ertj,  could  have  intended  that  any  consequences  so  disastrous  to
the  public  should  be  allowed  to  result  from  the  default  of  the
company. "  If,"  said  the  court,  "  it  was  the  intention  that  the
road  should  not  be  taken  up  and  destroyed,  for  the  payment  of
the  mortgage  debt,  but  that  it  should  be  sold  subject  to  the  duty
towards  the  public  of  continuing  and  operating  it  as  a  road,  it
follows  necessarily  that  it  was  the  intention  of  the  legislature  that
those  into  whose  hands  it  might  fall,  and  upon  whom  this  duty  to
the  public  of  running  and  operating  the  road  might  devolve,  should
possess  all  the  necessary  rights  and  powers  to  enable  them  to  per-
form this  duty. The  authority  to  mortgage  implies  the  authority
to  sell  the  thing  mortgaged,  and  to  convey  to  the  purchaser  all
needful  powers  to  use  the  thing  purchased  in  a  proper  and  bene-
ficial manner."  ^

§  296. Trustee's  Duty  to  account  to  Bondholders  for  the  Avails
of  the  Property. —  Trustees  in  possession  of  the  road  and  operating
it  must  account  to  the  bondholders  for  the  income  while  it  is  under
their  management. A  failure  to  do  so  is  a  neglect  and  a  violation
of  their  duty  to  such  bondholders,  and  renders  them  liable  to  a
suit  for  an  accounting. Such  claims  of  the  bondholders  against
the  trustees,  although  claims  on  account  of  the  bonds,  are  claims
against  the  trustees  personally  for  the  moneys  received  to  the
use  of  the  bondholders.^

Each  bondholder  has  a  right  to  receive  his  share  of  any  money
which  comes  into  the  hands  of  the  trustee,  and  is  applicable  to
the  payment  of  the  bonds. Whether  the  bondholders  who  have
acquired  their  bonds  since  the  money  became  available  for  this
purpose  are  entitled  to  a  share  of  it  depends  upon  the  nature  of
the  transaction  by  which  the  bonds  were  acquired. In  dealing
with  a  demurrer  to  a  complaint  in  an  action  brought  by  a  bond-
hulder  to  enforce  his  claim  to  such  money,  it  will  be  presumed
that  the  securities  passed  to  the  plaintiff  with  all  their  incidents,
among  which  would  be  the  right  to  have  a  proportionate  amount
of  the  money  applied  to  the  payment  of  his  bonds,  and  that  the
time  when  the  transfer  occurred  is,  therefore,  not  material. 