4 FEDERAL, REPORTER.
and that, therefore, in this state a transfer by delivery of a promissory
note payable to bearer, and secured by mortgage, carries with it the mort-
gage lien, so that the holder of the note may foreclose the mortgage
by suit in equity in his own name, and without making the named
mortgagee a party. A decree will therefore go for the complainant
in this case.
~ (loam: and others v. ATLANTA COTTON Fscronr Co.’
(Circuit Court, N.   Georgia. September, 1882.) _
Trwsr Dnmn—Equ1rY Roms 47, 48-Aizsmrr Paurras.
The Atlanta Cotton Factory Company made a deed of certain property, real
, and personal, in trust, to certain trustees, to secure to its bondholders the pay-
ment of their bonds and interest, with power to take and sell the property in
case the company should make default in payment of the interest coupons, and
such default should continue for one month, and said trustees should have notice
thereof. Subsequently, but at a time when no coupon was due,.one ofthe bond-
holders brought this suit for himself, and for all parties in interest who might
join him, alleging the insolvency of the company, its inability to meet its debts
and expenses, and its being about to default in the payment of interest, and had a
receiver appointed. Afterwards, several, but not all, of the bondholders, among
them one of the trustees, joined the complainant, and, before any default in the
' payment of interest, a decree was entered ordering a sale, which was had,
and the property was purchased by one of the bondholders. The remaining
trustees then appeared, and asked- to have the sale set aside on the ground of
the inadequacy of the price, and that the decree be vacated to enable them, as
representing all the first-mortgage bondholders, to be made parties. Hold-
(1) That the 1·clief prayed for must be granted. (2) That the equity rules that
allow suits to be brought by some complainants for the benefit of all, expressly
reserve the rights of absent parties. Equity Rules 47 and 48. (3) The absent
A bondl. lders are not quasi parties, as they would have been had the trustees
, been parties to the suit, and are not bound by the decree. Campbell v. Railroad
Co. 1 Woods, 377. (4) The purchaser at the sale made, who is also a bondholder
and party, takes no full title to what the decree purports to sell. (5) The rem-
edy then given by the decree is not full and complete, even as to the parties be-
fore the court, and the litigation is not ended. A
Hopkins, Abbott et Thompson, for complainants.
Bleakley, Webb et Davis, contra. _
Psnnnn, O. J. On the hfteenth of August, 1878, the defendant
executed and delivered to Freeman Clarke, Henry B. Plant, and Vin-
cent B. Tommy, a deed of certain property in Atlanta, Georgia, both
real and personal, in trust, for the purpose of securing to the holders
of the first-mortgage bonds of said company payment of the sum of
=¤·Reported by Joseph P. Hornor, Esq., of the New Orleans bar.