Alabama Supreme Court Case Files

1 Pleas had before the Honorable the Circuit Court of the Coun[ty] Dallas at the Court begun and held for said County in the Town of [Caha---] [rest of page bent over] on the first Monday of April to the 5th day of April in the year of our Lord one thousand eight hundred and thirty and of the Independence of the United States of America the 54th year. Present the Honourable Reuben Saffold Judge de The State of Alabama Dallas County to the Honourable Reuben Saffold Judge of the second Judicial Circuit of said State exercising Chancery powers. Your Orator John Simpson in his own right -and as Administrator ofthe Estate of William Read deceased shewith unto your Honor that in only 1823. William Read, Matthew McLaughlin & Your Orator, formed a mercantile copartnership under the firm and style of McLaughlin Read Simpson. They were to carry on business in the town of [Sela---][line ends, page torn/folded] Dallas County. The copartnership was to continue for nine yea[rs] [line ends, page torn/folded] Articles of Copartnership were drawn up embracing its princip[les][line ends, page torn/folded] & signed by the parties as well as orator recollected & they are be[lieved][line ends, page torn/folded] to be in the hands of McLaughlin & So Orator charged. The [line ends, page torn/folded] -tinued to deal in a general assortment of goods until [line ends, page torn/folded] no stipulation having been made for such a contingency which would authorise its continuence. Orator obtained letters of [a---][line ends, page torn/folded] -inistration on the effects of Read at the time of his death. The firm had a large amount of debt out standing & due to it by bond [line ends, page torn/folded] accounts, also a considerable stock of goods as well as some real property. In April 18?6 [ink blot], a sale of the goods and effects [line ends, page torn/folded] the concern was made as also afterwards of the real property. [No---] [line ends, page torn/folded] were taken for purchases which went to increase the joint [sto---][line ends, page torn/folded] The firm was at that time indebted in New York & perhaps elsewhere for goods purchased. McLaughlin had acted as the agent of [line ends, page torn/folded] made. In June 1826 being as he said about to go to New [York] [line ends, page torn/folded] where he would be called on & would have to pay the debts of [line ends, page torn/folded] he urged yours to make an arrangement which would [se---][line ends, page torn/folded] in the Court. This proposition was to take upon himself the [d---][line ends, page torn/folded] of all debts due by the firm in consideration of which & [line ends, page torn/folded]

2 [beginning of line missing, page torn/folded] in so doing. Orator was to make an assignment to him of the [beginning of line missing, page torn/folded][---ds] of the firm the ballance of which were after discharging the [beginning of line missing, page torn/folded] to be accounted for with Orator and paid over according to his [beginning of line missing, page torn/folded] the proportion of William Read. Urged by McLaughlin orator did execute in his favour a written instrument in effect about as stated. It was not an absolute transfer of anything but barely to give him control of the papers, so as to establish him to pay the debts of the firm, when he should go to New York and to secure him any payments he might make beyond the available means of the concern, if any such debts should be urged, all of the effects of the concern were then placed. He urged all the effects of the concern were placed under his control & to be collected & applied to [beginning of line missing, page torn/folded] debts of the firm McLaughlin did shortly after go on to New York, but without paying off the debts of the concern or taking them [beginning of line missing, page torn/folded] his own shoulders, he returned and brought or sent an an assortment of goods for himself; he having shortly after the death of William Read commenced a seperate mercantile business. [beginning of line missing, page torn/folded] return of McLaughlin from New York & in Novemeber or [beginning of line missing, page torn/folded] [---ember] of 1826 a difference occured between him and orator as to the amount due him McLaughlin by the firm. His claims were from ten to fifteen thousand dollars, to determine this matter in the most agreeable manner, orator proposed to leave it to an arbitration which was acceeded to by McLaughlin, a referance was made & the arbitrators by their award ascertained & fixed the debt to possess by the firm, at five thousand nine hundred & sixty six dollars. Orator could not consent that the books, bonds notes [beginning of line missing, page torn/folded] papers of the firm should any longer remain in the hands [beginning of line missing, page torn/folded] McLaughlin & it was agreed between him and orator they they would be placed in the hands of a Mr. Frances Douglass. He was in the employment of McLaughlin as a clerk and was new [beginning of line missing, page torn/folded] by McLaughlin as agent or reciever. Yet orator having full confidence of his integrity consented & agreed to his being the person Accordingly all the books, bonds notes and other papers of the firm were [beginning of line missing, page torn/folded] placed under the control of Frances Douglass & to be in his hands [beginning of line missing, page torn/folded] was about the month of December 1826 at the time a written instruction [beginning of line missing, page torn/folded] was drawn up & signed by McLaughlin & orator continuing

