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and duly notified to neutral powers, the same as in open and public war."

In Thorington v. Smith, 8 Wall., 10, 19 L. ed., 363, this court placed the Confederate Government among that class of governments de facto of which the temporary governments at Castine and Tampico were examples, and said speaking through Chief Justice Chase, that "To the extent of actual supremacy, however unlawfully gained, in all matters of government within its military lines the power of the insurgent government cannot be questioned. That supremacy did not justify acts of hostility to the United States. How far it should excuse them must be left to the lawful government, upon the re-establishment of its authority. But it made obedience to its authority in civil and local matters not only a necessity, but a duty. Without such obedience, civil order was impossible." With these authorities before me, I should unhesitatingly have said-but for the fact that a majority of my associates differ from me, and the presumption is that they are right and I am wrong that it was impossible for any court to come to the conclusion that a government thus organized, having such immense resources and exercising actual supremacy over such vast territory and millions of people, did not possess the power to acquire and to transfer the title to personal property within its territorial limits.

Our Government in its efforts to reach the property of the extinct Confederacy has asserted a very different doctrine from that announced in the court below, and, so far as the cotton seized in this case is concerned, approved here. 473*] It has alleged in the courts of England that that Confederacy did acquire property to a vast amount and attempted to reach it in the hands of its agents. In U. S. v. McRae, 8 L. R. Eq. Cas., 69, it filed a bill in the Court of Chancery in England to obtain an account of all moneys and goods which came to the hands of the defendant, as agent or otherwise, on behalf of the Confederate Government during the insurrection, and the payment of the moneys which on taking such account, might be in his hands, and a delivery over of the goods in his possession. The bill alleged that the Confederate Government possessed itself of divers moneys, goods, and treasure, part of the public property of the United States, and that other moneys and goods were from time to time paid and contributed to it by divers persons, inhabitants of the United States, or were seized and acquired by that Government in the exercise of its usurped

the United States, and which were seized by the rebels, still continued the moneys, goods and treasure of the United States, their rights of property and rights of possession being in nowise devested or defeated by the wrongful seizure. But that, with respect to property which had been voluntarily contributed to or acquired by the insurrectionary government, and impressed in its hands with the character of public property, the right of the United States [*474 was that of a successor of the Confederate Government; and that they could recover such property from an agent of that Government, but subject, however, to the same rights and obligations, to which that Government would have been subjected, had it not been overthrown.

In the case of U. S. v. Prioleau, 2 Hem. & Mill. Ch. Cas., 559, the same court again held that the Government of the United States could recover the property of the Confederate Government, as its successor or representative in the hands of its agents, but that they must take it subject to all the liens and conditions arising from the contract upon which the property was received by the agents. Neither the United States, in the prosecution of these suits, nor the courts of England in deciding them, expressed the slightest doubt that the title to the property, not originally owned by the United States, had been acquired by the Confederate Government, which was in the hands of its agents. And I submit, that a response by those courts to the claim of the United States, that the insurgent government, being illegal in its origin and continuance, could neither take, hold nor transfer title to personal property, would not have been acquiesced in, nor deemed respectful by our Government. And I submit, respectfully that the earnest denunciation of the wickedness of the rebellion, contained in the opinion of the majority, is no legal answer to the demand if the claimant for the proceeds of his property seized and sold by our Government, when that Government long since pardoned the only offense of which that claimant was guilty, and thus gave him the assurance that he should stand in the courts of his country in as good plight and condition as any citizen, who had never sinned against its authority.

I am, therefore, of opinion that the judgment of the Court of Claims should be reversed.

authority; that it had sent to agents and other *E. M. BOLEY, S. M. Hall, and L. C. [*486

persons in England large amounts of money o be laid out in purchasing goods for its use, and had sent there large quantities of goods to be sold: that it had thus sent large sums of money and large quantities of goods to the defendant, and that on the dissolution of that

Miller, Plffs. in Err.,

บ.

SARAH M. GRISWOLD.

(See S. C., 20 Wall., 486-488.)

-form of.

