Page:Federal Reporter, 1st Series, Volume 10.djvu/266

 364 FfiDEBAli EBPORTBB. �ordinary course had been pursued as to the transfer of the collaterels, without notice of any defect therein, or of any outstanding equities between maker and payee. Any testimony contradictory thereof, whereby the legal relationship of the parties could be varied, would have been proper; but the contention was that, despite the direct testimony of the cashier, the facts and circumstancea indicated that the bank was aiding Alexander to shut out the equities by holding the collaterals, notwithstanding it could have collected the principal or demand note at any time, and thus have released the collaterals. But it was for the bank to continue the demand loan or call it in, as it might determine. It' was satisaed with the interest-bearing arrangement, and to take the course which it bas done, and which it had the legal right to do. However suspicions the relations of the bank with Alexander may appear as to this point, they cannot over- come the direct and express testimony of the cashier as to the bona fides of the indorsements and the consideration tiieieiox. The motions are overruled. ���Eamton and others, Trnstees, etc., v. Cbittendkk, Govemor of the �State of Missouri.* �(Oireuit Gouirt, W. D. Mittowi. Februarjr 10, 1882.) �L ACT op THB Gbiœbai. Assemblt of thb Statb of Missouki to PnOVIDB FOB REDUcma thb linjEBTBONBsa of the State, Apfboved Febouart 20, 1866, �CONBTKUED. �Where a state issued coupon bonds to a railroad company as a loan of credit, iipon condition that said company should provide for the payment of the in- terest and principal of such bonds, and upon condition also that the state should have a flrst mortgage upon said company's road to secure the payment of said bonds and interest ; and where the general assembly of said state subsequently provided by statute that in case said company should thereafter issue coupon bonds of a certain description, and should convey its franchises and property, subject to the lien of said state, to trustees, to secure the payment of such bonds and coupons, and such trustees should pay into the state treasury " a sum of money equal in amount to all indebtedness due or owing by said company to the state, and all liability incurred by the state by reason of having issued her bonds and loaned the same to said company, * * * together with all interest that lias and may, at the time whcn such payment shall be made, have accrued and remained unpaid by said company," — it should be the duty of the govemor of the state, upon the fact of such payment being certifled to him as therein provided, to assign to said trustees, for the benetit of the holders of said com- �•Eeported by B. P. Bex, Esq., of the St. Louis bar. See 7 Sup. et. Bep. 699. ��� �