The Federal Reporter. Volume 139 Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. September-December, 1905. Page: 427

                                
WHITE-SMITH MUSIC PUB. CO. V. APOLLO CO.

701, 34 L. R. A. 69, 55 Am. St. Rep. 646. The title of the trust com-
pany, however, in the sight drafts, in view of the unchallenged
original transactions, is not subject to attack unless it acted in bad
faith. The mere negligent acceptance or purchase of the bills of
exchange does not impute to the claimant a presumptive knowledge
of any unlawful diversion of the proceeds by 'Mr. Griffin. The
situation of the parties at the beginning of their relations was such
that the trust company could rightfully presume that the drafts were
drawn on the bankrupt pursuant to bona fide transactions existing
between the drawer and drawee. The subsequent arrangements
to secure the payment of the indebtedness are wholly dependent
upon the original transaction, and upon a course of business dealing
which the parties themselves adopted prior to the purchase of the
sight drafts in question. Nothing occurred before the failures of
the City National Bank and the Niagara Bank to put the claimant
upon inquiry. There were no suspicious circumstances attached to
the initial transaction to warrant the claimant in refusing the re-
newal drafts which evidently were a continuation of the original
indebtedness. As the evidence falls short of showing the drafts
in the beginning of the relations with the trust company to have
been without consideration, it necessarily follows that the conten-
tion of the trustee that the transfer of the Boston stock was ultra
vires must fail. Having concluded that, upon the main issues in-
volved, the referee has correctly decided the questions submitted
for review, a further discussion will not be necessary.
The question submitted, whether the claim of the North Amer-
ican Trust Company hitherto allowed by the referee should be ex-
punged, is answered in the negative.
WHITE-SMITH MUSIC PUB. CO. v. APOLLO CO. (two cases)
(Circuit Court, 8. D. New Ybrk. June 21, 1905.)
Nos. 8,126, 8,127.
1. CoPOI Ir--SFUITr  O INFINGEMENT--TITLE TO SUPPORT.
Where the composer of a piece of music has placed it in the hands of
a publishing company for publication and sale, it may reasonably be in-
ferred that he intended to authorize the company to copyright the same;
and where it does so in its own name, and he afterward ratifies its ac-
tion, it is vested with the legal title to the copyright, which will support
an action for its infringement.
[Ed. Note.-For cases in point, see vol. 11, Cent. Dig. Copyrights,  68.]
2. SAME-INFRINGEMET--MUSIAL COMPOSITION.
A musical composition, as an idea or intellectual conception, is not sub-
ject to copyright, but only its material embodiment in the form of a writ-
ing or print may be copyrighted; and a copyright of such a printed com
position is not infringed by a perforated record or sheet designed for unr
with mechanism to play the composition on a musical instrument.
[Ed. Note.-For cases in point, see vol. 11, Cent. Dig. Copyrights, i 63.
Matters subject to copyright, see note to Cleland v. Thayer, 58 C. C. A.
273.]