Leadville Coal Company v. McCreery

Bill by the Lake Superior Iron Company against Brown, Bonnell & Co., a corporation organized under the laws of Ohio, for the appointment of a receiver and the sale of its property. Heard below on exceptions to the master's report and on motion to confirm the sale. Decree of confirmation. 44 Fed. Rep. 539. The Leadville Coal Company and Charles S. Worden, creditors, and George M. Ayer and Amy G. Ayer, stockholders, appeal. Affirmed.

STATEMENT BY BREWER, J. The facts in this case are these: On February 21, 1883, a suit was commenced in the circuit court of the United States for the northern district of Ohio, by the Lake Superior Iron Company and others against Brown, Bonnell & Co., a corporation having large and extensive iron-works. A receiver was then appointed, who took possession of the property of the company; and such proceedings were thereafter had that in February, 1886, a decree was entered ascertaining the claims of each creditor who had appeared and proved his claim, 176 in number, and directing a sale of the property. From that decree the defendant appealed to this court. On the hearing of the appeal the decree was affirmed, (Brown v. Iron Co., 134 U.S. 530, 10 Sup. Ct. Rep. 604,) and a mandate sent to the court below directing it to carry the decree into execution. An order of sale was thereafter issued, and the property sold, and purchased by the present appellees, acting as trustees for all the creditors who chose to enter into a proposed new corporation; and into such corporation nearly all the creditors, over 96 per cent. in amount, entered. On the coming in of the report of the master, a decree was entered confirming the sale, (44 Fed. Rep. 539;) from which decree these appellants have taken this appeal. Two of the appellants, the Leadville Coal Company and Charles S. Worden, claimed to have been creditors of Brown, Bonnell & Co., and the other two to have been stockholders in that corporation.

Henry Crawford, for appellants.

C. C. Baldwin and C. D. Hine, for appellees.

BREWER, J.