Harlan F. Stone

“ Equity may follow the property until it reaches the hands of an innocent purchaser for value. Even then the wrongdoer may not reacquire it free of the obligation which equity imposes on one who despoils another of his property by fraud or a breach of trust. ”

“ If the latter, the land company could not acquire the lands even through a new and independent contract without a surrender of such rights as it had under the earlier contracts, and it could not make the surrender effective against the United States, the real owner, without its assent, unless the state stood in the position of a purchaser for value without notice. To these rights the government is equitably entitled, and hence may at its election claim the benefit of their proceeds in the hands of the land company. ”

“ We hold that the acquisition of the title of the lands by the land company as set out in the bill was in violation of equitable principles and of the decree enjoining the defendants in the first suit 'from setting up or making any claim to the premises,' and that a proper case was stated for the imposition on both petitioners of a constructive trust with respect to the lands acquired by them. As the bill is not well drafted, respondent should have leave to perfect it. ”