Page:Federal Reporter, 1st Series, Volume 4.djvu/201

 FIBMEBS* LOAN & TEUST CO. V. t, C. & S. W. ET. 00. 187 �•was to carry out, and for which, when executed, the eamings of the road were to be charged, as a first lien, prior to ail encumbrances, was simply -whatever might be spent by him over and above these two amounts. And it may be added that the receiver did not bring to the knowledge of the court, in his original and supplemental petition, the precise facts of the case, and so far as we know they did not appear to the «ourt, The petition did not set up this contract, but only that this money had been appropriated by the city of Logans- port, and by the Detroit, Eel River & Illinois Eailroad Com- pany. It said nothing about the contract, or the penalty which had been imposed by its terms upon each of these raii- way companies, but the receiver simply came to the court and asked for aii order to make this expenditure of money, for the purpose of constructing the bridge, which would extend the ïoad to Logansport and make the line complete, It is said that this is a part of the road which has been sold under the decree of the court, and that the mortgagees have the benefit of t'he contract which was made and the expenditure of the money. That is so, but the contract which the city of Logansport made was with the companies, and that city may have a valid claim against them. Of course, as this company is insolvent, we know that the contract is worth nothing, but in that respect it is not different from a great many other creditors who made contracts with this same railway com- pany, and who do not pretend to come into court and ask for anything, because they know they are not entitled to relief. It ia the misfortune of the city of Logansport, in common with that of a great many creditors of this and other insolv- ent railway companies. �1 may add, that the application which is made by the city of Logansport, as the 20 years have not yet expired, does not allege it has paid these bonds, nor does it even claim it has paid the interest on them. The court does not know judi- «ially that the city of Logansport has ever spent a dollar. It ia true, it may be said to be liable on these bonds. That is a question we are not now called upon to decide, but, so far as the application is concerned, they do not claim that they ����