Melville Fuller

Name: Hubbard v. Tod — Opinion of the Court
Author: Melville Fuller

Summary

“Hubbard v. Tod — Opinion of the Court”, is a work by Melville Fuller. It explores elements such as Garretson, the Manhattan Trust Company and syndicate.

Quotes from Hubbard v. Tod — Opinion of the Court (Melville Fuller)

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ The circuit court and the circuit court of appeals agreed that respondents' right to the securities was superior to that asserted by petitioner, and we entirely concur in that conclusion.
So far from the securities being wrongfully abstracted from the trust company, we think that, whatever the agreement between the trust company and the syndicate, the trust company must be held to have parted with such of the securities as were ever in its custody, with full knowledge that they were to be hypothecated by Garretson ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ Smith, as secretary and treasurer, was the person who was actively engaged in the management of the affairs of the Union Loan & Trust Company, and held out to the public as having unlimited authority to manage its business and dispose of any of its securities. He indorsed in the company's name every note it put out, signed every letter that it wrote, and was, as respected the public, the trust company itself. Throughout all the transactions his conduct conceded that Garretson was the lawful holder of the stock and bonds tendered by him as collateral to the loans he negotiated. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ As the railroads whose bonds and stock constituted the security were new, and the securities were then without market value, the negotiation of the loan was made more attractive to the debenture company by the allowance of the commission and certain options. And since there seems to have been a question as to whether the agreements might not be obnoxious to the New York usury statutes, and as notes of a corporation were supposed to be more readily salable than those of an individual, it was thought best to make the loan directly to one of the corporations owned by Garretson and his associates. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ It appeared that when the Union Loan & Trust Company desired to rediscount or sell notes it sent out a circular offering them at a considerable discount, and reciting, "In every case we hold good and sufficient security from the maker;" but it did not appear that the holders of notes, the creditors represented by the assignee, took them on the faith of any pledge of the securities in question. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ The understanding between the syndicate and the Union Loan & Trust Company that railroad securities should be deposited to secure syndicate paper, rested on conversations between the parties, and did not involve the liberty of the syndicate to borrow elsewhere; nor did the understanding permit securities held for moneys advanced to one enterprise to be held as security for any other. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ But we do not feel called on to do more than allude to these matters. Tod & Co. held the securities under the $1,500,000 loan in trust for the purchasers of the notes thereunder issued; and neither the debenture company, through which the transaction was made, and which holds a few of the notes, nor any other of the beneficiaries, was before the court. Nor was Garretson, nor any member of the syndicate, nor any holder of part of the $1,000,000 loan, other than Tod & Co., a party to the record. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ Conveyances by insolvent debtors in fraud of their creditors may be attacked by their statutory assignees, though equity would not aid the debtors themselves to recover the property, for the property transferred would, in eye of the law, remain the debtors', and pass to the assignees, who would not be subject to the rule that those who commit iniquity have no standing in equity to reap the fruits thereof. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ While we must not be understood as intimating in any degree that this charge of misrepresentation was made out, or, if it were, that Tod & Co. were cognizant thereof, it is enough that we are not satisfied that the transactions complained of involved notice of the claim of the trust company now set up. ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ The railroad was sold under the foreclosure decree October 23, 1891, and brought in by Garretson and Wickersham, as trustees for the holders of the first mortgage bonds of the Nebraska & Western Railway Company ”

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Source: Wikisource

Melville Fuller, Hubbard v. Tod — Opinion of the Court

“ It had a board of five directors, a president, vice president, and secretary, and by its bylaws a committee of three members on applications for loans was provided for.
November 2, 1885, George L. Joy was elected president, A. S. Garretson vice president, and E. R. Smith secretary, subsequently also made treasurer; and these three persons were appointed the committee on loans. They continued to hold these offices and to constitute that committee up to and until April 24, 1893, when the company made an assignment to E. H. Hubbard. ”

Melville Fuller

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