In re New Paltz & Wallkill Valley Railroad
New York Supreme Court
This was a . motion by the • first mortgage bondholders of The Mew Paltz & Wallkill Valley Bailroad Company, to modify a portion of an order made in the. proceedings for voluntary dissolution.
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This was a . motion by the • first mortgage bondholders of The Mew Paltz & Wallkill Valley Bailroad Company, to modify a portion of an order made in the. proceedings for voluntary dissolution. That portion of the order referred was as follows: “ Ordered that the expenses of the Dissolution Proceedings herein, consisting of printing, advertising, attorneys’ fees, referee and stenographers’ fees and disbursements, amounting to the sum of $1,919.09, be paid out of the funds in the hands of James Q-. Graham, Esq., Temporary Beceiver, and in case such funds should prove insufficient, the. same to…
1Opinion of the CourtTruax, J.
In instituting these proceedings the defendants were acting as trustees and the expenses they incurred while so *452acting, were incurred in preserving the "property, and should, be paid out of the funds in the hands of the receiver before all other liens, although the -receiver was not appointed in an action brought • by'the bondholders or their trustee. Union Trust Co. v. Illinois Midland R. Co., 117 U. S. 434.
It was held .in Barnes v. Newcomb, 89 N. Y. 108, that where the officers óf an insolvent corporation believe it to.be solvent, and have reasonable grounds for such belief,' it is their…
2Cases cited3 opinions
- Union Trust Co. v. Illinois Midland Railway Co.Supreme Court of the United States · 1886
- Barnes v. . NewcombNew York Court of Appeals · 1882
- Drew v. KeuferNew York Supreme Court · 1894
3Cited by1 opinion
- In re FrenchAppellate Division of the Supreme Court of the State of New York · 1918