Central Trust Co. v. Pittsburg, Shawmut & N. R.

KALODNER, Circuit Judge.

The question presented on this appeal is whether the expenses incurred by a receiver in operating a railroad should be paid out oí a fund derived from the liquidation of the estate prior to any distribution to the holders of certificates of indebtedness issued by a receiver for capital expenditures.

The Pittsburg, Shawmut and Northern Railroad Company, and its affiliates, the Shawmut Mining” Company and the Kersey Mining Company, have been in the hands of equity receivers since 1905. In the early years of the receivership, certificates of indebtedness were issued by the…