American Loan & Trust Co. v. Toledo, C. & S. Ry. Co.
United States Circuit Court
In Equity. On motion for the appointment of receivers. The defendant Brown, being largely interested in a railroad then undergoing foreclosure in this court, entered into negotiations in New York with the American Einance Company, J. B. Mason, and E. Gr. Jillson for the purpose of raising the money to re-establish the enterprise.
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In Equity. On motion for the appointment of receivers. The defendant Brown, being largely interested in a railroad then undergoing foreclosure in this court, entered into negotiations in New York with the American Einance Company, J. B. Mason, and E. Gr. Jillson for the purpose of raising the money to re-establish the enterprise. These negotiations resulted in a contract between Brown and the American Einance Company whereby the latter undertook, for certain considerations, to raise the necessary funds to relieve the property, reorganize it under a new company which should operate the road…
1Opinion of the CourtHammond, J.
The impressions made at the argument that this case does not present a state of facts justifying the appointment of a receiver have not been removed by a more careful consideration of the subject upon the elaborate printed briefs which have been filed. Undoubtedly there are cases where a court of equity may take hold of mortgaged property before default in the condition of the mortgage and protect the security against impending danger from fraudulent management, but this is not one of them. It would be intolerable to extend that principle so as to transfer to a court of equity every…
2Cited by4 opinions
- Hoiles v. WatkinsOhio Supreme Court · 1927
- Grays Harbor Commercial Co. v. FiferWashington Supreme Court · 1917
- Katz v. De WolfWisconsin Supreme Court · 1912
- Martin v. HarnageSupreme Court of Oklahoma · 1910