Government he had them in his possession. And Judgment in action to recover personal property the bill claimed that all the joint or public property of the persons constituting the Confederate Government, including the said moneys and goods, had vested in the United States and constituted their absolute property, and ought to be paid and delivered to them. The court held that the moneys, goods and treasure which were, at the outbreak of the rebellion, the public property of

1. Under the Civil Practice Act of Montana, in an action to recover personal property, there can be no judgment for the value if there can be a delivery of the property; but a judgment is not necessarily erroneous if the alternative is not expressed upon its face.

2. The court must be satisfied that the delivery cannot be made, before it can adjudge absolutely the payment of money. But, if so satisfied, it may

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Suit was brought in the District Court of Montana, in Lewis and Clarke County, by the defendant in error, to recover certain personal property. Judgment having been given for the plaintiff and affirmed upon appeal by the Supreme Court of the Territory, the defendants sued out this writ of error.

The case is sufficiently stated by the court. Messrs. J. Hubley Ashton and N. Wilson, for plaintiffs in error:

The provision of the Montana Practice Act appears to be identical with section 277 of the New York Code, which prescribes the form of judgment to be taken in actions to recover the possession of personal property.

The Court of Appeals of New York has decided that neither a plaintiff nor a defendant, in an action to recover the possession of personal property, can take judgment for the value of property, except as an alternative; and if a judgment is taken for the value, alone, and no alternative judgment is entered for the return of the property, it will be erroneous; and for this error the judgment for the value will be reversed by an appellate court.

Dwight v. Enos, 5 N. Y., 472; Fitzhugh v. Wilman, 9 N. Y., 563.

Messrs. Robert Leech, W. F. Sanders and G. G. Symes, for defendant in error.

Mr. Chief Justice Waite delivered the opinion of the court:

All errors assigned on this record were abandoned at the argument except the first, which relates to the form of the judgment. The action was for the recovery of the possession of personal property. The Civil Practice Act of Montana provides that the judgment in such an action may be for the possession of the property, or the value thereof, in case a delivery cannot be had, and damages for the detention.

The judgment as entered recites a verdict in favor of une plaintiff for $3,800 damages, and the recovery was in accordance therewith. The claim now is that a judgment for the value is erroneous, except as an alternative upon the non-delivery of the property. It is true that there can be no judgment for the value if there can be a delivery of the property; but it is not true that a judgment is necessarily erroneous if the alternative is not expressed upon its face. The court must be satisfied that the delivery cannot be made before it can adjudge absolutely the payment of money. But, if so satisfied, it may so adjudge. A special finding to that effect is not necessary. An absolute judg ment for the money is equivalent to such a finding.

In one part of this record it appears that the verdict was for the return of the property, or, in case that could not be made, for $3,000, the value, and $800 damages for the detention. The judgment was for the money, and the presump488*] tion *is, in the absence of anything in the record to the contrary, that before it was rendered the court had become judicially satisfied that the property could not be returned. In

a court of error every presumption is in favor of the validity of the judgment brought under consideration. Error must appear affirmatively before there can be a reversal.

The judgment of the Supreme Court is af. firmed.

CHARLES T. POLLARD, Plff. in Err.,

v.

JOHN F. BAILEY, Assignee in Bankruptcy of Fowler & Sommerville.

(See S. C., 20 Wall., 520-527.) Stockholder, liability of, for debts of corporation -form of remedy.

1. Where each stockholder of a bank is bound for the debts in proportion to his stock, his liability is not limited to the par value of his stock, neither is he bound absolutely for the payment of the full amount of that.

2. Where the provision for the liability is coupled with a provision for a special remedy, that remedy, and that alone, must be employed.

3. In such case, a creditor of the bank cannot sue a stockholder at law, to recover the whole amount of his stock and apply it to his debt.

[No. 46.]

Argued Oct. 30, 1874. Decided Nov. 9, 1874. N ERROR to the District Court of the Unit

defendant in error, as a holder of certain bills Suit was brought in the court below by the upon an insolvent bank, to recover their par value from the defendant as a stockholder of the bank.

