KNOCH, Circuit Judge.
Plaintiff-appellant, (hereinafter referred to as "North America"), as subrogee, brought this suit in two counts against defendant, (hereinafter called "Morgan") to recover $38,457.19 for damage to yarn of plaintiff's insured, Straus Knitting Mills, (hereinafter called "Straus"), from water escaping through a dry line sprinkler system in Morgan's warehouse on November 4, 1951.
Count I is based on the theory that Morgan breached its bailment...
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