An action instituted by Hoy: }Co. against the National City Bank for £7,019 alleged due for conversion of cargo was opened on April 21 in the United States Court for Mr. Arthur Morris, manager!
Hoyt' & Ca,, was' questioned by Mr. F, J." Schuhl for the Jcomplainants and _cross-questioned by Mr, C.F. Franklin representing the defendants. Judge Milton D. Purdy heard the case, Numerous exhibits including bank ess letters were the plaintiff? alleging fendant bank has unlawfully delivered into the hands of Jan unauthorized third party a cargo Jof goods against the payment of which the defendants held docu ments, Mr, Morris contended that the defendants, after unlawfully dispossessing themselves of the complainant's cargo, succeeded in collecting payment Zon' the whole of
ment by the Banque Franco-Chinoise lof the plaintiffs bills of exchange.
Much of the time in court was taken over by the examination of bank statements listing the value of [goods alleged to have been delivered by defendants" into "unauthorized hands, the value of. the balance of merchandise left in the bank's hands, andthe total value of the 1zo0ds delivered to the complainants.
Mr. Morris sai that despite the act that Hoyt & Ca. had never permitted the disposal of goods under rust receipts, the defendant bank itself of seven items that were under invoice. 'The total value' of goods delivered' un author-_ izedly in this way amounted to 23,008, Mr. Morris said.
Mr, Morris said that some portions of the cargo under dispute are Neft, but he charged the defendants with having sold the saleable parts lof the cargo to solvent companies and leaving a probably unsaleable Femainder for possible sale to rupt dealers, Cross examination by Mr. Frank money in security against possible losses goods delivered, the complainants arranged with the National City] Bank for an authorization to purchase, this not becoming effective until six months later when the complainants left as security in the defendant bank a receipt of their deposit in the Bank of China, There was no actual transfer of funds, Mr, Morris said, merely the exchange of the receipt of the Bank Jof China deposit, this to. serve as a guarantee of payment of bills, in consideration for authority from the National City Bank for. complain-fants to purchase good. No transfer jof funds was made, the witness said, because the interest accruing from their first deposit would then lost.
After hearing the testimony of this witness and Messrs. Parfi Banner, and W. simmons, the case
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