The War of the Rebellion: A Compilation of the Official Records of the Union And Confederate Armies. Series 3, Volume 2. Page: 231
viii, 1007 p. ; 23 cm.View a full description of this book.
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UNION AUTHORITIES
and deposited, on said sequestration, in the Citizens' Bank of Loui-
siana, upon which you have done me the honor to request my advice
by your note of this date, I have considered.
If this deposit was now in its entirety with the Citizens' Bank, or
had been paid over by that bank to the United States, it would be
clear that, as between the Mechanics' and Traders' Bank and the Cit-
izens' Bank and the United States, it would be proper that the bank,
if paying the dividends to the stockholders, should be refunded by
the Citizens' Bank or the United States. And it would be equally
clear that on the contingency of the inability of the bank to pay the
stockholders they should be paid by the Citizens' Bank or by the
United States, as the one or the other might have the fund. At the
moment the dividend was made each stockholder became a creditor of
the Mechanics' and Traders' Bank for the amount declared on his
particular stock; and if said amount was paid by the bank to a third
party, with notice of the fact, he (the stockholder) would, at his option,
have recourse to that party. If the money in such a case could be
traced it would be the stockholder's specifically; but he is under no
obligation to resort to any one but the original debtor, the Mechanics'
and Traders' Bank. The amount whilst in their hands was his prop-
erty. With regard to it they were but his agents, bound to hold it for
his benefit, and without authority to pay it to any one else. The
payment, therefore, by the bank, under a totally illegal and unconsti-
tutional order of a pretended government, whether made under decrees
actual or apprehended, is without authority and wholly void. Such
payment, consequently, is no answer to the stockholder, either morally
or legally. The bank, therefore, is as liable now to the stockholders
as they would be if the amount was actually in their vaults. They
have no right to refer the stockholders either to the Citizens' Bank or
to the Government of the United States. The only claim they can
have will arise after they shall have paid the stockholders. That being
done, if the dividend should be in the Citizens' Bank, or should have
been received in full by the United States, they would have a right to
demand it of the one or the other, as the case may be; and should it
be only with the one, or received by the other in part, then to demand
it pro rata.
From the papers accompanying your note it is evident that the
Citizens' Bank is not liable, as proper legal authority has caused them
to pay it over to you as the duly constituted representative of the
United States; and it is equally clear that, as between the latter and
the Mechanics' and Traders' Bank, the United States not having
received the whole fund, there will only be a proportionate responsi-
bility on the part of the United States. What that proportion will
be it is impossible, with the information in your possession, to ascer-
tain; nor do I see how it can be satisfactorily done, except by a com-
mission empowered to examine into the whole matter in detail.
My opinion, therefore, is that the bank owes the dividends in ques-
tion to the stockholders; that these should be paid at once, and that
the rights of the bank, as between themselves and the United States,
must be left to future settlement.
have the honor to be, your obedient servant,
REVERDY JOHNSON.231
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The War of the Rebellion: A Compilation of the Official Records of the Union And Confederate Armies. Additions and Corrections to Series 3, Volume 2. (Pamphlet)
Errata sheets for the Records of the War of the Rebellion include additions and corrections to the text and the index for Series 3, Volume 2.
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United States. War Department. The War of the Rebellion: A Compilation of the Official Records of the Union And Confederate Armies. Series 3, Volume 2., book, 1899; Washington D.C.. (https://texashistory.unt.edu/ark:/67531/metapth139264/m1/240/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.