International Trust Co. v. Decker Bros.

after stating the facts, delivered the opinion of the court.

The essential and ultimate inquiry is whether the court erred in decreeing a sale of the mining properties, in view of the proceedings theretofore had and the administration of the affairs of the defendant .corporations under the receivership, and it is important to a clear understanding and *737 solution of the principal question that certain legal principles be first ascertained and determined. As a general rule, “to warrant the interposition of a court of equity by the aid of a receiver it is essential that plaintiff should show, first, either a clear, legal right in himself to the property in controversy, or that he has some lien upon it, or that it constitutes a special fund out of which he is entitled to satisfaction of his demand; and, secondly, it must appear that possession of the property was obtained by defendant through fraud, or that the property itself, or the income from it, is in danger of loss from the neglect, waste, misconduct, or insolvency of the defendant.” High on Receivers (2d Ed.) § 11. See, also, 23 Am. & Eng.Enc. of Law, 1036.

The receiver being an arm of the court, his authority for taking…