the road is operated by the receiver, are a proper charge upon his earnings before the bondholders are entitled to share therein.2 So rentals due for a line of road operated by the company underlease, the operation of which the receiver is authorizedto continue under the lease, may be paid out of the receiver's income.4 And when the receiver continues to use a line which had been leased to the company, with the full knowledge and acquiescence of the mortgage bondholders, the payment of a fair rental for the use of such line and for supplies and materials in its operation may be enforced out of the proceeds of foreclosure, prior to distribution among the bondholders.5 But to warrant the payment of the receiver's operating expenses, as for money advanced, supp...