Daily Republican., 1889-07-05
$4,000 VERDICT
AN uNsETTLED RAILWAY
CLAIM.
Important Decision Against the III. s.
McCOmb Estate In the United
States Circuit Court on
Wednesday.

brief notice OF which was given in The
REPUBLICAN Of that date, aysinst the
estate of the late Henry s.. McCumb ia
one OF the most important that ever oc.
cupied the mind OF the United States
Circuit Court for this district, Both
Judge Wales and Judge Joseph p. Brad
ley, the latter an Associate Justice OF the
supreme Court Of the United States,
agreed upon the verdict rendered. The
case stood upon the docket: "The ad-
ministrators OF G. Brown Snyder, late OF
New York, vs. Elizabeth b. McComb,
execntrix OF Henry s. McComb, late oi
Wilmington, Del.
United States Senator George Gray and
William G. Spruance, ESQ.,, repIesented
the complaiuants, aud tue defence was
represented by George III. Bates, ESQ.,.
Mayor Austin Harrington and ex-
Attorney General Wayne McVssgb. The
case was argued and testimony taken at
diifereht times during last summer, but
owing to the great Importance OF the case
1t was not until last Wedne. dsy that A
decision was reached.
| The decree Of the Court gives the
Snyder administrators the whole amount
OF their calm, $40 o, with interest
from November 22, 1860, the date on
which the money was paid by Snyder to
McComb in trust for Investment in rail-
road securities. tho whole amounting to
$92, 900.
Action In the case was brought by the
snyder administrators against the Nc
Comb estate on January 80, 1888, to
ern Railroad Association, which had been
iold by McComb to Snyder, McComb TO
ho' d II in trust and to invest 1t to the
best advantage for Snyder. The bill Of
complaint alleges that McComb con-
verted the stock to bis own use and
asked that the defendant be required to
account for 1t.
On the other hand council for the de-
nee claimed that McComb held the
it Ick as collateral subject to o claim of
his own TO secure pay yment OF large In
debtedness due him by certain Josiah
bardwell, late of Boston and who was
owner Of the equitable interest In the
STOCK. The defence also claimed that the
action was barred by the statute of limi-
tation, and other claims which were over
ruled by the court.
Judge Wales In rendering his decision
was very clear and decisive. Hehad Civ
en- the case the closest attention that its
Importance demanded, and he was clear
ly of The opinion that the complainapts
were entitled to q decree for the whole
amount, s42 900 with interest from Nov
mber ~, 1860.
Justice Bradley in rendering his deci-
sion was equally clear said
concur entirely with Judge Wales
In the opinion ju delverd. There is no
question but that McConb held the stock
n trust for Snyder. The declaration of
trust executed on the 22nd of Novem-
her, 1863. is conclusive on this subject,
and 1t is absolute, having no qualification
whatever. The words are: | hereby ac-
knowledge to hold in the Sou hern Rail-
ro d Association, as trustee for c. B.
Snt der, under an arrangement with JOS.
lah Bardwcll, an original subscription OF
5000 on which 10 per cent. has been
paid.
"This notice Is In conformity with an
arrangement made some two months sgo |
between josiah Bardw,ll, q. B. Sn,d der |
and myself. The plea that IL
was to be held by MoComb as collateral
is all afterthougbt. No such idea was
put forword until several years after the
declaration of trust was executed. n
Collateral to WHAT The pretence now
Is that 1t was collateral to the debts that
Bardwell owed to McComb. Then WHY
was not that col dition expressed In the
declaration of trust given to Snyderl
The vagueness of the claim as
stated by McComb himself, In his testi-
mony, Is strongly presumptive against
~. 1t seems to HE that This
claim, to bold the sock as collateral, IL
by any sufLcient proof.
Assuming that the trust is an abso-
lutte one IL is clear that the stock has
never been accounted for to Snyder or to
his estate. The relation, then, of trus-
tee, pure and simple, being established
against McComb, how can his conduct
be excused? In November, 1871, he sold
his own ock in the Southern railroad
Association to the Pennsylvania Com
pany for Si25 per share, under agree-
IN, mt, IL is true, to repurehase 1t at an
advance at ths end Of two years. n
While thus aivantageously disposing of
his own stock, he did nothing of the ,
Kind with that which he held in trust Tor ,
Snyder, aud gave snyder no notice or In
formation OF what he had done with his
own, but urged him, and persuaded him,
against his Wishes, TO let the stock held
In trust remain as it was, alleging that
II was very valuable, was worth twice
Its par value, and was first rate invest
ment Nor did he inform Snyder that.
IN his deal with the Pennsylvanla Com
pany, he had actually handed over the u
trust stock TO that company to enable
hem to have full control OF the opera i,
lions In prospect.
I'm June, 1874, Snyder was hard !,
pushed for money, and desired to dis
pose OF the trust stock, and applied to
heComb for th,t purpose. The latter
lrged him 10 put more money into the
concern; said that it was a good thing. r
worth two Tor one, aud all that-nerer =
Mentioning th fact that the stock was Z
hen out OF his hands ard in Possession IL
u the Pennsylvania Company. THIS was
n June and yet on the I OF July OF the e
anne year the Southern Rallroad Asso. II
iation was merged into another company C
which assumed It's obligations, II is true, q
'ut left Its stock out In the cold. Nc.
Comb himself testified tina: since that
lay this stock has had only a nominal N
aluc. From the large share Of control n
'hich McLomb had In the affairs of the le
ompany II cannot be conceived possible b.
hat he was fully aware OF the changes C,
D be made at the very time when he was el
ersuading Snyder to hold on to the
took.
ut seems 10 me that there was not
llthful execution OF the trast on the mart
McComb. He was IN u situation TO
now everything that affected the value
the stock. He was one OF the nan.
gers and manipulate OF tae affairs OF
le association. He was on the inside. CT
nj having such knowledge as this posi. fri
on gave him he was bound to exercise
ltire frankness and coed faith towa DIS
'ls cestui quetrust. Instead of d. ing
lis ne Kept up false appearances, gave 81
owing views Of The value of the stock IN