Page:Federal Reporter, 1st Series, Volume 1.djvu/843

 IN BE FBANELIN M. EETCHUII. 885 �amenclment shall be -waived, must be Bustained on the ground that Franklin M. Ketchum, the innocent partner, on the facta proved, appears to have no equity to avail himself of the pay- ment of the money to the firm, as a payment between himself and his copartner, of money in settlement or adjustment of any balance due to him on account of the partnership busi- ness, or as a payment of money to him upon any considera- tion whatever, in receiving which he relied upon his copart- ner's possession as proof of ownership, �They must also be sustained on the further ground that Franklin M. Ketchum gave his copartner f uU and unrestricted authority to raise more money for the use of the firm, with- out exercising any supervision over his acts in that respect, and -without inquiring or seeking to discover how and from ■what sources his copartner raised money for the firm ; that, therefore he is liable, by the law of principal and agent, for the acts of his agent done in the performance of this agency, •whether in the making of contracts or in the tortious inter- meddling with the property of others, including money, at least to the extent to which he could, by reasonable inquiry, have ascertained the truth ; and in this case the circumstancea ■warrant the inference that a very slight attention on his part to the business would have discovered to him the source from which the money came. �But, while the entire claims must be sustained on these grounds, it is evident that the transfer of the money from Morris Ketchum's bank account, and the hypothecating of his securities for a loan to the firm, must be sustained on other grounds. These were not, either in form or substance, pay- ments of money into the firm by Belknap within the rule in Apsey's case, whatever may be the extent and limits of that rule. �The checks drawn against Morris Ketchum's bank account have, by consent of counsel, been produced since the argu- ment, and it appears that they were checks signed "Morris Ketchum, per T. Belknap, Jr., Attorney," and payable to the order of "Ketchum & Belknap." �The deposit of these checks, with other funds, in the bank, ��� �