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 ^£«10 iwfifc.ri-.'.i 
 
 sn-^^^^ai^ss-v^Sj^iR^ 
 
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 6' ^^ ^' ^' 
 
 7 s-/ 
 
 HERRICK V. GRAND TRUxNK RAILWAY COMPANY. 
 
 Ai 
 
 ifc'H 
 
 1 '.-> 
 
 
 The argument of which the foUowinp; is a memorandum, was made on 
 the hearing of a cause in the Court of Chancery of Upper Canada. The 
 bill was filed by a shareholder of the Grand Trunk Railway Company 
 against the company, the directors, and a preference bond-holder. 
 
 The bill alleges that the company had under the provision of various 
 acts of Parliament received from the Province of Canada, sums amounting 
 in all to £3,111,500 sterling, for which a first lien and mortgage over the 
 railway and property of the company was reserved to the crown to secure 
 the due fulfillment of the conditions on which the loan had been made, 
 which the plaintiff contended were that out of the profits of the company 
 the interest should be paid to the Province before any dividend was de- 
 clared. That with a view to assist the company, the province had by act 
 19 & 20 Vic., authorised the company (upon certain conditions) to issue 
 bonds to the amount of £2,000,000 sterling, the holders of which bonds 
 should have priority of claim over the said first lien of the Province. That 
 the company had issued such bonds. That by an another act, 20 Vic., 
 on condition that the company completed their railway, and supplied it 
 with suflicient plant, rolling stock and appliances to work the same efli- 
 ciently, the Province agreed to forgo all interest in its claims against the 
 company until the earnings and profits of the company were among other 
 things suflficient to pay a dividend on the share capital of the company. 
 That by another act 22 Vic, the company were authorised to issue a fur- 
 ther amount of preferential bonds, of which permission they had availed 
 themselves to a limited amount. The bill then stated that the company 
 had incurred debts in purchasing rolling stock, and in working and main- 
 taining the railway, and that some of the creditors having obtained judg- 
 ments, threatened to issue executions whereby the railway would be stop- 
 ped and consequently the province lien would revive to the prejudice of 
 the shareholders. It then averred that the right which the preference 
 bond-holders had under the act 19 & 20 Vic, was the same as that pre- 
 viously held by the province, and which the plaintiff alleged was a right to 
 
 [ be paid interest out of the profits of the company, but not out of the gross 
 
 I earnings as distinguished from profits. 
 
 It then averred that the earnings of the railway were now in excess of 
 
 [working expenses and consequently that a surplus had arisen and wa 
 
 llikely to arise. 
 
 i 
 
 uft^VrSSjS^i' 
 
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 p*;*"^^ 
 
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 1 
 
 1 on the preference bonds, 
 
 ThoWnf-rlhor»lateJ*»'*"'";:;,a'ro dirccton, intcndca to apply 
 . „r nnd that Ac oon.paiiy ai 1 ■ , j^,, jcWa of the 
 
 innurrcd Ui purchasing? ioUin„ SI , company and the 
 
 there could not oe 
 
 puny ^ore satisfied. p. msTIFF IN SUIT.-HERWCK v. 
 
 Th. rights »f the preference ^^"^^^,, , u The holders of such 
 . Ill and are conferred hj he """;";,„ ite present " first hen of the 
 * „, as' to have prlorltv of chun. ^crc J r J^^^^^.^^^ ^^ 
 
 ..ftovinec." W1-' "-;.«", 'r,;w have the, been affected hy anj 
 
 the act in question, -i»^' 
 ETthat has since take" f 'f? .„,;„, Urat the lien of the iW.nce 
 I,"!, submitted on behall of the 1 ."Ut . , „f ^^, y „. 
 
