City of Somerville v. Beal

Decision Date14 March 1892
Citation49 F. 790
PartiesCITY OF SOMERVILLE v. BEAL, Receiver.
CourtU.S. District Court — District of Massachusetts

Selwyn Z. Bowman, for complainant.

Hutchins & Wheeler and Frank D. Allen, U.S. Atty., for defendant.

COLT Circuit Judge.

This is a bill in equity brought by the city of Somerville, against Thomas P. Beal, receiver of the Maverick National Bank claiming title to certain checks (or their proceeds) deposited in said bank on the afternoon of October 31, 1891 the day the bank closed its doors for business. The case was heard upon demurrer to the bill, the receiver contending that the title in the checks passed to the bank, and that the city of Somerville must come in with the general creditors. The main allegations of the bill are, in substance, as follows On Saturday, October 31, 1891, at about a quarter before 3 o'clock in the afternoon, the treasurer of the city of Somerville deposited in the Maverick National Bank checks on different banks, amounting to $21,171.40, and $8,450 in cash. The bank closed its doors at 3 o'clock on that day. The treasurer handed the checks (with the other deposit) to the receiving teller, with a deposit ticket, and at the same time his pass-book, and the teller at once credited the total amount of the deposit therein. The treasurer stamped the following indorsement on the back of each check: 'For deposit. JOHN F. COLE, Treas. & Coll. City of Somerville. ' After the bank closed its doors on that day, the books of the bank according to the usual custom, were posted and balanced, and the amount of said checks was placed to the credit of said city of Somerville, and the checks put in the clearing-house drawer, with other checks intended for presentation at the clearing-house on the following Monday. On the following day, Sunday, the bank was declared insolvent, and the bank examiner took possession of the same. All the assets and property of the bank were held by the examined until the time the receiver was appointed. On Monday the bank examined caused the checks to be sent to the clearing-house, where they were paid, and the proceeds thereof were received by the examined. Subsequently these proceeds were transferred to and are now held by the receiver. They have been kept in the accounts of the receiver separate and distinct from the other funds of the bank. The city treasurer had for several years made deposits with said bank without any special agreement in regard thereto. There was no agreement that checks, when deposited, should be considered as cash, or that the treasurer could draw against them before collection; and the treasurer never drew a check for which his deposit was not sufficient, without counting the proceeds of uncollected checks, except in a few instances, where a special arrangement was made with the bank by which the bank agreed to advance him certain specified amounts of money on his checks in excess of deposits. There was no express understanding that the checks should or should not be credited to the city immediately on deposit, but they were always so credited on the pass-book at the time of the deposit. The treasurer did not know whether the books of the bank were balanced after the close of business on each day, and credit given on the books of the bank for checks deposited on that day, but he did know that the amount of such checks was at once credited to him on his pass-book. It was the custom of the bank, on balancing the books at the close of each day's business, to credit deposits on that day at their face value, and without discount; and it was also the custom of the bank, in case a check was returned from the clearing-house uncollected, forthwith to charge off to such depositor any such check, and thus cancel the credit. It was the practice of the Maverick Bank, and is the practice of the other banks in Boston, in some cases, to allow...

To continue reading

Request your trial
13 cases
  • Security Nat. Bank of Sioux City, Iowa, v. Old Nat. Bank of Battle Creek, Mich.
    • United States
    • U.S. Court of Appeals — Eighth Circuit
    • February 22, 1917
    ... ... 683; Goshorn v ... Murray (D.C.) 197 F. 407; Stapylton v. Cie des ... Phosphates de France, 88 F. 53, 31 C.C.A. 383; City ... of Somerville v. Beal (C.C.) 49 F. 790; Beal v. City ... of Somerville, 50 F. 647, 1 C.C.A. 598, 17 L.R.A. 291; ... Griffin v. Erskine, 131 Iowa, 444, 109 ... ...
  • Cherry v. Territory
    • United States
    • Oklahoma Supreme Court
    • September 5, 1906
    ... ... N.W. 466, 35 Neb. 530; In re North River Bank, 14 ... N.Y.S. 261, 60 Hun, 91; City of Somerville v. Beal (C ... C.) 49 F. 790. If it had been delivered to the bank, not ... as a ... ...
  • Forsythe v. First State Bank of Mentor
    • United States
    • Minnesota Supreme Court
    • February 5, 1932
    ...authority to the contrary wherein the irretrievable insolvency is the direct result of the act of the particular banker. City of Somerville v. Beal (C.C.) 49 F. 790; Beal v. City of Somerville (C.C.A.) 50 F. 647, 17 L.R.A. 291; see also re Silver (D.C.) 208 F. 797. Reversed. LORING, J. took......
  • Winfield Nat. Bank v. McWilliams
    • United States
    • Oklahoma Supreme Court
    • February 7, 1900
    ... ... with instructions to remit to the correspondent of the ... Winfield National Bank in the city of New York, viz. the ... Hanover National Bank, which was done. On the 24th day of ... October, ... bank." In the case of City of Somerville v. Beal (C ... C.) 49 F. 790, the city treasurer deposited certain ... checks with the Maverick ... ...
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT