The New York herald., 1871-03-01
UNITED STATES SUPREME COURT.

Transfer Of Rank Stock CertiHcates-Assisn
nient of Railroad Shares by n Government
Dcfnulter.
WASHINGTON, d. c., Feb. 2s, 1871
No. 88. The First National Bank Of South Bend
rs. Lanier ct aL-Error to the Circuit Court OF
Indiana. The bank IN this case issued to q. v.
Culver two certificates for its stock-one for 100
shares ana the other for nty shares-which
represented that the stock "was transferable
on the books OF the bank in person. or
by attorney, only on the surrender OF the
certificates. A bylaw OF the bank contained
Ot these shares 10 the defendants IN error, assigning
the ceruhcates and executing powers OF attorney
books Of the bank The appellees produced the GER.
ticates with these endorsements at the bank, and
demanded the transfers, offering to surrender them.
The bank refused the transfer, and defended the
grounds that Culver pledged the certificates to the
bank as security tor any balances that might at any
tlne be Que IT, IN case II became depostor IN New
York. WITH the banking house Of Culver, Penn q Co.,
and that IN that way an Indebtedness arose. and the
certificates had been sold by the party authorized
Tor that purpose by Culver, and the other stock had
been transferred to the purchasers oH the books
due the bank the part Of Culver that the bylaws
OF the bank were not complied with la respect to
the transfer The plaintiffs demurred to tins an
swer, ana the demurrer was sustained and the case
came here, the plaintiffs III maintaining that
the assgnees OF Culver took the certificates subject
10 all the equities that existed against him. and that
the claim Oi the bank IS therefore paramount The
defendants in error insist tnat, there de-
Nciy O INC Dy CuNeF 10 tnc DaDk, tlerc
was no valid pledge, and that the bank was pro-
hbited by the act OF June. 1894 making any ''loan
or discount the security OF the shares OF Its own
capital stock and this transaction Is GAINED TO be
IN violation OF that provision.
No. SO. The Fourth National Bank OF Ne,c York rs.
The Ne,c orleans and CdrrottOn Ratirodd con,pdny
G. r. Beau,egard and Others.-Appeal from the
Circuit Court for the District or Louisiana. The ap-
pellant IN this case was assignee Of One.thrd
interest In the railroad named in the title, which
had been assigned to 1t by one Graham, who with
one May and BeaureGard, were the owners OF the
lease OF the road for period OF twenty-five years.
and this action was brought to compel the COM
pany TO recognize the transfer On the trial 1t ap-
peared that May had paid In all the money which
stood on the books in the name OF Graham, and 1t
was claimed therefore, that the latter had only
nominal interest and the bank took nothing by the
assignment. 1t also appeared that the assignment
was made to secure certain sums due the
bank which were afterward paid and other
wise secured. On these facts the Court held
the complainant to be without equity against the
railroad company and dismissed the bill as to 1t,
with leave To the complainant to bring suit against
Beauregard, May and Graham for q settlement OF
the pa tnershlp interests Appeal was taken to this
court May having been Assistant Treasurer at New
Orleans, and becoming indebted to the government
by delalcaon, transferred all his property includ-
ing his rwO-thlrd interest in the road (one third OF
by whom 1t was transferred to three other parties,
with guarantee and who were made defendants.
lhls made 1t necessary for the attorney General to
appear in the case to protect the rights guaranteed
by the government and as counsel for those defend.
ants