8 took the notes of the firm James & Elisha Owens without any security thereto or therefor when the said firm was in very doubtful circumstances, if not totally insolvent they shortly after became intirely so. This was done by McLaughlin without the knowledge or consent of Orator, he was in no wise connected in the matter. The said firm of J&E Owens gave two notes to neither was security taken by McLaughlin. One of the notes was for about four hundred and six -ty nine dollars the other for five hundred and eighty one dollars. The amount was sufficient to have authorized the requirement of security from almost any one where the seller was above con -cerned and where there were no terms of sale agreed on. The said McLaughlin also pledged these notes with many others of the firm notes as collateral Security for and, and to give time on a debt said by McLaughlin to be against the firm. This was in June 1826. As near as recollected and was without the knowledge or consent of Orator. These claims or notes on J&E Owens remained in that situation for a long time. how long orator does not know. but long enough he charges to be thought entirely lost. And this by and through the improper conduct of McLaughin in relation to them. In as much as before any steps were taken for the collection do far your orator is informed the firm of J&E Owens became intirely insolvent when if proper steps had been taken the amount may have been saved and so orator charges. Orator then charges that McLaughlin is liable for the amount of their notes for not requiring security before the delivery of the goods purchased by J&E Owens. If not for this his subsequent conduct in not making proper efforts to collect to collect them or in placing them in a situation beyond his control, so that he could make none. Your Orator charges that McLaughlin had funds more than was sufficient in his hands of the firm, with which to have released their notes from the pledge long before they were, if they have ever been, so relased and which he was in duty bound to have applied to this purpose and which would have enabled him to have released them pay -ments or at any rate to have made and effort, so orator charges the amount to have been lost by unauthorized conduct

13 & was it not in this mutual understanding & agreement that it was procured,was it not procured for the express purpose of erecting thereon a warehouse for the use benefit & endowment of the firm. He is asked to say if the lumber out of which the wareho -use was originally built was not the joint property of the firm if the whole or a greater part was not furnished from a sawmill which was joint property of McLaughlin Read & Simpson if not all furnished there was not by the greater portion. Were not the nails required for the building all or nearly all furnished from the store of the firm? Where was the first information given by Mc -Laughlin that this lease hold & warehouse was his individual property & to whom was it given? At what time did he public -ally set up claim to it? Did he ever prrevious to the death of Read, mention to any living man that it was his individual prop -erty & not that of the firm? If he did he is requested to mention his name & where he resides, and if he is out, out of the United States, where he resided previously? He is asked if he did not in April 1826 or at some time passed set up a claim to this lease hold and warehouse, and when or about when was that, and if he did not then claimed it as his individual property? And did he not object and prevent its being sold on that grounds? Did he not in April 1826 take possession of the warehouse under a claim that it was his individual property? If not then, did he not previous to this and when so take possession? Has he not from then until now held exclusive possession? Has he not from thence until now used the warehouse, in the recep -tion and storage of Cotton, and appropriated to himself the profits of it? Did not Orator in April 1826 remonstrate with him for setting up such claim and did not Orator then insist that it was the joint property of the firm, and urged that it should be sold as such? Has not orator susequ -ently insisted that it was joint property and that he would hold said McLaughlin bound for an account for the profits of the same? Has he ever accounted with the orator for any of the profits of the warehouse? If so he is called on to produce his evidence? When he first took possession

