Bank of Tennessee v. McKeage

11 Rob. 130
Supreme Court of Louisiana·Decided June 15, 1845·Published·Cited by 5 cases

Opinion

Garland, J.

These suits were instituted against McKeage, as the endorser of three bills of exchange and a promissory note, with a demand for interest and damages. Two hundred and six hogsheads of tobacco, called strips, were attached as the property of the defendant, he being a non-resident. The inter-venors, who are merchants in Richmond, Virginia, claim "the property as belonging to them, and the principal questions before us arise out of this claim.

The first suit is on two bills of exchange, drawn by Galbraith, Cromwell & Co., at Clarksville, Tennessee, on Galbraith, Logan & Co., New Orleans, endorsed by McKeage, amounting to $11, 000. The second is on a bill drawn by and on the same parties, for #7,500 ; and the third is on a promissory note, drawn by R. W. Galbraith and Thompson Greenfield, also endorsed by the defendant; all of which bills, and the note, have been protested for non-payment.

[131] The facts of the case, as we have been able to extract them from a record of nearly 800 pages - (three-fourths of which is made up of irrelevant-matter), are, that the drawers of the bills and note were merchants in Tennessee, and, to raise money, obtained the endorsement of the defendant on their paper, which was discounted by the banks now suing on it. No question has been raised in the argument as to the liability of Mc-Keage on his endorsements. A judgment was first rendered in favor of the plaintiffs and against the intervenors ; but a new trial vyas granted, and, on a second trial and further evidence, a non suit was entered against the plaintiffs, on the ground that the tobacco attached belonged to the intervenors, and consequently the defendant was not legally before the court, never having appeared personally or by an authorized attorney. The defendant has for a number of years been established at Clarks-ville, where he has an extensive tobacco stemmery, a residence, and a number of slaves engaged in carrying on his business, which is the purchasing of tobacco in that section of the country, stemming, or making strips of such as is suitable for that purpose, and selling again in the leaf such as is not fit for that purpose. The intervenors are large purchasers and shippers of tobacco and cotton, transacting their business in Tennessee through the defendant, and the Messrs. Atkinson, and in New Orleans through other agents. For sometime previous to 1838, they remitted money to the defendant, to purchase tobacco for them, which he stemmed and put into hogsheads, and sent to New Orleans, to their agents, for which he was paid a certain compensation, having no interest in the property or speculations at all. In that year the intervenors proposed to the defendant to proceed as theretofore, but he declined doing so, alleging as a reason, the difficulty of keeping the interests and affairs of the intervenors separate from his own; he being engaged in purchasing, stemming, and selling tobacco on his own account. It was then agreed between them, that Kerr, Caskie & Co. should furnish the defendant with what amount of funds he should want, and he was to buy tobacco, stem it, and prepare it for market, and the parties were to share the profits and losses. At the end of every year an account was to be made up of their transactions, and the profits divided. The letter of the in-[132] tervenors to the defendant, of October 18th, 1830, after speaking of the probable extent of the crop, the prices, and the probability of profits, proceeds: “ We observe that you decline to put up the 150 hogsheads for us, which we proposed, but we are quite willing that you should take an interest in all that you stem, provided you consent to send round here (meaning to Richmond) the first 150 hogsheads, and allow us to send this lot to Bristol. It is necessary for us, to make up an assorted cargo for that market, and as there is every probability that as good, if not better prices, will be obtained there, than at Liverpool, we suppose you will feel no objection to this course. Should such an arrangement be agreeable to you, we are willing that you should put up, on joint account, such quantity as circumstances may render advisable, and you can do conveniently to good advantage; and you can take either a third or a half interest, as you choose, though, as the cost this year will be high, and the probable profit small, we think it likely that one third will be as much as you will care about risking.” To this proposition McKeage assented, taking one half interest; and the parties acted on it up to the time of the seizure in this case. The intervenors furnished the funds to purchase tobacco, some years amounting to seventy-five or eighty thousand dollars. The funds were put into the hands of McKeage, by his drawing bills and drafts on the intervenors, and having them discounted by the banks in Tennessee, or by individuals, or by their sending him bills and checks drawn on other places, which he disposed of in Tennessee. A large number of those bills and drafts are in the record; others are not produced, as the drawers are supposed to have them; but regular accounts current are produced, showing the funds furnished. They show that the intervenors charged the defendant with the money furnished to him, and when the tobacco was sold and account of sales rendered, they credited him with the proceeds, and the profits were divided.

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Bank of Tennessee v. McKeage, 11 Rob. 130 (La. 1845).

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