New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-12
.STALLO PRINCESSES
UPHELD BY COURT
Demurrer to Complaint in
metropolitan Trust Co.'S
Suit Is Sustained.
NOTE FOR 81, 100000
CONCERNED IN ACTION
Justice Page Rules Plaintiff May
Be Compelled to Account for
Sale of Collateral.

Justice PAGE yesterday handed down
decision sustaining the demurrer OF
Edmund K. Stallo and his daughters,
Helene. Princess Murat, and Laura,
Princess Rospigl;osi, 10 the complaint
in an action brought by the Metropoli-
Tan Trust Company as co-admlnlstrator
of The estate OF Alexander Mcdonald,
of Cincinnati. who was vice-president
OF The Standard Oil Company, and most
OF whose estate was left 10 the STATIC
sisters. his granddaughter.
Mr.. Stal,o and Mr.. Mcdonald exc
cutcd note for S2,70O,OOO to the
METROPOLITAN Trust Company IN l9O9
which was TO run for one year They
deposited as security certain stocks
and bonds OF the Alabama Securities
Company. the Mobile. Jackson &
Kansas City Railroad and the Gulf &
Chicago Railroad. MIR. Mcdonald died
in 1910. and in 1911 the Metropolitan
Trust Company sold the collateral TO
satisfy the notc. there remaining from
the sale 4 surplus of S454,25O.
Mr.. Stallo. in the mean time, had
become administrator of the Mcdonald
estate, and later was removed oy
Surrogate Cohalan. He alleged that
the note transaction was Dy himSeii
and Mcdonald as partners and mad
never been liquidated.
The Metropolitan Trust Company
sought TO compel Mr.. Stallo to ac-
count for his Joint transactions with
Mr.. Mcdonald and with the Alabama
Securities Company, and Mr.. STATIC,
his daughters and some creditors Oh
the Securities company were made the
defendants.
The plaintiff asked that the court
hold that whatever interest the Ala
bama company had in the securities
pledged with it for the loan to NC
Donald and Stallo was by sale trans
ferred to the proceeds of the sale, after
the payment of the indebtedness, al
leging that the Alabama company al
lowed Mcdonald and Stallo to pledge
the securities The Metropolitan
wanted to be allowed to account for
the securities and TO be discharged
from liability, and also asked an IN
junction restraining the defendant
from prosecuting any actions growing
out of the transaction.
Justice Page said that the only IN
terest of the Metropolitan Trust Com
pany individually was as PLEDGE OF
the collateral securities for the note.
In this capacity, said the court, 1t was
interested in obtaining an adjudication
Of the validity and regularity OF the
sale of the securities and in obtaining
relief against any claim OF the Ala
bama company or its creditors. On
the other hand, Justice Page pointed
out. the Metropolitan as administrator
of the Mcdonald estate had no interest
in obtaining any of this relief lts
interest in the securities was held 10
be directly adverse to that OF the
individual plaintiff.
As administrator, said Justice Page,
the Metropolitan company was IN
terested in calling itself an individual
to account for the securities pledged
with il and for the propriety and regu-
larity of their disposition. AS an IN
dividual. the court further held, the
Metropolitan mad no interest in OBJ
tanning an accounting of the CO.
partnership of Mcdonald and Stallo
and no interest in the judicial settle
ment of the accounts OF the ad-
ministrator of the estate.
Justice Page said that there had been
a misioinder of plaintiffs and that they
were not entitled to any Of the relief
sought, while Stallo and the adj
ministrator had the right, according to
the facts, TO compel the plaintiff in.
dividually to account for the collateral
security sold to satisfy the S2,700,00O
note and the right of the plaintiff as
administrator to compel an accounting
and liquidation of the joint or part
nership transactions of Stallo and Nc
Donald.