The facts agreed to between the parties show that Bailey the plaintiff in the court below, produced bills of the Central Bank of the State of Alabama, for the amount described in the verdict. That this bank became insolvent in 1865, and ceased to do business in 1869 and previously thereto; that C. T. Pollard is an owner of two hundred shares of stock, of the par value of $20,000; that the plaintiff demanded payment of these bills of him; that the capital stock subscribed for by individuals was $900,000 of the $1,000,000 mentioned in the charter, and that the issues of the bills of the bank are $700,000 unpaid.

Upon these facts on a clause in the charter of the bank, "That the State and individual stockholders, or any copartnership or body politic having shares in said bank, shall be bound respectively for all the debts of the bank in proportion to their stock holden therein," the plaintiff claims a judgment for his entire de mand in a suit at law against Pollard.

This was allowed by the court in the charge to the jury.

Judgment having been given for the plaintiff accordingly, the defendant sued out this writ of error.

Messrs. John A. Campbell, R. T. Merrick and G. W. Goldthwaite, for plaintiff in error: The error in this decision arises from a misapplication of the clause of the charter referred to, to the facts.

We agree that the clause creates a liability if taken alone or in connection with others; that this liability is a separate, distinct liability; that this liability is for a certain proportion of the debts.

NOTE.-Individual liability of stockholders for corporate debts-see note, 25 L. ed. U. S. 8S5.

But on the facts stated, the amount recovered is larger than the liability. If the capital of the bank, as described in the charter, be the rule, the plaintiff, Pollard, is liable for $70 a share of the debt existing.

If the capital subscribed for be the rule of proportion, he is liable for $77.50 per share. The recovery is for $84.50.

II. But the clause, claimed under, is not the only one applicable to this case. Sections 20, 21, 22 of the charter describe the mode in which the insolvent bank shall be liquidated. It authorizes the bill holders to file a bill in chancery for a settlement of the affairs of the bank; to obtain an injunction upon its officers to restrain further action; to ascertain the fact of insolvency; to decree the settlement of its affairs, and to appoint a receiver; that the receiver shall apply the assets equally among the bill holders; that when these are exhausted, the court shall order an assessment upon the stockholders proportionally, which the receiver shall collect and pay over the sum collected among the bill holders; the amount is to be collected from the stockholders, "severally in proportion to his stock."

This course was adopted two years before the suit of the plaintiff, Bailey, and the chancery court has acquired jurisdiction of the cause, and the fund is in gremio legis. The plaintiff cannot maintain a suit against Pollard, whose liability under the charter has been subjected to the operation of the decree already rendered, and by the bill to enforce that liability.

Crease

ers for the debts of the corporation, is found in article 2d of the fundamental rules of the corpo ration, and is in the following words, viz.: "That the state and individual stockholders, or any copartnership or body politic, having shares in said bank, shall be bound respectively for all the debts of the bank in proportion to their stock holden therein, and this provision shall in nowise affect or impair the provision of the 13th section of this Act." The 13th section referred to provides that the shares of stock shall be assignable, according to rules of the bank, provided "That, in case of the failure of the bank within six months after any such transfer or sale of stock, the party selling and the party purchasing said stock shall each be held liable for the payment of the debts of the bank in proportion to the stock so transferred." It is evident that the words "in proportion" in the section above quoted, mean "to the extent of," or "not exceeding the amount of," and were intended solely for the purpose of restraining the otherwise unlimited liability created by the previous words, "to a liability not exceeding the amount of the stock." All of the cases hold that the liability is several, direct and to the extent of stock.

Ang. & Ames, Corp., secs. 625-627, and authorities there cited; Bullard v. Bell, 1 Mas., 243; Matter of the Hollister Bank, 27 N. Y., 398; 17 N. Y., 468; Matter of Empire City Bank, 18 N. Y. 218; Bank of Poughkeepsie v. Ibbotson, 5 Hill., 461.

