Page:Federal Reporter, 1st Series, Volume 9.djvu/19

e FEDERAL REPORTBB. �likely to promote their interests. To the extent that the earnings of the road are required to keep it up, in stock and equipments, and to preserve the property, the receivers have authority so to apply such earnings; but to borrow money to enable them to continue to pay interest to bondholders I consider unwise. Petition disaliowed. ���CooK, Assignee, v. Hilliabd and others. {Circuit Court, N. D. niin,ois. October 17, 1881.) �1. MORTGAGES — FOBBCLOSUEB. �Where the single defence to a bill, brought to forecloge a trust deed with con- dition broken, is an alleged sale by the trustee of a portion of the mortgaged property at public aiiction, a decree of foreclosure will be allowed, in the ab- sence of any memorandum in writing of the sale, and where the testimony on the point of the acceptance of the bid by the auctioneer is conflicting. Same — 8ame — Parties. �The alleged purchaser is net a necessary party to the foreclosure proceed- ings. �H. D. Beam and John Gibbons, for complainant. �Goudy, Chandler e Skinner, for defendants. �Blodgett, d. J., (orally.) This is a bill for foreclosing a trust deed given by Mr. and Mrs. Hilliard, on the nineteenth day of No- vember, 1873, to H. F. Vallette, trustee, on lots 48, 49, 50, 51, 52, 53, 54, and 55, Hilliard and Dobbins' Addition to Washington Heights, in this county, to secure the payment of $10,000, paya- ble to the Protection Life Insurance Company in five years from date, with 7 per cent, interest. It is admitted that the Insurance company bas been adjudicated bankrupt, and that the note bas corne into the hands of complainant as assignee of the insurance company. �The only point made by the defendant is disclosed in the answer of Mrs. Hilliard, who avers that Mr. Vallette, the trustee, advertised the property in question to be sold at public auction by him, under the powers of sale contained in the trust deed, on the twenty-sixth of March, 1879, and that in pursuance of such advertisement he pro- ceeded to make such sale by offering lot 48, and that the sum of $650 was thereupon bid for said lot by and in behalf of Charles B. Wright, and the same was struck oii and sold to him, and that after this lot was so struck ofi to Wright the amount of bis bid was duly tendered to the trustee, and a deed demanded, but that the trus- tee declined to recoive the money and to make the deed. ��� �