The Providence news. (Providence [R.I.]) 1891-1906, 1895-05-01
TECHNICAllTIES.
A Knoty Legal Problem Discussed in
Court This Morning.
Question on the Negotiability of Cor
poration Bonds Secured by Mortgage.

A very interesting case was heard in
| the appellate division of the Supreme
| Court by Chief Justice Matteson and JUS
tlces Stiness and Tilling hast this morning.
IL involved the negotiability OF bonds
issued by a corporation, which bonds
are secured by a mortgage. The suit is
that OF the American National Bank of
this city against the American Wood
Paper Company and was heard today on
the demurrer filed by the defendants.
In May, 1890, the defendant corpora
F! tion issued 800 bonds OF $1,000 dollar de-
nomination each, payable in 1900. One
OF these bonds mum bered al, was given
TO the Girard Life Insurance, Annuity,
and Trust Company, and the American
National Bank purchased the bond
The bonds were secured by mortgage
on all the property of the American Wood
Paper Company and among the pro-
Visions OF the mortgage was the
following: THAT IL the said Ameri-
can Wood Paper Company its sue
cessors, or assignees, shall at any time,
hereafter, after demand made, make de-
fault, or refuse or neglect or omit for any
period exceeding six months, to pay the
semi annual interest on the bonds the
whole principal sum of said bonds out
standing shall forthwith be due and pay
a able."
The main points made by the defendant
In It's demurrer are that the plaintiff sues
on bond under seal due in 1900, and on
contract made up of two written
instruments. That in order to main
tain an action in the plaintiffs name
the instrument sued under must be nego-
TABLE according to the law of merchants
ana the defendants say the instrument in
question Is not negotiable because it is
under seal and not only SO, but it is
expressly stated in the testimonial
clauses that they are intended TO be under
al md ha al -
OF an individual destroys its negotiable
ity. That the bonds are payable to
bearer or in case of registry to the
registered owner, and that il
cannot be pretended that a registered in
strument or one intended for registry is
negotiable. That an instrument payable
TO her of two persons when one is not
the mere agent of the other is not negoti-
able.
James Tillinghast, counsel for the de-
fendant, made long argument in fevor
OF the points in the demurrer. Rath-
bone Gardner. for the plaintiff argued
against its snfficiency, and quoted many
decisions as TO the negotiability of the
pond In question and as to the right of
his client to sue.
The continuation of the suit OF r. j.
Whlpple against the ". Y, y. II. d III.
X: X. Co., occupied the attention of Judge
wilbur nearly all of today's session.
Court Calendar for Thursday.
Common Pleas Division OF Supreme Court)
6643. Charles T.. Capwell VS.. John IA.
Campbell. Attorneys-G. II. Brown and
A. }. Gushing for the plaintiffs; ID. A. q
w. {. Baker for the defendant.
Jennie Gartrice VS.. William Saxon. At
torneys-C l.. kneeland for plaintiff; j.
M Brennan for the defendant
Edward +. Page vs.. Joslin Manufactur-
ing Company. Attorneys-Page & Owen
for plaintiff; j. NJ. Ripley for defendant.
443O. Daniel Hunt ct al. vs.. AlansonP
Wood. Attorneys-J. T.. Goldswortby for
plaintiff: Il. w. Robinson for defendant.
717S. Joseph Armstrong VS.. City Treas
urer of Providence, and 7179 John Mul-
roney VS.. same. Attorneys-G. j. West
for plaintiff; City Solicitor for defendant.