Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/699

 CHAP. XI.] CORPORATION AND CREDITORS. [§ 682. bondholders was a prerequisite to a foreclosure by the trustee. But the court said that any bondholder could have sued in his own name, and could have proceeded to foreclose. 1 1 Chicago and Vincennes R. R. Co. V. Fosdick, 106 U. S. 47. Compare Howell v. Western R. R. Co., 94 U. S. 463; First National Ins. Co. v. Salisbury, 130 Mass. 303. A bondholder under a trust mort- gage may sue the railroad on bonds held by him, although the mortgage provides that on the request of the holders of a certain proportion of bonds (more than the plaintiff held) the trustees should sell the property covered by the mortgage. Phila. and Balto. Cent. R. R. Co. v. John- son, 54 Pa. St. 127. See also Mont- gomery County Agricultural Society v. Francis, 103 Pa. St. 378. A bidder at a judicial sale at public auction on foreclosure of a railroad mort- gage, whose bid has not been ac- cepted, the sale being adjourned for sufficient cause and finally discon- tinued, cannot insist on leave to pay his bid and have the sale to him confirmed; although he was the highest bidder and bid enough to cover the mortgage debt. Blossom v. Railroad Co., 3 Wall. 196. A holder of railroad bonds secured by a mortgage under foreclosure has a standing in court to contest the amount of compensation allowed the trustee under the mortgage. Wil- liams v. Morgan, 111 U. S. 684. A board of directors passed a resolu- tion permitting the holders of cer- tain notes of the corporation, secured by a mortgage held by a trustee for the note holders, to convert their notes into stock of the corporation at par, provided all the holders of the notes converted them within ten days: some of the note holders filed their notes for conversion and re- ceived certificates of stock. It was held, on subsequent foreclosure of the mortgage, that such of the note holders as had surrendered their notes were entitled to have the fore- closure carried on for them (as well as the rest), not all the note holders having surrendered their notes, and consequently no conversion into stock of any notes having taken place. Pugh v. Faiimount Mining Co., 112 U. S. 238. Taking a pledge of corporate property does not pre- vent a creditor from suing the cor- poration or its shareholders, without selling the pledge. Sonoma Valley Bank v. Hill, 59 Cal. 107. 679