The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-05-04
A DEFAULTING CASHIER.

In February. 1873, samuel E. williamson was the
owner OF AGO shares Of the capital stock OF the
Lake Shore and Michigan southern Railroad Com
pany and also OF 900 shares or the capital stock Of
the Cleveland and Pittsburg Railroad Company,
the certificates for which stood IN his name. Mr..
williamson attached blank powers OF attorney 10
SAID certificates, authorizing the transfer OF the
same to the name OF F. L. Taintor, who was then
cashier OF the Atlantic National Bank, ana who Is
now serving q term OF Imprisonment In the Al
bany Penltentlary on q charge OF being de-
fauter. He deposited the certificates and powers
OF attorney with Taintor as cashier, with
tue view that the stock should be
credit with the bank. Afterward Mr. william
instructed IalnIOr 10 sell the STOCK at not Tess
tnan certain specified prices. Iaintor caused all
the stock 70 be transferred 20 the books OF said
companies respectively, IN his own name, ana az
the same time surrendered the certlncates re-
Gates ~ the effect that ne as cashier, was tue
owner OF tile stock. Upon THESE certincates and
other securities ne borrowed $5O,OOO rom ,. 4.
Wallace * Co. Subsequently Wallace co. Dor
rowed OF Belmont co. s5Otoo, depositing
with the latter firm, among other col
lateral securities tue certificates 10 question.
Wallace Co. having been requested 70 take uD
same 70 Belmont Co., aud rake up the securities
In tReir hands. Mr.. Mason did this but At the
time not knowing ln whose name suea securities
stock a. auction, when the sam was pur-
chased py r. I. Dunnlng. BON hr Mason
up the stock TO williamson, the latter began suit
for its recovery. The case was tried before Judge
Van Bfunt holding supreme Court, Special Term.
decision was given In the case yesterday.
the came being embodied ia lengthy
DOT clear aud comprehensive opinion.
Judge Van Brunt holds that the simple question TO
be determined ~ whether Wallace Co. and
Mason received the stock In good iatn aud IN tne
ordinary course OF business In considering this
question ne intmates that 1t Is unusual for banks
In TINS cIy 10 borrow money at the rate o. two per
cent aud pledge 10 assets as collateral ne hvlus
that the dunes OF cashier are restricted 70 tue
care and management 81 the property and fiscal
concerns OF the bank and the conduct OF us busi-
ness as bans In the usual apd Ordinary way tuat
the president aud cashier OIL a bank caunOt assign
the cnoses /, action OF the corporation 70 lts
creditors as security for the payment OF
a precedent deot without authority nom
the Beard 9. Directors that Wallace ,a n, =
ordinary course OF business and cannot De pro-
tected as bona rae holoersi tnat ~ i no defence
fore ne saw the Securities that his whole conuuct
subsequent TO the receipt OF the stock showed
that he acted entirely IA the interest u Naiiace
Coz; tnat born Wallace 4 Co and Mason must
answer 20 the plaintiff IN damages Tor the CONVEX
sion oil hls stock that the claim Tor damages
against toe Atlantic National Bank cannot 10 sus-
taineG, and that the complaint however, as
against Tue bank cannot pc ols Missed because y
was necessary party 70 the action 20 reach Tue
stock Itself the title 10 when nad passed through.
Tho plglntir 10, therefore, entitled 20 recover
against wallace 70. ana Mason.
IMPORTANT DECISIONS ON APPEAL.
the Superior Court, General Term, yesterday. in
tue suit UrouIht by Jonn schreyer against the city
Tor balance due Tor building schoolnouse IN the
Tenth ward. affirmed the order permitting the
city 10 amend Its answer. The ameDdment "a to
the effect that the city 10 not responsible for the
Indebtedness, bat tue Board ~ Instruction, wbicn
gave the CONTRACT, and at the time was acting IN.
dependeutly OF the city.
Guardian Mutual Lille Insurance Company the
zane Court ned yesterday tn0t the last pre- MUM,
although paia after Wordcn's death, was within
toe time allowed ~ the company; That the all0w.
/ ance o sucn time coud not be construed into q
personal privilege. and tnat therefore, the
juaVnent IN her favor in the court below must oe
I anirmed.
Anotner important decision, althougn ABOUT
Il trlnlnn matter, was reudered yesterday ~ the
L same court, Mrs, Lynch bought some properly,
/ the Columbia College Rrouudss In the deco VI