8 U. S. App. 547.
Mileage due under a contract for the use of Pullman cars is not distinguishable from car rentals, and cannot be made a preferred claim on the of a receiver ; Pull man's Palace-Car Co. v. Trust Co., 84 Fed. 18, 28 C. C. A. 263 ; Thomas v. Car Co., 149 U. S. 95, 13 Sup. Ct. 824, 37 L. Ed. 663.
A cable for a cable railway, if necessary, is entitled to a preference, though no diversion of income is shown ; and the lapse of two years will not bar the claim; New York, G.
& I. Co. v. Motor Co., 83 Fed. 365, 27 C. C.
A. 550.
The payment of unpaid debts for operat ing expenses accrued within ninety days, and of ticket and freight balances due, are necessary for the preservation of the mort gaged property, in order to keep it a going concern ; Union Trust Co. v. R. Co., 117 U.
S. 456, 6 Sup. Ct. 809, 29 L. Ed. 963.
Where a receiver is in possession under foreclosure .proceedings of a general mort gage on a system of railroads,- preferred debts will be charged on the earnings of the entire system; Central Trust Co. v. R. Co., 30 Fed. 332.
, Preferred debts are said to be those "which, when incurred, operated in a direct way to the advantage of the bondholder ;" Easton v. R. Co., 38 Fed. 12 ; or which were "made to preserve the estate ;" Frazier v. R. Co., 88 Tenn. 138, 12 S. W. 537 ; or were payments "necessary in the ordinary admin istration of the affairs of the corporation;" Blair v. R. Co., 23 Fed. 521 ; or were reason ably "necessary to incur in order to keep the road in operation ;" Short, Ry. Bonds § 624.' • They include: Debts for freight and ticket balances; Miltenberger v. R. Co., 106 U. S. 286, 1 Sup. Ct. 140, 27 L. Ed. 117; wages ; Fosdick v. Schall, 99 U. S. 235, 25 L. Ed. 339; Miltenberger v. R. Co., 106 U. S. 286, 1 Sup. Ct. 140. 27 L. Ed. 117; wages and salaries of employes of every grade ; Farmers' L. & T. Co. v. R. Co., 33 Fed. 778; counsel; Blair, v.
R. Co., 23 Fed. 521 (but not one employed for a special purpose ; Louisville, E. & St. L. R. Co. v. Wilson, 138 U. S. 501, 11 Sup. Ct. 405, 34 L. Ed. 1023 ; nor an attorney's fee for services rendered a year and a half before the receivership; Bownd v. Ry. Co., 51 Fed. 58; but the annual salary of a reg ular counsel for a short time before receiv ership will be preferred; Blair v. R. Co., 23 Fed. 521; not a secretary of the company ; Central Trust Co. v. R. Co., 69 Fed. 295; nor
a claim for legal services in advising parties who lent money to keep the road in opera tion ; Louisville, E. & St. L. R. Co. v. Wil son, 138 U. S. 501, 11 Sup. Ct. 405, 34 L. Ed. 1023) ; supplies and material for equipping, operating, and repairing the road; Fosdick v. Schall, 99 U. S. 252, 25 L. Ed. 339 ; North ern Pac. R. Co. v. Lamont, 69 Fed. 23, 16 C. C, A. 364; but not when furnished on credit payable at some definite period, in the future ; Bound v. Ry. Co., 58 Fed. 473, 7 C. C. A. 322 ; American L. & T. Co. v. R. Co., 46 Fed. 101. It applies to ties, hard ware and traffic balances; Gregg v. Trust Co., 109 Fed. 220, 48 C. C. A. 318; necessary repairs to a railroad ; Southern R. Co. v. Tillett, 76 Fed. 507, 22 C. C. A. 303 ; jack screws ; Southern R. Co. v. Jack Co., 117 Fed.. 424, 54 C. C. A. 598; new cable f9r a cable railroad (after two years) ; New York G. & I. Co. v. Motor Co., 83 Fed: 365, 27 C. C. A. 550; ties.; Gregg v. Trust Co., 197 U.
S. 193, 25 Sup. Ct 415, 49 L. Ed. 717; rails ; Lackawanna I. & C. Co. v. Trust Co., 176 U. S. 298, 20 Sup. Ct. 363, 44 L. Ed. 475; a gear wheel and pinion for a cable road; Cen tral Trust Co. v. Clark, 81 Fed. 269 ; a pow er house for an electric street railway ; Illi nois T. & S. B. v. Doud, 105 Fed. 123, 44 C. C. A. 389, 52 L. R. A. 481; damages for in juries to employees of a receiver are part of operating expenses; Meyer Rubber Co. v. R. Co., 174 Fed. 731, affirmed in Willcox v. Jones, 177 Fed. 870, 101 C. C. A. 84.
The vendor of rolling stock under a car trust is not preferred as to the balance of payments due him ; Huidekoper v. Locomo tive Works, 99 U. S. 258, 25 L. Ed. 344. The rental of cars used by the receiver is held to be chargeable to the proceeds of the sale of the property as one of the expenses of the administration ; Lane v. R. Co., 96 Ga. 630, 24 S. L. 157 ; as is also the unpaid rental during their use by the company before the receiver was appointed, and compensation for the Ordinary wear and tear and the ex pense of returning the cars to the owner ; id.; contra, as to rentals accruing before the receivership ; Kneeland v. Trust Co., 136 U. S. 89, 10 Sup. Ct. 950, 34 L. Ed. 379; Union Trust Co. v. R. Co., 117 TJ. S. 479, 6 Sup. Ct. 809, 29 L. Ed. 963.