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 1 2 3 
 
REPORT 
 
 or THE 
 
 ARGUMENTS AND JUDGMENT 
 
 IN 
 
 HERRICK 
 
 V. 
 
 THE GRAND TRUNK RAILWAY 
 COMF 'JY OF CANADA. 
 
 HEARD 17TH ..UNE, 1861, BEFORE THE COUET 
 OF CHANCERY IN UPPER CANADA. 
 
 Preeent : 
 THE HONORABLE MR. VICE-CHANCELLOR 
 ESTEN AND THE HONORABLE MR. VICE- 
 CHANCELLOR SPRAGGE. 
 
 REPORTED fEOM NOTES TAKEH 15 COtJW BT 
 
 RICHARD SNELLING, 
 
 BTrDEST-AT-LAW. 
 
 TORONTO : 
 
 ROWSELL t ELLIS. PRINTEBS, KINO STREET. 
 
 1861. 
 
 idM«MiHfc- 
 
5-i^i 
 
 
 
 i-i 
 
 w 
 
PREFACE. 
 
 HERRICK .. THE GRAND TRUNK RAILWAY CO . 
 
 It is not pretended that the report of the arguments on 
 the hearing of this cause is a fuU report: it has not been 
 n,ade from short hand notes. No short hand reporter was 
 present • but, as I have been actively engaged in the interest 
 of the Preference Bondholders of the Grand Trunk Railway 
 Company of Canada, ever since they asserted their rights, 
 and have also been acting for Mr. Morrison and others, in 
 th. enforcing of those rights, I felt that the preference 
 Bondholders would at least feel an interest in the perusal ot 
 a report (however meagre) of the arguments in, and the 
 judgments pronounced upon, a case which so materially 
 affected the great issues now at stake between the Preference 
 Bondholders on the one hand, and the Company, the Judg- 
 ment Creditors of the company and the other classes inter- 
 ested on the other ; hence the following pages. 
 
 RICHARD SNELLING. 
 
 Toronto, 19th June, 1861. 
 
 til 
 
 11! 
 
 i 
 
<l>^' 
 
 I 
 
 •4- 
 :-1 
 
 i 
 
 t 
 
I 
 
 TORONTO, C. W.,. 
 
 MONDAY, ITth tune, 1861. 
 
 m turunt 
 
 HEKBICK ... THE GRAND TRUNK RAILWAY CO. 
 
 ThU caose came on for hearing on Bill and Answer, before 
 
 J onoraUeMr. Vice-Chanocnor E.T.K and Ao ilonor- 
 
 J'fowl t lar Jar i" 0.e cLd TrunU RaiW 
 and Jl otnei tne , „ „,j JefcnJants horemafter 
 
 Company of ''»*;;^\2uer».) against Ae Grand Trunk 
 named who are »"Y'3" _i'i,;il„„„raMe .lohn Ross, 
 T'l ^°Si«kti rtnno TaeluS Thoma, E. Camp- 
 rriV Zorabl -Tame^ Fcrrier, The Honorable Geo. 
 Swlrd, Ja- Beatty, Thomas Gibbs R,dou.. Wdham 
 r, T 1,1 The Honorable John HiUyard Cameron. 
 XlnLM^. C, and Mr. A,a^ (/,«*., appeared 
 
 "^rll^ltt.'^lw and Mr. M.n BeU (of Belle- 
 vilta) apP-red for .he Company and the Director, an Mr 
 Ts Stron„ and Mr. Hdward Blake appeared for Mr. 
 cJ^J^Ao was made a party defendant, as be.ng a pre- 
 ferenr- bondholder of the Company. , . , ,, , 
 
 Te^laintiff, Mr. Hcrrick, is a shareholder m the brand 
 IWk Raibva; Company of Canada, and claimed to be 
 Sedl al/thepoLs -d privilege, ot"^ a .h^^^^^^^ 
 having f^^.^r. shares in the undertaking, and th« «^J^J^/^ 
 th-s sSit is best evidenced by referring to the prayer of his 
 
 bill, which is as follows : , , , .u- w^r. 
 
 let That it may bo declared by this Hon- 
 orable Court, that under the circumstances 
 here nbefore mentioned, the weekly and other 
 eSgs of the said road should be applied 
 Ster the payment of the ordinary and current 
 Expenses of managing, maintaining and work- 
 STe said Roadrin^and towards the purchase 
 an^d accjuisition of such rolling stock, plant. 
 
r 
 
 6 
 
 stores, and other 1??^ - ^^ T.^. 
 ciuisitc for the ^^J''. '^Xtowards the pay- 
 aVid Railway, and in f^^ J . ^^^bt of the 
 „,ent and di«<=barge of the «o^^ ^^j ^.f^re 
 said Company, in Fcfe^7^^^, preferential 
 any payment m rtspec ^^^^^^^^ 
 
 .onds _-f-7\t fuSd debt of the said 
 any P'' 
 
 „nd accounts taken. ^^^^i, f^i.. 
 
 ,J.^.\. length on the prov ■». of « ^^^^ ^__^^__^^^ „_^ 
 
 »*" '' ." ^: r/. ix ■ w^»^ ^^f^'" "" '"T 
 
 .f* iM.Jta ..«. ««*" !:;tZara«eeActofW49) 
 ,-„„rtW referre to --f f^' * ^ largely referred to m 
 Mr. GALT «'''7\'fXi„., „ the Graud Trunk, and 
 .11 the subsequent act relat n ^„„,y,„d in refer- 
 
 ,,g„cd that it «->- 'T^X ;:po,> the court that par- 
 eaco to the plamt.ft s «'."'='"; .^ ri,ions. Referrmg 
 .ieular attention AouUl be f^T^^^^^ , „t the interest 
 
 to the 1st section, he argued bat the P y ^^^ ^^^ 
 
 guaranteed b, the Provmoe should b ^^^^^^ ^^^^ 
 
 ae tolls and profits of the C™?''"'' ^^^ ^„,ui„„, of this 
 „s laid upon the ««— ^j^^^t Jst on sums guaranteed 
 act, the fund out of ** *;f,;;, ,„d profits" of the 
 «s to be paid, i<as out of the ^^ ^^^ „ j,,„. 
 
 Company, and to =«""*!'' XJgKrmsotthis section, 
 perty" of the Company in the follomng te 
 
 -r-- 
 
g 
 
 )n 
 
 S3 
 
 lis 
 ed 
 ;be 
 ro- 
 on. 
 
 I 
 
 J 
 
 i 
 
 * 
 
 uThat the Province shall have the first hypothec, rnort^agc. 
 
 and lien, upon the road tolls and property of the Company. 
 
 Jor an, sum paid or guaranteed by the Provmce. 
 
 An argument was also raised upor. the prov.s.ons enacted 
 
 hv section 2 of this act : That the Government provided for 
 
 itl f a security by re-iuiring that railway companies recen- 
 
 T^S7^rLl should render half-yearly accounts to the 
 
 Inspector General, attested on oath. 
 
