First Nat. Bank v. City Nat. Bank

• Decision Date: 29 January 1896
• Citation: 34 S.W. 458
• Parties: FIRST NAT. BANK OF CORSICANA v. CITY NAT. BANK OF DALLAS.<SMALL><SUP>1</SUP></SMALL>
• Court: Texas Court of Appeals

34 S.W. 458

FIRST NAT. BANK OF CORSICANA v. CITY NAT. BANK OF DALLAS.¹

Court of Civil Appeals of Texas.

January 29, 1896.

Appeal from district court, Dallas county; Edward Gray, Judge.

Action by the First National Bank of Corsicana against the City National Bank of Dallas. Judgment for defendant. Plaintiff appeals. Affirmed.

Appellee, on the morning of November 13, 1891, received by mail a draft, drawn by appellant, in its favor, for $2,000, on the bank of Bonner & Bonner at Tyler, for collection and credit. The Corsicana bank had the proper credit with Bonner & Bonner. That afternoon the Dallas bank mailed the draft to Bonner & Bonner, with directions to credit its account with the same, and to remit the balance due by Bonner & Bonner to the bank, which consisted of $3,805.35, besides the $2,000 represented by the draft. The draft reached Bonner & Bonner during the forenoon of the 14th, the time not given in the record. The instructions were not complied with, and the remittance was not made. It appears, from the evidence, that the bank of Bonner & Bonner opened on the morning of the 14th with about $3,500 on hand in cash and cash items, the proportions not shown, and received, during the morning (time not given), by express, $5,000, besides some deposits, the amount of which does not appear. It continued open until the usual closing hour, 3 p. m., paying every demand that was made upon it. It continued the business, as usual, until about 1 o'clock, when the cashier received a telegram from New York which made it apparent that the bank must fail. After that, all deposits were laid aside, and restored to the persons depositing. Upon receipt of said telegram, Bonner & Bonner communicated its condition to the First National Bank of Tyler, which bank became solicitous that the failure of Bonner & Bonner should not become public that day, for fear of precipitating a run that afternoon on the banks in Tyler, and it was arranged between these two banks that the latter should furnish Bonner & Bonner with $1,000 (which was furnished), to enable them to pay such local checks as might be presented at their counter during that afternoon; the latter bank also agreeing not to present any collections they might receive against Bonner & Bonner. At the closing hour Bonner & Bonner had on hand $1,800 in cash and cash items, the proportion of which does not appear. The next day was Sunday, and an assignment followed. It does not appear that the Corsicana bank, by consent or by usage, authorized the forwarding of their draft direct to Bonner & Bonner, the drawee. These seem to be all the facts necessary, in our opinion, to a decision of the cause.

McKie & Autry, for appellant. Crawford & Crawford, for appellee.

JAMES, C. J. (after stating the facts).

Appellee contends that the Dallas bank had...