Friedrichsen

Two appeals were taken by the intervener, one from a decree of foreclosure and another from an' order confirming a sale made in pursuance of the foreclosure of certain mining property situate in the state of Nevada. It is admitted that the Tonopah Extension Mining Company, which will hereafter be referred to as the mining company, defaulted in an installment of the interest due upon the mortgage in January, 1928. This default was agreed upon at a meeting of the board of directors held in New York City on October 22, 1927. Five directors were present and two stockholders, Leopold Adler and T. F. Cole. The parties represented at the meeting owned $151,000 of the bond issue, and a large amount of stock in the corporation. They were called together to meet the crisis in the affairs of the mining company, due to the exhaustion of its funds and the high cost of operation. It is admitted that at the time pf the default on January 1, 1928, the corporation had sufficient funds to pay the installment of interest then due. But it did not have sufficient funds in hand or in prospect to operate the mine until the next installment of interest was due on the mortgage in July, 1928.

When the…