Mobile register and journal., 1845-04-10
From the Hamburg Journal. rVTD .Nr (lE AN lNIIfN(TION

m of the United States, Dla- Bank State of Geor- irict of Georgia.
 ,gia aud M'Kinnie.
 The material circu,nsta ances of this as pre- senled by the bill are as follows: In lol6, Shuiiz' the complainant, and Joan 'knnie, one ot the de- leudamis; are p-oprieiors of the Augusta nrtnge'- Under the influence of the banking nania, which at this time spre i'd It's natnation far and near, Shul'z and M'K,nne opened Bank, called the Bridge Bank, and issued bs 10 great amount po"omeo inc value of the Bridge chiefly, lestnaien al one hundred thousand dollars,) and some other 'inus o small Nalue consisting of lands connected wi'h' or purchased near the b, dge in the Town oi Augusta, nt the lime of their commencing the banking nnSi- ness. M'KInnIe and Shuz executed an agreement by which they muually pledged the bridge, me ad- acent land oi the company, and such i"'ufe puFchas es as should he made from ihe proceeds oi 'ne Bridge Bank, for the security ot ihe bulls issued from the Bridge Bank But although copies oi this contract interChang-d, II was never committed to record, n"r any third person 'nteiposed |" whom legal interest should be conveyed i"r the purposes of the trust Soon after commencing bust. ness, the Bridge Bank Company drew and applied a part. of it's funds the building "i extensive edihces ln the town of Augusta in one tenement "t winch me business of the Bank was carred on and ms also, according o inc articles efagreemen became part oi the stock pledged Tor the redemption oi their bills. valued al fifty housand dollars. In eighteen hun dred and eighteen Shuliz retired from the company, and sold Oul his interest to Barna M K innie, wuh the entire of his co-nartner John Nm nie, tle former giving his bond to Shutz, with the latter security, in the penal sun oi hve hundred thousand dollars. To idemnify Shuz against all the liabilities of the company. This event was publicly announced in the Gazeites, and John & Barna M'- kinne gave notice that they thenceiorward c0nduc- ted the business their account, and assumed all previous engagements of the company as ihelr own Iu May, eighteen hundred and nineteen, the Bridge Bank stopped payment, and on two days aiter ShulIz with the consent ol Barna M'kinnie re-as' sumed the management of its interests, m conJunc- .,uI ,otn tu IhA lat ter. advertised the Bridge for sale, for the redemp- lion of the outstanding bills of the concern, fer great proportion of which, Shullz was personally liable, they having been issued while he was mem- Der of the company. John M'kinnle, It nnpears' during all this period, carrying on business as a general merchant, both in his own name, and ms lhe co-parner of one Lamkin, under the lhrm oi M- Kinnie & Co. And Leing largely indebted to the Bank of the State of Georgia; within a fortnight after Shuz resumed his station in the company, and secretly as Shulz ayers, John MKinne jointly with Barna M'Kinne, executed Mortgage of the Bridge
 10 the Bank for the purpose as expressed m the re- cital, of securing the payment of debts oi John M Kinnie and M'knnie & Co. 10 the amount of ninety | thousand dollars. This Mortgage also includes a considerable property, real aad personal. severely owned by the M'Kennies in their individual r'ght' IL appears, also that during the same perind barna M'knnle transferred his interest in the buildings erected by the company. to John M'kinne, and tine latter execuieda Mortgage ihereoi to the Augusta Baak, fer the purpose as il is alleged, of securing other debts, principally his individual debts 10 | that Bank-and thus the whole fund pledged to the creditors of the Bridge Bank of the coparinersh'p oI M knnie & Shullz, has passed to the creditors Of | other Ranks, or 10 secure the individual debts of John M'Kinnie, whilst ShnItz is left a'one to re- deem the Bridge blls, and the holders of these bills stripped of the funds which they relied, are eit to seek redress from individuals, all of whom are al- | legged to be insOlvent.
 Barna M'kinnie, il is further slated has since ts.. .t R,d pany, thereby vestinR in the latter the equity of | iemption previously remaining m Mkinnie-and thus circumstanced, the creditors of the comrany, and of the M'kinnies, are engaged in one general scramble, for the purpose of approprlaing 'o them selves, each such part of the wreck as he can seize upon. These suits being proseculed in the State Courts of Georgia, judgments and foreclosures have been obtained. in suits of law anc the bridge, or at least much of it Officer of the State can seize upon, is now advertised for sale, both al the suit of the Bank of the Slate and o individuals hold ing small sums of the Bridge hills.
 ShuI,z and of the creditors of the company, prefer ths bill iC conjunction for the purpose of hav.ng the question of right settled en masse, and ihe property disposed of, as not 10 be sacrificed, and inc motion now to be considered, is To obau an in-
 junction io stay the sale of the Bridge until the ques- tion of right be settled, and such measures taken as will make the most of the fund for the ultimate benefit of those who are legally entitled 10 II.
 It is ad nled that the M'kinnies, were just ly ad- judged the money sued for, and that against them ever, thing that was done, was legally done - But the interest oi third persons under dis cusSIon and for aught that at present appears io this Court, this very Judgment obtained between these parties may be the machinery ofa fraud upon these compliments. or that ihe State Court could know nothing, and if so could feel nothing but satisfaction at lhe failure of such project.
 "ln considering the grounds upon which ihe com painan in this rests hIs caIm for relief, il s obvious that they are all moons sderabe in value
 
