The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-05-11
THE COURTS.
Decision in the Jay Cooke &
Co. Iron Suit.
LIABILITY OF THE BANKS
Looking for Payment Of the MacOmb'S
Bridge Repairs

An order OF condemnation was issued yesterday
In the United States District Court by Judge
Blatchford against the stock OF cigars owned by
Lewis Jacoby, which had been seized and held by
tine government on the charge that large guam
rity OF the cigars In question were stamped to
represent imported cigars-they being domestic
cigars The case was on trial for several days,
and after half an hours absence the Jury returned
q verdict for the government, conascatlng the
cigars.
The Industrial Exhibition Company yesterday
obtained an Injunction in Supreme Court, Cnam-
bers, be ore Judge Barrett, against Morgen than,
Bruno Co., their financial agents, restraining
them from Offering any OF the bonds OF the COM
pany for sale, or from holding themselves out to
the world as their agents.
Joseph Gabrisi ana Vincent Palmer were yester-
day committed by United states Commissioner
Shields for trial on charge OF having counterfeit
money In their possession with intent TO pass the
same.
In the case OF Trowbrldge, administrator OF the
Harden estate vs.. me Commissioners OF Taxes,
Judge Davis holds that Quicksilver mining STOCK
as being stock OF home corporation and stock OF
various foreign corporations is not taxable within
this state, but that bonds OF a foreign state are
taxable.
Andrew Smith sued the city for damages arising
from The overflow Of street sewer into his cellar
struction OF the sewer was defective and had re-
corded no notice OF the overflow the city Is not
liable.
THE RAILROAD IRON CASE.
Some time since an injunction was granted in
the Supreme Courr, Chambers. restraining the
New York Guaranty and Indemnity Company
from removing large quantity q iron rains from
Woodruff Il Roblnson's stores-the application
I Iav n NJ Iay
Cooke McCuloch 4 Co., OF London. The facts or
the case as disclosed at the time were as lol-
lows:-The 81. Paul and Pacific Railroad Company
issued mortgages for several millions Of dollars in
DoHus, large portion OF which were represented
by Lucas, Writson a. Co.. German bankers, and on
the money raised the bonds iron rails were
pun chased in Europe and brought 10 this country.
The suit was brought 10 levy against the iron
wnicn Lucas. Writson & co. claim has been bought
with the money advanced by them on the bonds
to be covered by the mortgage This iron was
hrouaht into this country under the managem emit
OF tue director of the road. and was sod by Mr..
Moorhead, constructing agent OF the road, aud
also Il trustee unuer the mortgage, the authority
10 sell being subject 20 the necessity Of only
raising iunds to meet present and future
freIgnts ana advances Ar. Moorhead is q
member OF the nrm Of Jay Cooke Co. and OF jay
Cooke, McCullOcu u Co., oil London. great por-
tIoa .! the IRON was pledged to Jay Cooke 4 Co.,
ana some Of 1t was pledgeu 70 the Guaranty and
indemnity Company OF this city, aud other por-
tons OF 1t pledged or sold 70 other parties. An
Injunction was sued for ~ restrain all the defend
ants VINO had any p0 ton Oi tue IRON from dlspO5-
ing ofir or III the proceeds OF any sale or sales
made Oh II, pending the decision Of tine Court.
From This injunction an appeal was taken TO
the General Term OF supreme Court, and yester-
day decision WAS rendered on the appeal by Judge
Daniels for the full Court. The Court rules that
the mortgage bond on the iron 10 Moorhead,
trustee OF the mortgage, was charged with nouce
o Its term, and he bad no right, except the press
ing necessities OF the company, OF which
there is evidence, 10 dispose OF the
iron 10 the two firms of Jay Cooke Co.
and Jay Cooke, McCulloch Co., OF which he WAS
a partner; that therefore the transfers TO them
subject 10 the lien ol the DOndnoders, and the
validity OF these transfers TO others depends on
whether the other partles took the transfers III
good latin aud advanced money on them. The
New York Guaranty ana indemnity Company
having advanced money in ignorance OF Moor
heads duties mas therefore riglt TO sell the iron
pledged 10 IL 10 make good It's lien upon it; but
any balances over must be held under 10 Junction
Tor the benefit OF tie parties " no may DC held as
entitled thereto at toe END II the SUIT. The Navy
Department, VINO took pledge OF about Zoo tons
OF the stock or money already In the hands OF Jay
Cooke, McCullocn Co. stands ia no better con-
dtlon than that firm as 70 mat iron; out as 10 tile
4,400 tons ON which they de a furtner advance
OF 100000 they stand IN tue position n pedgees
in good faith, but 1T may be SHOWN That these ad-
vances have beeu repaid. The injunction, there
FORE Is modified as pointed out in the opinion.