The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-06-11

against the Phenix Bank OF New York.
SUPERIOR ooURr-sPxoIAL tern.
Before Hon. Judge Hoffman.
DncpSon.
TIE PeTle @ the State IF Michi0ar o. Ne Phenis Bs~k
of ne State Of Neo York-HoFYnAs, il The State Of
Michigan did not empower Governor Mason or any other
officer 10 contract any debt on It's behalf except by
delivery Of the bonds issued under the statute authorizing
loan did pledge its faith, empower Mason or any
else to pledge H. except TO the holder Of such bonds
Governor Masons letter to Mr. Deladed delivered by
Norton the fiscal agent merely authorized the payment Of
much OF the funds had been asked to be raised by
sale pledge Of the bonds TO be paid Norton The
drafts given by the Phenx Bank the security of
the bonds But these were all surrendered by Deladeld
| to Mason
8 No contract OF Mason however solemn and explicit,
The bonds, could have bound the State Il would have
been simply pledging TO pay the same twice,
But Mason's letter OF the 4th OF June 1885, apprsug
the bink that the dratts had not been ectei,
nothing more than an undertaking 70 remit the proceeds
when collected On that day DeAdeld President of the
Bank, and agent OF the ate surrendered the bonds Ii
impossible thai Mason could bind the State TO collect
and remit.
g. There is ground whatever for holding that the
state Of Michigan became ever legally bound the Paenx
Bank for pay menl Of these drafts Had Norton gold
from the bank, instead Of such drafts the State
have been bound, irrespective OF equity ar ing from
| 1t, use or enjoyment OF the money.
g. The State never in point OF fact received the benefit
Of resulting from these drafts; that the Bank
the River Raisin presented and remained
the credit Of the Phenix Sank On tue 26th or M,roh
isao the latter Effected the Bank Of the River Rsn to
refuse ment OF the draft and that tnes would look TO
them for the amount The draft on the Farmers aud
Mechanics Rank collected and deposited In the State
Bank to the credit OF the Phenix Bank where remained
until October, 1910.
ber 1S40 within Stewards powers and the reception
Of securities with biz discharges signed agent would
not the cor currence of the Auditor General been Obtained
That concurrence, qualified as was, could no more
| der available what before Invalid than the Auditor
GeDef al could have himself created liability Of the STAT
s. The conclusion my mind s irres stibe that Oslo
her, )s40 after those settlements, the Phenx Bank bad
lot the shadow Of legal demand the state, AMI
reasonable claim upon its eqni y or justice
Q. The transactions between the parties from 1910 to
1852 nothing OF decisive character uoo the qaes
with Stewart a. their AGENT rslinquished to him or al
lowed him the amount of his collecting, and took from
executed and acknowledged.
TO- The applications Of the Legislative ceased In 1916
and not renewed until 1853. board Of auditors,
consisting Of hree officers Of he government const
ted under the constitution Of 1851 with power to enact
aud iquidate claims.
H. That board was not Judicial tribunal 70 as to rem
der h decisions equivalent to payne nts they 1unted
merely to the adjustment Of lne by authorized agents
Of the State and we're equally open to correction and re-
view.
IL. The important and difficult question in the
results fem the pay ment of the money by the
the allowance of the claim by the auditors. The voun
ay payment Of money under ignorance Of law cannot be
recalled but IL made under an ignorance OF material facts
which the party had not The means, with reasonable
diligence Of knowing the money may be recovered back
BY this principle the present case ia to be tested
10 The Board OF Auditors ignorant OF the Phenix
Bank having for hidden the payment OF the draft the
Bank Of the River Rasn, Of the deposit to the credit Of the
PhenS Bank of the amount of the drs OF the settlements
and receipts Of Stewart with each bank in October,
lsaO; OF the guarded assent OF the Auditor General;
the fact of the transfer Of the securities by each bank
Stewart, and his dealing with them, with full know.
ledge of the Phenx Bank and Of the delivery of the deed
for the Saginaw lands in 1852.
H. II is not that honest and intelligent agents
could have sanctioned the claim with knowledge Of such
IA It's, and there is nothing which makes II justnabie
conclusion that they should be charged with knowedge
Of Ia, m
The result Is that the State OF Michigan Is entitled TO
The opinion of the Judge concluded follows:-"I
eranued in being able TO arrive at my conclusion without
acted with fidelity to their PRINCIPALS, and without
crminaly towards the State. They acting under
honest but gross deusion as 70 their rights and the
sronsibty OF the State. But their innocent
nevera basis for claim, and ought not 10 form bar
rer against the recovery Of the money That money
paid by agents under the influence Of error deusion and
ignorance; paid when the Law would have peremptory
forbidden q recovery and equity would have sane
jus and the prorsdu js cowmuis rela1aiio lead
result and approve the decision. The plaintiffs
entitled 10 Judgment for the amount paid sSsooa 7AD
with interest,"
The Malone (Frankn Co Palladium has the following
additional aive to the fires that have for time
been prevailing 10 the northern part Of the State
suspect that We have not given faint idea Of
the extent Of the by the nre last week II would
hardly be possible for one to do so without having been
We Mr. Hardy, from westville, yesterday, and the
account be gives appalling His loss In buldngs. grain
and farming tools Ia 1000 Every farming utensil
be had burned-hs fences his crops, and everything
except his house. which saved only by the greatest
exerton He lost about 300 bushels OF grancorn, oats,
rye. &c.
His whole neighb ,rhood is 10 ruins-houses, barns,
sheds, mills, fences forests cropsevery thing burned
less than mile squarehis We believe, being the only
house left The air wa, perfectly vid With flames, aud
chairs and furniture carried into the fields and down
separately away from any other combustbe materials,
were burned
Marshal and Theron Headly are stripped or everything
but their land One OF them Justice Of the Pence aud
had valuable books and papers aud about 500 n
money, which he hastily buried in the earth save; but
strange TO cav his books and papers, aud all his money
except so Did piece, were burned. impossible
TO get from house house, the neighbothood help
another, and Mr. Hardy, who was absent from home
when the Ore upon them, very cnance
for hts life In getting home school had just been dis
missed, and was feared that his children With others
burned but they all safe YET badly frightened
Mr. Hardy was viii his team, and finding thai he could
not ret home by the road, turned about snd gave 1t 10
charge OF man with him, telling him TO pick up all the
children and the horses fat he could I'LL OF
danger Mr.. Hardy had nine Of corn Just coming
VI, entirely destroyed
Toe Ore spread over a territory fully two miles in
breadth by at least -four In length, In this immediate neigh
borhood, destroying everything
PARrrCrLARs or rHE FINE IN CHELSEA, Mass
NISwrsss DWELLING HocsH DnTRJrsD-LpS. 10000
About eleven O'Clock last night ere discovered the
kitchen closet Of unoccuped brick house, Zone OF
block OF twenty our), No le2 Cedar 10 the con
sructon of the bdiloDgs the brick division walls were
lowed 10 terminate several feet from the rdgcpolc the
space between being filled mp with thin board sheshing
Through this pasleboard c1rtn the flames under
the roof In either drecon carrying all before them. The
Chelsea hrenen ntnued battle vgor usly with the
fire, but became apparent that help from abroad
must be obtained Messengers we're accordingly de-
spschcd To- 1~on, Char estosp, Bst Boston and North
Chelsea, and the nremen Of those places promptly
sonied 10 the call The nre continued 10 rage, however
until past three O'Clock this morning wbsi u was hnally
subdued-no,, however until necn houses been laid
In ashes and four others nearly destroyed. Ouly nine