Page:Federal Reporter, 1st Series, Volume 9.djvu/754

 HANCOCK V. TOLECO, PEOEIA & WARSAW E. CO. 739 �two mortgages, at rates fixed by the agreement ; (2) to the holders of the float- ing debt of the old company, in place of their surrendered evidences of indebt- edness, second preferred income bonds of the new company at. par (these bonds being secured by the second ihortgage) to the full amouijt of their respective debts and interest ; (3) to the holders of the flrst preferred, the second preferred, and the common stock of the old company, when surren- dered, stock in the new company ,to the amount, respectively, of 50 per cent. . 30 per cent., and 25 per cent., of the stock of the old company which they had owned : held, that a bill by a holder of a part of the floating debt of the old com- pany, charging that this plan of reorganization is fraudaient as against the cred- itors of the old company, and seeking to have the stock of the new company, pro- vided in the agreement to be issued to the stockholders of the old company, plaeed in the hands of a receiver and sold, and the proceeds applied to the payment of the plaintifE and such other creditors as should corne in and be made parties, will be dismissed for want of equity, on the ground that the plan has a due regard for the interests of all classes of creditors and stockholders, and the bill fails to show that any injustice was intended or has been doue to thia cred- iter. �In Equity. �John Gibbons, for complainant. �Lyman db Jackson, for defendant. �Blodgbtt, D. J. This is a bill filed by Jonathan Hancock, as a judgment crediter of the Toledo, Peoria & Warsaw Eailroad Com- pany, in behalf of himself and all other creditors of that company, against said company, and Morris K. Jessup, Eobert C. Martin, Charles E.Whitehead, William L. Putnam, and Henry Hill, a commit- tee of the creditors of said company. The bill, in substance, charges that complainant, on the twenty-third of November, 1875, recovered in the circuit court of Peoria county, in this state, a judgment against the Toledo, Peoria & Warsaw Eailroad Company for $3,835.35; that the railroad of the Toledo, Peoria & Warsaw Eailroad Company was heavily encumbered with mortgages and other liens, and that proceed- ings had been instituted and were pending for the foreclosure of the mortgage liens on the property, and that the property was in the hands of a receiver, appointed by this court under such foreclosure proceed- ings; that pending these foreclosure proceedings, and on or about the thirteenth day of June, 1877, an agreement was entered into between the holders of the mortgage bonds and other creditors of the corpora- tion, whereby it was provided that defendants Jessup, Martin, White- head, Putnam, and Hill should be appointed a purchasing committee ; that such committee should obtain a decree of foreclosure in the suit then pending, under which all and singular the railroad, rights, privi- leges, franchises, and property of the company should be sold, and the same should be purchased at such sale by the committee, for and in behalf of all the holders of bonds, stocks, and indebtedness of the com^ ��� �