 Mr GVLT then referred to the 14 & lo Vie, ch. .o, (18ol,) 
 
 .An Act to. nakc provision for the --'''f /^ " ;' '^2 
 Trunk line of Railwaj,, throughout the rvhoh' la,.,th,.f the 
 Prnvince " Bv this Statute the Provincial guarantee was 
 
 :r:s-to,w«./;.^ '^^ ^^ r ^t a;r;5'v;:r : 
 
 .nW and the 2-2nd section of this act (14 .^ lo Vic.) was 
 rjliei, reterrcl to an,l rc.le,. upon, h U ^ fo,.o„s : 
 XXII And be it enacted, That the said 
 .ruarantee may, as regards those Companies 
 ?;hose Railways will form part ot the said 
 Main Trunk Line, and upon such conditions 
 as the Governor in Council shall think ht. 
 be extended to the payment of the principal 
 of the sura guaranteed as well as to the pay- 
 ment of the interest thereon, provided the 
 bonds guaranteed are made payable at peri- 
 ods previously approved by the Governor m 
 Council, or in his discretion Provincial deben- 
 tures for the amount to be guaranteed, or 
 any part thereof, may be delivered to the 
 Company in exchange for their bonds for 
 like sums, and the principal and interest 
 whereof shall be made payable at like pe^ 
 riods, or at such others as may be agreed 
 upon ; and for the principal and interest 
 of such bonds the Province shall have the 
 same priority of hypothec, mortgage, and 
 lien, upon the Railway tolls and property of 
 the Company, as by the said Act is given for 
 sums paid or guaranteed by the Province, and 
 subject to the same provisions, and the said 
 guarantee maybe given either at once tor 
 ?he whole sum to bo raised by the Company, 
 or from time to time, and by portions as the 
 same shall be required for carrying on the 
 
 m\ 
 
 I 
 
p- 
 
 i 
 
 the rxovcrnor •" ^"^,'^,'; ,,uh the interests ot 
 expcVicnt, ami co"^'^^^" ,„amtcnance of the 
 the Province, and the luc ^.i^antages, 
 
 puliic credit, to gr n the J^^.^^ ^^^ 
 
 or any of tUcm to he ., he may, 
 
 Huron llailroa.l V n o'^J^ to Companies vrhose 
 ,jnder tiiis snction, grant i r^^^.^ ^^ ^, 
 
 Railways form part -^J''^^-^^,,^ also that 
 Line of K->^^^y.;„^on ^v^hich the benefit ol 
 
 one of the c«J^* ^^1"' ""itcd to any Company 
 this section «ba\l be gramc ^^^^^ ^^ 
 
 shall be that no h^law^ ^^^^^^ ^^^^^^ ^^ 
 imposing to"Hj^ ^JfSe or effect unt^l 
 Comp--"^yv'^lVGovernor in Council; and 
 approved by l^^J^l^^^ remain in force for 
 that no such by-la^v «^^ ^^^ ,smg 
 
 more than three y^^?^^' ^^y be subject 
 
 "hereof, «« \^?'^\«^,t,S. by the^aid Gover- 
 to the periodica rev son. y^ ^^^^^^^^^^ ^^^ 
 
 nor in Council, ^^'J^^^^,, (^f any) of the 
 
 ^:'eS effect to this proviso. 
 
 , 1 that the only difference between this 
 Mr. G..LT contended, that tn ^^^^_^^ ^^.arantee ja. 
 and the former act -J ^^,fj interest, and that everything 
 extended to principal as vre 
 
 else remained the same. ^_^^ ^^^,,, the mortgage or 
 
 HisHonorMr V-^;^: 
 
 V fpndcd to the principal- , nuestion 
 
 hen extenacu lu i ^^^^^^ ._^j^,i tiio oniy i 
 
 Mr. GALT.-^esmy ord, o ^^^ ^^ ^^^, ,. 
 
 other 'wto'^r'TS every ki.i.l "l"* 
 r„f„rUrgoJny Railway. 
 
 L 
 
9 
 
 H 
 
 -1 shouia like you to re 
 
 ad 
 
 the 
 
 I 
 
 3 
 
 IS 
 
 as 
 
 ng 
 
 ov 
 
 ion 
 les- 
 the 
 
 vord 
 via- 
 and 
 ssels, 
 vUich 
 niak- 
 
 Honor Mr. V. C. Estex. 
 
 B i» Sl 20th sections. 
 
 Mr Galt read those sections, ^vhieh are as follows : 
 
 \I\ And he it nxacted that any Company 
 
 tL:^^cr::oi:iml^d">^.-^'vid^ 
 
 d.e same into sections of not less that fifty 
 miles each and heing, as nearly .. the total 
 W h of he Railway and other ..vcumstan- 
 
 fa l AcVand of this Act -c complied ..th 
 as regards any such section, the guarantee ot 
 be Province may bo given lor the sum rc 
 uuired to complete such section, ^^hlch sum 
 sC not he applied to any other purpose 
 and the Company shall keep and render 
 Lpara accounts ^f receipt and eNpenditure 
 f^each such section, and ;* -ny/^^J ;;. 
 .,vnpnditurc he common to two or more sec 
 i: r'hrsame shall he fairly apportioned 
 among them in such accounts .o the batis 
 faction of the said Board. 
 
 XX And he it enacted, That the said 
 gu^r^r;tef shall not he gWen f l-J W j« 
 !nv Railway or Section untd the sa d Board 
 sSu have r^eported to the Governor in Coun- 
 il thattho land for the -Ijole Radway o 
 S ction has been acciuired and paid for ; th^ 
 a part of the work thereon ^\-^ .b;;.^. ^J^,. 
 pleted to their satisfaction, and that the tan 
 Ss^of the part so completed ^-^^-^-^^^ 
 fair cost of the land and of all '^atenals 
 then procured by and fh^ P^'^P^^f ^ ^J.,^. 
 Comnanv (and not merely the sum the Com 
 pan/maVhave actually 'expended upon he 
 same) would not be less than the cost of the 
 part rlmaining to be done, according to an 
 Lt?mate made upon tenders received and 
 
