Page:Federal Reporter, 1st Series, Volume 6.djvu/39

 JOHNSON V. LBWI8. .27 �Johnson v. Lewiis and others. �(Circuit Court, E. D. Arkansiu., 1881.) �1. Trust — Partnetiship. �Where a trust ia created by deed, which contemplates the purchase of municipal bonds, (the legal title to which is vested in the trustees,) by a fund raised by the sale of certiflcates payable to bearer, which entitles the holder to participate in the income and in the distribu- tion of the securities by a drawing, in a mode prescribed in the deed, the relation of partners does not exist between the certiflcate holders. Whether such a trust ia illegal under the English companies act, 1862, qumre. �1. Nbgotiablb Paper — Titlb of Purchaseb. �The rule that the purchaser of a chattel acquires no better title than his vendor possessed has no application to negotiable paper. tion, without knowlcdge of any defect of title, and in good faith, holds it by a title good against ail the world. �In Equity. �Palmer de Nicholls, Tappan e Hornor, and Charles C. Wa- ters, for plaintif. �Eben W. Kimhall, for defendants. �Cald'wbll, D. J. The plaintiff was the holder of $10,000 in negotiable bonds issued by the eounty of Phillips^ in this state, which he placed in the hands of W. N. Coler, on the twenty-sixth day of June, 1874, "to be sold at 60 cents, and accounted for at same, less a commission of 2|- per cent." Coler sold the bonds to the Municipal Trust, of London, Eng- land, in October, 1874, for 85 cents on the dollar, receiving a part of the priee agreed to be paid therefor in cash, and the balance in eertificates of the trust. Suit was afterwards brought against the eounty on the bonds, and judgment recov- ered thereon in favor of the trust, and the judgment assigned to Lewis. Thereupon the plaintiff filed this bill, in which he seeks to reclaim the bonds and their proceeds upon the alleged ground that Coler had never accounted to him for the bonds, and that he transferred them to the trust for money and eertificates of stock in fraud of plaintiff's rights, of which the agents of the trust had full notice. ��� �
 * The party who takes sxich paper before due for a valuable considera-