The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-06-07
How the City Evaded the Pay
ment of an Undertaker'S
Bill.
one AGAINST THE RAILROAD
Why the Estate of Healdsburg's
Robbed Treasurer Is Not Re.
SponSlble.


batch of decisions yesterday, two of which
affirmed the Judgment of the lower
courts and four reversed the conclusions
of the inferior tribunals.
In the case of James A. Blood VS.. La
Serena Land and Water Company the Su-
perior Court gave Judgment for the plant
if and ordered the foreclosure of a mort
gage held by him upon the property OF the
defendant. 1t seems that James A. Blood
Sr. authorized his nephew of the same
name to dispose of a tract of land for
S1O5, 900. This the nephew did by organ
izing a corporation which paid $4,000 in
cash and Sl2,500 in stock to Blood Sr.
This was done at q meeting of stockhold-
ers after the articles of incorporation were
filed, but before a meeting of the directors
had been held.
They then gave mortgage of So, 800 on
the property to secure tie balance of the
purchase price. After having paid the in
terest for awhile the corporation failed to
meet the terms of its contract and the
suit was filed.
The lower court found that the note and
mortgage were duly executed and ratified
by the corporation and ecreed toreclos-
ure accordingly.
The Supreme Court, however, reversed
the decision and ordered a new trial. 1t
found that due execution of the note and
mortgage, If understood to mean that
there was due authority for their execu-
ton, was not supported by the evidence,
The plaintiff made only a. prim a-facie
showing. which was subject to overthrow
by proof that the original authority was
lacking.
In the case of Eugene ]. Gregory and
Frank Gregory VS.. NJ. II. Diggs, R. F.
Hester and r. Forester the judgment of
the lower court was also reversed. The
plaintiffs purchased q lot of potatoes
warranted to be marketable from the de-
fen0ants and paid the purchase price ex-
cept $132. For this sum suit was brought
against plaintiff in the Justices Court. A
counter claim of $500 for violation of the
warranty was, however. setsup. This plea
was stricken out on the ground that the
Justice had no jurisdiction, the amount
being more than $500. Action was then
brought in the Superior Court, asking
that the Justice be enioined from proceed
ing in the case so that the entire matter
could be tried in the Superior Court. The
order was refused.
Justice Temple, however, decided that
'sonIv legal issues are involved in the Diff
ferent demands. The defendant brought
his action in court which has complete
jurisdiction of his case, though not sufi-
GENTLY broad to enable it to entertain a
counter claim of the other party which
grows out of the very transaction upon
which his claim is founded. Neither can
get relief without having the claim made
by the other party passed upon. In such
a case plaintiffs are clearly entitled to the
relief sought. A bond must be issued with
the Injunction and if it is wrongly done
the party will be taxed for costs and dam
ages"
Pacific Undertakes VS.. Widber, Treas
urer. The Superior Court ordered A. G.
-<,f Go, N
to the plaintiffs $83 03 for services rem
dered in burying INDECENT dead, the &C
count having been regularly allowed and
audited. At the time of presentation of
the bill the general fund of the treasury
was entirely exhausted and there was no
money for that fiscal year TO meet the
demand. However, since then there has
been.
The State constitution provides that mo
county shall incur any Indebtedness ex-
ceeding in any year the income and re-
venue provided for it for such year, with
out the assent of the electors, expressed at
an election, etc." Plaintiffs contend that
the nature and character Of their claim
eXempts them from the operation OF this
provision, but Justice Mcfarland refused
to grant their contention. He says:
ITO sanction 1t would open the door to
a rush of claims that would sweep away
the entire constitutional provision. The
liability in question is undoubtedly one
incurred by the Supervisors for the gen.
eral welfare and one not fixed by statute,
and therefore comes within the provision
of article XXI, The judgment is therefore
reversed.
The judgment in the case of the City of
Healdsburg VS.. George w. Mulligan, for
merly its City Treasurer, was reversed.
The lower court decided that Mulligan's
estate could be held responsible for the
public money of which he was robbed.
The principal question present. ted TO the
Supreme Court was whether the loss of
the money by force formed defense in an
action against the Treasurer s bond.
The court holds that Mulligan was
merely the keeper of the money, and looks
upon its loss in the same light as if il had
been from the result of bank failure or
an act of providence. 1t is therefore con-
cluded 'that the obligation resting upon
Mulligan was sim oily that which the COM
mon law imposes upon him as bailee for
hire, and that If he was violently robbed
of the moneys of the city In his possession
it is a defense to the action. Chief JUS
tIce Beatty dissented but filed no opinion.
The railroad lost the case in the action
between the Southern Pacific Compa ny
and Painter. The corporation sued to
enforce an agreement by which Painter
was to buy Los Angeles County railroad
land for which the railroad hoped to re-
ceive a patent. Painter paid 20 per cent
of the purchase price, which was to be re-
turned to him in case the patent was not
secured. Instead OF returning the money
the Southern Pacific sued to enforce the
agreement Painter entered a counter
suit for the recovery of the money he hao
paid and won the case, but notwithstand-
ing the decision of the United States Su-
preme Court the railroad carried the case
up.
Justices Van Fleet and Mcfarland CO.
incided with the views of the railroad at
torneys, but Justice Harrison and his
other confreres decided against them, say
ing that the land in question was within
the limits of the land involved ir the case
decided By the Federal Supreme Court
and the Superior Court had no alternative
but to apply the law as laid down by
the highest tribunal of the United States.