APPEAL from the Supreme Court for the District of Columbia, a court (as is said, infra, p. 219) of general jurisdiction, the case being thus:
On the 9th of November, 1842, the Bank of the United States was the owner of $500,000 of the bonds of the then independent Republic of Texas, a government, at that time, of bad pecuniary credit. Owing W. S. Wetmore $50,000, the bank assigned these bonds, with arrears of interest on them, to him as a security for the debt. In July, 1845, the Republic became one of the United States, under the name of the State of Texas, and immediately certain holders of its bonds became urgent that Congress should assume the payment of them, principal and interest. Among these holders was General James Hamilton, a person of some political influence in his day, and who had been instrumental in procuring the admission of Texas into the Union. As the Bank of the United States would gain largely if the United States did so assume the debt, Hamilton applied to its trustees-the bank having itself failed, and assigned its effects-urging them to employ him to have it done; and the trustees, in October, 1845, agreed with him that if he would devote his 'best efforts, time, and means to the great object of securing the recognition and payment of these claims,' and if his efforts should be successful, they would allow him a commission of ten per cent. for the service so rendered. This agreement was limited, by its terms, to two years. However, Hamilton having labored successfully, this provision as to time was not insisted on. The trustees communicated the agreement fully to Wetmore, September 16th, 1850, without mentioning the original limitation, and directing him to 'hold subject to the order of Hamilton, one-tenth of any sum over and above his claim against the said bonds.' Wetmore acknowledged the receipt of this order, and promised to hold the bonds accordingly.
Through his, Hamilton's, efforts, largely, Congress, by an act of 9th September, 1850, did assume the payment of this debt, and authorized a five per cent. stock of the United States to be issued in lieu of the bonds of Texas; the act requiring, however, that before the stock of the United States should be issued, the holders of the Texas bonds should 'first file at the Treasury of the United States, releases of all claims against the United States for said bonds.'
The amount finally paid, June 3d, 1856, in behalf of the claim held by Wetmore, was $817,720
Wetmore having paid himself his own debt, paid the residue of the nine-tenths to the trustees of the bank. This left in his hands, as trustee for Hamilton, the remaining one-tenth, or 81,772
A considerable time before this money was payable by the United States, Hamilton, who had long been pecuniarily embarrassed, directed Wetmore, by written orders, which Wetmore accepted, to pay out of it, when received,
with interest from certain dates; so much being due by him, Hamilton, for money borrowed of these persons respectively.
It seemed to be admitted by all, as unquestionable, that the trustees of the Bank of the United States were, in virtue of some agreement of an admitted priority, entitled to receive of this 81,772
Leaving as Hamilton's true one-tenth, $69,720 58In this state of things-and when if Wetmore had been allowed to distribute the one-tenth of Hamilton, or his one-tenth less the bank's last-named deduction, it would have paid Hill, as well as Wetmore and Corcoran & Riggs, all in full-one Spain filed a bill against Wetmore, Corcoran, & Riggs, and the trustees of the bank, Hill not being by name made a defendant, charging that Wetmore had the $81,772.08 as the property of Hamilton, and that he, Spain, had an assignment of the whole fund made by Hamilton at an early date. The bill then alleged that Wetmore, disregarding this earlier assignment, pretended to hold the fund, subject to certain other alleged assignments of later date; the bill specifying that to Wetmore himself, and those to Corran & Riggs, Hill, and the trustees of the bank-and alleging that Wetmore meant to apply the fund to the payment of these last 'said recited claims,' and that the secretary was about to pay to Wetmore the said sum of $81,772.08. Asserting thus a superior equity, the bill then prayed: 'That the said Wetmore, his assignees, aiders, and abettors, may be enjoined and restrained from receiving the sum of $81,772, being the one-tenth of the three certificates,' &c. Subpoenas were prayed against all these parties, and that the representative of Hill (Hill himself being now dead), should be made defendant when discovered. An injunction was granted 'as prayed for.' A bond, in the penalty of $15,000, signed by a certain J. F. May and Henry May, in favor of Wetmore, Corcoran & Riggs, and the trustees of the bank, but not by name in favor of Hill, was filed. The writ of injunction was issued on the 31st of May, 1856, directed to Wetmore, Hamilton, Corcoran & Riggs, and the trustees of the bank. It recited the filing of the bill and its object. The restraining clause was in these words:
'You, the said W. S. Wetmore, your assignees, aiders, and abettors, are hereby restrained and enjoined from asking for or receiving the sum of $81,772.08, being the one-tenth part of the bonds or certificates,' &c.
