73. A party cannot complain on appeal that the court proceeded on a wrong theory of the case, when such theory is contained in his own instructions.-Snyder v. Snyder, (Ill. Sup.) 31
74. In an action on a life insurance policy, which is defended on the ground that the as- sured falsely stated that he was in good health when the policy was issued, the fact that defend ant, after the court had erroneously excluded testimony of the assured's physician as to his health, called the assured's daughter, and sought but failed to prove by her that the assured's illness occurred before he represented that he was in good health, does not prevent defendant from assigning as error the exclusion of the physician's testimony, since defendant is not bound by the testimony of the daughter, who, it will be assumed, was a hostile witness, and whom defendant was forced to call because of the exclusion of the physician's testimony.-Pat- ten v. United Life & Acc. Ins. Ass'n, (N. Y. App.) 31 N. E. 342.
75. Where defendant read in evidence without objection a contract purporting to have been made by him with one of the corps of engineers of the United States army, "in behalf of the United States of America" and approved by the chief of engineers, U. S. A., authorizing him to do certain blasting, whereby were occasioned the injuries for which damages were sought, and refrained from offering other evidence to prove his authority from the United States, be- cause the court, without objection on plaintiff's part, stated that the authority was not denied, and that it could not be questioned, because the contract had been proved, plaintiff could not sub- sequently insist that the authority was not shown.-Benner v. Atlantic Dredging Co., (N. Y. App.) 81 N. E. 328.
76. An agreement on the part of appellees to allow appellants an extension of time within which to file their briefs, stating a request that when the same are filed the case shall be passed upon in the regular way, and afterwards a sec- ond agreement for an extension, in which the right to make any legal objection to the record and assignment of errors is reserved, does not in- dicate a voluntary submission of the cause by agreement; and an objection to defects in the record or assignment, therefore, is not waived.- Brown v. Trexler, (Ind. Sup.) 31 N. E. 572.
77. When an appeal, erroneously taken in the name of the attorney general, instead of the com- monwealth, is argued on its merits before expira- tion of the time within which the commonwealth might have been permitted to appeal, the appeal may be decided on its merits, although the formal objection has not been waived. -Boston & A. R. Co. v. Commonwealth, (Mass.) 31 N. E. 696.
78. An appeal from a judgment in an action commenced before a mayor, allowing a recovery of less than $50 as a penalty for violation of a liquor ordinance, and not involving the validity of an ordinance, being within the exception in Rev. St. 1881, § 632, providing for appeals, will be dismissed, though the question of jurisdic- tion is not raised by either party.-Ridge v. City of Crawfordsville, (Ind. App.) 31 N. E. 207.
79. On an appeal from an order of the circuit court adjudging a person insane, and appointing a conservator of his estate, a statement in appel- lee's brief that it is conceded that the circuit court was not authorized to appoint a conservator does not amount to a confession of error.-Snyder v. Snyder, (Ill. Sup.) 31 N. E. 303.
80. Want of merits in the assignments of a petition in error is no ground for dismissing the petition.-Edwards v. Griffiths, (Ohio Sup.) 31 N. E. 742. Reversal.
taken from an interlocutory judgment entered 81. Where an appeal to the general term is on the report of a referee, and a motion is judgment, and granting a new trial, is not sub- made for a new trial, an order reversing the ject to objection, on the ground that no appeal lies from an interlocutory judgment on a ref- such interlocutory judgment, which is author- eree's report, since granting a new trial, after ized by Code_Civil Proc. § 1001, sets the judg- ment aside. Knowlton v. Atkins, (N. Y. App.) 31 N. E. 914.
82. A decree will not be reversed on appeal because it is erroneous in some of its parts if it appears that appellees were entitled to some re- lief; but if appellant desires to question the decree, he should move to modify it, and reserve proper exceptions. Thiebaud v. Tait, (Ind. Sup.) 31 N. E. 1052.
83. Where the record shows that errors in the trial of a cause did not prejudicially affect the final result, the judgment will not be re- versed.-Thiebaud v. Tait, (Ind. Sup.) 31 N. E.
