Page:Federal Reporter, 1st Series, Volume 8.djvu/148

 134 FEDERAL REPORTER. �is certainly not an assignment for the benefit of these two classes of creditors. Neither, as I have before stated, was it intended in any manner for their security, so long as they hold their unsecured bonds or floating debt unaffected by any contract they may make with the Company with reference to it. They can only get what they especially bargain for. Neither can they compel the company to make any particular arrangement in their behalf. The company is at liberty to make its own terms. The terms it once offered, the owners of the bonds now outstanding declined to accept. The bonds have since been used. To the extent of their rights under the mortgage, they carry to the present holders the security that bas been appropriated. It is now too late for others to come in for what is left, if there should be anything. Such others must be content to remain, as they always have been, unsecured creditors of the company. �3. As to the syndicate : �AU the questions connected with this part of the case have been disposed of by what bas already been said, except those connected with the coupons of the first and second mortgage bonds taken up in New York and Charleston, and the attachment proceedings in Geor- gia. In respect to the coupons, the first inquiry is whether they were bought by the syndicate, or paid by the company with money advanoed for that purpose by the syndicate. �In the early part of 1877, the finances of the company were found by the directors to be again in an embarrassed condition. In some cases interest on the bonded debt had not been paid promptly at maturity, and there was danger of a general suspension unless relief could be obtained. The credit of the company was impaired and the available collaterals mostlyin use. Under these circumstances, cer- tain of the wealthy and influential directors of the company asso- ciated themselves together for the purpose of giving the necessary help. This association is known in the pleadings as the "Syndi- cate." They agreed with the company to use their personal credit, either by loans, guaranties, or indorsements, to an amount not ex- ceeding $200,000, in arranging for maturing coupons, interest on bills payable, and such other necessary debts as might mature up to and including January 1, 1878. In consideration of this the company pledged as security all the collaterals it could eontrol, and assigned the current future income as it accrued. In respect to the coupons the provision was as follows : �"And it is further understood and agreed, that all coupons of the bonds of the South Carolina liiiih-oad Company, which may mature up to and including ��� �