Page:Federal Reporter, 1st Series, Volume 3.djvu/264

 FIBST NAT. BE. 07 OHIOAaO V, BSNO OOUNTX BK. 257 �EiRST National Bank op Chicago v, Eeno Cotinty Bank [Circuit Court, D. Kanaas. August 11, 1880.) �1. BiLLS op ExcHAiTGE — RESTHicnvB Indorsbments. — Two bîlls of ex- �change, belonging to the plaintiS at Chicago, were indorsed for col- lectioa to a bank at Atcbison, Kansas, and by said Atcbison bank to a bank at Kansas City, Missouri, and by the latter to defendant, a bank at Hutchinson, Kansas. Seild, that they remain the property of plaiu- titf, ail the indorsements being restrictive. �2. ASSIGNMBNT "ON ACCOUNT OF" InDOBSBE, OB "FOE COLLECTION."— �An indorsement on a bill of exchange directing the drawee to pay to another "on account of" the indorser, or "for collection,"' is a restrictive indorsement, the eflect of which la to restrict the further negotiability of the bill, and to give notice that the indorser does not thereby give title to the bill, or to ita proceeds when collected. 8. Pkititt— RiGHT OF ACTION FOB Prookeds.— Although there may bo no privity between the owner of the bill and the last indorsee, yet, If the latter collects the bill, he is bound to pay the proceeds to the owner, and the latter may recover in assumpsit, on the ground that the defendant has property in his possession which belongs to tha plaintifl, and refuses to pay the same over. �Motion for new trial. �Brown e Wright and Clougk e Wheat, for plaintiff. �Gage de Ladd, for defendant. �McCbaby, C. J. This cause waa tried before the court at the November term, 1879, and resulted in a judgment foi the defendant. At the request of Judge Foster, before -wham it waa tried, the motion for a new trial has been argued be- fore the fuU bench. The facts are as follows : �1. The plaintiff, which is a bank in Chicago, in July, 1878, became the owner, by assignment to it, of two negotiable bank checks drawn on the defendant, which is a bank at Hutchinson, Kansas. �2. Plaintiiï transmitted said checks to W. Hetherington à Co., of Atchison, Kansas, indorsing each of them as follows: �"Pay to the order of W. Hetherington & Co., Atchison, account of First National Bank, Chicago. �"L. J. Gage, Cashier." �3. The said Hetherington & Co. forwarded said check to the Mastin Bank, at Kansas City, Mo., indorsed as follows : �T.3,no.5— 17 ����