63 F. 25 | U.S. Circuit Court for the District of South Carolina | 1894
This is an intervention of Joseph B. Humbert, Esq., late the president of the defendant company, seeking payment of arrears of salary due to him as president. The petition, confirmed by the testimony, shows long and valuable service by Air. Humbert, prompted chiefly by a desire to promote a public enterprise for the public good. There can be no doubt that good service was rendered, and (hat the amount claimed is justly due; hut as the railroad company went into the hands of the receiver utterly insolvent, possessing no funds whatever, and as the receivin' has barely paid current operating expenses, the earnings being insufficient to pay him any compensation, the question we ■are t.o meet is, shall these arrears of salary of the president be paid out of the proceeds of sale prior to and in preference over the mortgage debt? By the terms of the mortgage, the bonds secured by which were floated during Mr. Humbert’s presidency and under his action, a, first lien before all other liens is secured to these bonds." This is the contract: bid ween the parties, and all courts are bound by its terms. In Fosdick v. Schall, 99 U. S. 235, the supreme court of the United Whites recognized tin; equity of a certain class of claims controlling the conscience of the mortgage creditor seeking ilie aid of a court of equity, and to this class priority ivas given over the mortgage debt. The theory of this equity is this: It is the interest as well of the public as of all parties interested in a railroad that it be kept a going concern. To do this, there must he a ready