 „ "c„„fi-d to a right to be p.;d o,^ »o t ^^^^ ^^^ ^^^ , ,^ 
 
 ; jbefore any dividend -"f ^^^ ^ ttllo.ing -tracts frorn 12 Vt • 
 ^„f the Legislature, «n,an,fest«m ^^^.^^.^, 'V^ rf i 
 
 „h 2!) (on the provisrons of xrhi^n ^^^ construot.on ol rail 
 
 tftr reciting the advantage, ^^^^^^, „„y guarantee the .uteres 
 Ls, the statute enacts that " t-" ^ ,^i,„ eompau,, on the condr- 
 robe paid on any loans """"";"» J.^^aitious is " that th. payment 
 aons mentioned in the act, »"- ;X „ce shall be the first charge ou 
 ., „t the interest guaranteed by the « ^^^^ ^^ ^(^,j„„4 ,haU be 
 
 „ the tolls and profits of the CjW , „„ains unpa.d 
 
 ..aeclared so long 4S any part * '» ^^„, „„rtgagc and Ueu 
 
 ., Aud that the Province shall "■';;' ■^J'conrpany, for an, sum pa.d or 
 „tpon the road, tolls and r«Vfy^^^^^, „^f /assing this act, rt w^ 
 „ larauteed by the Prov.ncc At h. t V ^^^^^^ y,,tou\!^ 
 
 „„°t contemplated by *e.l''o" "^ ° ^10 be thereafter contracted b, 
 . "lantee the pajment of f -«' ^^"^ :;; „, ,ieu must be considered 
 the Company, conse,uently ="* "J" ^'^^ -.sion, namely, the pa,- 
 
 '„ have hcen intended to seeure '' » ' T^ J i, the true construct.on « 
 l„t of interest out of profiu ; an bat .c ^^^^^^^ ^^ ,^ ^^ ^^^ .„, 
 
 much strengthened by rclann^ 
 
 
 
ice bonds, 
 (1 to apply 
 [cbt3 of the 
 I maintaiQ- 
 jy and the 
 „rr any in- 
 Thc plain- 
 
 mderi'i/ «w<^ 
 l.S.,p.508, 
 
 jf the Com- 
 
 -IIERRICK V. 
 L. 
 
 19 & 20 Vic. 
 lolders of such 
 irst lion of the 
 at the. date of 
 .ffected by any 
 
 I the Province 
 fits of the Com- 
 as the intention 
 ts from 12 Vic 
 en is founded), 
 struction of rail- 
 nteo the interest 
 ly, on the condi- 
 that tho payment 
 le first charge on 
 dividend shall bo 
 remains unpaid." 
 mortgage and lien 
 ,r any sum paid or 
 >g this act, it was 
 noney, but only to 
 
 after contracted by 
 caust be considered 
 J, namely, the pay- 
 true construction is 
 No. 2 of same act, 
 
 » - ■ » ■ 
 
 which enacts that "ailway conn)anlcs receiving such guarantees shidl 
 render half-yearly accounts to the Inspector Ccnoral, attested on oath, and 
 » shall Tvithin ten days after the rendering of such account, pay over 
 u such'amount as may be payable under the pruvbions of this act, to the 
 .KeceiverCiencral of this Province," vs-hich it is submitted would be 
 confined to payments to be made out of the tolls and prolits of the Com- 
 r,anv Had it been the intention of the Legislature that any other fund 
 or in other words, that the general property of the Company should, at 
 aU events, and whether the tolls and profits were sulfacient or not, be 
 liable to seizure and sale in the event of any deficueney o.- default of pay- 
 n.ent, there would have been no reason for the insertion o a clause 
 requiring the Company to render an account; all that would have been 
 re e.sary would have been for the Government, on default being nude 
 t; exercise and assert their rights under their lien and mortgage, and 
 enter into possession of the railway. This could no have been the inten- 
 tion of the Legislature, as such a proceeding would have defeated the 
 very object they had in view in passing the act. 
 
 The next statute to be considered is U & lo Vic. ch. 73, he 22nd 
 section of which enacts that the Governor in Council may, on the condi- 
 tions therein mentioned, guarantee the payment of the principal as well as 
 the interest of the bonds of the Company, - and lor the principal and 
 " interest of such bonds the Province shall have the same priority of 
 '^hypothec mortgage and lien upon the railway, tolls and pro.-rty of the 
 "Company, as by the said act (P2 Vic eh. 2D) i. given for sums paid or 
 - guaranteed by the Province, and suhject to the same jv-ooisians. ^ The 
 '>4th Clause of this act defines the word '' railway" to include all viaducts, 
 brid<res, station houses, depots, and other works, machinery, engines, 
 vessels, carriages, and things of every kind which may be necessary or 
 convenient to the making or using of any railway. 
 
