Page:Federal Reporter, 1st Series, Volume 2.djvu/309

 802 FBDEBAIi BEfOBTKa, �Stephen, Kittson and Hill to aid them in acquiring the prop- erty mortgaged at a sacrifice of the interests of bondholders not parties to the contract, to secure the road, etc., and that the former permitted the control of the litigation to pass to Smith and his associates, consenting that they might assume the functions of trustees ; the co-trustees of Kennedy in the trust deed having accorded to him the right to determine and control the action of the trustees in ail matters appertaining to the trust property and the execution of the trust. �While there is no doubt that creditors may combine to purchase the property of their debtor, and such action is p/oper and will be sustained, yet if a trustee, holding the property for the benefit of ail the creditors, combine with a part to aid them in purchasing it to the exclusion of the other creditors, and the trustee also bas in his possession, as agent, the evidences of debt belonging to the creditors with whom he has combined, and the property, by the act of the trustee, passes into the possession of those creditors at a price much less than its value, it can hardly be claimed that a purchase thus consummated is not inequitable. Such is one of the charges in the bill, and it requires an answer so that tha court may determine upon the proofs, at the final hearing, whether it is true or not. �The demurrer is overruled, with leave to answer at the July rule day. ���Keopholleb V. The St. Pat;l, Minneapolis & Manitoba Eailwat Co. and others. �(Circuit Court, D. Minnesota. May, 1880.) �MoBTaAGB— Creditors Mat Combinb to Purchase Propeett. — Th& creditors of a mortgagor may fairly combine to purcliase the property of the debtor at mortgage sale, and othcr creditors are not, by such com- bination, deprived of the right to bid at such sale. �BiiiL TO Vacate Dborbb and Sale — Want of Equitt.— Bill in equity in this case not showing the complainant clearly entitled to ail the relief claimed, and as he may, on proper petition and showing, be ad. mitted as a party to the original suit, the lill in which he seeks tp attack the decree and sale is dismissed. ����