Mr. Chief Justice Waite delivered the opinion of the court.

v. Babcock, 10 Met., 525; Milbank v. Dennistoun, 21 N. Y., 393; 2 Lindley, Part., 1310; Erickson v. Nesmith, 46 N. H., 371; Lowry v. The right of Bailey to maintain his action Inman, 46 N. Y., 120; Evelyn v. Lewis, 3 Hare. against Pollard depends upon the construction 472: Noe v. Gibson, 7 Paige, 513; Russell v. to be given to the charter of the bank. Pollard E. Ang. R. R., 3 McN. & G., 104; Kennedy v. does not deny his liability to the creditors, but Gibson, 8 Wall., 498, 19 L. ed. 476; 14 How., insists that it cannot be enforced in this manner. 368; Oregon v. Rocca, 18 How., 573, 15 L. ed., He is one of the stockholders of the bank and 516; Watson v. Jones, 13 Wall., 679, 20 L. ed. Bailey one of its creditors. Stockholders are, 666; Mallett v. Dexter, 1 Curt. C. C., 178; by art. 2, sec. 16 of the charter, "bound respectAmes v. Trustees, etc., 20 Beav. 332; In re Com-ively for all the debts of the bank in proportion mercial Bank, etc., L. R., 1 Ch. App., 538; Wiltshire Iron Co. v. Gt. W. R. Co., L. R,, 66 Q. B.. 101, 766.

Mr. J. A. Elmore, for defendant in error: Until there is a decree in a creditor's suit, the plaintiff therein is dominus litis, so that he may deal with the suit as he pleases. Until such decree, the plaintiff below could have no interest in the suit, and was, consequently, not debarred from collecting his debt by an independent action.

1 Story, Eq., Redf. ed., sec. 548, n. 3, sec. 549; Woodgate v. Field, 2 Hare, 211; Paxton v. Douglas, 8 Ves., 520; Kerr, Inj., 108.

to their stock holden therein." The action below was at law, by one creditor against one stockholder, to recover the full amount of his debt without regard to the other creditors or the ability of the other stockholders to respond to their obligations under the charter. The stock of Pollard, at its par value, exceeds in amount the debt owing to Bailey, but it is adinitted that the other indebtedness of the bank is very large, and nearly if not quite equal to the entire capital.

Each stockholder is bound for the debts in proportion to his stock. His liability is not limited to the par value of his stock, neither is A creditor's bill might, by collusion, be kept he bound absolutely for the payment of upon the docket of some court until the credit-*the full amount of that. He must pay a [*525 ors were barred by the Statute of Limitations, sum which shall bear the same proportion to the and then dismissed. The slow progress which whole indebtedness that his stock bears to the the creditor's suit seems to have made in this whole capital, and is not required to pay more. case, shows the wisdom of the law in providing For the purposes of this case it is not necessary that individual creaitors should not be re- to decide what effect the insolvency of any of the strained until a decree has been rendered in the stockholders would have upon the liability of creditor's suit. And the charter if the bank ex- such as are solvent. It is certain that no stockpressly reserves to the creditor the right of pro- holder is liable for more than his proportion of ceeding in any other appointed mode of proceed the debts. This proportion can only be ascering. Sec. 22 of charter. tained upon an account of the debts and stock The language of the charter of the bank im- and a pro rata distribution of the indebtedness posing the personal liability upon its stockhold- | among the several stockholders. The proper ac

tion, therefore, to enforce the liability is one in which such an account can be stated and distribution made. Such an action calls specially for the exercise of the powers of the court of equity, which can bring before it all the necessary parties and adjust all their rights. Every stockholder, when called upon to perform his obligations, has the right to require that the extent thereof shall then be determined once for all, as well that which he is under to his associate stockholders as that to the creditors. Otherwise he might be made to respond to the creditors under one rule and obtain his relief from the other stockholders under another. The provision, therefore, for a proportionate liability is equivalent to a provision for an appropriate form of equitable action to enforce it. The case is different from what it would be if the charter had provided generally that all stockholders should be individually liable for the payment of the debts. The cases from New York cited upon the argument, and which are supposed to be in opposition to the view we have taken, involved the consideration of such a liability.

But when section 16 is taken in connection with sections 20 and 21, it is very apparent that it was the intention of the Legislature only to charge the stockholders upon a proper account, and in the manner therein provided for. The intention of the Legislature, when properly ascertained must govern in the construction of every statute. For such purpose the whole statute must be examined. Single sentences and single provisions are not to be selected and con526*]strued by themselves, but the *whole must be taken together.

to the deficiency, which was to be apportioned among all the shares of stock, and an order made for the payment by each shareholder of the sum or proportion of his shares. This apportioned call the receiver was required to collect and apply.

