76 F. 418 | U.S. Circuit Court for the Northern District of Georgia | 1896
This is an application by the defendant, the Eagle & Phoenix Manufacturing Company, asking the court to require the receivers to pay the July interest on the bonds of the company. By the terms of the mortgage or trust deed, 90 days is allowed from the maturity of the interest before default will
“Instead of displacing mortgages and other liens on the property of private corporations and natural persons, it is the duty of the courts to uphold and enforce them against all subsequent incumbrances. It would he dangerous to extend the power wdiich has recently been exercised over railroad mortgages (sometimes with umv; anted freedom), on account of their peculiar nature, to all mortgages.”
In this case, if the court acts as requested, it would create a lien prior in right to that of the savings hank depositors, and the creditors by bills payable and open accounts, for the purpose of paying the money raised on the certificates to bondholders, who, by the contention of the other creditors, have a lien inferior to their equitable pref
Other objections have been suggested in argument to granting this petition, but, in the view I take of the matter, as already expressed, it is unnecessary to consider them. It may be remarked, however, that from what has been stated it would probably be very difficult to raise money at present on receivers’ certificates upon this property, or upon any other property in the hands of the court, even if ample authority should be granted the receivers for that purpose. I am exceedingly anxious, as has been stated several times from the bench, to do everything that can legitimately and rightfully be done to protect the stockholders and all parties interested in this property. This petition would be granted, therefore, if I could legally and properly do so. But, upon full consideration and reflection, I am thoroughly satisfied that the order requested should not be passed.
The question suggested in the argument as to whether, in case of the trustee proceeding in court to enforce the trust, deed for default in payment of interest, the default can be cured, and the maturity of the principal avoided at any time before sale by the payment of interest, is -not now decided. It will be a matter for consideration and determination if, and when, the case reaches that stage rendering such a decision necessary. The petition must be denied.