84. Where a demurrer to a bad paragraph of a complaint is erroneously overruled, and it does not affirmatively appear from the record that the judgment rests on the good paragraphs, a rever- sal will be granted on appeal.-Terre Haute & R. Co. v. Sherwood, (Ind. Sup.) 31 N. E.
85. Where the evidence is not in the record on appeal, a judgment will not be reversed on ac- count of instructions given by the trial court, if, on any supposable state of facts relevant to the issues, the instructions might have been correct. -Board Com'rs Huntington County v. Huffman, (Ind. Sup.) 31 N. E. 570.
Modification of judgment.
the decree erroneously required defendant to 86. In an action to set aside a tax deed, where pay the costs, there being no averment or proof that complainant made any tender, before filing the bill, of the amount of purchase money, taxes, assessments, and interest, a remittitur by the complainant, on appeal, of all the costs decreed to him in the court below, together with a motion that the decree below be in other respects affirmed, is sufficient, under Rev. St. 1891, c. 110, § 82, which authorizes the supreme court to allow a remittitur to cure the error.-Glos v. McKeown, (Ill. Sup.) 31 N. E. 314.
Mandate and proceedings below.
87. Under Pub. St. c. 153, § 6, which provides that the trial court, "after verdict or decision by the court, may report the case for determination by the supreme judicial court, a report which states that, after a verdict for the defendant, the court, "with the assent of both parties, reports the case for the determination of the supreme judicial court, both parties agreeing that if, up- on the evidence, the jury would be warranted in finding a verdict for the plaintiff, judgment is to be entered for him," justifies the trial court, after the supreme court has decided the reported case in favor of the plaintiff, in rendering judg- ment for the plaintiff notwithstanding the ver- dict.-Stone v. St. Louis Stamping Co., (Mass.) 31 N. E. 654.
88. Where the court of appeals has held that the evidence in an action raised only a questior of law, which it decided in favor of plaintiff,
arbitrators, after full hearing and arguments, pursuant to a request by both parties that cer- tain items be heard and determined separately and in the first instance, is binding on the par- ties, and is not affected by a subsequent revoca- tion of the agreement to arbitrate.-Nashua & L. R. Corp. v. Boston & L. R. Corp., (Mass.) 31 N. E. 1060.
and the evidence on recommittal to the referee | agreement; and a partial award made by the does not alter defendant's case to his advantage from that presented on the former trial, the ref- eree should give judgment for plaintiff. 15 N. Y. S. 3-2, reversed.-Moore v. Simmons, (N. Y. App.) 31 N. E. 513. 89. Where a decree in a suit to quiet title is reversed by the supreme court, and remanded with directions to declare the appellant the owner of an undivided interest in the land, and to make partition of the same, and for that purpose to allow amendments to the pleadings, the ap- pellee cannot upon the further proceedings ques- tion the title of the appellant as decided by the supreme court. Village of Brooklyn v. Orthwein, (Ill. Sup.) 81 N. E. 111.
VI. LIABILITIES ON APPEAL BONDS. Action on bond-Pleading.
90. In an action upon an appeal bond given in an action appealed from a justice of the peace, and conditioned that the appellant "should pros- ecute her appeal with effect," a declaration which alleges that said appellant "did not prosecute her said appeal with effect, and that said suit was finally terminated by order of said circuit court," without alleging in whose favor the suit was ter- minated, or on what facts was based the conclu sion that the appeal was not prosecuted with effect, is demurrable.-Daggitt v. Mensch. (Ill. Sup.) 31 N. E. 153.
91. In an action on an appeal bond, defendant cannot question its validity on the ground that the principal obligor failed to comply with all the legal provisions in perfecting the appeal, and it is sufficient for plaintiff to show that there was an appeal from a judgment, that the bond was ex- ecuted, and that the judgment was affirmed on appeal.-Pierce v. Banta, (Ind. App.) 31 N. E. 812.