 B 
 
 ■' H 
 
1 
 
 ■ k 
 
 10 
 
 approved by tUeCorapn^-^^^^^^ 
 
 B^ard as fair ami ea^J«; ; ^, g^ant- 
 
 tbe guarantee of tl^ ^^ ^^ ^^ ^^,^ 
 
 ed for the ^^VthT^ork according to suca 
 remaining part of the jv ^^ ^^^ ^ ^y 
 
 estimate ; and ^^^^^^^^ ,„a report to the 
 of the said BoauUo 0^^^^^^^^ ^^^^ ^^ ^o ^ 
 Governor all such m ^y to ensure the 
 
 such things as may f?l''^^.^ X,.- and of this 
 faithful f "ution of 1 e s^^^ ^^ ,^, Commis- 
 Act, and any duty as gg ^^.^^ ^^^ i,aU 
 
 sioners of ^uWic AVorks by ^^.^ ^^^^^_ 
 hereafter be performed oy 
 
 , . 18 Vic eh. T4, (1855,) "^n 
 Mr Galt then referred to 1» > -j^ ^^^^^ y,,,„fc 
 
 ^,^V ,.an.n. «^f ^^^^^ sections 2 . ^^ as 
 
 Kaitoa^/ Company of Ganaa ^ 
 
 ^o^^«^^ •• 11. The sums advanced as a I-an ^^\^^r 
 
 this Act shall be a first «^^^^^^^^ of the 
 
 lien, in favour of the ^ro>v ^^ ^^^^^\q 
 
 'Cvinoial C^vern-^^^^^^ 
 
 amalgamated Grand ir ^^^^ ^,^^^ 
 
 da, and upon ail ^he ^ - ^^^^ ^giong- 
 pr^perty forming Pf^ J^^J, the said Com- 
 ?„g or bereaf er to belo g^ ^^ ^^ ^^^. ^ ^ 
 pany, and sball he pay ^^^ ^^^^g of 
 
 Lceeding ^w^.^^,/' thereon at six per cent, 
 this Act, tbc^^y^'f itvabie by the said Com- 
 per annum bemg P^^^f ^^^j J province, half- 
 pany to the ^[0^^?,''\ g the Governor m 
 yeaJly, at such V'^^^f' Jed that nothing 
 Council shall appoint, Irovide^ j^dice the 
 Tn tbis section co^^^-ed sh^ ^^^ ^, 
 
 security of tbe ^^^^^Lnd Company upon 
 the British Am^^^ccm ; ^^^^^^.^ ,,,a 
 
 the former St- l^awren ^^ i^nds sold 
 
 or to any creditor for the p ^^^^^ ^ j, 
 to the said Company, or o ^^ ^^ .^^^^^^ ^^^ 
 Company having a pnvuefe 
 
 preffcvetce and privilege, 
 
 I mi 
 
 -*. 
 
m 
 
 e 
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 u 
 
 a, 
 
 Id 
 ik 
 de 
 
 m 
 tne 
 
 iCCt 
 
 1 
 
 11 
 
 *n the same incidents as to redemption and 
 otheAiso as the charge, hypothec, and hen m 
 7^^^ % ti.p Crown for claims arising out ot 
 
 reP'onS^- 
 
 ftip Provincial Guarantee under any formei 
 Act or Aclsauthorising such Cxuarantee or 
 
 advance. 
 
 M r ALT contended that as the said charge, hypothec, and 
 Mr. GALTcontena ^^^ ^^^^ preference 
 
 Hen -/r^-^fJ^^Sr'subject to the .ame incidents as 
 and privilege, ^-^^^^^^ ^^^^ ^ .^c charge, hypothec, and 
 to redemption -^ «f J^^^;^ f,, ^,,^, arising out of the 
 
 Provincial g^^J^^^f ' „ ^^^^ ^r.Galt, " what are profits ? 
 
 p„rte.lm • j"'.;^,„;,,„ ompanyforraiU, stations anrt 
 debts mcmr >1 by a ^nU y P J' ^^^^ ^^^^^ ^^^^ ^^^^ 
 
 the like, and ** '^ * ';;^^„„a, f„™ . first charge upon 
 
 roS::e:r.':?^^^^^^^^^^^ 
 
 they liave a preference. i{,»,«i/, 
 
 The judgment as rcnJcred m t » .mt by ^^^ 
 
 M. B.,™as =»»-"™,"Vr,ad "Tbls suit is instituted 
 learned Master of the II* sat. T ^^ ^^ ,y„„,pan,, 
 to determine v,hat constitutes toe p .^^ ._^ 
 
 and how they ought '» »-;.;£tenr ontenipiated by its 
 
 STXrUi^I^beeii p'assod enabling the co.pany^o oh- 
 
 .J more money by ^^^^X^^^ "•''*' ">= 
 The first question B ^l';'"™;''''""/^^, ,hat debts out ot 
 
 defendants arc ""';"»'' '"J ^""Vm"' the shareholders. 
 
 I Gia h^fcro thcv divide tnem .iniuuj, mv 
 
 the profits ^ ^^ y y ^f ^,^, ,,,„p,,y are first payable, 
 
 It is clear that all tlie ueois r r,,„,ied d'^bts. for 
 
 :^rrre;:Srra,^:;rrey by mortgage, 
 
 ' i^ 
 
ii 
 I 
 
 12 
 
 . 1 • i.i,«:r Arts for the purpose of 
 under the P0«» -%'^^i;:,*r „t can»OW. such . deM 
 completing the,r l.ne Th 'W ^^^^^^ ^^^ ^^^g,, 
 
 « that it can be pa>d off on of the P ^^^^^ ^^.^^^ ^^,^ 
 are divided. But on '!« "*«%;,„ L .Hrectors or .he 
 been incurred, and »'""'""- for rails for completing 
 
 company, either to .team ^^ne , ^^^^ ^^^^_^ ^^.^^ 
 
 nations, or the f''';"„;"iod the necessary fund., these 
 time, had the defendants POS-CS ^^^^^^, ^^^^^. 
 
 „e,o many deduct,ons from the proh ^^^^ ^^^^ .^ 
 
 tained till the »holc are paul. ^^^. j,^^„ „,. 
 
 ,,g„ment as to the propnety "f *«; ' ;„ ,„, ,^,. It is 
 cJred. With that I l';-' ""'^"^ .Vtrustees of the rail- 
 „ot instituted to ma cO-c-^;*_^ trust for the iue 
 „ay company, ImMi! <■" '"""' ^ j„„fl,led to them, 
 
 piormaneeand ««""-; .t^^t^hich would be al- 
 
 rbr::tsr^--"^^ 
 
 i„ payment of the ■'-^^^f^^fZZ you contend that this 
 His Honor Mr V. C- EsIl^• ^ ,„j jo 
 
 :':r::^^t;irt'r:oSgtheroad,Ldfor.ho 
 
 „„r contention k«tev.-A bond to complete the 
 
 .i'rt^::l"--itW«— tointhis^ud. 
 
