Lucius Quintus Cincinnatus Lamar

“ In the contest for priority among the claimants before the master the judgment creditors of the corporation claimed that they entered into the contracts with the company whereon they obtained their judgments relying upon its resources, which they were led to think were ample by reason of the amount of the outstanding paid-up stock in the hands of such responsible stockholders and owners as Richardson and the Philadelphia parties ”

“ The loan of $100,000 by Richardson to the railroad company, on which he obtained the first 200 bonds, as collateral, was made by him on the 31st of March, 1875, under a contract with the company, in which he agreed to lend the corporation that amount upon certain terms, which, among others, were (1) that the company should deliver to him 200 mortgage bonds, of $1,000 each; (2) that, within 14 days, he should be elected a director of the company ”

“ If the 400 bonds were not delivered to Richardson, as we think the court below correctly held, it follows that the unissued bonds were not subject to attachment or to execution as valid and binding obligations against the company, and that Richardson's purchase at the sheriff's sale vested in him no title or ownership in them. Counsel for the appellants in their brief put not a little stress upon the fact that Richardson's claim is based upon the advance of actual money for the enterprise to the full amount of $185,584.18. ”

“ In this class was the claim of Benjamin Richardson for money furnished to aid in the construction of the road, amounting, with interest, to $273,282.87, secured, as the master found, by 200 bonds, amounting to $374,904. Exceptions to this report were filed by nearly all of the parties interested, but, in the main, it was confirmed by the court, and, on the 3d of May, 1883, a decree was entered on the question of priority among the respective claimants in the distribution of the fund arising from the sale of the mortgaged property, which had occurred. ”

“ Part of this second contract was assigned to the claimant Soule. This contract also, with the exception of a part of the grading, was performed by these parties. They had no security for the payment for their services. They relied on the solvency of the company, and the assurances of Richardson, who was then a director and the treasurer of it, that arrangements were perfected for the payment of the work as fast as it progressed. The company failed to pay the amount due on these contracts. ”

“ That the petitioner was not one of the principal litigants in the appeals, but was simply an intervening judgment creditor, having no interest in the matter of the controversy between the bondholders and the trustees; (2) that his demand is quite small, when compared with the amount involved in the controversy between the principal litigants ”

“ The matter was referred to a master to take testimony and report upon the validity, and also the priority, of the various claims filed. On the 6th of November, 1882, the master filed his report, in which he divided the claims presented into jour classes, numbered A, B, C, and D, respectively. In class C he placed t e claims secured by the first mortgage bonds, and the amount of said security. ”