Page:Federal Reporter, 1st Series, Volume 2.djvu/308

 SAHLGaBD V. KENNEDY. 301 �cluding the land grant, and these bonds shall be received at par in payment for the lands of the company. �"The total amountof the above-named preferred stock shall be limited to 25 per cent, of the wbole issue of bonds of the first mortgage, and the dividend on this preferred stock not to exceed 6 per cent, per annum in currency shall be paid, but only after the receipts of the new company, after payment of ail necessary expenses and the interest on the bonds, shall have been provided for. �"The option of payment named under No. 1 and No. 2 is left, primarily, to the purchasers, but should tbey choose to pay in money the seller shall have the right to demand bonds, as described — sub. 2 and 3 — either at par with preferred stock or at 90 per cent, without preferred stock. �"The purchasers further bind themselves: �"a. As soon as tbey have received the notice that their offer is accepted, and the bonds have been delivered to the above- named trust company, to restitute the costs caused by them to the committee, as well as the amount of the committee costs resting on the assenting certificates. �"b. To complete the extension to St. Vincent as speedilyas possible ; if possible -within this year, and agree to f umish sufficient security for the execution hereof, which will be ac- ceptable to the agents of the committee, Messrs. J. S. Ken- nedy & Co. �"c. To restitute the cost of the construction of the Breek- enridge-Barnes line in cash, at the same time with the pay- ment for the bonds, and in the meanvyhile to pay interest at 7 per cent, per anniim, half yearly. �"d. The now pending foreclosure suits, and other suits, shall be continued by the committee and its agents, under advice and instruction of the purchasers, free of ail costs for the holders of the assenting certificates." �It is unnecessary to recapitulate ail the allegations in the bill -which are conceded to be true by the demurrer, nor is it necessary to determine whether ail the relief prayed for can be granted. The charges are sufficient to require an answer, for tbey tend to show that Kennedy combined with Smith, ����