Fourth National Bank of New York v. American Mills Company

Citations

• 137 U.S. 234
• 11 S. Ct. 52
• 34 L. Ed. 655
• 1890 U.S. LEXIS 2081

Syllabus

<p>A New York corporation consigned goods to G., a commission merchant in New York city, for sale. He advanced to it thereon, in cash and negotiable acceptances, more than the value of the goods, it having the benefit of the acceptances, which passed into the hands of bona fide holders. It then transferred the goods to him, as absolute owner, in discharge pro tanto of its debt to him. He then sold the goods to his wife, for full value, in part payment of money he owed her, and she resold them and received the proceeds. A creditor who had recovered judgments on some of the acceptances against G. and the corporation, brought a bill in equity against them and the wife of G. to have such proceeds applied on his judgments: Held,</p> <p>(1) G. had a lien on the goods, which was foreclosed by the transfer of them to him;</p> <p>(2) G. had a right to treat the goods as his own, so long as the acceptances were outstanding and his lien was unsatisfied;</p> <p>(3) The creditor could not have the relief asked.</p>