Page:Federal Reporter, 1st Series, Volume 6.djvu/127

 PHILADELPHIA, ETC., CO. V. SBVENTH NAT. BANK. 115 �dend is claimed by eaoh of the parties to this issue. This composition dividend is upon three promissory notes, made by the bankrupts, which were held by Henry G. Morris at the date of the adjudication in bankruptcy. Morris, who for a number of years was engaged in business as a machinist, etc., at the Southwark foundry, Philadelphia, failed, and on April 29, 1875, made a voluntary assignment for the benefit of his creditors. The fund in controversy is claimed by the plaintiflE in this issue as assignee of Morris, under bis volun- tary assignment. The defendant in the issue, the Seventh National Bank of Philadelphia, bases its claim to the com- position dividend upon a pledge of said notes to the bank made prior to the voluntary assignment. This pledge, it is claimed, was made by Alexander Ervin, the agent of- Henry G. Morris, as collateral security for then-existing and future indebtedness of Morris to the bank. Upon the subject of this pledge the master finds as follows: "Shortly after this, in the latter part of February, 1875, Mr. Ervin [Alexander Ervin] was in the bank; D. B. Ervin, the president of the bank, and W. H. Heisler, the cashier, being presenta They complained to him of the condition of Henry G. Morris' ac- count, and objected to renewing any of his paper. Ervin then pledged the notes * * * as collateral security for the loan or renewal they were then negotiating, and foi* fu- ture loans and renewals, as well as those that were past. * amounting to more than the amount payable on said notes under the composition." This finding of the master is not excepted to, and it seems to be warranted by the evidence. �The real contest concerns the authority of Alexander Ervin to make this pledge. His authority is affirmed by the bank, and denied by the voluntary assignee. Henry S. Morris commenced business at the Southwark foundry on January 1, 1871, and continued it until his voluntary assignment on April 29, 1875. The evidence shows that during ail this time Alex- ander Ervin was the general financial agent of Morris, and possessed his confidence to an extraordinary degree. Ervin from time to time borrowed money for Morris, pledged his ��� �
 * * The bank made new loans or renewals after this time,