Samuel Blatchford

“ Much stress is laid by the defendant upon the fact that the bond, on its face, is called a 'seven per cent, income and land-grant bond;' and from this the argument is deduced that the interest is payable only out of income, but the expression, 'income and land-grant bond,' is sufficiently justified and satisfied by the fact that the mortgage states that the principal and interest of the bonds are secured by a mortgage upon the land acquired, or to be acquired, by the company, under the statute specified in the mortgage, and upon the net income of the lines of its railway east of Fort Worth. ”

“ It is contended for the defendant that the bond in question is an income bond, in the sense that the interest on it is not payable in money on the first day of July in each year, unless net earnings, as defined in the bond and the mortgage, have been made; that, if sufficient net earnings, as thus defined, have not been acquired during the year, then, unless the company exercises its option to issue scrip, the interest accumulates until it is earned, or until it is paid out of the sinking fund created by the sale of the mortgaged lands, or until the bond, with its accrued interest, becomes due ”