Page:Federal Reporter, 1st Series, Volume 5.djvu/166

 15e FEDERAL REPORTER, �of a receiver. It is also to be considered that if a receiver were appointed it -would not be for any merely temporary purpose, to keep the canal going pending litigation, and look- ing to a sale or other termination of his duties, but it would be to operate the canal until from the net income these bonds, ■with 15 years of accumulated interest, should be paid off. For some 40 years of its existence the canal earned nothing beyond its current expenses, and it was not until after 1868 that it made any payment of interest on these bonds. Many of the dif&culties and disasters which in former years have etood in the way of the pecuniary success of the canal may at any time again occur ; so that it is manifest that the court, by its receiver, if it took possession of the canal, might have to manage this artificial water highway, in need of constant repairs, subjeot to freshets, strikes, and the difïïculties of competition, through a period of time whicb this century might not see the end of. To lead the court to pass such a decree the case should be free of every question as to the mis- management of the corporation, and as to the absolute right of the complainant to have such relief, and there should be no doubt that the appointment of a receiver would be an effectuai relief. �The complainant has shown, and bas pressed upon the attention of the court, several considerable expenditures of the toUs and income, which, it is alleged, are in violation of the terms of the mortg.ige, and are wllf ul misappropriations of money which should have been applied to the payment of interest on the bonds. These are the expenditures for (1) the outlet locka above Georgetown ; (2) the leasing and pur- chasing of wharves at Cumberland; (3) the telephone; (4) and the payments of directors and tbeir hôtel bills. �With regard to the outlet locka above Georgetown, and the wharf property at Cumberland, the respondent corporation has produced a groat deal of testimony to show that the acquisition of these terminal conveniences was absolntely necessary to enable the canal to maintain itself agaiust com- petition which threatened its existence, and that the posses- sion of them has put the canal in a position of independance ����