Harriman Nat. Bank v. Seldomridge

• Citation: 240 F. 111
• Decision Date: 08 February 1917
• Docket Number: 159.
• Parties: HARRIMAN NAT. BANK v. SELDOMRIDGE.
• Court: United States Courts of Appeals. United States Court of Appeals (2nd Circuit)

240 F. 111

HARRIMAN NAT. BANK v. SELDOMRIDGE.

No. 159.

United States Court of Appeals, Second Circuit.

February 8, 1917

Wesselman & Kraus, of New York City, for plaintiff in error.

Barber Watson & Gibboney, of New York City (Stuart G. Gibboney and George M. Burditt, both of New York City, of counsel), for defendant in error.

Before COXE, ROGERS, and HOUGH, Circuit Judges.

COXE Circuit Judge.

On January 28, 1915, a letter purporting to be signed by W. B Slaughter stating that he was the president of the Silverton National Bank, at Silverton, Colo., was sent to J. W Harriman, president of the Harriman National Bank of New York stating that he (Slaughter) wished to buy the control of the only other bank at Silverton, viz., the First National. In order to make this purchase he stated that he 'would require for about 60 days $25,000 or $30,000." This letter was signed W. B. Slaughter, with a rubber stamp. On February 1, 1915, the Harriman National Bank telegraphed Slaughter:

'Letter received. Will accommodate you to extent thirty thousand dollars for sixty days, upon security and joint note yourself and C. C. Slaughter when you need it. Letter follows.'

On February 6, 1915, all the stock of the First National Bank of Silverton was purchased from M. D. Thatcher and a check for $35,000 on the Mercantile National Bank was given in part payment therefor. This check was signed 'W. B. Slaughter by C. C. Slaughter. ' In order to meet this check, C. C. Slaughter handed in a deposit slip of which the following is a copy:

Deposited with Mercantile National Bank of Pueblo by Pueblo by W. B. Slaughter

2-8-16.

Enter all checks separately with name of bank drawn on

Dollars Cents

Currency

Gold

Silver

Checks

Harriman 30,000

Total $ 30,000

C. C Slaughter is the son of W. B. Slaughter and was cashier of the bank. W. B. Slaughter was engaged in the cattle business. On February 7th, C. C. Slaughter wrote to Joseph W. Harriman, president of the Harriman National Bank, a letter signed W. B. Slaughter, in which he says:

'I am herewith handing you the note, dated February 10, properly signed by myself and C. C. Slaughter and also inclose five hundred shares of the capital stock of the Mercantile National Bank and also four hundred shares of the First National Bank of Silverton, Colorado. Will ask you to kindly place the proceeds of this note to my credit. If for any reason this note is not satisfactory, kindly wire as I am drawing on the funds on Monday. * * * In fact, it will take us in all probabilities at least thirty days before we can consolidate the two banks.'

The note was discounted by the Harriman National Bank and the proceeds placed to the credit of W. B. Slaughter on February 10, 1915.

On February 17th, the Harriman Bank telegraphed to the Mercantile Bank of Pueblo, Colorado, as follows:

'Checks presented your account appears to be overdrawn $8,000. Have you remitted to cover overdraft? Slaughter's personal balance is $30,000. Did you intend to loan proceeds for credit bank, wire.'

In reply a telegram was sent dictated by C. C. Slaughter as follows:

'Place thirty thousand personal account W. B. Slaughter our credit.

'Mercantile National Bank.'

On receipt of this telegram the Harriman Bank transferred $30,000 from the account of W. B. Slaughter to the account of the Mercantile Bank and asked for confirmation of authority to do so. This was answered by a letter dated February 22d and was signed 'C. C. Slaughter, Cashier.' On March 23, 1915, a telegram was received by the Harriman Bank signed W. B. Slaughter as follows:

'Cancel authority C. C. Slaughter as an officer this bank as of date to-day resigned.'

On March 25th the assistant cashier of the Mercantile Bank telegraphed to the Harriman Bank asking for a statement of account. On March 26th, the Harriman Bank telegraphed to W. B. Slaughter as follows:

'W. B. Slaughter, President, Mercantile National Bank, Pueblo, Colorado.

'We credited your personal account thirty thousand dollars February tenth proceeds of loan. Under instructions from C. C. Slaughter February eighteenth we charged your personal account and credited account Mercantile National Bank with this thirty thousand dollars. Inasmuch as we have not received confirmation and instructions from you personally as requested we have this day charged Mercantile National Bank thirty thousand dollars and hold the amount out of their account and in our sundry

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