Page:Federal Reporter, 1st Series, Volume 2.djvu/55

 48 FEDEKAIi BEPOBTEB. �tains a stipulation for the payment of an attorney fee, is thus negotiable or not, no case bas been cited which holds that sucb stipulation does not pass with the instrument, in case the same is deemed negotiable. �A stipulation in a negotiable instrument for an attorney fee, which in eiïect provides for the payment of certain ex- penses of collection in case the same is not paid without suit, 60 far gives security and curreney to such instrument, and is therefore to be regarded with favor, as being a just and convenient means of promoting the general object and utility of the same. �At common law the compensation of an attorney consisted of the varions items allowed for his services, called collect- ively his "costs;" and, in case his client prevailed in the action, these were coUected off the adverse party as a part of the judgment. �Substantially, this stipulation for an attorney fee is a sub- stitute for the allowance of costs at common law, and enables a party taking a negotiable instrument to provide, by agree- ment with the maker or indorser thereof, that if the same is not çaid without suit the holder shall recover his attorney fee, as well as the principal and interest. �The maker of these notes having agreed to pay an attorney fee to the holder thereof, if the same were not paid without action, in my judgment each subsequent pai'ty thereto assumed a like responsibility to such holders, and therefore the plaintifif is entitled to recover such fee from the defendants in thia case. �, But I think the defendants are liable to the plaintiff in thia action for an attorney fee, even if the stipulation therefor can only be enforced between the immediate parties thereto. The defendants are accommodation indorsers — in effect, makers of these notes. By their indorsement of them they authorized (Jaston, the then holder, to transfer them to the plaintiff, which was done. Evei-y stipulation in them, and every obli- gation incident thereto, thereby became the stipulation and obligation of the defendants made directly to the plaintiff. The demurrer is sustained. ����