The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-10-06
Opinion in Guirkin & Go.
Bankruptcy Case.
SAWYER GETS HIS MONEY
A NOVEL CASE IN ADMIRALTY
HEAR
THE LIABILITY or SHIP OWNERS LIMITED
The Southern Railway Says it Cannot Get Jus.
tice in The State Courts and Asks that
Case be Removed to the
Federal Court.

Federal Court.
Judge Purnell yesterday rendered a
decision in the Guirkin Il Co., bank
ruptcy case.
when the banking house of Guirkin &
Co, was in financial distress, J. Hay
wood Sawyer loaned it $3,202.I0, and
accepted certain collateral securities Ito
the amount of $1,000 to secure the loan,
..but without previous demand and
agreement therefor The method of the
loan, however, was peculiar. Sawyer
had S1.30210 in the bank This he
verbally ordered paid over to the hank.
And the additional sum of 81 800 was
paid in for the use of the bank in
cash. Sawyer was the banks attorney.
Just one week later, October 10Th,
the bank failed, making general as
signment for the benefit of creditors.
Now the question is what does Sawyer
get out of the wreck.
In his opinion Judge Purnell holds
that Sawyer is entitled to such share
in the proceeds of the securities held
by him as WILL when reduced to money
by the trustee, repay the $1,000 and
legal interest since October II, 1898,
and until paid. AS to the pre-existing
debt of $1,302.70 he win share pro rata
with other creditors in the distribution
of the estate. LIZ such securities are
not surrendered to the trustee, that Off
Ger will take such proceedings as he
may be advised to recover the same"
Another matter before Judge purnell
yesterday was a petition OF libel ON the
part of the Old Dominion Steamship
Company to limit their liability under
the act of Congress passed 1851 and
amendments thereto.
The steamship company had a lighter,
known as the Old Dominion fiat, which
was used in taking cotton from Green
vile to steamer anchored in deep
water further down the river. On
one of these trips the cotton aboard
the fat took fire, and some of the bales
we're thrown overheard. But the fire
had gained such Roadway that 1t was
finally found necessary to scuttle the
fiat in order to save the cargo of cot
ton.
The cotton was fully covered by in
surance and the insurance companies
paid their losses. took from the owners
OF the cotton assignment Of their claims,
and then brought suit in the State
courts against the steamship company
for recovery of the money thus paid
out.
Now the Old Dominion Company signs
petition of libel in the court of admi-
rally, under the act OF Congress Of
1851, to limit their liability TO the value
Of the fiat. This petition came up yes
terday on an eX parte hearing before
Judge Purnel, being argued for the
steamship company by Messrs. Gillian,
OF Tarboro, and White, OF Norfolk
The object OF the law passed in 1851
was to encourage shipping by enabling
the owners of craft to limit their LA
hiiity to the value of their vessels. and
Judge Purnell granted the petition
prayed for.
The Southern Railway petitions for a
removal of the case of the City of Dur
ham vs.. the Southern Railway from the
State court to the Federal court.
This suit, it will be remembered, is
for the recovery of, and determination
of title to, a parcel of land in the city
Of Durham which the city alleges has
been dedicated as street. This the de-
PENDANT railroad denies,and claims that
the street is a part Of itS right of way
and that as such it has a title to the
property and right to possess and en-
joy it.
Removal of the cause from the State
court to the United States Circuit court
is asked ON the following grounds
l. That the suit is between the citi-
zens of this State and the citizens or
another State.
2. That on account of prejudice and
local influence the railroad is not able
to obtain justice in the Durham Supe-
rior court or any other State court.
3. That the suit is Of civil nature
and the amount involved exceeds in
value $1,000.
Samuel A. Henszey has been dis
charged as receiver of the Langdon-
Henszey Coal Mining Company at Cum
neck, Chatham county. The order was
made yesterday by Judge PurnelI.