15 And for moneys advanced is not true, if not what not? What are facts so far as he knows and believes? Did not orator go [o---] (page bent) to Baltimore about the time stated on the business of the then firm? Did he not on his arrival in Baltimore pay over to him McL -aughlin all or what orator then told him was all of the funds of the concern which he had brought on with him? How much as near as can be recollected did he pay over? Did not McLaughlin expend the whole of that money previous to ora -tors return to Selma? Was it expended for the then firm or was it not put to his own individual use? Do the Books of the then firm show what amount of Cash of Concern Orator took on to Baltimore at that time? McLaughlin is requested to examine, and say what the book shew? Does he not beli -eve that Orator did pay him all he took on except what paid his expenses there? Did McLaughlin advance to Orator any money previous to his return to Selma? He is asked to say what amount it would at that period have probably required to bare the expenses of orator from Baltimore back to Selma He is asked to say if he does not believe orator did not bear the expenses of his trip from Baltimore to Selma out of his own pocket and individual funds? He is asked to say if he does not believe orator advanced out of his individual funds the amount of the account exhibited as amount sufficient together with his expenses to make the sum of $161 for the then firm? Does he not believe the whole account Just, if not how much does he admit or believe is of more on what grounds? Did orator at no time, present to him the account or one similiar if yea when? Did the said McLaughlin then dispute the corrections of the account? The said McLaughlin will state if what orator has changed and stated in regard to his purchases of the real property of the firm & goods and the manner of accounting for the purchases made by him is correct, if not in what is it incorrect? What was the amount he purchases in goods? What in real property? How did he settle for the amount of his purchases at that time made? If the amount was placed to the Credit of William Read and Orator or has been placed or is to be [p---] (ink blot)

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placed on any account he may have against them? he will be pleased to exhibit such account or copy as well as any credit which may have been given therein. If the amount of his purchases have been credited on any account he may have yet he is asked if there was not a ballance against him to a considerable amount & what? He is asked if that ballance is not yet against him, if not how has it been settled? The said Mr. Laughlin is asked to state if he William Read and Orator did not account as heretofore stated by Orator and if the account hereto attached marked (B) is not substantially a copy of the one settled between them, or is not believed to be so. Is it not correct, if not in what particulars incorrect? What portion of said account was at that time due and owing to William Read by the said Mr. Laughlin? Has any portion thereof ever been paid, discharged or accounted for, if yea, he is asked to exhibit a copy of his evidence of the payment or discharge, if he has such. If accounted for he will state in what way and exhibit his vouchers or a copy? The said Mr. Laughlin will state if the terms of auction sale was the firm stock, did not require notes with good securities for purchases. Was it not agreed and determined between him and Orator, that good security should in all cases be required. And if not taken was it not to be at the risque of he who took a note without security. Did not McLaughlin take the two notes above spoken of from the firm of [J. & ?]E Owens and was they not taken for goods purchased by them by them at auction or subject to the above stated auction rule? Was there any difference as to this requirement of Security, whether goods were sold at auction or during the period by private contract? Was any security taken by said McLaughlin on the notes given by J&E Owns for their purchases? What was the amount of each of their notes, and when did they become due? Have they been collected or any part, and how much? Were they not found or placed the hands of Henry Hitchcock Esq in Mobile as collateral security for some claim, in his hands

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against said McLaughlin or against the firm. Were they not so placed by McLaughlin and when? As collateral security to what claim were they placed in Mr. Hitchocks hands? How long did they remain in his hands, and when did they again come into the hands of McLaughlin if not in the hands of McLaughlin in whose hands are they? Into whose hands did they go from Mr. Hitchcock and through what medium were they directed to go by McLaughlin? Were suits ever commenced on thsoe ntoes or either of them? Did not McLaughlin hear that James & Elisha Owens were likely to leave the State before they did go, or that thye intended to go and had so said? The said McLaughlin is asked to say if the Books of account of belonging to the firm of McLaughlin Read & Sampson are not in his possession if not, in whose are they, particularly on the service of the subpoena in this case? He is asked to exhibit a copy of all & every of his vouchers and evidence for all moneys paid out by him for the concern during the period intended to be embraced by this bill. He is asked if any other person or persons has, or have, during the period he has had the control of the Books Notes and accounts of the firm. Collected or received any moneys of or belonging to the concern by his order or for his use, and who have not as yet paid the same over to him, if yea who are they & where do they reside? In consideration of the business and for as much as matters of this nature are most properly cognisable in a court of Equity and regard your Orator cannot compell the said McLaughlin to account for and in relation to the matters and things above set fourth or pay what is justly due & owing to your Orator in his own right and as Administrator of said Wm. Read, but by the aid and assistance of a court of Equity, to the end therefor that the said Matthew McLaughlin may on his oath, true and perfect answers make to all and singular the [premises?], fully and particularly. And that he may be decreed to come to a just and fair account with your Orator in regard to all matters in the premises. And that he may to Orator, what upon such account shall appear to be due to him in his own right as well as what may be