 No question arises as to payment of principal, the bonds, ^c, not beins 
 yet due, but as to payment of interest. It is contended that the rights 
 are the same and subject to the same provisions as those conferred by iL 
 Vic ch. 29, the former act, namely, a right to u first charge on the tolls 
 and profits of the Company, before any dividend is paid to the share- 
 
 Iiold-Crs 
 
 The next act is the Grand Trunk Hallway Act, 1854, by the 20th sec- 
 tion of which one general charge is created upon the whole Grand Trunk 
 llailway, to the extent of the whole amount of the debentures ot the 
 Province, issued or to be issued. It is therefore enacted that the Crown 
 shall on behalf '' of the Provincial Government, have in respect of the 
 " debenture.- issued or to be issued as aforesaid, a charge hypothec or hen 
 
 iliiillllllMillllMUliil'illl 
 
 f^jjgg^tttmmS 
 
P rnni(^a in tlic same manndr 
 „ „poo the .hole ara,d Tru.* f J ^ „;;:"'' 'o tho .,«., Con, 
 „:Sa with *c »».. P«oronc» ""Xpf.on or otherwise, u, but for 
 
 .Zi with tho »am. i"«'^™'» "'X«nLat would have had upon the 
 ."ehamalgamatloutherro™ "«oer^ ^^^ ^^ ^,^ „, 
 
 .. separate railways or ""''"f '"^^„i„„, „cre to he toued." 
 
 „ .everal act, re»peet velj, '-"t '"^^^e of .howlug that no alterafon 
 
 This act is referred to only fo t e P P „„,. 
 
 J „,ado in the provinc-al hen » «s ^o ^^^ ^^^ ^,,j.^.^„ , ^ 
 
 The next act is 18 V.e^ '''■/"., company of Canada," section 2, 
 b, loan to the Grand T™"^ 1-J„,^„ ^is act shall he a first charge 
 enacts, "The sums advanced as a loan "" ^ ^,,f „f the Prov.nc.al 
 
 :,\' p thee and lien in favour of *e Cjn ^^^^ ^^^^ ^„„, ^„ 
 
 „ a'„';.ernment, and «P°° ' ;;^^:;" A, and property form.ng part 
 ,. of Canada, and upon all the atlway ^^ ^^^ ^^^ ^^^ 
 
 .thereof, or now W-S-S - ^^^^^^^ years fron. the 
 
 .<and shall be ^Mo '' » ?<;'°* "^^eon at si:, per centum per annum 
 .. passing of this act ; the ■" ««' *;';^„ Crown for this Province, half 
 "ling payable by the »"^ CrF»J „ ., ,,_^„ j,„i„t." 
 
 .. yearVy, at such times as the Governor r _^ ^^ ^^^^^^ ^^ ,„a 
 
 And b, the 8rd sect.on .t '^ 'i ;e the sane preference and p.m- 
 ,.Uen in favour of *« Crown sMUv ^^ to redempUon and 
 
 ..lege, and shall be subject to the .a ^^^^^ ^^ ^^^ g^„„„ ., 
 
 ..otherwise, as the charge ^y^"^^^^^'^^,,,,, „. advances in place of 
 .. claims arising out of be Pro nc.al gu J^^ ^^^ ^^^^^^y„g ,„„u 
 ..thcProvinebl guarantee, ,.nder any 
 
 .. guarantee or advance." ^ j^^ rights were to be the 
 
 It is quite clear f™"- *" "^/"X; „rc to be tho same, as then 
 ,ame, and the preference and P' ^^^J ., , „ ,oM be no 
 
 existed. What then was tha pretoe ^^^^^^^ ^^^ p ,,, 
 other than that the «""="' f'^^tbis act, should be the first charge 
 .,.„d interest on the money_lentunaort^^ ^ ^^ ^^^ ,^^,^ 
 
 o« the tolls and profits el the Lon pan, , ^^^ ^_^ _^^^ f 
 
 expressly declared to be so by section -.Ana .^^^__^._^^ ^^ ^^^ 
 
 ;^prori.ions contained »;»'-' l„teed bonds and the interest on 
 Ugfslature that the interest »'' *1^^™"„„ ,^e footing and secured 
 tbe^money proposed to l-"^-';-; ^^/^ ,„y„ent of the principal has 
 by the same provision. Ana lut p 
 
 ntCt:. oonsiderlng the P-"-; l-^^e ren^;^^: of 
 
 rc:«;-rrr::-di-'-— ^^^^ 
 
ne manntfr 
 me extent 
 tvs but for 
 a upon tlic 
 y the said 
 
 alteration 
 
 Iditional aid 
 " section 2, 
 
 1 first charge 
 B Provincial 
 ank Railway 
 Forming part 
 id Compfiny, 
 ars from the 
 n per annum 
 Province, half 
 
