Gotham Nat. Bank of New York v. Sharood Co.

(after stating the facts as above). For an understanding of the questions of law presented by this record, it will be necessary to state the facts in some detail. Teco, Inc., was largely indebt-. ed to the bank for moneys loaned to it to finance the purchase of great quantities of army merchandise imported from France for sale. As security for the indebtedness, such merchandise was lodged in storage ' warehouses in New York City, to be released upon authorization of the bank, which held nonnegotiable warehouse receipts therefor issued in the name of the bank. The copartnership of Muller &…