Gillespie v. Union Stock-Yards Nat. Bank

• Decision Date: 01 July 1888
• Citation: 41 F. 231
• Parties: GILLESPIE et al. v. UNION STOCK-YARDS NAT. BANK et al.
• Court: U.S. District Court — Northern District of Illinois

41 F. 231

GILLESPIE et al. v. UNION STOCK-YARDS NAT. BANK et al.

United States Circuit Court, N.D. Illinois.

July, 1888

Bisbee Ahrens & Decker, for complainants.

Peckham & Brown, for defendants.

GRESHAM J., (orally.)

A. J Gillespie, John F. Gillespie, and T. E. Gillespie, live-stock commission merchants at Kansas City, brought this suit in equity to recover the net proceeds of three consignments of cattle shipped by them to F. J. Rappal, Sons & Co., at Chicago. Rappal, Sr., selected the cattle at Kansas City, had them weighed, and delivered the weight tickets to Gillespie &amp Co., who paid for and shipped the cattle to Chicago. Two of the Gillespies swore the contract with the senior Rappal was that Gillespie & Co. should ship the cattle as their own, and have control of them until sold at Chicago and paid for. In this they were fully corroborated by the witness James. The senior Rappal, on the other hand, swore that that was not the arrangement; that the agreement was that the Gillespies should furnish the money for the purchase of the cattle which they did, and ship them as the property of Bowen & Co.; and that the Gillespies should receive a specific amount per car for their advancements and trouble. The two sons testified that the contract was as their father, the senior Rappel, testified; but they admitted that all they knew of the agreement was what their father had told them. On this point there is a square conflict between the two Gillespies and James on one side, and the senior Rappal on the other, and his statement is improbable. It is difficult to believe that Gillespie & Co. furnished such large sums of money without security, which they did, if they had not the right to control the cattle until sold. It is not claimed that the Gillespies had any security whatever for these large advancements, unless the cattle were to be theirs, or they had authority to control them until disposed of. I hold that the cattle belonged to the Gillespies, or that they were entitled to control them so far as necessary to protect themselves for advancements made on the purchases.

The first shipment arrived at Chicago on Friday morning. Gillespie & Co. drew against this shipment, and the draft was discounted by the Kansas City Bank. The Gillespies also drew against the two subsequent shipments, and these drafts were also discounted by the Kansas City Bank, and that bank sent all the drafts to the Union Stock-Yards National Bank for collection. The draft drawn against the first shipment was received by the latter bank before, or certainly as soon as the cattle were received. This draft was presented to the Rappals for payment. Payment was refused, and the draft was protested. This was on Friday, and no notice was given of it for at least 24 hours, perhaps more. The cattle were consigned to and received by the Stock-Yards Company. By the weight-bills, the consignee was directed to deliver the cattle to the Rappals, who received them and sold them at the stock-yards. The cattle were weighed, and the Rappals furnished with tickets showing the weight and price, which they delivered to the Stock-Yards Bank for collection. The bank made the collections, and placed the amounts to the credit of Rappal, Sons & Co., who at this time were indebted to the bank on a past-due...