92. In an action on an appeal bond given in an ejectment suit, defendant cannot set up that the judgment on which the title of the appellee in that suit was based had been reversed, as this would be a collateral attack on a judgment by a party thereto.-Pierce v. Banta, (Ind. App.) 31
2. Two railway companies agreed in writing to submit certain matters to arbitration. Before an award was made, the president of one of the companies delivered to the arbitrators a paper signed by him for the company, revoking the submission. The directors of the company after- wards, and before an award was made, entered a resolution that the president's act be ratified, and that the submission be no longer in force. A copy of this resolution was also given the ar- bitrators. Held, that the authority of the arbi- trators was unconditionally revoked and the award void.-Boston & L. R. Corp. v. Nashua & L. R. Corp., 31 N. E. 751, 139 Mass. 463. 3. Where several claims are submitted to arbitration, and the award recites that some of them were by agreement of the parties first heard and determined, but there was no written and final award as to them, such hearing and deter mination is interlocutory only, and does not pre- before the final award is rendered.-Boston & vent either party from revoking the submission L. R. Corp. v. Nashua & L. R. Corp., 31 N. E. 751, 139 Mass. 463.
4. An agreement in the submission that the arbitrators may proceed ex parte, if either party fails to appear, does not render the submission irrevocable.-Boston & L. R. Corp. v. Nashua & L. R. Corp., 31 N. E. 751, 139 Mass. 463. Oath of arbitrators-Waiver.
the arbitrators to be sworn before hearing any 5. Under Code Civil Proc. § 2369, requiring testimony, "unless the oath is waived by the written consent of the parties to the submission or their attorneys," there can be no waiver ex- cept in writing. Cutter v. Cutter, 48 N. Y. Super. Ct. R. 470-474, distinguished.-Flannery v. Sa- bhagian, (N. Y. App.) 31 N. E. 319.
6. An informal award, signed and sworn to 93. The sureties on an appeal to the general before a notary, and delivered by arbitrators to term, after a further appeal by the same party the parties to a submission to them as to whether to the court of appeals, become the sureties of a sum was due from defendant to plaintiff under the sureties on the second appeal, and are re- a building contract, stating that plaintiff is enti- leased if the sureties on the second appeal dis- tled to receive his "final payment," is defective charge their obligations to the owners of the judg- as an award as not ascertaining the amount due. ment, and take an assignment thereof.-Wron-Flannery v. Sahagian, (N. Y. App.) 81 N. E. kow v. Oakley, (N. Y. App.) 31 N. E. 521; In re Wolff, Id.
APPEARANCE.
Effect of, see "Taxation," 19.
What constitutes general appearance.
7. Having once made an award, arbitrators are functus officio, and cannot afterwards ex- ecute a second award, though the first award was void because of defects therein.-Flannery v. Sahagian, (N. Y. App.) 31 N. E. 319.
By sea captain, liability of shipowner, see "Sea- men," 1, 2.
A special appearance to a motion to cor- rect a judgment without notice, asking a dis- See "Trial," 11, 12. missal thereof for want of notice, and of any- thing of record to warrant such correction, is no waiver of notice; but a counter motion by them, asking for a modification of the judgment for costs in their favor and on the merits, while the prior motion was pending, with no ruling on the question raised as to the special appearance, was a waiver of notice, and equivalent to a general appearance.-Perkins v. Haywood, (Ind. App.) 31 N. E. 670.
Appointment.
Of conservator, see "Insanity," 3.
1. A written submission of several disputed claims to arbitration may be modified by parol
For drains, see "Drainage," Lien of, see "Subrogation." Of taxes, see "Taxation," 14-19.
See, also, "Assignment for Benefit of Credit-
Of errors, see "Appeal," 17-21. Of mortgage, see "Mortgages," 6, 7. Of note, see "Negotiable Instruments," 2, 3. Of policy, see "Insurance," 5.
1. A contract to make and deliver steel dies Intended to be used by the person ordering them in the manufacture of other goods may be assigned by such person, as his only obliga- tion is to pay for the dies when delivered, and that obligation may be discharged by any one. Rochester Lantern Co. v. Stiles & Parker Press Co., (N. Y. App.) 31 N. E. 1018.