 -jL^..._Ho';P.se:otmy.^^^^ 
 
 lordship to section 3, of the ac oi , .^^ ^^ 
 
 111, and particularly, my I'^rJ, to .0 Vic., 
 
 thich Jill t^ow read to your lordships .- 
 
 IV On condition and provided that the 
 said Company by. means of t e Mcrer|^^a 
 
18 
 
 for such purposes, complete their Railway 
 frnmXiere-du-Loup to St.atford, and thence 
 
 A? t;.; Brid-e and the other works, under- 
 Victona ^"^°'' „g^ent3 mentioned in the 
 ::STct" ? S -T supply the said RaU- 
 tt\th sufficient plant, rollmg stock and 
 way vith sumcier p efficiently, vvithni 
 
 Stsr;-:::;e:liedinthcsaidActot- 
 
 185G or within such extension thereof as i. 
 ierei'nafter stated, and so long as tuey mam- 
 S and work the same regularly, the Pro- 
 roe foegoes all interest on its claim 
 • f i^Kn rmrnanv until the earnings and 
 :foTtf f tlt.To-^any, including those of 
 fl Atlantic and St 'La.rencc Railroad Coin- 
 Znv shall be sufficient to defray the follow- 
 pany,bnauu a u exnenscs of managing, 
 
 cksive of those held by the Province :-3 A 
 t dend of six per cent, on the paid up sW 
 capital of the Company, in each year in ^vlnch 
 the u plus earnings shall admit of the same: 
 tnd then in each year in which there shall 
 be a surplus over the above-named charge, 
 such surplus shall be applied to the payment 
 of the interest on the Province Loan ace u ng 
 Z such year : The bonds and share capita 
 herein mentioned shall be held to include and 
 cons St of all loans and paid up capital ^vlllch 
 the Com- any have raised or may hereafter 
 rlcb^'^ujid^ under the authority o any Act 
 of the Provincial Legislature passed or to be 
 passed, for any purpose authorized by any 
 such Act. 
 
 Y„„r l«r«ip» will rem.uk, continued M (Jalt, that the 
 Pro "ine foresee, »11 interest on it» elaltn ng«.n»t tl,e eon,- 
 ,„fi the "ennin-s »n,l profits" of the cotnpany shall 
 Tsuffie 1 . .i::^t;r„tl,inp-, a„M- f -Pe-e, o 
 maw* g, working, and maintaining the works and plant ot 
 the company are to be paid. 
 
 
 _^ 
 
14 
 
 V r F.TEN.^A^^ expenses must be 
 HiB Honor ^l^-\-f;.fJe" Government postponed Its 
 previously deducte.^ ';^ZTnn^ess the Government -de 
 Uen • it seems to imply ^1^^^ ^^^^.^^ ^^^.^est, but 
 
 ' ;m, thev wero entitled understand 
 
 tL. c/aU, -«* «t:t ,e. „,c .e.er your .o,*Mp. « 
 
 Mr. Galt.— iiit' 11 J ^^ _ 
 22 Vic, ch. 53, sees. - • .^^^^^^^ ^^ 
 
 the Grand 'r^^^^^^^p S Stock of the s^iid 
 da, to increase tbe C. p^al ^^^^^^.^^^ .^ 
 Company, by svich sum J^^ ^^^ Thousand 
 Turn 'of ^Tv-o H"- ^;t;^^equisite for con- 
 Pounds storlvng, •V'^-^y ^^ ^^.^^^, i.ereby au- 
 structing the ^^'f^^^^„ them to carry this 
 thorised, or for e"^?^^^^^^ increase may be 
 Aet into cftect ; am ^«c^ f„, ew stock 
 made eithr • ^y ^»^P ,f the Company, 
 by the then Shareholders .^,,g, or in 
 
 o^v the admiBsion of no v^ ,^^^.^.^„,,i 
 
 both^vays; an>Uhe»l^r ^ ^^^^^^, 
 
 Stock shall be ;;^f .;\;'stock of the said 
 the shares of the ^^'';^.^^^^, of the Act 
 Company, and al 1\« P^^^.^y shall app^ 
 incorporating the said v. j ^. ^^^ ^^^^^,,. 
 
 lo such a<^f ^«f ^^^ f^t'tbereof, in so far a. 
 bers therefor or boUierh express 
 
 mt T^ot be ;"-Xeror" «h^^^ ^^ .'r'''' 
 provisions ^^^^^^^^V to raise the said sum 
 for the said I>»^^^ ^/^^.of the Capital Stock 
 partly by such '^'''ll,',,.M, and partly by 
 r,f the Company as atore , ^^^.^tures 
 L and for that purpose to ^^^^ 
 
 Tthe said ^'^''C^co^oZ^n^^ the said 
 visions of Vh«/;i;as to the Bebe^tures 
 Company sh^^\ ''^PYboritV thereof: And it 
 •„sued under f- aujo^ y^^^^^ ^^ ,ther 
 
 ,ball be lawful tor the u ^^^^^^^^^ ^b- 
 
 Railway Company, on b; ^^^^^ .aditional 
 .cribe for and ^JoW f \^f (.^^.^ Trunk RaU- 
 
 I f 
 
\ 
 
 ^ 
 
 1 
 
 15 
 
 named Company, appointing one Buch peraou 
 ?o?evevy hundred shares held by such other 
 Oomoanv and one for any broken number 
 f Tw i'so held less than a hundred ; and it 
 i ? ko be laXl for the Directors of such 
 
 t^rt::::io lend -p -;^t tt 
 
 Trunk Railway <^ ^"^P'^^y /f, ^^ -^'i' ^1 or 
 
 interest m « A^tiwRuch last-mentioneu 
 S:tnf anaTorJKt, Branch 1U»- 
 
 for conveniently connocHng *'. ,''.'".7''? °. 
 inch other Com'pany ^''^ tne sa.-l bridge, e 
 f enabling .fb o.ber Company Mj'^ 
 
 „;i \t^o\f of the provisions ot tins aci, ^lu^ 
 ttrasele'ca'pital Stock of -eh other 
 Oomnanv by such sum as may be necessary 
 to Say ti cost of any such >v'ork or to 
 payany^sumvhich shall become payable b 
 such Company under the provisions of thi. 
 \c and such increase may be made either 
 hv Subscription for new Stock by the then 
 Shareholders of such Company, or by admis- 
 fon of new subscribers, or in both ways, or 
 i shall be lawful for the Directors of such 
 Comp nv .0 raise such sum partly by su^^ 
 addition;..! Stock and partly by loan, and fm 
 that purpose to issue Debentures of such 
 romp^ny • and to all such Branch Railways 
 SthJrUrks to be constructed undei- this 
 Secuon by any Company othei tluin^ tl c 
 Grand Trunk Railway Coinpany of Canad 
 ^nA to all shares of the additional Stock of 
 'ueli Company authorized by tins Section, 
 Tnd to theLliribers for and holders thereo 
 and to all Debentures to be issued hy suJ. 
 Companv, and other the things to be done by 
 or ™n behalf of the said Company under this 
 Section, the provisions of the Act nicorpon. 
 ting such Company, as amended by any 
 subsequent Act, shall apply m so far as thev 
 may not be inconsistent with this Act. 
 
