United States v. Thompson

Miller, J., delivered the opinion of the Court. The proceedings in this cause may be regarded, so far as the decision of the question presented by this appeal is concerned, as having been instituted for the purpose of distributing amongst their creditors the assets of the insolvent firm of McFreely & Hopper. The claim of the appellants, the rejection of which, as entitled to priority over all others, is the only matter now before us for review, appears from the evidence in support of it to rest upon facts substantially as follows: John H. Thompson, a deputy collector of Internal Revenue for the First District of Maryland, entrusted to this firm revenue stamps for sale, and also endorsed to them for collection checks he had received from various parties for income taxes and licenses. They sold the stamps, collected the checks and deposited the money from time to time in bank to their own credit, with the knowledge and consent of Thompson, and under promise to pay it over to him whenever he wanted it.

The principal sum now claimed of $2,537, was found due by them on a settlement between Thompson and the firm in December, 1865, and when he called on them for it some time in February, 1866, they gave him their check on a Baltimore bank for $3,000, which included the $2,537 and a sum due Thompson individually. This with other checks and current notes amounting in all to about $24,000 were taken by Thompson to the National Exchange Bank, and he obtained on them from that bank a certificate of deposit for the whole amount payable to the order of the Treasurer of the United States, which he duly remitted to ⁵⁷⁷ that officer, and it was admitted in argument that it was received by him, was paid by the bank, and the amount thereof duly credited on the account of the collector in the office of Internal Revenue at Washington. Some days after-wards the §3,000 check of McFreely & Hopper was protested, and Thompson then from time to time made payments to the bank on account thereof until some time in April, 1866, when he paid the sum in full and the check was returned to him; these payments were wholly made by him out of other money collected by him as deputy collector of Internal Revenue. Subsequently, on the 1st of September, 1866, Thompson took from this firm their note, with two sureties, for $2,537, representing the money due the United States, and returned to them the $3,000 check, the difference between the note and the check having in the meantime been paid to him by the firm.

There was proof that the firm knew at the time they received the stamps and checks for taxes they did not belong to