Valdosta, Moultrie & Western Railroad v. Atlantic Coast Line Railroad

A railroad company executed a “mortgage or deed of trust” on “the railroad property, equipment, and franchises” of the railroad company to a trustee to secure the payment of a certain issue of bonds. The trustee instituted an equitable suit for the appointment of a receiver and to foreclose the lien provided in the mortgage or deed of trust. A receiver was appointed, who took charge of all of the assets of the railroad company, and operated the railroad. During the course of operation he applied certain money derived from the earnings of the road to the purchase of cross-ties, cost of repairs…