Page:Federal Reporter, 1st Series, Volume 6.djvu/128

 116 FEDERAL REPORTER. �collaterals for such loans, and arranged his discounts. How extensive were the powers which he was permitted to exer- cise, may be illustrated by reference to the Wood notes, Together they amounted to the large sum of $41,178.48. Yet, without any previous direction from Morris, or even con- sultation with him, Ervin bought theae notes for Morris from a bill-broker. That the ■whole financial department of Mor- ris' extensive business was unreservedly entrusted by him to Alexander Ervin, is clearly shown. During his entire busi- ness career at the Southwark foundry, Morris kept an ac- count and had large financial transactions with the Seventh National Bank of Philadelphia, ail of which were transacted throngh Ervin. He had complete charge of Morris' bank account, arranged ail his discounts with the bank, and made loans for Morris from the bank, pledging collateral securities therefor. Early in Pebruary, 1876, a ten per centum divi- dend (which preceded the composition) was declared by the trustees in bankruptcy of James T. and Charles A. Wood. At that time Ervin brought to the bank the Wood notes, with a dividend warrant signed by Morris, and got the bank to discount this dividend, leaving the notes and dividend war- rant with the bank. This discount was passed to the credit of Morris, and the dividend was afterwards collected by tho bank. It was subsequent to this transaction that the pledge now in question was made by Ervin to the bank. �Without further recital of the evidence, it is sufficient to say that it fuUy justifies the conclusion that Alexander' Er- vin was the general financial agent of Henry G. Morris, and that it was within the scope of his authority to pledge the Wood notes to the Seventh National Bankof Philadelphia in the manner and for the purposes found by the master. It is true that there was deposited in the bank a letter of attorney from Henry G. Morris to Alexander Ervin, dated Noveœber 25, 1874, whereby the former conferred upon the latter the fol- io wing specified powers: "(1) To draw checks against my [Morris'] account in the Seventh National Bank of Philadel- phia ; (2) to indorse notes, checks, drafts, or bills of exchange, which may require my indorsement, for deposit as cash or for ��� �