 V The Guarantee of this Province shall 
 not be extended to any Loan or Debenture to 
 
 ~\\ 
 
 I- 1 
 
 \r 
 
r 
 
 16 
 
 • inmler the authority of this 
 
 be raisea or issue. J^^ ^ ^^-^^^ or any 
 
 Act or in respect «J'^^ ^^-^^ ^ct ; and 
 
 work to be constructea ^^^.^ ^^ ^^^ 
 
 neither the pnr. ege . n p ^^^.^^^ ^^ ^^ 
 
 ^lajesty on behalf o t ^^^^^ ^ ^^ 
 
 of -ihe Guarantee o tb^ 1 ^^ ^^^^^ 
 
 to be .^ranted to he ^ ^^^^^ ^^^^^ y 
 
 Company of panada, or ^ ^^^^^ ^^ mort- 
 
 Company, or any Scn«[? J^jVprunk Railway 
 
 .ac-e^iven by the f ^'^^^^^^^ ^ther Railway 
 
 CoVa^y «f ^.'^""'^r; SssTn^- of this Act, 
 Company, ^efore the passm ^^ ^^ 
 
 .ball extend \« f^^^^ under°the authority 
 ^vork constructed so ely ^^^^ ofits to be 
 of this Act, or to the toi ^„^ ^he 
 
 acrived therefrom, but tne .^ ^^ 
 
 shares held by '^^j/ ^^structbg the said 
 ^^^f '' :;^" ^bf s^^-ately hypothecated 
 bridge, may >o l" ^ ^be claim of Her 
 mortgaged or pledged, an ^^^ 
 
 Maiesty on ^^half ot th s ^ ^^ ^fore- 
 
 Ji general ^^JP^f ^ .^y " jf^af hypothec 
 said, shall rank after any F ^y^^ ,^,a 
 
 mortgage or pledge t^ be g ^^^. 
 
 bridge or jork o. an^ borrowed for the 
 
 Sr --u^Vf -^ ^"'^^ 
 C/Sch work as aforesaid. 
 
 Mr.O..-I^eferyonrl.d^wi^^«---^ 
 
 sections. The Conjpany -y -^^l J ^^^ ,,, transferred 
 please-,. I -"^-^^^'^Xw^ers, and all the Province 
 uny right to the preference b nd ^^^^^^^^ .^ .^^^ ^^^ ,_ 
 
 bal done in the matter of p.ej^a ^^^^ . ^ ^^^ ^,,^„ ,, ^ 
 The Province has ^-^'I'-T ;;^'^^^,u have it." But, my ords 
 vou, preference ^«"^^;^f; ' '^.^ to which I have referred 
 ;hen reference is made < ^ 1^ f^ opriationof the earnings 
 ,our lordships as to tj-- J^ J ,,,ae by the Legisla- 
 •__^vhen regard is had to h d ^^,^^^^^^ by those de- 
 
 ,,e-I say it was ^^^T^^^^,^,, and maintaining 
 
 1 
 
 I 
 
 i n? 
 
17 
 
 come, and have left no fund whatever for the payment of 
 creditors. I refer your Lordships to the case of Rits-ell v. 
 The East Anglian Railway Company, reported in Rail- 
 way Cases, 541. Mr. Galt proceeded to comment there- 
 upon. 
 
 His Honor Mr V. C. Spragge— Mr. Gait, do youundei- 
 stand that floating debt means every unsecured debt ? 
 
 Mr, Galt — Yes, my lord : I presume it is so. 
 
 His Honor Mr. V. C. Esten— Mr. Galt, as I understand 
 your argument, there are three classes of debt which you 
 contend should be paid before the interest is paid on the pre- 
 ference bonds. 
 
 1st. The debts for constructing the line, which were in- 
 curred before the act authorising the issue of the preference 
 bonds had passed. 
 
 2nd. The expenses of managing, working, and maintain- 
 ing, in arrear, and also incurred before the said act had 
 
 passed: and 
 
 .3rd. Similar debts incurred, and to be incurred, since the 
 
 said act has passed. 
 
 Mr. Galt— That is our contention, my lord. 
 
 His Honor Mr. V. C. Spragge— What are the costs of 
 construction ? when the rails arc down ? or when the road com- 
 mences running 't 
 
 Mr. Galt— I cannot say my lord what may be said to be 
 the costs of construction ; nor does it much matter, as the ^ 
 debts for construction arc almost all poid. I suppose if a 
 bridge break down, the company would be bound to repair 
 it, and the costs for doing so would be a proper charge to be 
 paid as expenses of managing, working, and maintaining. 
 
 His Honor Mr. V. C. Esten.— I really don't know what 
 the legislature may have meant to say— I do know what it 
 
 has said. 
 
 Mr. Adam Crooks next addressed the court on the part of 
 the plaintiff, and called the attention of their lordships par- 
 ticularly to the frame of the suit. He referred to 23 Beavan, 
 •212, .^-Drewry's Equity Pleader 57, and contended that the 
 bill was properly framed, and that the plaintiff ^^M't a share- 
 holder, had a right to the relief sought by the bill. 'Mv. 
 c 
 
r 
 
 f^ 
 
 I 
 
 m 
 
 18 
 
 the atlention ot tneir .^^^Jcvs r.glits >Nert i 
 
 rr.nd Trunk preference bonan ^^^ ^iguc 
 
 f.Venonthe "profits ^^ ,'e^erence bondholders 
 ture of a Len o between pre.erti ^ 
 
 .Knt there was no dificrente railway mortgage > 
 
 1 reference shareholders. That . . ^^^ ^^^ ^^g^.^ 
 
 videdfor thcp^y :.„,s intended 
 
 bonds. ,, c ESTEK.-I suppo^^c it vr. 
 
 1T\3 H'^nor Mr. N • ^' ^ . and clear of dcDt, au 
 ^ r.. V should start tree . trouble would 
 
 His Honour V.€... ..feyour 
 
 ,T ^d he appeared for the dircc earnings ot 
 
 He ^-^^^! f/,„,idered vere ^inau ^^^^'^^^^^^.^i^g, strictly in 
 ^"^^'"? and hey desired to dispense thosean ^^^^^^^^ 
 
 rt-HhL - oa;a— ^^^ relief .hen 
 
 tvere entitled to come to ^^^'l ^^^ing trustees for the 
 
 • ^'"'''"fJect starting point, and ..encc ^^ ^^^ 
 
 i 
 
19 
 
 holder \3 to the prefcrcnco bondholder who is a party 
 r McDonald conter^dcd that the docroo to be pronounced 
 . th . suit .ould certainly bind hi.. If the <locree should 
 he that the defendant Cameron is to ho paid, then he (Mi. 
 rameron) ^vould, no doubt, be strenuous iu his contcntjon to 
 ™or U a decree ; but if on the other han.^ the deevee 
 hould be that the debts of the company must be first paid, 
 then without doubt, Mr. Cameron ^v.ll bo bound. 
 
