Henry Billings Brown

“ Justice Swayne observed: 'It is clearly implied in these mortgages that the railroad company should hold possession and receive the earnings until the mortgagee should take possession, or the proper judicial authority should interpose. Possession draws after it the right to receive and apply the income. ”

“ The question in the case was whether earnings that had accrued from the use of the bridge before the bill of foreclosure was filed by the trustees were covered by the mortgage, and prevailed over the rights of a judgment creditor. In this case it was said that 'the mortgage could have no retrospective effect as to previous income and earnings. The bill of the trustees does not affect the rights of the parties. It is an attempt to extend the mortgage to what it cannot be made to reach. ”

“ If he elect to adopt a lease, the receiver becomes vested with the title to the leasehold interest, and a privity of estate is thereby created between the lessor and the receiver, by which the latter beocmes liable upon the covenant to pay rent. ”

“ In fact, the preferential indebtedness which the receivers were by the order of May 27th directed to pay amounted to over $4,000,000, and the total gross earnings of all the lines of the system, from the day the receivers were appointed to the time the Omaha Division was surrendered to its trustee, lacked over $2,000,000 of being sufficient to pay the operating expenses and the labor and supply debts of the Wabash Company. The receivers did in fact pay the agreed rental of the Omaha Division up to October 1, 1884, to the amount of $82,250. ”