Harlan F. Stone

“ For a considerable period before the outbreak of the World War, Meinel acted as subagent for the Mutzenbechers in the negotiation of the reinsurance business of the appellant and of several other insurance companies for whom they acted in effecting the distribution and allotment of reinsurance risks. In the ordinary course of business, Meinel, acting for the appellant, entered into treaties with companies writing direct insurance in the United States, whereby appellant undertook the reinsurance of risks insured by those companies. ”

“ The appellant, a Russian corporation, in 1913 established an office in the state of New York for the conduct of an American reinsurance business in that state. In order to comply with the law of the state and to qualify it to do business there, appellant deposited with the New York Life Insurance & Trust Company, as trustee under a trust deed, money and securities subject to the provisions of the New York Insurance Law and appointed Meinel & Wemple, Inc., a New York corporation (referred to as Meinel in this opinion) , its statutory agent and attorney in fact in New York. ”

“ The trustee was not a purchaser and could not take the fund free of the legal or equitable rights of the Mutzenbechers (National Bank v. Insurance Co., supra) , although it might and did discharge itself under the provisions of the Trading with the Enemy Act by payment of the money over to the Alien Property Custodian (Trading with the Enemy Act, § 7 [e] , 40 Stat. 418) .
The appellant establishes no right in the fund which is the subject of litigation; we find no error in the record. ”