City of Philadelphia v. Eckels

• Decision Date: 08 June 1896
• Docket Number: 3.
• Citation: 98 F. 485
• Parties: CITY OF PHILADELPHIA v. ECKELS et al.
• Court: U.S. District Court — Eastern District of Pennsylvania

98 F. 485

CITY OF PHILADELPHIA v. ECKELS et al.

No. 3.

United States Circuit Court, E.D. Pennsylvania.

June 8, 1896

J. W Catharine, Jr., And. F. Warwick, for plaintiff.

Read &amp Pettit, for defendant.

ACHESON Circuit Judge.

The material facts of this case, as established by the proofs are these: John Bardsley, the treasurer of the city of Philadelphia, acting in his official capacity, and under authority of ordinances of the city, kept an account with the Keystone National Bank in his name as city treasurer, and from day to day deposited therein moneys of the city exclusively, and from time to time drew checks against the same on behalf of the city. Under an arrangement entered into between Bardsley and the bank, it was his common practice to deliver to the bank, after banking hours, taking a receipt therefor, funds belonging in part to the city and in part to the commonwealth of Pennsylvania, which came into the city treasurer's office too late in the day to deposit, for the purpose of safe-keeping in the vaults of the bank overnight; and on the morning of the succeeding day, after the share of the commonwealth in the funds was ascertained and deducted, a deposit ticket would be made out by the city treasurer, and the part of the funds belonging to the city would be deposited in the usual way to the credit of the city treasurer in his said account. Late on the afternoon of March 19, 1891, after the close of banking hours, Bardsley, in accordance with the practice above explained, delivered to the bank, for safe-keeping in its vaults overnight, the fund here in controversy, namely $18,500.12, together with some other moneys all of which belonged in part to the city and in part to the commonwealth, their respective shares therein not being then ascertained. On the morning of the next day,-- March 20th,-- between the hours of 9 and 10 o'clock (at which latter hour the bank customarily opened for business), a messenger having with him the city treasurer's bank book and a deposit ticket showing the amount of the aforesaid funds belonging to the city, was sent from the city treasurer's office to the bank, and a credit for the latter amount was entered in the bank book. The bank was then insolvent, and was insolvent prior to March 20th, and its insolvency was known to the president of the bank. As early as February 28, 1891, the bank examiner had reported to the comptroller of the currency that the bank was insolvent. On the night of March 19, 1891, the comptroller of the currency, by wire, directed William P. Drew, bank examiner, to repair to the Keystone National Bank the next morning (March 20th) at 9 o'clock. Mr....