Preston v. Equity Sav. Bank

• Decision Date: 05 March 1923
• Docket Number: 3839.
• Citation: 287 F. 1003
• Parties: PRESTON v. EQUITY SAV. BANK et al.
• Court: U.S. Court of Appeals — District of Columbia Circuit

287 F. 1003

PRESTON v. EQUITY SAV. BANK et al.

No. 3839.

United States Court of Appeals, District of Columbia.

March 5, 1923

Submitted December 14, 1922.

Appeal from the Supreme Court of the District of Columbia.

Charles H. Merillat, of Washington, D.C., for appellant.

J. D Eason, Jr., of Washington, D.C., for appellees.

Before VAN ORSDEL, Associate Justice, and MARTIN and SMITH, Judges of the United States Court of Customs Appeals.

VAN ORSDEL, Associate Justice.

Appellant filed a bill in equity in the Supreme Court of the District of Columbia averring in substance, that on four different dates between February 1, 1918, and October 31, 1918, George S. Preston loaned money to George R. Perry, vice president and active manager of the Equity Savings Bank of Washington D.C.; that Perry executed his promissory notes for the respective amounts borrowed, and, as collateral security therefor, transferred to Preston certain shares of stock in defendant bank, and that these shares of stock were deposited, in each instance, with the bank and receipted for as follows:

'Received from Mr. Geo. S. Preston to be held for him subject to his order, twenty-five shares of Equity Savings Bank stock held by him as collateral of G. R. Perry on his note to G. S Preston for $350.00 dated February 1, 1918, for one year.

'Equity Savings Bank, by G. R. Perry, V. Pres.

'Feb. 1/18.

'Received from Geo. S. Preston to be held subject to his demand 20 shares of stock in this bank in the name of G. R. Perry. Same being collateral on a note of even date for $400 payable April 30, 1918.

'Equity Savings Bank, by G. R. Perry, V. Pres.

'April 30, 1918.

'Received from Geo. S. Preston forty shares of Equity Savings Bank stock to be delivered on demand.

Equity Savings Bank, by G. R. Perry, V.P.

'Aug. 1, 1918.

'Received from Mr. Geo. S. Preston envelope with four cert. of stock, Nos. 25, 23, 75, 109, also one No. 265, for 16 shares to be delivered on demand, without charge or responsibility for safe keeping.

'Equity Savings Bank by H. V. Gibbons. 'O.K.G.R.P.

'Oct. 31, 1918.'

It is further averred that Perry thereafter became a defaulter and absconded with funds of the bank, for which he was indicted in the District of Columbia in November, 1918; that on March 31, 1919, defendant bank went into voluntary liquidation and made an assignment to defendants Biggs and Sauls, stockholders therein; that these defendants, as trustees, appropriated the stock in question to the use and benefit of the bank and the stockholders thereof; that the bank was a party to the arrangements between Preston and Perry, whereby the stock was to remain in the care and custody of the bank until the maturity of the notes; that Perry has left this jurisdiction and his whereabouts are unknown, hence plaintiff is without remedy against him either at law or in equity; that Preston died since depositing the stock in said bank, and plaintiff succeeded, as administratrix, to all his rights in his estate; and that she has demanded of defendants a return of the certificates of stock or information as to what has become of them, but that defendants refused to return the stock or give her any information in respect of it.

Plaintiff prays for discovery of...