Railway company sold under mortgage
8When a mortgage to secure debentures issued by a railway company is foreclosed and the railway sold, or the railway is sold under power of sale in any mortgage, the referee or mortgagee shall, out of the proceeds of the sale after payment of the costs of the foreclosure suit, or if the sale is made under power of sale, pay the wages or salary of all persons employed in the operation of the railway at the time of the commencement of the foreclosure proceedings or proceedings for sale, or within one month before that, not exceeding three months wages or salary, in priority to the claims of bondholders or other creditors, except only employees engaged by the receiver, in case a receiver is appointed, or by the mortgagee in operating the railway.