Texas v. Chiles (77 U.S. 127)

THE State of Texas filed a bill, February 15, 1867, against White, Chiles, and several others, to recover possession of some one hundred and eighty-five United States 'Texas Indemnity Bonds' for $1000 each, charged to have been illegally obtained by them. Chiles having been served, put in his answer on May 25th, 1867, in which he accounted specifically for some fifty-one of the bonds. The court decreed that the complainant was entitled to recover the possession of the bonds transferred to White & Chiles, which, at the several times of service of the process in the suit, were in the possession or control of the defendants respectively, or of any proceeds, &c., with notice of the equity; and then proceeded to determine for how many and for which bonds, or their proceeds, the defendants respectively were accountable. But no decree was entered against Chiles for either bonds or proceeds.

Mr. Durant, for the State of Texas, now made a motion on the foot of the decree for a rule on Chiles to show cause why he should not deliver to the clerk of this court twelve of these bonds, which it was charged that he had in his posession and had not accounted for.

The only proofs furnished upon which the rule was prayed for were the answer of White, a co-defendant, and a deposition of one McKinley, all in the original case, and an affidavit of one George Taylor, produced on this motion. The deposition of McKinley showed that some time in the summer of 1867 he thought he delivered to Chilest ten bonds that had been deposited with him as a banker about a year previous for a third person on certain conditions, which had not been complied with. According to the affidavit of Taylor, Chiles admitted to him that he had received of E. K. Thompson, cashier of the Branch Bank of Kentucky, two bonds, after the service of the injunction in the case, and which he said he held subject to the order of the court.

Mr. Hughes opposed the motion.

Mr. Justice NELSON, having recapitulated the facts, delivered the opinion of the court.