Lake Shore & Michigan Southern Ry. Co. v. National Live Stock Bank

178 Ill. 506
CourtIllinois Supreme Court
DecidedFebruary 17, 1899
StatusPublished
Cited by16 cases

This text of 178 Ill. 506 (Lake Shore & Michigan Southern Ry. Co. v. National Live Stock Bank) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lake Shore & Michigan Southern Ry. Co. v. National Live Stock Bank, 178 Ill. 506 (Ill. 1899).

Opinion

Mr. Justice Phillips

delivered the opinion of the court:

Michael C. Gillice was a dealer in cattle doing business at Jersey City, and for many years bought cattle at the Union Stock Yards at Chicago, through various members of the latter association. Hugh Gillice was employed by Michael C. Gillice as buyer in November, 1888. In purchasing for Michael C. Gillice Hugh Gillice was in the habit of endorsing the scale tickets about as follows:

“National Live Stock Bank—Pay account M. C. Gillice for ..........cattle. Hugh Gillice. ”

On the back of the scale ticket would be endorsed the weight of the cattle and the price per pound at which they had been sold. In other words, on the back of the scale tickets which designated the transaction of bargain and sale for the specific cattle purchased, Hugh Gillice, the cattle buyer, would give what amounted to a check upon the National Live Stock Bank and against the account or credit of Michael C. Gillice. This, however, was not the invariable custom. The sellers of the cattle deposited these scale tickets, so endorsed, with whatever bank the seller happened to be doing business, and the bank, at the close of business on each, day, would collect all these scale tickets which had been paid or credited upon the pass-book of the customer by the bank during the day, attach the scale tickets to a draft drawn by the bank upon Michael C. Gillice, or whoever had purchased them, and forward the draft for collection to such person. This had been the uniform custom of business for ten or twelve years, the bank debiting Michael 0. Gillice, for the time being, with the amount paid out on account of these scale tickets, which were merely the equivalent of checks, and then crediting him with the amount of the draft drawn on him, to which was added a commission for the service rendered. In this way the bank made a profit in the way of exchange, being one dollar a thousand of the amount of the scale tickets paid by it.

In the usual course of business, and covering a period of some days prior to November 8, 1888, 299 cattle had been purchased by Hugh Gillice, and the sellers of these 299 head of cattle had been paid the purchase price thereof. As to 60 head Hugh Gillice gave his own check upon the appellee bank, drawn against his, Hugh Gillice’s, own funds, and 69 head were paid for by the Drovers’ Bank giving the sellers thereof credit upon the scale tickets deposited in that bank by such sellers. Scale tickets representing 159 head were deposited by the sellers thereof with the appellee bank and credited up at various times on the pass-books of the sellers so depositing with the bank, while scale tickets for 11 head were first deposited with the Drovers’ Bank and the amount represented thereby subsequently refunded by the appellee bank to the Drovers’ Bank. The 299 head of cattle, as they were severally purchased, were delivered to Hugh Gillice, who took them to the Lake Shore and Michigan Southern railroad, had them loaded upon the cars of the company and shipped to New York City, consigned and billed to Michael C. Gillice. This was accomplished at about half-past four o’clock in the afternoon of November 8, 1888. Some time after this had been done, and after the cattle were on the way east to Michael C. Gillice, Roswell Z. Herrick, cashier of appellee bank, sought to procure a bill of lading on whatever cattle had been purchased that day for Michael C. Gillice. To that end he hunted up and asked Hugh Gillice how many cattle he had purchased that day for Michael C. Gillice, and being told 299, he went to the office of the defendant, meeting there Hugh Gillice, and, although he had delivered no cattle whatever, procured two shipping receipts from a clerk in the office of defendant, which recited that defendant had received in apparent good order from R. Z. Herrick, cashier, to be forwarded as consigned in the margin, 148 and 151 cattle, respectively, more or less. The marks in the margin were: “R. Z. Herrick, Cashier—Notify M. C. Gillice, New York.”

The cattle in question were delivered in due course, and in accordance with the consignment and billing as originally made, to Michael C. Gillice, to whom they were consigned. Appellee thereupon brought suit against appellant, and by its declaration alleges it delivered to defendant 299 head of cattle to be taken care of and safely and securely conveyed to the city of New York and there delivered to plaintiff for certain rewards to be paid, and that it received the cattle for that purpose yet did not deliver the same, but the same were lost to the plaintiff. The second count is in substance the same, but charging the receipt for carriage and failure to deliver 148 head of cattle. The third count is the same as the second, except it counts upon the receipt and failure to deliver 151 head of cattle. The fourth and fifth counts charge, in substance, that in consideration plaintiff had caused to be delivered to defendant other goods and chattels of the like number, quality, description and value as in the first count mentioned, of the plaintiff, to be taken care of and safely carried to and delivered at New York for the plaintiff, for certain reward to defendant promised to be paid, defendant promised plaintiff to take care of said goods and chattels, and safely to carry and deliver the same for the plaintiff in a reasonable time, but although the defendant then and there received said goods and chattels, and although a reasonable time hath elapsed, yet defendant, not regarding its promise, did not, nor would within such reasonable time, safely or securely carry said goods and chattels to New York nor there deliver the same to plaintiff, but hath hitherto wholly neglected and refused so to do, whereby said goods and chattels were-wholly lost to plaintiff.

Herrick’s testimony as to the manner in which the shipping receipts (the instruments sued on) came to be issued, is as follows: “I waited until the close of business without paying any of these tickets, for the purpose of seeing what amount was presented. As soon as our deposits were all in—our deposit had already been made —I took the amount, found out the number of tickets that they represented and the amount involved in the payment, and went over to the Lake Shore office at the Union Stock Yards for the purpose of getting a bill of lading. I did not know how many cattle had been purchased at this time, and I found Mr. Hugh Gillice to ascertain what he' had bought. The number that had been bought that day was reported to be 299 cattle. The tickets that had been presented to us for payment, which I had, did not call for that number. I asked Mr. Vaughn, the agent, for a bill of lading for the number represented by the amount represented on the tickets presented that day, and for the balance of the purchase another one, for the purpose of using" against those tickets when presented. Mr. Vaughn told me he would make them out and send them right over, and he did. Mr. Vaughn immediately after brought over the bills of lading to.our bank and office. I paid the scale tickets that were presented that day, and drew, or instructed the assistant cashier to draw, (which he did,) a draft for the amount we had paid that day, attaching the bill of lading representing that number of cattle. When I went to the office of the Lake Shore road Hugh Gillice was present and Mr. Vaughn. I said to Hugh Gillice, ‘If we pay for the cattle that your purchased for M. C. Gillice we want either the guaranty of some bank east, where he is" doing business, or we must have a bill of lading.

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Bluebook (online)
178 Ill. 506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-shore-michigan-southern-ry-co-v-national-live-stock-bank-ill-1899.