New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-24
LIENS ON BANK DEPOSITS.

IMPORTANT DECISION BY JUDGE BLATCHFoRD-THE
PROPER JURISDICTION OF STATE COURTS.
In the case of c. Cadle, jr., receiver of the
First National Bank Of Selma Ala, agt Binford A.
Tracy and others, recently tried in the United States
Circuit Court the bill alleges that the bank became In
solvent on April &c. 1857 that, at the time of its inSO
yency part of its assets amounting to 1922 50 IN cur
rency and gold coD in possession OF the
Ocean National Bank Of the City OF NewYork that the
defendant, Tracy claims portion OF them under an al
tachment issued in his favor creditor of the Bank
of Selma by the Supreme Court OF New
York on April 20, 1867; that the Bank OF Selma
on and before April I2 1861 indebted to the United
States in more than s25O0O0; that the United states
recovered judgment for that amount in the Southern
District OF this State on Aug 90 1867 and That the
United States have prior lien on the said assets IN the
possession Of the ocean Bank The prayer OF the bill Is
that Tracy may be enoned from proceeding further on
his ataehme Mt, any Judgment in the suit in which
it was issued and that the money in the possession OF
the ocean Bank may be paid to the plaintiff
The answer Of the defendant Tracy admits that the
Rank Of Selma became insoyent as alleged in the bill
that the Ocean Bank had in its possession the assets re-
ferred to- that the United states recovered the Judg
ment above mentioned 1t then sets up that the Bank
OF Selma on April 15 1861 gave to the defendant Tracy
eight drafts drawn by the Ocean Bank, all dated on
that day. for the aggregate payable to his ORDER
that payment OF the drafts demanded and was re-
fused by the Ocean Bank on April 81, 1867;
that on the day notice thereof was
given TO the Bank Of Selma; that on April %,
1861 an action begun on the drafts by Tracy,
against the Bank of Selma, in the Supreme Court OF
New-York by publication Of summons and by attach
ment that on the day the attachment was levied
nv the Sheriff on the money the Ocean Bank that on
Nav 49, 1862 an order made In that suit on the a
pcaon Of Cade, whereby he as receiver of the Bank
Of Selma was substituted defendant; that thereupon
Cade interposed that the suit was tried and
that Tracy recovered Judgment in it Feb 90 1871 for
s11573 "a; that Cadle appealed from the judg-
ment and the General Term OF the Supreme
Court affirmed it; that both OF the judg-
ments remain force; that thereby Tracy has lien on
said money which is paramount TO Cables claim ana
the amount of the judgments ought first to be paid out
OF said money and the rights OF Cadle extend only TO
the surplus OF them that Cade. by his answer IN the
suit in the State Court claimed his defense that the
Court had no Jurisdiction either him officer
the Bank Of Selma or over the suDect OF inc ac
make such disposition Of its as was required by
the act Of June 1864, aud that TO permit service Oh pro
cess IN 0r taat suit on nv 10 SAID act that
Cable by his answer also set up the ine0edness Oh Tue
in favor of the United States and claimed that they had
prior lien said money that on the tral OF that su
the state court found as M % e and SS over
Cade the extent of the funds Attached that hau
cause action IN this state that the act referred
TO contained no provision operating to defeat the attach
ment in that suit that the United states suI nSs
and that Tracy was entitled to Judgment
against Cadlc, sach receiver, Tor slO0o 40
aud costs levied and collected out OF the attached
funds that the bill in this suit Is Tor the same mat
the suit in the state Court and that the validity Of
Tracy's claim, by virtue Of the attac neht ana uus
ments in the suit in the Court and Tracys right TO
have the same paid OF the said money was deter
mined The answer then sets up the sald J1dglnenIIs
and prays benefit OF them as II he had specaiy
pleaded them in bar TO the bill. aud as an estoppei 10
In the course long decision in this case given yes
teray Judge Batohford says AS the State court had
no ursdctiou the attachment, which Is the only claim
asserted by Tracy TO right 10 the moneys IN to
sion OF the Ocean Bank, must fall aud the plainth must
have evidence declaring his title to sueh moneys 70 pe
free from any cl.im made by Tracy. or his title 10
them under the act Tracys claim being out Oh the Nay
and Of his right and duty, un9er SECTION eo 10 eoest
them and of his right to bring TINS SUIT III tns court 10
collect them, there DO no doubt (hennedy agt
Gibson, Wallace, 1857 Some disposition. Deiore de
cree can be entered must be made OF the case as against
Kelly as late Sheriff. either by taking the Dill as cOesseu
against him, otherwise. The INJUNCTION prayed i1r
usf Tracy must ISSUE the bill sets up aud admits
the lien the United States on the moneys IN the ocean
Bank, and the answer OF the United states aso ca,s
such lien, IL must be recognized ana reoeSeu W
defense respect Of such moneys us inc Oe9an paa
Rank should pay To the plaintiff the full sum OF money
with interest from April l5 1901 That bank mas gone
into insolvency. ITS receiver, ny MS answer setS up
that he had declared dividends Of 10 per cent from the
assets that bank, and expects To declare luineI u
thereirom He also admits that the DahA pau ing
AZ gT2 SO In currency, anu the $500 % In gOlI
com. and AYERS that the latter has been converted
into $3.50 43 IN currency making hn aBgrosao VI ~
1913 81 IN currency, ana That he mas 10 per cent -
sum in his possession the credit ~ tue Bank OF oea
and payable as may be decrecd by this Court me
painti In a special replication 10 such answer objects
10 the sale OF the gOlu and claims that the receiver VI
the Ocean Bank should account for the sod ani cur
reney with interest special fund or trust unaneeted
by any ability 70 declare any dividends Tue question
has not discussed the part VI the receiver VI the
Ocean Bank the parties Interested In IL are entitled
to be heard. -. -,
sterno Chtenden for the paintin Eugene Smith for
Tracy and Henry T.. Tremain for the United states.
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THE PRESSURE ON THE MAYOR
M, - L. ,1,n., Ainn unstnrlnN L., Tho "a, al