 the creditors the holders of the Bridge Bank blls) genera, preference as to the proceeds o the pledged stock"
 And the question raised this print is certsinl, one of great nlceiy and difficulty On he hand il is difficult ,0 believe t,ai the hank not con ,rrsnnt oftIs fact, that the M'Knn,es were mol lga- gng, and they receiving for pri,ae debt, the funds that were publicly and notorionslv the pledged security of the ccparinership bills. Indeed the, were purchasers under Barna M'kinne, it isa ques- ,ion worthy of much alteration, whether they must not be legally affected with notice. since Ill examn ing his tIile they must have looked into his deed originally executed between John M'Knnie and Shultz, deed which operates agains both of these parties as n covenant to stand seized to the of the Bridge Bank creditors. Nor could the Bank O. the Stae have been ignorant of the insolvency of the Bridge Company the time of taking this mortgage since the Bridge Bank had nutoriousIy stopped pay ment abuve fortnight hefore, and John M 'Kinnie and Shuiz had publicly advertised the Bridge for
 
 other hand the legal inter est WIS in the MKinnies, and actually, whether coascentiously not trans. ferred 10 the Bank of the State. Whether they shall be deerecd to hold as trustee for the original cesn que HHss is therefore question which merits the tureat consideration.
 But it would be preudging the final issue of this cause, and there appears 10 me 10 be sufficient grounds in the decide this motion upon, independently of this, will for the present hold myself uncomInit- ted on this point.
 There are four other points in the case on any ono of which, al least on a taken together, this in- junction be refused. In the first place. Shultx appears here the assignee of Barna M'kinne's equity of redemption. in winch relation he has an unquestiona sht 10 investigate the legality and amount of the sum claimed of the M'Kinnies under this mortgage But his equity is still stronger, for il appears that the property mortsaged by Barna M'Kinne was for the proper debts of Joha M Kin ne, and that large amount of John M M'Kinnie's property is included in the mortgage. There s then the strongest reason for insisting that the property of John Mkinne should be first applied 10 the extinguishment of this debt. and that Shutz should he let in to redeem the Bridge upon payment of the balance. But Shuliz also appears here AS well the holders of the Bridge bills the relation of CO mortgages. Though it be assumed that the Bank of the State must be preferred in point of or der. still as to any residue Of the morgaged premi. ses. the holders Of bridge bills certainly are entitled the benefit of the contract stand seized, execu- ted between the original members of the company, and afterwards assumed by Barna M'kinnie, when substituted for Shultz and Shuhz as their trustee, and being himself still liable them, is entitled to all the equity which they could claim. Though they may have lost their precedence the holders of Bridge bills their equity-as between them and the Bridge Bank the contract s still su'Isisting one, and the only consequence of losiRg precedence IS, that they must stand in the relation Of second 'n-