Page:Federal Reporter, 1st Series, Volume 8.djvu/150

 136 PEDBBAL KEPORTER. �to do with these notes, and was in no manner whatever bornJ for their payment. On the other side of the account is fouiid the amount paid for the discount of these notes. In this way is shown the proceeds of the notes made available for the use of the syndicate. On the other side of the journal is then shown the use made of the fund thus obtained. Among other things, the demand loan at the People's National Bank is taken up, and $20,- 000 loaned the company. For this loan to the company the bills- receivable account shows that the note of the company was taken. With the rest of the proceeds coupons were bought. These cou- pons were held by the treasurer of the syndicate as his vouchers for the note to that extent of the funds in his hands, and were charged in the coupon account of the syndicate. The company had nothing to do with this, and no charge is made against it on the books for any such use of this money. The same will be found true of all the other entries. When money was advanced to the company a corresponding entry is, as a rule, found in the bills-receivable account. Thus, when preparations were made for taking up the sterling coupons, payable in London, the money was advanced to the company and remitted to the agents in London. For these amounts the notes of the company were given to the syndicate. In this way the money was provided to pay the London coupons — not to buy them. Those coupons, when taken up, were extinguished, and no claim is made for them. They do not and never have appeared in the coupon account of the syndicate. The vouchers held for that ad- vance were the notes of the company. It is not claimed that any coupons were bought except in New York and Charleston. �The books are in reality between the syndicate and its treasurer, and show in what way he hasdisposed of the funds in his hands. He is, in eiiect, charged with certain amounts of money, and his books show how it has been disbursed. On settlement he produces, as his vouchers, interest and expenses paid, coupons bought, and bills receivable belonging to the syndicate, consisting of the notes of the company taken up from others, or given for money advanced. It is an error to suppose that all the money charged to him was got from the company, or that all he paid out was either advanced to or charged in account against the company. �The next question is whether, as between the bondholders and the syndicate, the coupons were bought or paid. I shall not undertake to recapitulate the evidence on this point, but content myself with saying that the evidence, as I think, brings the case clearly withia ��� �