SMITH ·v. HARVEY. 17
(2) That the parties who had loaned money upon the said notes as collat-
eral, and to the extent such money had been paid by the legatees of the orig- (
inal decedent, are entitled to be subrogated to the rights of the latter, less the 4
sum paid on the notes by the parties originally liablethereon, and interest.
(3) That the legatee and executor of the original decedent, having had no
authority to invest in the business of the iirm the interest of his sister and the
children of his deceased brother in the proceeds of the notes, the latter can-
_ not be held liable for the debts of the lirm, and the administrators of the estate
of the original decedent are entitled to all the fund in court except the one-
third going to the estate of the legatee and partner in the debtor iirm, under the
will of the original decedent. _ V “ . »
(4) That the defendants are entitled to subject to their claims against the
Hrm the interest which the estate of T. T. Renick may have in the proceeds of
the notes, but to the extent only that the money borrowed on the Harvey notes,
as collateral, was applied to debts of that firm for which T. T. Renick was
responsible.
Bill and Cross-bill. ,
Miller, Lewis at Bergen, for complainants.
Goudy at Chandler, for defendant. _
VHARLAN, Justice, (orally.) The present hill and cross-bills are the
outgrowth of certain suits commenced in this court, decided in the
supreme courtof the United States, and reported in 101 U.S. 320, under
the title of Smith v. Ayer. As stated in the opinion of the supreme ‘
court, their object was to compel the delivery to the administrators
de bonis non of Renick Huston of two promissory notes, each for
$39,250,-one of which had been delivered to and was held by J. C.
Ayer & Co. as collateral security for a loan by them of that amount
to the firm of B. F. Benick & Co., and for which they held the note
of that firm; and the other held by the First National Bank of West-
boro, Massachusetts, as collateral security for a loan by it to the
· same firm of $30,000, and for which they held that hrm's notes. The A
notes of $39,250 were each executed by J. D. Harvey, and were made
payable to Thomas T. Renick, of whose estate B. F. Renick was
executor. Thomas T. Renick was one of the legatees, as well as the
executor of the estate of Benick Huston. After the death of the latter,
Thomas T. Renick purchased an interest in the 1'irm of Tower, Classen
& Co., using for that purpose certain funds derived from Renick Hu-
ston’s estate, one-third of which belonged to him, (T. T. R.,) one-third
to a sister, now deceased, and one-third to the children of a deceased "
brother. The interest so purchased stood in the name of T. T. Renick.
Under the arrangement made by him when he entered the firm of
Tower, Classen & Co. he became liable with the other partners for its
debts then existing, as well as those created during his life-time. B. F.
» v.13,n0.1——2
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