Page:Federal Reporter, 1st Series, Volume 7.djvu/390

 3T8' FBDEBAIi BEPOBTEE. �the road within five months previous to their appointment. �The special masters in the cause reported upon the applica- �tioii as folloWs : �"By the decree of your honorable court, of May 24, 1880, appointing^ the reoelvers, it was, among other things, ordered : �" ' That the receivera be, and they are hereby, authorized to collect th& income, tolls, and profits of the sald railroad and canals, and to make appropriate payments therefrom on account of the accruing rents, and Other necessary charges ; ^Iso all the, sums now due and maturing to the employes of the said corporations defendant, and the amounts due and m.at'wnn.g, and to arise and mature, for materials and supplies about the operatjon and for the use of the said railroads and canals, * * * and to Continue the miniag operation of the said The Philadelphia & Read- ing Coal & Iron Company, and to sell and dispose of the coal ali-eady mined or to be mined, either for cash or on the usual credits, and out of the proeeeds thereof to pay the wages, taxes, royalties, rents, freights, debts for supplies, and interest due on securities cliarged on the property, to proteot the same from forfeiture.' �" We have carefully considered the terms of thls decree with respect to the present subject, and understand that it is in substance the same in its application to each of the two companies defendant, and that it plainly authorizes the receivers to mb;lie payments, from the income of each of them, of all sums due or maturing for materials or supplies by said com- panies respectively. Such being the decree of your honorable court, it doea not appear to be necessary that we should inquire whether tho authority which it has conferred should have been granted ; but in view of the large amount involved, and of the fact that mortgage creditors, who might be supposed to be prejudiced by allowing a preference to these claims, are not actually before the court, the receivers and their oounsel have requested us to make such a report upon the whole matter as we mififht deem to be due to its Importance. We have accordingly made a careful examination of the authorities, and have found that the decree is, in the particular now under consideration, fully supported by previous similar orders and adiudications in other cases. �" In Trotter v. Tke Oatawissa, Williamsport d JSrie R. Co., (supreme court of Pennsylvania, January term, 1860, No. 8,) the receivers were — �" 'Authorized to collect the income, tolls, and profits of the same, [the rail- roud, etc.,] and to make appropriate payments therefrom, and of the expense of this proceeding, and also all the sums now due and maturing to the employes upon said railroad, and the amounts due and nmturing, atid to arise and mature, for materials and supplies about the operation and for the use of said railroad,' etc. �*' In the case of the Ohw Cent. B. Oo. (circuit court of the United States for Ohio) the court, McLean, J., in appointing areceiver, directed the surplus earnings to be applied to makmg payments m a dcsignated order of pri- ori ty; and — �" 'First, to the payment of all debts due for labor, materials, and mv- plies furnished the company within the six months prier to the date of the decree, and a balance due for construction.' �" In the case of the People of N. T. v. Brie Ry. Co. (supreme court, city ��� �