The individual liability of stockholders in a corporation for the payment of its debts is always a creature of statute. At common law it does not exist. The statute which creates *it may also declare the purposes of its [*527 creation and provide for the manner of its enforcement.

After an examination of the several sections of this charter it cannot for a moment be doubted that it was not only the intention to provide for a proportionate liability, but for a pro rata distribution of the fund arising therefrom among the different creditors, according to their several priorities. Every provision is entirely inconsistent with the idea that one creditor could, by an individual suit, appropriate to himself the entire benefit of the security, and exclude all others. A common fund was created for the common benefit, to be collected and distributed by the receiver, who was made the common agent of all. There was no liability except for the deficiency. That was to be apportioned and collected for the common benefit.

а

It follows as a necessary consequence from these premises, that the action of Bailey cannot be maintained, and that the demurrer to his declaration should have been sustained.

But it is claimed that by section 22 Bailey, as a bill holder, had the right to move in the proper court for the collection of any bill the payment of which had been refused. This clearly refers to an enforcement of the liability of the bank itself and not to that of the stockholders.

It was not only to be apportioned and collected, out the mode of apportionment and the manner of collection were specially provided for. The liability and the remedy were created by the same statute. This being so the remedy provided is exclusive of all others. A general liability created by statute without a remedy may be enforced by an appropriate common As has been seen, section 16 created the liabil-law action. But where the provision for the ity but provided no remedy for its enforcement liability is coupled with a provision for except by implication. Section 20, however, pro- special remedy, that remedy, and that alone vides in substance that if any debt due from must be employed. the bank exceeding $100 in amount, shall remain unpaid for more than ten days after proper demand, the holder may file a bill in the proper chancery court for the settlement of all the debts of the bank, if he elects so to do, and may, on certain specified proof, pray an injunction to restrain the bank and its officers from paying out, or in any manner transferring or delivering to any person, any money or assets of the bank, or incurring any obligations until the order is vacated or modified. It further provides that, upon certain findings, the chancellor shall proceed to inquire whether the bank is solvent or not; and if, upon such inquiry, he shall find that it is not clearly solvent, he may make an order declaring the same to be insolvent and require its affairs to be wound up and settled, and, under certain circumstances, ALEXANDER HARDY, Thomas Botham, Ellen appoint a receiver for that purpose. Section 21 provides that if the bank be found insolvent and settlement of its affairs ordered, the same shall be done upon bill filed in said chancery court under the orders of the court and the rules in chancery, and that full distribution shall be made of the assets according to the rights of all parties, bill holders having priority over other debts due from the bank. After the assets were exhausted, if they were not sufficient to pay all debts and liabilities, a further call was directed upon the shareholders for further payment of capital to an amount equal

The judgment of the District Court is reversed and the cause remanded, with instructions to sustain the demurrer to the declaration, and give judgment accordingly.

Hardy Botham, Appts.,

v.

JAMES HARBIN, George Taylor, J. C. Parrish, et al.

Case decided on the facts Mexican grant identity, proof of comparison of handwritings.

1. Upon the facts of the case, the identity of the person to whom a Mexican grant was made, with

NOTE.-Comparison of handwriting; weight of the evidence see Note, 62 L. R. A. 871.

the person whose heirs the complainants are admitted to be; held, not established.

2. There is great doubt whether the identity of a man can be established by proving that a paper, whose origin is disputed, looks like one which he is proved to have signed.

3. Evidence by comparison of handwritings is very unreliable.

[No. 14.]

Argued Oct. 15, 1874. Decided Nov. 16, 1874. PPEAL from the Circuit Court of the UnitAed States for the District of California.

The case is fully stated by the court. Messrs. Henry Beard, B. S. Brooks, N. P. Chipman, W. W. Chapman and C. T. Botts, for appellants.

Messrs. J. B. Harmon, E. Janin, E. L. Goold and J. P. Hoge, for appellees.