2. For the manufacturer's breach of a con- tract to make and deliver steel dies intended to be used by the person ordering them in the manufacture of other goods, but who was not engaged in the business when the contract was made, an assignee of such person can recover only the difference between the contract price of the dies and their cost if procured from some other manufacturer; and wages paid by such assignee to workmen who remained idle, and rents paid for land which remained unused, in consequence of the nondelivery of the dies, cannot be recovered. 16 N. Y. S. 781, reversed. -Rochester Lantern Co. v. Stiles & Parker Press Co., (N. Y. App.) 31 N. E. 1018. Equities between original parties en- forceable against assignee.
8. Where an insolvent corporation buys some of its own stock, and gives therefor its note se- cured by an assignment of book accounts, and the payee indorses the note before maturity to an innocent purchaser, to whom he also assigns the accounts, such purchaser takes the note free from the defense that it was given for an illegal consideration, but takes the book accounts subject to such defense.-Commercial Nat. Bank v. Burch, (Ill. Sup.) 31 N. E. 420; Burch v. Kalamazoo Pa- per Co., Id.
ASSIGNMENT FOR BENEFIT OF CREDITORS.
See, also, "Fraudulent Conveyances;" "Insol- vency."
Of bank, what passes, see "Banks and Bank- ing," 3.
Validity of preferences-Mortgages.
1. An insolvent debtor, in contemplation of an assignment for the benefit of his creditors, may prefer one or more of them, provided he does so in good faith, by a chattel mortgage de- livered to the mortgagee before the deed of as- signment is delivered to the probate judge; such transaction not being within the operation of sec- tion 6343, Rev. St., which provides that all as- signments in trust to a trustee or trustees, made in contemplation of insolvency, with the intent to prefer one or more creditors, shall inure to the equal benefit of all creditors.-Cross v. Car- stens, (Ohio Sup.) 31 N. E. 506.
Reconveyance by assignee Rights of assignor.
2. Where the assignees held the assigned property for more than three months, and took Lo action with reference to an executory con- tract made between the assignors and defend- ant, but gave defendant to understand they were not going to claim under it, a reconveyance of the assigned property to the assignors gave them no right of action on the contract.-Hobbs V. Columbia Falls Brick Co., (Mass.) 31 N. E. 756.
Jurisdiction of action against assignee.
4. The court of common pleas has jurisdiction of a suit against a trustee of an insolvent bank to whom it has assigned its property for the ben efit of creditors, to recover the amount of a draft deposited with the bank for collection, and cred- ited to the owner on the day of its failure and be- fore the assignment, and before the maturity or payment of the draft. The action being to re- cover on the ground that the draft never became part of the trust estate for administration, the probate court has not exclusive jurisdiction. Jones v. Kilbreth, (Ohio Sup.) 81 N. E. 346. Rights of creditors.
5. A deed of assignment providing that all debts shall be made up as cash as of the day of the assignment, and that after payment of such debts the surplus, if any, shall be turned over to the assignor, does not allow a creditor who has acquiesced in the assignment, and been paid the amount of principal and interest then due on a note, to recover interest thereafter accruing, al- though there may have been a surplus to be turned over to the assignor.-Home Sav. Bank v. Pierce, (Mass.) 31 N. E. 483.
6. Where a contractor made a general assign- ment for the benefit of his creditors, before no- tice to the landowner from material men that they claimed a lien for materials furnished the contractor, the contractor's creditors had a superior claim to the amount due on the contract to that of the material men.-Kulp v. Chamberlin, (Ind. App.) 31 N. E. 376.
Assignment by partnership of assets between firm and private creditors.
7. Under a deed of assignment, which pro- vides that certain property belonging to the as- signors individually, and as members of a certain firm, shall be divided ratably among the individ- ual and firm creditors, the firm creditors to be "first" paid out of the firm assets, and the indi- vidual creditors out of the individual assets, the surplus of the assets of one class, if any, must be applied to a deficiency in the other.-Home Sav. Bank v. Pierce, (Mass.) 31 N. E. 483.
See, also, "Corporations." Liability of railroad companies composing, see ""Torts."
Transfer of certificates.
