2 FEDERAL Rsronrrsa.
5. SAME—·APPI.ICl’\TION or INTEREST ON Coupons.
Where the bonds are coupon bonds, and such an account has not been kept
for a series of years, upon an accounting the holders of coupons are entitled
to have the interest earned during each interest period applied upon the cou-
pons representing that period. ‘
6. SAMs—AocouNT11vo.
Mortgage and bonds construed. and manner of accounting directed.
In Equity.
Anderson (15 Man, for complainant. .
Dillon dr Swayne, for defendant. ~
Wanmos, J. The complainant is the owner of coupons and scrip
certificates representing $43,462 of unpaid interest owing by the de-
fendant the Missouri, Kansas & Texas Railway Company upon bonds
secured by an income mortgage created by it April 1, 1876. He has
Bled this bill on behalf of himself, and all other owners of coupons
and certihcates who may desire to join, to compel an accounting by
the railway company of its earnings and operating expenses since the
making of the mortgage. The bill prays for an injunction against
the appropriation of the earnings contrary to the rights of the income
‘ bondholders, and for a decree for the payment of the income appli-
cable to the interest. The defendant the Union Trust Company of
New York is the trustee named in the income mortgage, and the bill
avers that this corporation is made a defendant because it asserts ·
that no duty is imposed on it in respect to the matters involved in the
suit, and has refused to bring suit after request on behalf of the com-
plainant and others similarly situated. No relief is sought against
the trustee, and it has not answered or appeared in the suit.
" ` The question is presented preliminarily to a consideration of the
case upon its merits whether this court has jurisdiction, the com-
plainant and the defendant the Union Trust Company (a New York
corporation) both being citizens of this state. The Union Trust Com-
pany is a necessary party to the suit, and this has been so determined
by this court when the case was before it on a former occasion upon
a demurrer to the bill of complaint and the Union Trust Company.
No relief is sought against this defendant by the complainant. Its in-
terests and those of the complainant are not adverse, but are identi-
cal. In Pacific R. R. v. Ketchum, 101 U. S. 289, 298, the court held
that the trustees of a mortgage which was being foreclosed at the suit
of bondholders might properly be arranged on the same side of the
controversy about the foreclosure with the complainants, although _
they were nominal defendants, because there was no antagonism be-
tween them and the complainants, and no relief was asked against
them. To the same effect is the case of Arapahoe Co. v. Kansas
Pac. Ry. C0., 4 Dill. 27 7. These authorities are decisive of the juris-
dictional question.
Upon the merits, the questions in the case are (1) whether the
mortgagor has failed to apply net or surplus earnings to the payment