Page:Federal Reporter, 1st Series, Volume 6.djvu/41

 JOHNSON V. LEWIS. 3» �and pay for the securities are in equity entitled to them, and their proceeds, to be distributed among them according to the Bcheme of the deed, or in some equitable mode. �The evidence shows very clearly that the bonds were pur- chased from Coler in good faith before their maturity, and without notice of any defect in Coler's title or authority to sell. The only witness whose testimony tends to impeach the plaintiff 'b title is Coler himself, who testifies that he in- formed one or two persons, sustaining the relation of agents or managers to the trust, that the bonds were not his prop- erty and that he had no authority to use them as he was doing. It is improbable that he made any such statement to any one when he was anxiously seeking to dispose of the bonds; and he is flatly contradicted on ail points by the per- sons to whom he claims he made the statements, and by the members of the committee, who alone had authority to pur- chase bonds, and who testify they were purchased in good faith. In the written agreement entered into for the sale of the bonds to the trust, he deseribes himself as "a dealer in American municipal bonds," and as having the possession and control over a large number of such bonds, "which he is duly authorized to sell and dispose of," and it is not reason- able that on the eve of consummating a sale of a million and a quarter of bonds, which he had been working for months to bring about, he would make a voluntary confession of want of authority which would at once put an end to his enter- prise. Besides, his conduct in the transaction is not such as to inspire confidence in his honesty or veracity. He received the bonds to sell at 60 cents, for which he was to receive 2J per cent, commission. He sold them for 85 cents, receiving nearly 60 cents of this sum in cash, and certifieates of the trust for the balance, worth at the time par or a little under, and bas never paid Johnson, from whom he received the bonds for sale, a single cent. The defendants having purchased the bonds from Coler in good faith are entitled to retain them. �Mr. Story says : "If an agent is entrusted with the disposai of negotiable securities or instruments, and he disposes of them by sale or pledge, or otherwise, contrary to the orders ��� �