Evening journal., 1889-07-03
ALLOWING A BIG cLAIll.
IMPORTANT OPINIONS DELIVERED BY
JUDGES BRADLEY AND WALES

In the United States Circuit Court,
| this morning a decree was issued against
| the McCombs estate for q little over
| $91, 600. This was Rin persuance to
I opinions delivered by Associate Justice
Joseph P. Bradley of the Supreme Court
and Judge l.. e. Wales, resident judge
of the U. s. Circuit Court, in the
case of the administrators of
c. Brown Snyder, late of New
York VS.. Elizabeth B, McComb, ex-
ecutrix of the estate of Henry 5. Nc
Comb, late Of this city. Senator Gray
and w. G. spruance. Esq, of this city
and William Wilson of New York, are
souncil for the eomplainants. George Il.
Bates and Austin Harrington, Esqs., OF
this city and Wayne McVeagh, ex.Attor-
ney General Of the United States for the
defendants
The action was brought on January 80,
1888. It was argued in this city last
summer, voluminous testimony having
been taken in the interval. The actisn
was to recover the value OF 800 shares Of
stock Of the Southern Railroad
Association, held In trust by Henry
S. McComb, for the benefit of Z.
b. Snyder. The complainant's bill alleges
that McComb had converted the stock
to his own use, and asked
that he be required TO account for it.
The defence claimed that McComb
held the stock subject to a claim of his
as collateral to secure payment to him Of
e a large Indebtedness owed by Josiah
Q Bardwell, late of Boston, the former
owner Of the equitable interest in the
= stock The defence also claimed that
; the action was barred by the statute Of
! limitation, and also made other claims,
!. all Of which we're overruled by the court.
Judge Wales read his opinion, which
was long, but concise and carefully writ
Q ten 1t was concurred in by Judge
y Bradley. who also gave his reasons The
! decree is that the defendant shall
pay to the complainants $z2 O0G
with interest from November %, 1869
l. that being the date on which the declara
/. tion was made by McComb, and the
t. amount being that proved to have beer
?, paid by Snyder for said stock.
Mr.. Harrington gave notice Of an ap
= peal to the Supreme Of the United States
l. l. but counsel for the defence may not dc
. eide to sassain it.
- Copious excerpts from Justice Bradley
a opinion follows:
~ 81 concur entirely with Judge Vale
90 in the opinion Just delivered. There
no question but that McComb held th
n stock in trust for Snyder. The declsrI
IN tion of trust executed ON the s2d Q
III November, 1859, is conclusive on thi
IS subject, and it is absolute, having n
io qualification whatever The words art
be 4 hereby acknowledge to hold in tI
Southern Railroad Association, as trul
ed tee for @. B. Snyder, under an arrang
at ment with Josiah Bsrdwell. o
he original subscription Of $60,Ot
4 ~.
he has been paid. This notice is in CO.
list formity with an arrangement MAJ
al. some two months ago between Josif
Bardwell, G. B. Synder and mysel
The plea that 1t was to be he
riy by McComb as collateral is an afte
tcs thought. No such idea was put forwa
50 until several years after the declarati'
Oh of trust was executed. Cola
or eral to what2 The pretence now is tn
.ne it was collateral to ths debts that Bar
! IN well owed to McComb Then why W
81 not that condition expressed in {
declaration Of trust given to Snyde
raj The vagueness of the claim
Ca stated by McComb himself, in his teE
ep- monY, is strongly presumptive against
ing II seems to me that this clai
ape to hold the stock as collateral is unsu
I'M ported by any sufficient proof.
ur Assuming that the trust is an absolu
rhe one it is clear that the stock has new
for been accounted for TO Snyder or to /
estate. The relation then, of trustt
pure and simple, being establish
you against McConb, how can bis conduct
loir e1cusedf In November. 1871 he sold !
own stock in the Southern Railroad
sociation to the Pennsylvania Compa
for S125 a shsre, under agreement. it
true, to repurchase it at an advance,
on the end on two years. Viii
thus advantsgeously disposing Of
ave own stock, he did nothing of the Ski
Id a with that which he held in trust
Snyder, and gave Snyder
notice or information Of what
lns had done with his own.
nse urged him, and persuaded him, agail
his wishes, to let the stock held in trr
ers remain as it was, alleging that 1t '
ing very valuable was worth twice it's
value, and was a frst-rate investme
Nor did he inform Snyder that, in
1 soI deal with The Pennsylvania Company,
''"e had actually handed over the trust ST.
to that company to enable them to hi
lgle full control of the operations in pr
at pect.
"In June 1874 Snyder was hi
ave pushed for money. and desired to displ
SOL Of the trust stock, and applied to
Iran Comb for that purpose. The latter uri
Ont him to put more money into the oonoe
said that it was good thing, worth
for one, and all thAt-neYsr mention
o. the fact that the stock was then out
e e. OF his hands and in possession
lty. Of The Pennsylvania Comps
az This was in June and yet on the 1st
July of the same year the South
ork- Railroad Association was merged /
had another company, which assumed
yes obligations, IL is true. but
was its stock out In the cold. McCc
by himself testified that since t
day this stock has had only
oroa nominal value From the large shAr'
a in control which McCSmb had in the aft
,ban Of the company, it cannot be concei
Ne possible that be was fully aware Of
-saae changes to be made. at the very {
and when he was persuading Snyder to
kent on to the stock.
"It seems to me that there was M
faithful execution of the trust
yhoir the part of McComb. He WAS
Their a situation to know everything
affected the value of the stock. BE
one of the managers and manipulation
the affairs of the association.
was on the inside, and having s
Is on knowledge as this position gave him
was bound to exercise entire frank
hos aud good faith towards this cestui
M trust Instead of doing this, he kspi