Page:Federal Reporter, 1st Series, Volume 5.djvu/170

 ]^58 PEDEBAL EBPOBTER, �convenient method of scrutinizing these expenditures, which so vitally affect them and them alone, and we thiuk that, without appointing a receiver, it would be within the power of this court to retain the bill for the purpose of having the corporation, at stated intervais, render an account of its re- ceipts and disbursements for the information and protection of the bondholders. The motion for a receiver is denied. Bond, G. J., concurred. �Subsequently counsel were heard on the question of cjsts, and on the form of the decree, and the court said : �"We incline to the opinion that the bill in this cause was filed in good faith for the benefit of the whole body of bond- holders, and bas resulted in a decree which will be for their benefit, and that the costs, the bill having been filed for the benefit of ail, should be borne equally by them ail. We do not think it equitable, though it is shown in the cause that some of the bondholders refused to unite in the suit, that they should be allowed to reap the benefit of complainant's action and bear no proportion of its costs ; and we think com- plainant's costs should be refunded to him out of the first funds which, in the hands of the canal company, would be applicable to payment of interest on the bonds, It appeared to the court that the corporation held the position of a trus- tee, and therefore the court retained the bill to afford such relief as is usual for courts of equity to give in matters of trust. It implies no imputation of fraudulent conduct on the part of a trustee to require him to make frequent reports of his acts to the court. We think the defendant oompany should be required to make its reports quarterly. This will secure to the bondholders every opportunity of inspection, and of scrutinizing the conduct of the canal management. If either party think it necessary hereafter to invoke the assistance of the court, in any future matter coming within the scope of this bill, he oan corne into court and do so by petition in the cause. We will sign the decree drawn by the counsel for the canal company, modified as we bave indi- cated." ����