Montgomery v. Chemical Nat. Bank of New York

The Chemical National Bank of New York filed this bill, averring in substance that, in pursuance of an agreement with the Merchants’ Bank of Montgomery, complainant accepted four drafts, aggregating $100,000, drawn against it by the HallBeale Cotton Company, and credited the proceeds to the Merchants’ Bank, which used them in its business. These drafts were secured by the pledge of 1,185 bales of cotton stored in warehouses in Montgomery, the Merchants’ Bank retaining the warehouse receipts. Through the negligence of the Merchants’ Bank the I-Iall-Beale Cotton Company procured the receipts…