 )int." 
 
 hypothec and 
 ice and privi- 
 idemption and 
 the Crown .or 
 CC9 in place of 
 ithorising such 
 
 ^ere to be the 
 same, as then 
 It could be no 
 ■ the Province, 
 the first charge 
 )rincipal, it was 
 no necessity for 
 intention of the 
 d the interest on 
 )tins and secured 
 the principal has 
 
 ; act, be forgotten 
 3 then property of 
 luently, unless the 
 
 . f interest were to be made out of profits, this manifest injustice 
 ^"'Trfol rX Tf a.l Company purchased any rolling stock or con- 
 ^ould follow, >^' jj or stations, the property so acquired 
 
 trr.cted for the ^'°"f 7'*'°^,"' " .T j ^^ ^^,^ Provincial lien, and unless 
 and buildings erected wod^^^^^^^^ ^^.^ ^^ ^^ ,,,,, 
 
 ""VZ:: :»': f Z'^Z:^^, -re unsuccessful, out of which to 
 would be no tunus, ^ working of the 
 
 ^Z^'T:^:^^^-"^-'^^' -^ »- >- ^- 
 
 "Cfolt the'tuO & 20 Vic. unto *,ch ...o fir,. p.oforonti.l 
 
 bords wcio issued, -vhich enacts : preferential bonds to 
 
 uThe «--i Cou.pun, sl.al be a«*„ . a^ P ^^^^ ^^^^^^ ^^^^ 
 
 :: :rr S"rr sr :r tbe^pVeseut .. ... or tbe p.. 
 
 "X;btonbeb„,de.ofb™asi.^^^^ 
 
 ""7 r't It: olbef " was, it U eoutended, eonfined to a 
 such lien, for tbe reasons "'="° k ' ., j „„ the property 
 
 first '•3P0.1.ee rnortgage and 1 en over tl ^^ J.__^^^^^^ 
 
 present and '"'"V^'otoUs and profits of tbe 'Conapany, and did not 
 „„ these bonds out of ' » ;";j^,„„ „, .,, ,„u„, „■ default wero 
 
 rdllu'pa;::^ of'^rintcrcst, l the Province did not itself possess any 
 lol "'O Vie%bercby the rights of the bondholders have been enlarged? 
 
 cvpeles of .n'a nagi"S. -A-S »"^ "'"»'»'"'"S ""^ ™*' ""' ^'°"' ° 
 
 *utrn'''frot: tSptislons of this act. that it was fron, the earnings 
 
 ,„d :JI Jh Hbe interest on the bonds in question, which fornaed the 
 
 cc„.fd i r'e, was to be paid. And, Moreover, it is by the 7th section f 
 
 W° ct nncted : " Ibis act shall be deemed a public act ; and the act la 
 
 * bov t d (19 & 20 Vie., under which the bonds in quest.on were .ssued) 
 
 '■.< h 1 b CO struedwith reference to -"^ «"-. ""'^ f/'^'°""™ 
 
 ■ "Wd act .bull apply as if re-enacted herein." The 8rd seet.on, here 
 
 
 t! 
 
 /A 
 
 msesufsfnassm*'^-'' 
 
6 
 
 . ^ , .That no enactment wluelUhoLogiskturo of 
 alluded to, is to the effect, That no ^^^ ^^^ ^^.^^^^ ^^^^^ ^^ 
 
 .this rrovince may bcreafter ^^^ ^ ^, „,ao under this act, or 
 .the said conditions, or any ordcr-uij^^^^^^ ^^^^^.^^^ ,^ ,^ ^ 
 
 .under any provision of any ^^^^^^^.t and purport thereof, shall bo 
 . Company, according to t^jo tr«o i ^^^ ^^^^^^^^^ ^^ ^^ ,„y ^„ty 
 
