Robinson v. Iron Railway Co.

Syllabus

<p>A bill in equity was filed by the holder of second mortgage bonds of á railroad company, to rescind the salé of the road, made under a decree of foreclosure, to a committee of the first mortgage bondholders; or to have the salé declared to be in trust for both classes, of bondholders, and for other relief. The bill was demurred to. No actual fraud was alleged. No offer was made to redeem.- It was. not averred that there was any consideration'for an alleged. agreement that the second mortgage bondholders should share in the purchase; or that the property was sold for less than its actual .value. It appeared that the second mortgage bondholders had such notice of the foreclosure suit that they might have intervened in it. A trust company was the trustee under both mortgages, but no collusion by, or unfaithfulness of, the trustee was alleged. It did not appear that the second mortgage bondholders could have prevented the decree of foreclosure, and the suit was one to foreclose both mortgages. . The members of the committee of the first mortgage bondholders, who were alleged to have made the. agreement, were not made parties to this suit; Held, that the bill could not be sustained.</p>