This writ was served on Wetmore, and Corcoran & Riggs. From that time, until the dissolution of the injunction, here inafter mentioned, the money laid idle in the Treasury of the United States. Answers were filed by Wetmore, Corcoran & Riggs, the trustees of the bank, and by the representative of Hill.
On motion of the defendants, it was subsequently thus ordered:
'It appearing to the satisfaction of the court that there is not sufficient security to indemnify the defendants for their costs and damages, &c.; it is ordered that the complainant file a bond in the penalty of $20,000, conditioned to pay the defendants such costs and damages as they may respectively sustain.'
Prior to this the complainant had released his injunction as to the sum of $12,051, improperly enjoined, and this had been paid by Wetmore to the bank, and a release of the injunction bond executed by the trustees of the bank. The form of that release did not appear in the record.
The second bond, ordered as above-mentioned to be filed, was filed, executed by Spain and Oelrichs. This, by consent of the parties, was ordered to stand in lieu of the bond previously filed, reserving the right of the obligees to have recourse to the original bond for interest theretofore accrued. The obligees named in this bond were Wetmore, and Corcoran & Riggs, but not Hill by name. The bond recited the injunction issued by the court to restrain the collection of the money mentioned in the writ; it recited also that certain portions of the money so enjoined had been released and paid over. The condition was:
'That if the said Spain, &c., shall prosecute the writ of injunction to effect, and pay as well the costs, damages, and charges that shall occur in said Circuit Court in Washington County, as all costs, damages, and charges that shall be occasioned by said writ of injunction, and shall in all things obey such order and decree as the said court shall make in the premises, then the obligation to be void and of no effect, otherwise to remain in full force and effect.'
The cause being heard it was decreed, on the 19th February, 1861, 4 years 8 months and 16 days after the injunction had issued -1. That the legal title to the fund was from the 9th November, 1849, and still is in Wetmore.
2. That from the 16th September, 1850, when the trustees of the bank notified to him their arrangement with Hamilton, and he accepted it, Wetmore held the legal title of the one-tenth as trustee of the fund.
First, to pay himself, with interest, the loan of $2,
Third, to pay Hill, with interest from 9th March, 1852, 33,
From this decree Spain alone appealed. At the December Term, 1863, this court affirmed the decree with costs. [1]
Pending the appeal, there being no supersedeas and the decree having dissolved the injunction, the treasury paid to Wetmore, on 20th March, 1861, the sum remaining due on the one-tenth, $69,720.60.
There had been previously paid to the bank, the sum improperly enjoined, to wit: 30th March, 1859, the pro rata on $12,051.48.
The sum they paid to Wetmore was in three drafts, intended to represent the interests of the parties as settled by the decree, to wit:
For Wetmore,..................... $4,333
" Corcoran,..................... 30,000
" Hill,......................... 35,386
$9,475
Deduct the amount they received upon the bond given in behalf
of the James River and Kanawha Company,. 5,000
$12,557
Deduct the amount received on the Butler bond,. 2,500
$9,475
From this was deducted the amount they received upon
bond given in behalf of the James River and
$12,557
Deduct the amount received on the Butler bond,. 2,500
Notes edit
- ↑ Spain v. Hamilton's Administrator, 1 Wallace, 604.
This work is in the public domain in the United States because it is a work of the United States federal government (see 17 U.S.C. 105).
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