 His lienor Mr. V. C. Esr...-Mr. Cameron .a holder 
 
 ;::r;:^1;^:^Hch those resident in England may 
 
 ^'"\S^D^A--I think not, my Lord, if the principle 
 of r presentation is applicable, the other part.es resukn n 
 Ensland must be bound by any decree ma<le against Mr. 
 
 ^'nilllonor Mr. V. C. EsTEN.-This court will not make 
 •i decree which can be upset next week. 
 
 rMcDoNALD-The company, and its Directors, des.re 
 that [he decision to be pronounced in this smt shouhl be 
 final Mr. McDoNALD then referred to the act of 18o* , -0 
 Vic ■ ch. 11, and reading section 4, he contended that the true 
 construction of that section was that all the earnmgs of the 
 company should go to pay debts \n the first instance. 
 
 Ill Honor Mr! V. C. EsTEX.-As I have before observed, 
 Mr McDonald, the Legislature supposed, and we may take it 
 'intended, that the road started clear of all debt and. if this 
 Tad been a fact, the construction of thi. act, 20 Vic ch. 11, 
 sec. 4, is easy enough, and there being no sinking fund pro- 
 vided, it seems to me as if the preference bonds were in fact 
 
 nernetuul annuities. 
 
 ^ Mr MrDoN ALD.-But again, my lords, I do not know taat 
 1 need trouble your lordships with further reference to those 
 acts which have been so fre(iuently mentioned in the course 
 Is argument. I think we get over all diffici: ty by refer- 
 ing to an act which was passed lust session, and I beg your 
 lordships to refer to the same. 
 
 Mr. STRONO.-If that act is referred to, I must consider 
 
 
I 
 
 ii 
 
 so 
 
 „be.b« I can rewin my h™?^ ^^^ .^^ .„,, it U not ,e. 
 
 L referred to. . , , . ..ggion are printed, and are 
 
 in court. >>e» ,o sav upon it. .,j„ 
 
 . hear ^bat you have to^JJ "P a last session, ^ 
 
 Mr. McDonald road f^^"^^^" J ,,aK«.8 CV.«oZt<iatton 
 
 Act." The 8th section he leiie p ^^^ ^ 
 
 ^''- VIII. The in^'^^tropertracquired or leased 
 
 „v vent, of any re^l PJ^Pe^y l^^,g,,ry to the 
 
 by any vai^^v-y ««^7;5Vailway ,„dthe price 
 efccientAVorkingofsucar 3 ^operty ov 
 
 „r purchase money ot anj y^^^ ^^^ ^^ 
 
 „ftl.erail«y. ^ j„,,„„ovy act, 
 
 H«H«ao.-Mr.V.C.EsTES.-I»thata 
 
 and does it apply ? ^ ^^^„ i^ able to shew your 
 
 Mr. McDoN*!-"--^ tWDK f lordships to the 
 
 lortups that it does apply ; an I «ror , ^ ^ 
 
 "t^i^g-" The case I have cited gives the defim- 
 
 tion, and I contend -P'^^ ^^.^^^^^ meaning of the act. 
 ^locomotive" is a thmg ^f^^'^r^^,, heing made to this 
 Mr. GALT objected to -^ "^ ,,, ,ppiy, and he did 
 statute. He considered tha^^^i^^ ^ 
 
 not ..ish that ^^^^^^^^n^^^ 
 
 Mr. McDonald <=7^f ^^^^^^^^^^ Directors in this hti- 
 ence to the position of the^Comjan.^^.^^^ ^^ ^^ ^^^^.^^^,^ 
 
 gation, and reviewed ^^^ P „,. ^y.^ case. 
 
 rswespei?' 
 
4 
 
 i- 
 a 
 
 lis 
 id 
 
 er- 
 iti- 
 ed, 
 
 Lon, 
 
 SI 
 
 JOHK HILLYARD Camerox, vrho IS made a party defendant in 
 irinterest of the preference bondholders. My learned 
 Wend Mr B ake, is with .e in the «an,e interest. 1 need 
 
 n recapitulate the various statutes -^-^'^ ^^^^^ ^^T JZ 
 nuen ly in the course of this argument, brought before the 
 rntio'u of your lordships. My learned fnend, Mr. Gal, 
 :reZus cd all that I need say on the question of extr .cts 
 from the statutes. To my mind, my lords the quesUon .s 
 one of constructio.-tho construction ot ^ho oth sect on o 
 T Zf '-y-^ Vi.' ch. 52. I take the practical -luestion toi 
 ;tr rd;hl^''eonsideration to bo, whether the dU.ctors 
 have a right to pay any debts othor than mere curnt cx- 
 nrsesl^orking expenses. These, I submit, must be m . 
 Td ;i^ and what are working expenses ? They are easdy 
 ZscM. I understand working expenses to comprise 
 t . to employees, wood and oil, necessary to work the hue 
 Wsof rollingstock, and the maintainanceof thopovmanont 
 :rAndhowcanitbeotherwise,theactsclearlyprovid^^ 
 he Company are to pay their debts, and indicate the und 
 to be employed for that purpose. The Company by hen 
 lets have nower to raise capital by eontrilution and b^ loan 
 Ld reading the acts by the light of an ordinary --er^a 
 understanding, the interpretation is clea. Take the case ot 
 a partnership, which I submit is a proper illustration bup- 
 pose that the profits thereof are mortgaged, profits to le 
 hereafter made, can the mortgagors, the P-tner., use 
 the capital of the partnership for purposes foreign o their 
 trade? Certainly not , the capital cannot be so used. And 
 low refer to 20 Vic, ch. 11, sec. 4, and the torce of my illus- 
 
 tration is apparent 
 
 Mr Strong weat on to observe that the share capital was 
 Um'ued but that there was no restriction to the loan capital; 
 and the section last referred to, went to shew clearly, how 
 the income of the Railway was to be applied, after deducting 
 ^vorking expenses. Mr. Strong then ably illustrated the case 
 of the preference bondaolders in the view of " convenience, 
 and reviewed the case of Itussell v. East Anglian Railway, 
 shewing in what manner that case was inapphcable. He also 
 reviewed the case of Corry v. The Londonderry and Enms- 
 
 J 
 
\ pointed out to the court that 
 kitten Railway ^^''"'i^'','!''' .^"Ln of profits =i« ?'«««'<'^'* '^^^'■ 
 fat case .as .s to ^^^^Z^!:. creditor. And here 
 holder., ^vhile th.9 ca.c >^as as ^^^.^^^ ^, ,^,, ease of a 
 
 again he rcferrca ^y -yj^;^ ^.,i,i,„ of profits between 
 p!vtnership-av«u.ng t^'-^^ "^ ^^^^^ ,j ^or.^ -. Londonderry 
 