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due to him as Administrator of said Wm. Read and that the said McLaughlin may deliver to your Orator the note given by your Orator, made payable to James Douglass for two hundred and fifty nine dollars, and sixty four cents and will your Honor decree the appointment of a receiver and authorise him to take into his possession all the Books of the firm of McLaughlin Read & Simpson as well as all the demands, bonds notes and accounts due & owing to the said concern, and which may not be yet collected, as well as all moneys of the said concern, together with all property which may belong to it. And that said McLaughlin be compelled to deliver everything in his hands of or belonging to said concern into the hands of said receiver; and will your Honor decree that said McLaughlin be enjoyned from any further collections of the debts of the concern; And that your Orator may have such further and other relief in the primises as your Orator shall seem meet. In Order that a more full undertaking of this Subject may be speedily obtained Orator would beg leave to state that he has received since the death of William Read, moneys of the joint concern to the amount of one thousand one hundred and twenty nine dollars and fifty one cents, out of this amount he has and did pay the same of one thousand and seventy two dollars and fifty seven cents in satisfaction of a promissory note due for that amount to Messrs Stout Pratt & Company of New York by the firm of McLaughlin Read & Simpson. This and the sources from which the funds were derived will more fully appear by refference to exhibit (C) hereto attached one thousand and thirty dollars of this amount was received from James Douglass during the period he acted as agent, and to be applied to the payment of the aforesaid debt of the firm. No part of the amount was received from McLaughlin, and the above stated amount is all and the only funds of the concern which has came to the hands of Orator since the death of Read. The said McLaughlin is asked, the said McLaughlin is asked if he does not know that such debt was due

19 or does he not believe it was? Do not the books of the coucern exhibit Has he not been informed and does he not know that it was disch arged by orator or does he not believe it was; And your Honor for this prays that a Writ of Subpoena may issue Commanding the said M. Lauglin to appear and answer to this Bill under a Sufficient penalty for his neglect- so to do Pickens + Calhoun Com: Sol.

Exhibit (A) Selma April 8th 1827. Dr. M Laughlin Read + Simpson 1819 To John Simpson Sept. 19 To cash advanced of my own individual funds to bear my traveling expenses from to Selma. The ballance left being applied here to the use of Wm Read Ho in the discharge of these debts $161.00 In trust for the same, to this time 7 years 6mp $161.00 96.60 $257.60 Exhibit (B) To Wm Read + Read + Simpson 1824 In account current with Wm Read March 13th cash paid Matthew McLaughlin in Maryland The neat proceeds of my property there $700.75 In trust on same up to 15! May 1825 1 Year 1Mo 17 days 63.07 Dollars 763.82

Selma May 2nd, 1825 On Settlement of the late firm of Wm Read Ho. and Read Simpson made today by the subscribers there is due to Wm Read Seven hundred Sixty three dollars eighty two cents which he is entitled to interest on until paid ordrawn by him from the present firm. (Signed) Matthew M. Laughlin John Simpson

Exhibit (C) M. Laughlin Read + Simpson Dr to John Simpson 1827. July 11= To the amt paid then note due Stout Platt &Co as pr Statement & note lifted $1072.57

1827 Cr April 13 By Bin owing for Wm Blevens 2.50 June 9 By [???] in drilling 2.62 By This Amt recd from Benjn, Young 76.27 By this Amt Genl. woodward 18.12 By this Amt in Cotton from J Douglas to remit to New York 1030.00

1129.51 ______ $56.94