Receiver

co, fed, ed, trust, ct, sup and federal

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Rentals on a leased line will not be pre ferred; New York, P. & 0. R. Co. v. R. Co., 58 Fed. 268; nor debts contracted for orig inal construction; Toledo, D. & B. R. Co. v.

Hamilton, 134 V. S. 296, 10 Sup. Ct. 546, 33 L Ed. 905 ; nor the price of a locomotive bought six, months before the receivership ; Manchester Locomotive Works v. Truesdale, 44, Minn. 115, 46 N. W. 301, 9 L. R. A. 140 ; nor will claims for damages for breach of contract; Central Trust Co. v. R. Co., 32 Fed. 566; nor those caused by the operation of the road before the appointment of the receiver; Hiles v. Case, 14 Fed. 141; Cen tral Trust Co. v. R. Co., 28 Fed. 871; but see Dow v. R. Co., 20 Fed. 260, a case said to be of doubtful authority ; Short, Ry. Bonds § 626. It does not apply to ballast cars used in improving the road bed where it appears that there was no net income ; Fordyce v. R. R., 145 Fed. 544; nor to counsel fees; Gregg v. Trust Co., 109 Fed. 220, 48 C. C. A. 318.

The ordinary period within which , such claims are allowed is six months ; Scott v. R. Co., 6 Biss. 535, Fed. Cas. No. 12,527 ; but claims have been awarded a preference after eight months; Skiddy v. R. Co., 3 Hughes 320, Fed. Cas. No. 12,922 ; eleven months; Burnham v. Bowen, 111 U. S. 776, 4 Sup. Ct. 675, 28 L. Ed. 596 ; nearly two years ; Cen tral Trust Co. v. R. Co., 41 Fed. 551 ; two years ; Cobb v. Clough, 83 Fed. 605; three years; Hale v. Frost, 99 U. S. 389, 25 L. Ed. 419` There is no fixed time within which priority can be given; it is a question of rea sonable time; Wood v. R. Co., 70'red. 741.

The rule has been held to apply only to railroads ; Wood v. Trust Co., 128 U. S. -416, 9 Sup. Ct. 131, 32 L. Ed. 472; not to manufacturing corporations; Seventh N. B. of Philadelphia v. Iron Co., 35 Fed. 436 ; Fi delity Ins. & S. D. Co. v. Iron Co., 42 Fed. 372 ; nor to street railways ; Front St. Ca ble Ry. Co. v. Drake, 84 Fed. 257; nor to steamship lines ; Bound v. Ry. Co., 50 Fed. 312 ; nor to a hotel company; Raht v. At trill, 106 N. Y. 423, N. E. 282, 60 Am. Rep. 456 ; it is held applicable to street railways ; Litzenberger v. Trust Co., 8 Utah 15, 28 Pac. 871; Illinois T. & S. B. v. Doud, 105 Fed. 123, 44 C. C. A. 389, 52 L. R. A. 481; a coal and

coke company ; Drennen v. Trust & D. Co., 115 Ala. 592, 23 South. 164, 39 L. R. A. 623, 67 Am. St. Rep. 72 ; a mining company ; Cunningham v. Min. Co., 103 Mo. App. 398, 76 S. W. 487 (contra, Manhattan Trust Co. v. Iron Co., 19 Wash. 493, 53 Pac. 951) ; a telegraph and telephone company ; Keelyn v. Tel. Co., 90 Fed. 29 ; to all quasi-public cor porations; Drennen & Co. v. Deposit^Co., 115 Ala. 592, 23 South. 164, 39 L. R. A. 623, 67 AM. St. Rep. 72. In Ohio it is a statutory rule.

The, right to claim fog labor and materials in preference to the mortgage debt is not affected by the sale of the property if such right be reserved in the decree affirming the same; Southern R. Co. v. Steel Co., 176 U. S. 25,7, 20 Sup. Ct. 347, 44 L. Ed. 458.

Suits, A receiver must ordinarily obtain leave of the appointing court before insti tuting a suit ; but not where he sues for debt due him in his official capacity; L. R. 12 Eq. 614 ; or sues in the appointing court with its sanction ; Smith, Rec. § 69 ; Cox v. Vol kert, 86 Mo. 505.

A receiver cannot sue outside the juris diction of his appointment ; Great Western Min. & Mfg. Co. v. Harris, 198 U. S. 561, 25 Sup. Ct. 770, 49 L. Ed. 1163 ; Kirwan Mfg. Co. v. Truxton, 2 Pennewill (Del.) 48, 44 Atl. 427 ; Southern B. & L. Ass'n v. Price, 88 Md. 155, 41 Atl. 53, 42 L. R. A. 206 ; otherwise where, by statute or assignment, he has suf ficient title, as a quasi-assignee, a represen tative of the creditors; Bernheimer v. Con verse, 206 U. 6. 516, 27 Sup. Ct. 755, 51 L. Ed. 1163.

In some cases in the federal courts, decid ed before the case (supra) of Great Western Min. & Mfg. Co. v. Harris, 198 U. S. 561, 25 Sup. Ct. 770, 49 L. Ed. 1163, such suits were sustained in a foreign jurisdiction ; see Rog ers v. Riley, 80 Fed. 759; • In re Wood, 95 Fed. 947 ; Lewis v. Clark, 129 Fed. 570, 64 C. C. A. 138.

The objection must be made at the proper time ; Great Western Tel. Co. v.- Purdy, 162 U. S. 329, 16 Sup. Ct; 810, 40 L. Ed. 986. In this sense federal courts in different states are foreign to each other, and so are federal and state courts ; but federal courts in dif ferent districts of the same state are not; Horn v. R. Co., 151 Fed. 626.

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