Mr. Justice Hunt delivered the opinion of the court:

The appellants are the children of John Hardy. They allege that to their ancestor; under the assumed name of Thomas M. Hardy, the Mexican Government issued a grant, October 23, 1843, for the premises in controversy; that the appellees, purchasers under a void sale of Hardy's interest, procured the commission under the Act of the 3d of March, 1851, to confirm to them the lands so granted as aforesaid to Hardy. The bill prays that the appellees may be compelled to convey to the appellants.

A demurrer to the bill was interposed upon the ground that the defendants were innocent purchasers, having no knowledge of the fraudulent character of the administrator's sale under which the confirmees purchased. The Associate Justice of the Supreme Court, who heard and decided the demurrer, overruled it, on the ground that, under the allegations of the bill, the sale at which the appellees purchased was absolutely void.

The demurrer having been overruled, an answer was put in which denies that the complainants (the appellants here) are the legal representatives of the Hardy to whom the grant was made; denies the alleged frauds; denies all knowledge or notice on the part of the defendants of such frauds, if they were committed, and all knowledge or notice of the invalidity of the proceedings in the Probate Court, under whose order of sale they became purchasers.

This answer raised issues of fact and of law; of fact, as to the identification of the Hardy to whom the grant was made, with the Hardy whose heirs the complainants are admitted to be; of law, whether purchasers at a sale made by a court having no jurisdiction of the person or subject-matter, can shield themselves under a plea of purchase in good faith, without notice of the invalidity of the decree under which the sale was made.

The district judge, sitting as a circuit judge, entered a decree dismissing the bill, upon the ground that the defendants were purchasers of parties holding the legal title; that is, the patent of the United States; and that they had no notice of the invalidity of the title of their vendors, upon which the confirmation was made.

From this decree the complainants appeal to this court.

The points of law raised are.

First. That the complainants (children of John Hardy), at the date of the death of Hardy, in California, in 1848, were aliens and incapable

of taking his real property by descent; and this both by the common law and the Mexican law.

Second. That the defendants are innocent bona fide purchasers for value without notice from the patentees and are, therefore, protected in their possession. Upon this point the district judge sitting as circuit judge, held with the defendants and dismissed the bill.

The question of fact is the identity of the two Hardys described in the evidence, or rather the union of the names of John Hardy and Thomas M. Hardy in one man, and that one man, John Hardy, the father of the complainants. The question of fact lies at the bottom of the If it should be held that aliens may incase. herit, that would be of no influence should it be decided that the complainants are not the children of the man who called himself Thomas M. Hardy.

Should it be held that the defendarts are in

nocent purchasers without notice, or that if such, that fact does not constitute a defense to the action, we should make no step towards a conclusion, unless we also decided that the complainants were the children of the man entitled to the grant.

If it is found that the complainants are such children, the other questions arise. If it is found that they are not, the case is ended. In any aspect the question of identity arises and must be decided, and it is manifest from the suggestions already made, that it is the point that should be first determined. We proceed to its consideration.

A person describing himself as Thomas M. Hardy died in California in 1848, having received a land grant as a soldier in the Mexican service.

The children of John Hardy, of Canada, undertake to show that this person was their father.

John Hardy was a mechanic, born in the year 1801, who left Canada in the year 1831 and never returned. His wife had died not long before, leaving three young children, of whom the plaintiffs are survivors.

In seeking a solution of the question before us, the inquiries at once present themselves: Why did he leave Canada? Was there any reason for changing his name?

He left Canada, in the language of the old tales, to seek his fortune. His wife, the daughter of a respectable clergyman, had died. Although not in want or destitution, he was not as successful in business as he wished to be. The disposition of her property by his mother did not please him. He had sought to interfere with it more officiously than pleased the mother, and she had given it to her other children, omitting to give him any portion. It was rumored also, that he desired to marry a sister of his deceased wife, and that his offers in this respect were declined. These, we believe, are the only reasons for his leaving Canada.

These circumstances furnish the answer to the other inquiry suggested, and show that no reason existed for a change of name. He had committed no crime which compelled him to conceal his departure. There was no case of affection betrayed, of which he desired to escape the consequences. He left openly, without concealment, with the knowledge of his friends, and with no attendance of crime, disgrace or

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