Page:Federal Reporter, 1st Series, Volume 7.djvu/381

 OOMTINBNTAIi NAT. BAME V. BLIOT NAT. BANK. �Continental Nat. Bank v. Eliot Nat. Bank and others. �{Circuit Court, D. Massachusetts. May 21, 1881.) �1. National Banks— Thansfbb op Stock— Attachment. �An unrecorded transfer of national bank stock will take pre- cedence of a subsequent attachment in behalf of a creditor without notice.^[ED. �In Equity. �W. C. Loring and J. C. Gray, for complainants. �A. A. Ranney, for defendants. �LowELL, C. J. E. B, Conant was the cashier of the Eliot �National Bank, of Boston, and owned 158 shares of its capital �stock. Each of his ceijificates contained these words : �"Transferable only on the bobks of the bank by the said �Conant, or his atfcorney, on the surrender of this certificate." �The Continental National Bank, of New York, was the regu- �lar correspondent of the Eliot Bank. In April and May, �1877, Conant borrowed $9,500 of the Continental Bank, in two �sums of $5,000 and $4,500, and sent them as collateral se- �curity certificates for 95 shares of stock of the Eliot National �Bank, with a power of attomey to transfer them upon the �books, but they were not so transferred. The by-laws of the �bank provide that the stock shall be assignable only on the �books ; that when stock is transferred the certificate shall be �returned to the bank and cancelled, and a new certificate �issued. In July, 1878, Conant confessed to the directors of �the Eliot Bank that he had embezzled the funds of the bank �to the amount of about $70,000. They required bim to re- �sign his position as cashier, which he did, and he has since �been convicted, and is now serving a sentence of imprison- �ment for his fraud. The Eliot Bank attached his shares in �an action which is still pending in the superior court for Suf- �folk county. Afterwards the Continental Bank sent to tho �Eliot Bank the certificates and powers of attomey, and de- �manded a transfer and new certificate, which was ref used. �This bill is filed to require the transfer to be made, or foi �damages, or other relief. Conant is made a defendant, and •v.7,no.4 — 24 ��� �