Oliver Wendell Holmes, Jr.

“ Many circumslances may exist which may make it necessary and indispensable to the business of the road and the preservation of the property, for the receiver to pay pre-existing debts of certain classes, out of the earnings of the receivership, or even the corpus of the property, under the order of the court, with a priority of lien. ”

“ The controversy arises from a claim, to quote from the circuit court of appeals, 'for cross ties essential to the replacement of ties decayed in current operation of the railroad. A large proportion were on hand when the receiver was appointed, and were used by him in the maintenance of the roadway. They were all purchased within six months before the receivership, and under circumstances indicating an expectation that they would be paid for out of current income. ”

“ The claim is, in every respect, a highly meritorious one.'
This description is supplemented by stipulation of counsel that the claim is for 'necessary operating expenses in keeping and using said railroad and preserving said property in a fit and safe condition.' The claim is denied, affirming the judgment of the lower court, payment out of the body of the fund in the hands of the receiver; and why? That the decisions of this court may be construed as extending the equity of claims for supplies so far is conceded. ”