 . deemed an infringement ot the n«u 
 " whatever." _ in.nos.iblc to say ; but the preamble 
 
 " onaots as follows : , , ,. „ ,;,„ Orand TrttiiU Uailway Company 
 
 ,■1. For 11.0 purpo.0 « -""'"S ' „°X G„vcrnov.u,.Cou„cU shall 
 .< of Canada to complete tl.e,r "J« ';^' '^ ,,„ „„angoment prov,- 
 
 .. bo and horob, U authored to ""y " ,° ^ „f Canada and the sa.d 
 
 ..sionall, entered into between '^° ";°;^';',,,^.„ „„„ M1„^h tl,o pro- 
 .. Company, based upon *» ^Ww "« J^;,,,, ,,„,„„ U the one above 
 vision for issuing J.referont.a ^»1»' " j^ ,„„, ^,,„efo , reason, 
 
 nuotod, reserving the r,ght ot '"'""= j ^^^ <. earnins' and proBts 
 L, bo eonsidered that the W °P™' ^^^^^^ „„d a.at the act W & 20 
 was in pursuaneo of the power *"*» J'" „ „,a fcy .be aet of 20 V.o, 
 Vic, must be read in connection w ah an J exp ^^ y _^_^^ ^ 
 
 a„d also that from the -'«-=» ™/ 2* „, t„ bo made, the Lcgisla- 
 the fund from which the PfJ""" ."^^'^J^ tereinbetoro above contended 
 tare has oloarly recognmd what '■•«»= i,,,t the I'rovinco 
 
 for, namely, that it was from ho P^^ I V-vineial guarantee 
 was to be indemnified aga.nst any ^^ "^'"= ^^, d„„ „bsevvaneo of 
 
 and that the first lien over *« ™!,7,7;,%;°:„a that it was a priority 
 the provision to that effect la 1- v.c. , ^ ,,jholdcrs. 
 
 ^' i^:!!:- y^L the ^^^^:^tx^^^^':^ 
 
 tioned in the 8rd ^'''''"■"';'''^°''' '^;''TZMh<^ io.r^':^^'^^' pre- 
 „r other bonds, which »^^. ^\>-f-d ; ^L subject to the observa- 
 ferential bonds under 19 i. -0 ^ '«■."«' ^„„,,i„, this pvov.so: 
 
 tions already made on '''°=«.>'°°f.f„';;t rafter contained shall in any 
 
 .. Provided always that nothing ''«'?'" ,"*''f'°;.,,,, „f the ITovinco upon 
 . „y alter, affect, postpone or prejudclm ^^^^_,^^^ ,,^ 
 
 .< the said undertaking, or the "W'S™" ' , „„ts now in force 
 
 <. Province, as settled by the provisions of the 
 
 «, 
 
 
islaturo of 
 ^ effect to 
 ,his act, or 
 ) the suid 
 •, shall bo 
 any party 
 
 preamble 
 ;it facilities 
 objects and 
 ijesty, &c., 
 
 ly Company 
 louncil shall 
 ment provi- 
 and the said 
 ows tho pro- 
 le one above 
 cfo. -! reason- 
 and profits" 
 , act 10 & 20 
 ct of 20 Vic.j 
 
 1 profits" as 
 I, the Lcgisla- 
 )vc coutcuded 
 , the Troviaco 
 cial guarantee, 
 
 ( observance of 
 was a priority 
 idholdcrs. 
 )f these bonds. 
 
 strictions men- 
 vr preference or 
 jmed to be prc- 
 , to the observa- 
 ins this proviso: 
 loed sball in any 
 3 1-roviucc upon 
 my towards the 
 eta now in force 
 
 u relating to t^o Company." It cerh,..ly would have been» d.fl.oult to 
 frame a proviso in more comprehensive terms than the foregoing; and if 
 'hero is any alteration made by tho subsequent provisions of the act, it is 
 Hnbmittod that such alteration (even if it should be held to be m contra- 
 voDtion of the other proviso) must be in the most unec;uivocal terms Lut 
 it is submitted that no such alteration is made. Ihe language ol the oth 
 section of this act, on which tho bondholders rely to defeat the claims ol 
 
 creditors, is as follows : , , . , • i .u 
 
 « And whereas it is expedient to declare the order in which tho nn-nu.p. 
 <i of the Company, after deductions of the expenses of working and inain- 
 w tainin- the railway, are to bo appropriated : therofore it is hereby 
 "declared and enacted, that, subject to the rights and powers o the 
 " Atlantic and 8t. Lawrence Railway Company, under the said recited loan 
 « OS to tho portion of the undertaking thereby demised, the earnings oi tlic 
 « Company, after deduction of working expenses, nhall in eacb half year 
 be approp "ated and applied as follows : first, in and towards the payment 
 ^^ • ' ' H ir the time being shall have been 
 