1. The certificates issued by the trustees of the Standard Oil Trust Association to the asso- ciates recite that the persons to whom they were issued are entitled to a given number of shares in the equity of the property held by the trustees, transferable only on the books of the trustees on surrender of the certificate, and provide that they are issued on condition that the holder or any the agreement creating the trust, and of the by- transferee shall be subject to all provisions of laws thereof. By the provisions of the agree- ment of association the beneficiaries under the trust are the persons to whom the certificates were issued, and the transferees thereof. Held, that one to whom a certificate had been sold and transferred by indorsement of the seller, with power of attorney to have it transferred, in ac- cordance with the regulations of the trust, and on the conditions of the certificate, was not obliged as a condition of transfer to show that there was nothing in the agreement negativing versed.-Rice v. Rockefeller, (N. Y. App.) 31 N. 9 N. Y. S. 866, re- the apparent right thereto.
2. The certificates issued by the trustees of the Standard Oil Trust Association to the asso- ciates recite that the persons to whom they were issued are entitled to a given number of shares in the equity of the property held by the trus- tees, transferable only on the books of the trus- tees on surrender of the certificate, and provide
ATTORNEY AND CLIENT.
Arguments of counsel, see "Trial," 11, 12. Attorney as witness, see "Witness," 3. Misconduct as ground for new trial, see "New Trial," 1.
that they are issued on condition that the holder | such affidavit is not denied. -Havens v. Gard, or any transferee shall be subject to all provi- (Ind. Sup.) 31 N. E. 354. sions of the agreement creating the trust, and of the by-laws thereof. By the provisions of the agreement of association the beneficiaries under the trust are the persons to whom the certifi- cates were issued, and the transferees thereof. Held that, it not appearing that any discretion was given by the articles of association of the trust to its trustees to refuse transfer on the books, equity will not refuse its aid to a bona fide purchaser of a certificate seeking to compel such transfer solely for his own benefit, though he be a business rival of, and therefore hostile to, the trust; his motive not being a subject of inquiry. 9 N. Y. S. 866, reversed.-Rice v. Rockefeller, (N. Y. App.) 31 N. E. 907.
ATTACHMENT.
See, also, "Execution;" "Garnishment." Property subject to.
1. A bank is not indebted to a defendant who has purchased from it a draft which is still outstanding, and on which no default has been made by the drawee; and therefore the money paid by defendant for the draft cannot be levied on under attachment as money due defendant from the bank.. Capital City Bank v. Parent, (N. Y. App.) 31 N. É. 976. Mailing notice to nonresident.
2. Under Rev. St. c. 11, § 22, which provides that, in attachment suits against nonresidents, the clerk shall, in addition to publishing notice of the suit, send a copy of the notice by mail to the defendant, if his place of residence is stated in the affidavit, judgment cannot be rendered against a nonresident defendant whose place of residence is so stated, and who has neither ap peared nor been served with summons, unless no- tice is sent to him by mail. 37 Ill. App. 385, af- firmed.-Dennison v. Taylor, (Ill. Sup.) 31 N. E.
3. The lack of such service by mailing is not cured by a recital in the judgment that it is ren- dered upon "due proof of publication of notice," since the publication is distinct from the mail- ing. 37 Ill. App. 385, affirmed.-—Dennison v. Tay- lor, (Ill. Sup.) 31 N. E. 148.
4. Where the defendants in attachment are designated in the affidavit and declaration as "A. T. Dennison and F. W. Dennison," and do not appear to have been sued as copartners, a certifi- cate of the clerk that he sent the notice by mail, "addressed as follows: One copy to 'A. T. & F. W. Dennison, Detroit, Wayne Co., Mich.,' is insufficient to confer jurisdiction over the per- son of either defendant. 37 Ill. App. 385, af- firmed.-Dennison v. Taylor, (Ill. Sup.) 31 N. E.
Denying averments of affidavit.
5. Where an answer denying statements of an affidavit for attachment is on file, even though filed after the jury is sworn, it is not error to deny a motion for judgment on the ground that
Recovery of attorneys' fees, see "Negotiable In- struments," 18-20.
Authority of attorney
and settlements.
1. One who was vouched to defend an action in ejectment employed an attorney to conduct the defense, and told him to do the best he could, and to have the defendant pay what was neces sary, and that she would repay it. Held, that the attorney had authority to compromise the ac- tion, and to obligate his client to reimburse the defendant for money expended in purchasing the outstanding title. 30 N. E. 712, affirmed.-Free- man v. Brehm, (Ind. App.) 31 Ñ. E. 545. Compensation-Amount.
