Page:Federal Reporter, 1st Series, Volume 1.djvu/824

 816 FEDERAL REPORTER. �Annexed to the proof is an account showing sundry items of cash debit and credit between the dates of June 2, 1875, and July 24, 1878, with a balance struck July 24, 1S78, to the credit of Morris Ketchum, of $8,549.21, to which interest ia added to August 31, 1878, making in ail the sum mentioned in the proof of debt, $8,612.37. The second proof of debt is for $27,080.69, alleged to be due as "the proceeds of certain stocks and securities which the said Ketchum & Belknap held for this deponent, and belonging to him, which were sold and disposed of by the said Ketchum & Belknap, and said pro- ceeds appropriated to their own use." �There is little or no dispute about the facts. The firm of Ketchum & Belknap was in business from somo time in the year 1871 to the time of their failure, except for a period of about eight montha after the panic of 1873, when they sus- pended business. The partner Ketchum had a seat in the stock board, and attended almost exclusively to buying and selling stocks for customers, and other business of the firm out of the office. Belknap attended almost exclusively to the business in the office, the financial affairs of the firm, the raising of money, the drawing of checks, and the charge of the bank account. For several years prier to the failure this alleged crediter, Morris Ketchum, who was the father of Ketchum, the bankrupt, employed the bankrupt Belknap, indi- vidually, as his agent and attorney to attend to some parts of his business. He entrusted to Belknap, individually, for safe keeping, large amounts of stocks and securities, which Belknap kept in a tin box, of which he retained the key. The box was deposited in a safe in the office of the firm, to which safe both the partners had access. �Morris Ketchum also kept a deposit account with the Fourth National Bank of New York City, and Belknap indi- vidually acted as his attorney in drawing out moneys from this account, upon checks signed by him, in the name oi Morris Ketchum. This part of the. business done by him foi Morris Ketchum was transacted under a power of attorney, executed before the formation of the firm, which authorized Thomas Belknap, Jr., and Franklin M. Ketchum, severally, ��� �