Joseph P. Bradley

“ Then the bondholders, dissatisfied with this result, brought this suit in equity in the federal court for the purpose of raising the same questions anew. It is difficult to see how they acquired any right to transfer the controversy from a court of law to a court of equity. The fact that they have only a beneficial interest is not of itself sufficient. Whether the legal interest in the contract remained in the water company or became vested in the trustees, an action at law could have been brought in the name of the party having it. ”

“ In order to reduce to possession the money claimed to be due, and subject it to the control of the court, the ordinary mode of enforcing the contract must be resorted to. It may be that the circuit court had the power to direct such a proceeding to be had as ancillary to its administration of the mortgage fund; but it must be a proper proceeding, adapted to the nature of the demand. If a promissory note were included in the mortgage fund, and the parties liable upon it should refuse to pay it, the circuit court might probably order the trustees of the mortgage to bring an action on the note ”

“ On the twenty-fifth of May, 1875, a decree was made, by consent of all parties, that the property should be exposed for sale by the trustees on 60 days' notice, whenever the court, in its discretion, should so order, on the demand of the requisite number of bondholders, and that the mutual rights of the parties to a distribution of the proceeds should be ascertained by the further litigation in the cause; the trustees in the mean time to keep possession of the property and account for all receipts and expenditures. ”