Page:Federal Reporter, 1st Series, Volume 4.djvu/79

 0. & L. 0. R. CO. V. C, & L. E. OOBP. 65 �of the parties of the second part. That the parties of the third part will, during said term, semi-annually reserve out of the gross receipts for transportation from said line of steamers tke sum of |150,000, and pay it to the parties of the second part; that the party of the fourth part (the com- plainant) -will, if requested, advance $600,000 for the same purposes, and to be^ro tanto in lieu of the said semirannual payments; that, if this is done, the parties of the third part will pay interest, semi-annually, at the rate of 8 per eent., to the complajnant, and will pay into the hands of the presi- dents and treasurers, for the time being, of the plaintiff and defendant companiea, such sums as shall, when invested as a sinking fund, in the judgment of said presidents and treas- urers, pay ail excess of the complainant's advances above $500,000, within two years from the date of the agreement, and the remainder at the end of 19 years; and, also, such Bums as will, in the iudgment of ' said presidents and treas- urers, buy the existing mortgage bonds of the transportation Company, within 10 years from said date. The said pay- ments to the complainant, and to the trustees of the sinking fund, are to be in place of advances to the same amount as before provided, and are to be ultimately repaid out of the securities purchased by the parties of the second part. Tho fifth article concludes thus : "In no case shall payments to a sinking fund be less than amounts which, invested at 6 per cent, per annum, will produce the sum to be paid out of such sinking fund." �The agreement provides carefully,- in article 7, how the parties of the second part shall carry out their trust. They are to procure, if possible, an extension of the time of pay- ment of the mortgage bonds of the party of the iîrst part ; they may, if necessary to secure the running of the steamers, buy the debts of that Company, whether secured by mortgage or not, and shall immediately transfer them to the trustees of the sinking fund, to be held in trust to pay, first, the sums advanced by the complainant. and next the sums paid, ad- vanced, or lent by the parties of the third part, so long as the semi-annual payments of interest are made to the com- �v.4,no.l — 5 ����