2. During the year 1885 a suit was brought against defendant in plaintiff's county, which suit defendant's general counsel considered of great importance, and requested plaintiff to as- sist in conducting it, saying that defendant could not afford to pay large fees, but that it ought to pay a reasonable one, to which plaintiff replied that be would assist in the case, and leave the matter of compensation to his colleague and the general counsel. Held, that plaintiff's services in the conduct of this case were not paid for by an annual pass sent to plaintiff by defendant's general counsel as compensation for the legal services plaintiff might render defendant "for the current year," which pass was accepted on such terms.-Ohio & M. Ry. Co. v. Smith, (Ind. App.) 31 N. E. 371.
3. In an action for legal services rendered by plaintiff to defendant, a railroad company, it ap peared that, in 1886, defendant's general counsel sent to plaintiff an annual pass as compensation for the legal services plaintiff might render de- fendant "for the current year," which pass was accepted on such terms; but in the latter part of that year plaintiff told the assistant general coun- sel that he would do no more work for defend- ant for a pass, and the assistant told him that for the work they would do. In January, 1887, thereafter defendant proposed to pay attorneys plaintiff wrote defendant's general counsel, tell ing them, if they wished to retain his serv- ices, to send him a pass for the ensuing year. In according to their letter, was to compensate reply the general counsel sent the pass, which, plaintiff "for such incidental work" as he might be called on to render defendant in his county. For work requiring greater labor, plaintiff was to be paid reasonable fees. During that year, plain- tiff performed incidental work, such as seeing to defendant's taxes, etc. Held, that litigated cases which plaintiff conducted for defendant which plaintiff accepted the annual pass.-Ohio were not contemplated by the agreement under & M. Ry. Co. v. Smith, (Ind. App.) 31 N. E. 371. Action for compensation.
4. No allowance having been made plaintiff for services rendered by him as attorney, and de- fendant, for a year before suit was brought by plaintiff, having disclaimed all liability therefor, no demand for the sum thereby due was neces sary to enable plaintiff to maintain an action therefor.-Ohio & M. Ry. Co. v. Smith, (Ind. App.) 31 N. E. 371.
for personal injury sustained by his client can 5. An attorney who brings suit for damages acquire no lien for his fees and expenses on the claim before judgment, and the client has the right to compromise and release the claim at any time before judgment, without the consent of his attorney; Rev. St. § 5276, providing for an at- torney's lien, applying only to a "judgment ren-
dered."-Hanna v. Island Coal Co., (Ind. App.) 'special, deposit. 31 N. E. 846.
6. In an action by an attorney for the value of his services, defendant, a corporation, put in evidence the record of the action in which the alleged services were rendered to show that plaintiff acted solely as attorney for its presi- dent, who was a party defendant in that action. By that record plaintiff's name appeared as at- torney for the corporation, and he testified that he was so employed. Held, that the evidence was sufficient to support a verdict for plaintiff. -Indianapolis Chair Manuf'g Co. v. Swift, (Ind. Sup.) 31 N. E. 800.
Attorney General.
Mandamus to, see "Mandamus," 2.
Auction and Auctioneer. Auctioneer's license, see "Municipal Corpora- tions," 9.
See "Arbitration and Award," 6, 7.
Deposit of money in lieu of bail.
1. It is illegal, unless authorized by statute, for a police officer or magistrate to receive money in lieu of bail for the appearance of a person ac- cused of a criminal offense.-Reinhard v. City of Columbus, (Ohio Sup.) 31 N. E. 35.
Recovery back for illegality of ar-
2. A police officer arrested a person for an alleged misdemeanor under a state law without a warrant, and before any charge had been pre- ferred against him, and required a deposit of money in lieu of bail for his appearance before the mayor. The money was paid into the city treasury, and afterwards the city paid the same to the county; but, while it was in the hands of the city, the person who was arrested demanded that it pay over the same to him, which the city refused to do. Held, in an action against the city by the person arrested to recover the money, in which the legality of his arrest became a ma- terial issue, it was incumbent on defendant to show that such a state of facts existed as justi- fied the officer in making the arrest without the previous issue of a warrant, and that he did not detain the party arrested an unreasonable time before obtaining a legal warrant. -Reinhard v. City of Columbus, (Ohio Sup.) 31 N. E. 35.
