INVESTMENT co. v. omo sr iv. w. R. co. 49
430 to make nnal payment on a valuable tract of real estate. Holders of $943,-
000 of first mortgage bonds and $293,000 of second mortgage bonds consented
to the issuance of the certincates, the remaining holders of $257,000 nrst mort-
‘ gage bonds and $219,000 second mortgage bonds not consenting, and a por-
tion of them, together with other lienholders, objecting. Held that, it being
doubtful whether the improvements would add to the selling price of the
road. the petition would be denied absolutely as to the items of $35,000 and
of $20,000; and as to the item of $47,243.18. except upon consent of all lien-
holders; but that certificates would be issued for the remaining items, if dc-
sired by the consenting bondholders, with leave thereafter to petition to have
‘ r the same made a charge on the non-consenting bondholders.
V In Equity. Petition of receiver to borrow money and issue his cer-
tificates therefor.
. Howard G..Holléster and John G. Johnson, for complainant.
Harmon, Colston, Goldsmith J: Hoadly, O., B. ‘ Matthews, and Healy dc
Brannon, for respondents. .
I Ramsey, Maxwell dr Ramsey, for receiver.
~ Saou, J. Thiscause is before the court upon the petition ofthe re-
ceiver, for authority to borrow $347 ,57 7.18, and to issue his certificates
therefor. -. Before referring in detail tothe petition, it will be necessary to
state the condition of the defendant, the Ohio dz Northwestern Railroad
Company, and that of its road, as disclosed by the bill, the petition, and
‘by other papers on file. The precise date of the organization of the rail-
road company’does,n0t~ appear, but it must be within about two years.
The first mortgage is dated 13th September, 1886. The capital stockis
$3,500,000. There are outstanding $1,200,000 first mortgage bonds, and
$512,000 second mortgage bonds. The company is hopelessly insolvent,
has never paid any interest on its bonded debt, is wholly without credit,
and can raise no money from any source excepting its earnings, which are
not, and formore than sixmonths last past have not been suificient, to pay
its operating expenses. Its line of road is 106 miles in length, extending t
from Idlewild, a station on the Cincinnati, Lebanon & Northern Railroad,
- about 3 miles from Cincinnati, to Portsmouth, Scioto county, Ohio; but
its track is laid only to Sciotoville, 5} miles out from Portsmouth, so
that the road does not reach either to Cincinnati or to Portsmouth, the
terminal points. It has, however, for some time had, at heavy cost, an
entrance to Cincinnati over the tracks of the Little Miami Railroad, from
Batavia Junction, a distance of some nine miles; and into Portsmouth,
from. Sciotoville, over the tracks of the Scioto Valley Railroad. It owns
no equipment, locomotives, or cars, but is operated by leased rolling
stock throughout, at charges for rentals too onerous for the company to
bear, or the receiver to pay. r A portion of its line, extending eastwardly
from Idlewild 43 miles to Sardinia, (perhaps beyond,—the papers on file
do not show,)’was.originally the Cincinnati & Eastern Railroad, a nar-
row—gauge road, and was purchased at judicial sale made by order of the
~ court of common pleas of Clinton county, Ohio. That sale was con-
firmed February»3, 1887; the order reserving a first lien for the deferred
purchase money, of which $56,099.50 remains unpaid. The track, ex-
cepting six miles upon this portion of the line, has been widened to
v.36r.no.1-4