 ^as sustainable, hut ur},m„ 
 
 betvs-een f/u.« and tJas case. ^^^^.^^^ ^^.g^,,„,„t tha 
 
 Mr. STRONG also urged, in a ..y ^^^^^^^^ ,^,, Act ol 
 
 th Act of 1858 (22 V^<;^ ^h -0 J^ ^^ ^^,,3 ,, .ere 
 1857, (20 Vic, ch. ^]^_X';^,,, of application of carn^ 
 not any condmons l^^U ^ ^^.^^ ^^^.^^r, and that 
 
 ,ng. after payment of ^vo k"i ^^^^^ ^^ ^ ,„ent ol 
 
 the fir«t payment thereafter ^vas ^^.^ ^^ct gave 
 
 fjerest to the Pve^eren. on^^^^^^^^^^^ ^^^^^^^^^^^ ^^^, ,,^, ,,e 
 ,hem a title even as agam t J^ .^^ ^^^^^^_ 
 
 lien of the Province absolute l^c ^^ ^^.^ ^^^,^ ,„d 
 
 as to deiendants uy i^t- 
 
 ^«'''^"^^' '^- ELAKE followed on the part of Mr. CaM- 
 
 Mr. Edwaud Blakl 1 bondholders. 
 
 ERON in the interest of he piete ^^ ^^^^ ^.^.^^.^^ 
 
 ";l B.AK. P--^t"b n hi Vrs o^^ both, extending to 
 or that of the Ff J^"J! cTmpa,v, u.. ^'xecution creditors 
 everything owned by the Compar. , ^ .^^^^^^^^ ^^ ^^^.^^ 
 
 parties, ana u\^^ 
 
 not arise in fact. practicably a first lien, 
 
 The lien of the ^ondhold s va p ^^ ^^^^^^ ^^ ^^^ 
 
 not on the profit., but - j ^ ^•,:;^ ...^led independently of 
 
 the Act 01 iooo) I" ■ • 1 
 
 payu,ent ot interest o'J™='Ptu,ature «•.=, that the Co,n- 
 
 •' ihc cfeav "'«"»»» tnteJ^P 'he ro.l by means ot the 
 
 ,.„y Aould consuuct '»* ?1 Jj„ t,,e various acts, and 
 
 Aere «s no i"'™'- ^ ^L.^eLn, except l,y n,e.ns of 
 
 to contrpctors or otners 
 these borrowing powers. 
 
23 
 
 n 1 1 ..tur'a fnntcntion would be to give 
 
 The r«ul. of the P -»'*„; "^ ,,,,„, of securities by 
 ..he Company power to l«lp»ne ^^^ ^^^^ ^^^ 
 
 ,„„,-,fest .h.t -''- ; ;» :;;X;t:We to the expense, 
 all the earnings except vh.it ^^erc hi 
 
 of xnanugomeut and ^^^^^'^^^ ,,,,,,,, ercditors and 
 This va. really . -^^ ; ^^^^ ^^^,, ^^cessary parties to 
 the bondholders, and the former v ^^^_^^^^ 
 
 the litigation, as A^ere also the -'^^^ ''^'^ ^^^^j f,,,i to 
 If the act of last ^^-^^^^^^^^^^J the pre- 
 
 sent execution creditors, aMuc ii nu 
 
 ■„g ,„ »as in favor <•' *« >;»;; '^^^^^^^^^^^^ ,,,i„uff hetag a 
 
 ho^iii^ u. .a th. .; p;/;— rr :: «. 
 
 '; ra"" ;=.e:To tt t:.lt the r,aV.Uie, .- 
 
 lordships to refer to IJnle, on Partnership, pp. 4iJ, .T., 
 
 ''L. Tkomas GALXrose to reply, but i--^^' ^ \°^^ 
 Mr STUO.G and Mr. Blake had not referred to .he Rail.a> 
 Clauses Consolidation Amendment Act 
 
 The CouuT stated tl.nt they ^^-"^•\ '^^^,;' ^ J// .j.ed 
 Stronu's and Mr. Blaki^-. views upon the 8th clause, 
 
 '^^'rs:rtia,.hat he consiaetea the Act a,e„e,.a. 
 1.7 that the Act »as piospcctive, alKl M n-t a^plj 
 
 7„!rDroperty-and as to the interpretation to be given 
 ^Zt:7Z,,r .be »oras of the act tvere, " real pro- 
 
 ..,J 
 
 m 
 
 f'1 
 
 ti' : I 
 
 :;;t;! 
 
s 
 
 [\ 
 
 24 
 
 well as '-property, ana tne 
 
 or real thing-" ^^Knvatin'^ this opinion. 
 
 Mr. B...B follow , --~ „,a L did not vely 
 Mr. Galt conunucd 1 rep 5,^^ ^^ ^r. McDonald, aud 
 
 at all upon the stat^it 
 
 passed last session. __^ ^^^ ^^^ ^hink that statute 
 
 His Honor Mr. V- ^•/''V; J .T^Donald seeks to give it. 
 
 ,iU bear the intevp^;otaUon Mx^^ ^ __^j^^^ ^^^ .^ , g.^.^al 
 
 His Honor Mr. V. C' ^^'^^^^ ^runk Railway. 
 .,et; it does not refer to tl. Gr -^^^^^ ,^.^^,^ ,j,.. g.^oK. 
 
 Mr. GALT, «o"^^^"^^:'X^^^^^ ouite an easy thing for 
 ,„d Mr. BLAKE may think that it w .^ ^^^ ^^^^ ^^^^^, 
 
 the Company to ^--^^^raf money was required, and it 
 sary to announce the f^^^tt he (^r- G^^') «°"^^ "''"'' 
 Jd he at once P-^ ' t:, '^laken ; it was one thing 
 them that they -<^l^^^^Jl, .mother to get the money 
 to have the P«--;- «^^^ ;X' arguments of Mr. Strong and 
 Mr. GALT said t^;;^J^;;f ,,,eeded, four millions stev- 
 
 Legislature never intend^^^^^^^^^^ ^^^ ^^^^ ,, i , a 
 
 1,ecn presented, ^^f .^^ [;7;;^ ,, ,,^ainfor about a quarter 
 gentlemen ^-^^f^^'^^ ^.^g.t the court could then give 
 of an hour, and that tuey ^ 
 
 judgment. * .^^^^.g^ ^nd return- 
 
 Theiv Lordships fetn d - htto ^^^ .^^^^^^^_ 
 
 log into court. His Honor Mr. V.^. 
 
 JUDGMENT. 
 