Bailment. "Banks and Banking;" "Pledge."
See "Elections and Voters," 1, 2.
See "Assignment for Benefit of Creditors;" "Fraudulent Conveyances;" "Insolvency."
BANKS AND BANKING.
Liability on draft, see "Attachment," 1.
Mutual Acc. Ass'n of the Northwest v. Jacobs, (Ill. Sup.) 31 N. E. 414. Collections.
2. A bank which has received a graft for col- lection cannot, by crediting the amount thereof to the owner on the day of its (the bank's) fail- ure, and before the maturity and payment of the draft, place him in the position of a general creditor, upon the bank's making an assignment for the benefit of its creditors, so as to entitle him only to dividends out of the assets in the trustee's hands; but the relation between the owner of the draft and the bank being that of principal and agent, the owner of the draft may recover the proceeds, on its being paid, from the trustee. Jones v. Kilbreth, (Ohio Sup.) 31 N.
3. Money deposited with a private banker to secure him from liability on a bond, and mingled by him with the other funds of the bank, with the knowledge of the depositor, passes to the banker's assignee, under a general assignment.- Mutual Acc. Ass'n of the Northwest v. Jacobs, (Ill. Sup.) 31 N. E. 414.
4. Laws 1882, c. 409, § 278, (2 Rev. St., 8th Ed., p. 1573,) declaring that when suit is brought against a savings institution, alleging its insolvency and demanding its dissolution, the court may grant such relief and render such judg- ment as the interests of the parties seem to re- quire, allows the court to scale down deposits and authorize the resumption of business, where the effect of this will be to allow the institution to continue on a solvent basis.-People v. Ulster County Sav. Inst., (N. Y. App.) 31 Ñ. E. 738; In re Mitchell, Id.
National banks-Insolvency.
5. Rev. St. U. S. § 5242, by providing that no national bank, when insolvent, or in contem- plation of insolvency, shall so dispose of its as- sets as to prevent their proper application to the redemption of its circulating notes, and the creditors, does not prohibit the allowance of ratable distribution of the remainder among its any valid set-off, legal or equitable, which a debtor of the bank has against any obligation owing by him to it at the time of its insolvency, the allowance of such set-off not being the crea- tion of a preference.-Armstrong v. Warner, (Ohio Sup.) 31 N. E. 877.
6. A national bank received on deposit a check drawn by plaintiff on another bank, and carried the amount to the credit of his agent, upon the agreement that he would take for part of the sum a draft drawn on another bank, and would not immediately check out the bal- Before the draft was presented the drawer bank, which was insolvent, passed into the hands of a receiver, without having pro- vided any funds with which to pay it. The check, payment of which had been stopped, came to the possession of the receiver, and the draft belonged to plaintiff. Held, that plaintiff was entitled in equity to have the amount of the draft set off against his liability on the check.-Armstrong v. Warner, (Ohio Sup.) 31 N. E. 877.
7. An insolvent national bank held a draft which it had discounted for, and carried the proceeds to the credit of, the drawer, for whose accommodation it had been accepted by plain- tiff. The draft was protested for nonpayment, and the liability of the drawer made absolute. Plaintiff was the drawer's surety only. When the bank passed into the control of a receiver, the drawer, who afterwards became insolvent,
Taxation of savings banks, see "Taxation," 3, had standing to his credit on his deposit ac- 4, 11-13.
General or special deposit.
1. Money deposited with a private banker to secure him from liability on a bond, though evi- denced by a certificate of deposit stating the ob- ject for which it is made, is a general, and not a
count with the bank a sum less than the amount of the draft. Held, that plaintiff, as surety, was entitled in equity to have set off against his liability as acceptor of the draft the amount due his principal on the deposit account with the bank-Armstrong v. Warner, (Ohio Sup.) 31 N. E. 877.
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