Page:Federal Reporter, 1st Series, Volume 7.djvu/446

 484 FEDERAL SBPORTER. �the mortgage.* These debts< at the date of the mortgage, Gctober 1, 1876, have been paid, except the sum of $3.316.87, due E. Clayton, with interest from August, 1876, and some smaller sums, all of which are Btated in the master's report. We do not think that under that section the claimants have any lien. �We are of opinion that the statute contemplates debts al- ready incurred and contracta executed at the time of making the mortgage. �It has been suggested to us by eounsel, since the argument, that the case of Brooks v. Railway Co., 101 U. S. 443, has an important bearing upon this case ; but we think the supreme court of lowa held, as we do now, that a railway was not a building; within the meaning of their mechanio's lien law, in Nelson v. The lowa Ey. Co., construing section 1855 of the Code of 1860, which resembles the North Carolina statutes, and reversed their judgment after the laW' was amended. So far as the claim of B. Clayton is concemed, we think the master's report must be confirmed. The land was purohased by him after the commencement of the con- struction of the railroad, with full knowledge that it was to pass over it, and indeed while he was constructing the rail- road over it. He is in a court of equity for relief, and he must do equity. The master reports that he is not damaged atid he will be allowed nothing. And the same is true of the land claimed by Eioe & Coleman. �We see no reason 'for disturbing any of the findings of the master relating to the claims of W. H. Inman, and his report is confirmed, and a decree will be passed in accordance with this opinion. �Note. See In re Kelly, 5 Fbd. Rkp. 846 �*The statute provides " that all debts and contracts of any corporation, prior to or at the time of the execution of any mortgage or deed bf trust by such corporation, shall have a flrst lien upon the property, rights, and franchises of said corporation, and shall be paid oflf or secured before such <nortgage or deed of trust shall be registered."— [Rkp. ��� �