 \3 herein mentioned ; secondly, 
 
 n the loan capital of the Com- 
 
 upon, and in respect of the 
 
 .cinbeforc mentioned other 
 
 u lly, in and towards payment 
 
 pc annum on the st jck and 
 
 << 
 
 " of the interest upon the amour 
 
 " raised by the issue of preferer 
 
 " in and towards payment of th 
 
 " pany for the time being raisci 
 
 "several classes of bonds and o.~ 
 
 " than the said preferential bonds ; u. 
 
 " of a dividend at the rate of six per cent. ^ 
 
 "shares of the Company ;-and, after payment of such dividends, then in 
 
 « or towards tho payment of the interest on the Provincial debentures 
 
 " issued in aid of the Company from time to time, to tho extent of three 
 
 '< millions one hundred and eleven thousand five hundred pounds in all ; 
 
 " and after payment of such interest, the surplus, if any, shall be applied 
 " in payment of a further dividend upon the stock and shares of the said 
 " Company." It is evident from the foregoing section, that if such debts 
 as tho Company then ovcd, together with those which they might therc- 
 uftcr contract, were not to be paid as part of the expenses of working and 
 maintaining the railway out of the earnings of the railway; they never 
 could be paid at all, as by the words of the section in question tho earnings 
 are appropriated for all time. It is contended, in the first place, that such 
 never could have been the intention of the Legislature, from the injustice 
 it would work; secondly, that such a construction k oppossd to the 
 proviso befor-^ mentioned, as it would noi be possible more injuriously to 
 "alter, affect and prejudice the Province lien," or in ether words, more 
 effectually to defeat the whole object of tiie Legislature in stipulating as 
 they did by 20 Vic, as the condition on which their rights wore post- 
 
 msim 
 
 »StSm 
 
'!! 
 
 n 
 
 8 
 
 ,„ their work, ami MWly It"" '"•* 
 
 net must reccl^e i ..profits;" the A«-ora3 ^, „ ^ny until the 
 
 used ns ^y"^"^'"^"'^ "..tercston its claim afiuin.t ^^'^ ^^\^^/j,f,,y tho 
 
 .Province ^'^'^^^^ ^}J,'" ^^^ Company .l^all ^« .'^"^^'^ '^"^ ^^ ,„a .am- 
 
 u ..r«/«.9« ««<i P->';; ^ S ,,p,Lcs of --'^?'"«' ; f, ;, nt ot tho 
 
 u following cliarges: fir.t, aii (. ny j secondly, the re 
 
 .,,,„,„, the .0... and pa^o^^^^^^^ J, all i"t.rest on^^^ «-[ 
 .Atlantic and St- - J " ^^^ ^^..a by tLo pro^n cc ^ 
 .the company CSC Huc 0^^ ^^^^^^^,, Uvc ^Jg^^ « «/ \ ^^, 
 words of tho 22nd \ic^ no , ,^^, earnings o ^»^^ ^ ^^, 
 
 « „„^ Rt Lawrence llaiiway v r .. ^Vich expression, woi^' n 
 
 *\,nf h-i3 been done, then uun statute, l*- 1*^ «"""' . 
 
