State Street Trust Co. v. Muskogee Electric Traction Co.

Mrs. Twombly was the owner of the bonds in question and the trial court found that she destroyed them because she had been advised that they were worthless.1 It is admitted that the bonds had not been paid. The Traction Company recognized them as outstanding obligations and carried them on its books as such up to and during the reorganization proceedings. It included them in its reorganization plan in the same manner as the other bonds. Apparently it had not been notified of the destruction by Mrs. Twombly or anyone else.

It is conceded that there was no effective cancellation of the…