Page:Federal Reporter, 1st Series, Volume 1.djvu/370

 362 FEDEF.AL BEFÛSTSB. �of wilich it took mortgages from the defendant Company upon ail its property, including its tolls and revenues. The assistance thus had from the state's liberality proved insuf- ôcieut to complete the canal to Camberland, and the state, being unwilling to assist the corporation further by direct contributions of money, passed the act of 1844, chapter 281, by which the defendant was authorized to mortgage its tolls and revenues to secure another loan from the public gener- ally, for which it was to issue its bonds in an amount not to exceed the sum of $1,700,000, which was to be used to com- plete the canal to Cumberland. And by that statute it was enacted that the rights and liens of the state upon the revenues of the defendant should be "waived, deferred and postponed" in favor of the bonds issued under the act of 1844, chapter 281, so as to make such bonds and the interest aecruing thereon preferred and absolute liens on the revenues of the defendant Company until such bonds, with the inter- est thereon, should be fully paid. And the state further authorized the company, by the act referred to, to execute any deed,mortgage, or other instrument of writing deemed necessary or expedient to give the fullest effect to the provis- ions of the act. Authorized by this act, the defendant com- pany issued the bonds mentioned therein and now in suit, and executed a mortgage upon its revenues and tolls arising from the entire and every part of the canal, to William W. Corcoran, of the District of Columbia, and four others, who having since died, four other citizens of the state of Mary- land have been substituted in their places. By said mort- gage, in certain contingencies, which the complainant alleges have arisen, the said trustees were to enter and receive possession of the canal, and coUect the tolls and revenues thereof, and apply them as in said mortgage directed, �The complainant is a holder of the bonds, which, by the act last above referred to, are made preferred and absolute liens on the tolls and revenues of the defendant company, which are due and unpaid. The bill allegea that the com- plainant bas applied to the trustees named in the mortgage above mentioned to proceed under it, and take possession of the ��� �