Preston v. Prather

The plaintiffs below, the defenants in error here, are citizens of Missouri, and for many years have been copartners, doing business at Maryville, in that state, under the name of the Modaway Valley Bank of Maryville. The efe ndants below are citizens of different states, one of them of Michigan, and the others of Illinois, and for a similar period have been engaged in business as bankers at Chicago, in the latter state. In 1873 the plaintiffs opened an account with the defendants, which continued until the spring of 1883. The average amount of deposits by them with the defendants each year during this period was between two and four hundred thousand dollars. Interest was allowed at the rate of 2 1/2 per cent. on the deposits above $3,000, but nothing on deposits under that sum. On the 7th of July, 1880, the plaintiffs purchased of the defendants 4 per cent. bonds of the United States to the nominal amount of $12,000, but the bonds being at a premium in the market, the plaintiffs paid for them, including the accrued interest thereon, $13,005. The purchase was made upon a request by letter from the plaintiffs, and all subsequent communications between the parties respecting the bonds, and the conditions upon which they were to be held, are contained in their correspondence. The letter directing the purchase concluded with a request that the defendants send to the plaintiffs a description and the numbers of the bonds, and hold the same as a special deposit. In the subsequent account of the purchase rendered by the defendants, the plaintiffs were informed that the bonds were held on special deposit posit subject to their order. The numbers of the bonds appear upon the bond register kept by the defendants, and the bonds remained in their custody until some time between November, 1881, and November, 1882, when they were stolen and disposed of by their assistant cashier, one Ker, who absconded from the state on the 16th of January, 1883. The present action is brought to recover their value.

P. S. Groscupp, John P. Wilson, W. P. Fennell, and M. D. Brainard, for plaintiff in error.

Huntington W. Jackson and Robert Hervey, for defendant in error.

FIELD, J.