Cooper v. Illinois Central Railroad

1. Executors—Trustees—Corporation Bonds—Registry—Conversion. A testatrix left property to the executor in trust, consisting in part of railroad bonds, which could be registered, after which transfer could be made only by the owner or his duly-authorized attorney. The executor registered them in his name as executor, and five years after death of testatrix died, and eight years thereafter one of two substituted trustees had the bonds discharged from registration and converted them to his own use. Held, that the presumption was that the debts and legacies of testatrix’s estate were paid, and that the executor at his death held the bonds as trustee, and hence title passed to his substituted trustees, and the action of one of them in discharging the bonds from registry and selling them carried the title to them. 2. Same—Negligence of the Corporation. The negligence of the railroad, knowing them to be trust property, in permitting one of the trustees to discharge the bonds from registration without the other’s knowledge, made it liable to the other trustee for their value; the discharge being a ministerial act calling for the exercise of judgment and discretion, and to be performed by both jointly. 8. Brokers—Negligence. Bonds belonging to a trust estate were presented to certain brokers at a time when they were registered in the name of S., executor. Some days later, when left with them for sale, they had been discharged from registry, and were payable to bearer. It did not appear that the brokers had any knowledge that the executor was dead, or of the condition of the estate of which he was executor. Held that, on sale by them of such bonds, they were not liable to the estate, because the bonds were in fact a part of a trust fund, and illegally sold.

Appeal from judgment on report of referee. Action by Marin L. B. Cooper, as sole surviving trustee under the will of Mary T. Wood, deceased, against the Illinois Central Railroad Company, impleaded with Charles C. Macy and William F. Pendleton. There was a judgment for plaintiff against the Illinois Central Railroad Company, and it appeals.