 / I 
 
 hi- 
 
 1 
 

 tho 8nid 
 ,ho 8i»ino 
 J read in 
 ciihWy as 
 c(l in tlio 
 " in this 
 here ii w 
 
 until tne 
 jefny tho 
 and .. ain- 
 cnt ot tho 
 c bond^ of 
 hcrcna the 
 ;c Atlantic 
 e pouipany 
 ^orkinp cx- 
 ' the expell- 
 ed as dircct- 
 this, that by 
 arnings and 
 jd niaintain- 
 ,rc to be the 
 rr and main- 
 Led, and after 
 ler words tho 
 t is submitted 
 58, and that in 
 13 in the origi- 
 ,ayment of the 
 its of the corn- 
 own in Corry's 
 ia maintaining, 
 upany must bo 
 at of which the 
 
 by the Master of 
 
 hopvoCtBofthis 
 question i% what 
 titled to pay any 
 
 9 
 
 I- « • flia Kotnrn thov dirldo thcm among the 
 
 .r^,m^ ..t .n"; P-J' ,X i\. the 0OU.P,. .re «M 
 «,tacholdcr»? It '' °'""',„.„ u„ „|Ud funded .Icbt.. Fer in»tanoe, 
 .< payuWe, other than .ho,e '^'"1, •!-«««?«. "-"'" '"e fo^er, eon- 
 /ih, defendants have n<.»ed mone, ''j '" " ^ ' ,; ,,,,■„ j„e» 
 
 „ W,„ed in their act, f-' ''•° P^^ «'; Moff out of the profit, 
 ,. „„, eon,titale .aeh a debt a, * " ~;;„X, t,„a, „„y »., whi..h 
 „ brfe the rroflt, are d-dod. ' on h ^^^ ^^,^^^ ^^ ^^^ ^,^^ 
 
 .,Uvc been '"™''°''' °"'^ ^ ' ™ il« f-r co^M'^n «""■'""' «' "'« 
 ..pany either '"' ""j; ^f ,' ^f ;Td ^ the ti.ie, had tho defendant, 
 "like, wh.eh onghi to l"; J°^ J „„ ,„ „„„y Jedaelion, from the 
 » po,se„ed tho neeoMaiy f»"''r , ,„, J t,,e whole are paid. All the 
 4„at„ .hie., are - ^l^ tl^e U'lt «llo..I in a ,nit for 
 
 MEMORANDUM OF JUDUMENT.' ' 
 on the nth day '^^-^^XCr^.^^ t^Hr ^. 
 „ents™a.o«,andtotheefreetfol!ow.ns: ^ 
 
 V'The Londondeny and EnniskUlen Railway, ^ Jur., n. s, p. oi , 
 ihe Jjonaonat j viewin" that case as one in which cre- 
 
 wh ch wad cited in argument, viewin^ u a „v,^rpholder3 
 
 ditors' rights were not in question, but only those of shareholders 
 •:r- His Lordship doubted how far the rights of absent parties 
 could be bound by the present parties to the bill. 
 
 'U 
 
 (,■!(■ 
 
 ■ 
 
 'i]niin 
 
 irfBKSrWSKTO"- 
 
 ' , y^ 
 
J^t^-_— Aj_aL 
 
 '^HrJESH^'fl^ 
 
 
 'B 
 
 to 
 
 . V , to think that the rightB of the prefer. 
 
 MR V. C. SpuAOGE ^as ^^^^''^'^^rv only, and that taking the place of 
 Pntial bond-holders ^ere '^"^''^''{'ll'^},,,, bonds ^as only payable 
 rGove--t ^o-^l^^tZZ. 12 Vie. ch 20, and t .t 
 out of profits as P-^^f^^^J,, ^y Corry's ease .ould recimre he 
 therefore the prine.ple «^*;\;/,,,i„tenanee and working of the 
 payment of debts ^^«^'^':«^^7 '' ,^ the preferential bonds. But 
 raUway, before that of the l^'''''''l\Zn the benefit of a judg- 
 :::rthe view of enabUn. ^^/-^ll eoneur p. forma w.h 
 xnent from the Court of App - ^_^^^^^^^^^^ ^.^^^^. 
 ihe opinion pronounced by Mr. 
 
the prefer- 
 [le place of 
 nly payable 
 ;9, and that 
 require the 
 •king of the 
 ,oud3. But 
 b of a judg- 
 formo. \7itli 
 
 •_pj 
 
 
 .Stf 
 
 ■^jiiiwhi mmmmmmmmmmmm 
 
 '/IT' 
 
7"^ 
 
 illiii 
 
 ,!y h^i 
 
 
 i -'!». 
 
 N 
 
 && 
 
 I 
 
 -lEi. 
 
 iMH('>a!!;U!;!'fH'"