 ^r V C E-TEN said, after the best con- 
 His Honor Mr. V. C E^te ,, ^^ ^^ ^^^ ^^ 
 
 .ideration .e have been dd in so ^ ^^^^^ ^^^^ ^^..^^.^ ., 
 tbis case, we have come ^o^^;^^^^^ ^^ ^^ ,^^,, the situation 
 
 *i 
 
I 
 
 25 
 
 „V,cU gave tU ^^'Z^^VZ^X^^^^ 
 est-li) i. -0 V.C., c". , y ,,,,,„„ ,„Mto LorJ- 
 
 ,he r'<^f«''"^''r%j;;' to issue Prefc,e„.i»l Bon.ls 
 ,hip, authon.ed th« Company ^^_^_^j. ^^^ 
 
 ,„ tUe «'»' »t '" 7'"™; ;V,oli,v of claim therefor 
 holders of such bomls lo 1 ave PJ - B„„ai,old. 
 
 .„r the present first lien ot *» J-v- ; *» ^ ^^^j^ 
 
 ers merely, .hey have "l^^^'^J Zer..c.i alrea.lv 
 lieu (for they get the hen ^1»* ^; ^, ,,,, Company, 
 possessed) attaches ';*^.:^;':, ^U L I>>'eres.. 
 fre^rJ »J>'f ;; f ' f ™ X Bondholders thus created 
 The nghts of *; ^;*;™ t ,„actme„ts, and in my 
 
 „e not 7--^7/X st ather confirms those rights. 
 v,ew the Act 2- y.c, cu , ^^^^._^ j,^^ j,.^.^^,^^. 
 
 Now the object of this siit is j^^_ 
 
 from paying the -f "' "^tt of M lent, this Court 
 ence Bonds, ^Pf^^^^j! '^ Court must decide the 
 
 ha, no P»7 '» 'f ';j,;a „pou these pleadings, ac- 
 
 ouesbons which are raised P ^^.,^.^,, ,,^,, 
 
 rding to the 7« AcU P.^ ^^ ^^ ^^^ ^^^^^ 
 
 the subject; and it wc reter p^jr^BESCB BoNii- 
 
 tC ALIE^VPo' THE BOAT, A^ ALL THB WOKKS AKL 
 
 c«,i thit in those Acts tne ngn.s ui t 
 
 find that m t,uu ^^ ^ ^^^^ 
 
 Directors from applying the '-'""fyf ^V^ *'" ^ 
 
 :~-L;Lri^:d^r^^^ 
 
/ 
 
 26 
 
 r t>,P Gran.1 Trunk Railway Cotn- 
 Preference Bondholders of the (.ran 
 
 panv «vc in that V^^^.^^ ^ave been able to gn'o to 
 ' From the best con-*^'^- -"^^ ^,^ ^^, „ust be d.stu.sed, 
 the case, >ve have concluded th 
 
 and>vith cost- , ,. .^tted that he had not 
 
 His Honor Mv. V "■- t'lZ con^^^^-^^onheiore render- 
 
 heen able to give th.s case mo e c .^ ^^^ ^^^^ ^h,, 
 
 ing judgment, ^l-e w^ ^ ;^, ,, ,Ue Bill.) He .as 
 Lordship then read ;^;^;;'i^.,,eh of trust to apply the 
 
 of opinion that U -o-^'J^^;;^ ^^ ,^, Acts. He -as m 
 earn'.g^ in any ->y ""^"^ ";,Xtai;.ing and working, an. 
 aoubt as to the expenses oj^^^ ;^^^ ..titled to any 
 whether the T- orence b ndho ^^^^^ 
 
 thing more than the 'pft--^^^^^,^.„,^^^ 
 I2,l9,20,&22\.c ^^hould^^^^^^^ 1 ^^^ these points, 
 
 ship, however, ^^--'^ to - ^^^^^^^^ ,1 effect of the numer- 
 ./hehadnotsufficien y^^^^^^^^^^^^^ ^^^ ^^, ^^^^""1" 
 
 ous statutes which had been f^^n^oncierrv, ^c., 
 
 look more fully i.to the ca- « /^J^ ^,^ ,,,i,i,, eome to 
 
 atany rate his leaning- 
 by his learned brothel 1^^TKN,. 
 
 that the bill be dismissecl. ^^^^^^^^^ ^^^^^.^^^^,^^, ,^^, ^he suit 
 
 His Honor Mr. V- ;- 
 ^vas not properly constituted. 
 
 A 
 
 NOTE. 
 
 • r,v,ws Mv. (ialt waited upon 
 Since tb foregoing -'^^sC as the Judgment of the 
 ^eandhanu.. me ^ ^ fj "/i,,,, ., by Mr. Crooks, 
 Court, which he ^f ^^^ \'^^,^ ,,a ..vee^l to by the 
 Junior Counsel foi ^b /^* ' in^,nmc\i as it was the 
 Court. This course -^^^^^^ ,,, the plaintiff to 
 , ,sed intention ^' ^^J^ .a at once. The case 
 take the case to the ^^^^{^ ,,,,,, ,he fall. I Uave 
 ,vm not however be heaidnpr'^^ ^^ ^,, by Mv. 
 
 concluded to print the J-^^^' ; ,,, ,ecord, as above 
 Gait, referring at the same time to. y 
 
 given. 
 
 U.S. 
 
3T 
 
 HERRICK "• GRAND TRUNK RAILWAY. 
 
 JUDGMENT OF THE COURT, AS DEAVra VV BV 
 PLAINTIFF'S COUNSEL. 
 
 0„ .he ITth June, 18G1, the case »as -'ff^J'^'^^ 
 
 Mr. V . v^. x^ «= p ^j I bondholders had a 
 
 be di™-«f ; '"7" ' ,^ ;':/;*"t the company under W 
 't^'^t 2 U ,"at the right, thus erea.ed ha,. 
 
 , Wn toatol b, the aubsequent enaetment, ; that >t wa. 
 Tf /The toy of the Direotor. to apply the surplus 
 fits tie roaVin and towards payment of the interest 
 earnings ui t'^^ i,^„,]„ TTis Lordshir distinguished 
 
 due upon the F*"""' ^ "^l' JZ^Zh. Londonderry # 
 the present case from *" « ^""f J y ,5. 508, which 
 
 S:^; ri.ht/~ere - ^-^-^^ dtL't thi 
 :!;:r;f"a:se:;::ies"e— by the present par. 
 
 '1,'; v'^ci'sPBAOOE .as inclined to think that the rights 
 JIL Preferential Bondholders were statutory only and 
 It takiL the place of the Government Loan, the mter s 
 on ft^e Bond, was only payable out of profits, as provide, 
 rrtylta. 12 Vic, eh 29, and that therefore the pr,.e,pa 
 I'vJisld by Corrys case would reomre ^^PJ™- 
 debts incurred for the maintenance and workmg 01 tne 
 Sway before that of the interest on the P-f^«B - 
 Bonds, but with the view of enabling the parties to ebtam the 
 benefit of » judgment from the Court of Appe«l. '- «uhl 
 concur i.ro /«.»,« with the opm.on pronounced by Mr. ^ . 
 
 0. ESTEN. 
 
•7^ 
 
 H 
 
 1