Kendrick State Bank v. First Nat Bank of Portland

• Decision Date: 04 May 1914
• Docket Number: 2347.
• Citation: 213 F. 610
• Parties: KENDRICK STATE BANK v. FIRST NAT. BANK OF PORTLAND.
• Court: U.S. Court of Appeals — Ninth Circuit

213 F. 610

KENDRICK STATE BANK v. FIRST NAT. BANK OF PORTLAND.

No. 2347.

United States Court of Appeals, Ninth Circuit.

May 4, 1914

Deposits in bank after insolvency, see note to Richardson v. New Orleans Coffee Co., 43 C.C.A. 588.)

Appeal from the District Court of the United States for the District of Oregon; Charles E. Wolverton, Judge.

Action by the Kendrick State Bank against the First National Bank of Portland. Judgment for defendant (206 F. 940), and plaintiff appeals. Affirmed.

Stapleton & Sleight, of Portland, Or., and C. L. McDonald, of Lewiston Idaho, for appellant.

Dolph Mallory, Simon & Gearin, of Portland, Or., for appellee.

Before GILBERT and ROSS, Circuit Judges, and DIETRICH, District Judge.

ROSS Circuit Judge.

We think a bare statement of the substantial facts in this case appearing from the written correspondence of the parties and by uncontradicted oral testimony, is enough to show that the judgment of the court below should be affirmed.

The action was brought by the plaintiff in error to recover a balance of $8,283.09, claimed to be its money on deposit with the defendant, which the latter refused to repay upon demand. The record shows that the Kendrick Bank had been, for a number of years prior to the transactions in question, a correspondent of the Portland Bank-- J. W. Bradbury being its president and the owner of 23,000 of the 25,000 shares of its stock, and all of the balance, with the exception of sufficient to qualify the other directors, being owned by members of his family. In June, 1910, the Kendrick Bank obtained a loan from the Portland Bank of $5,000 at 6 per cent. per annum interest, giving as security therefor a certificate of deposit in that amount, with certain other collaterals; the money so loaned being deposited with the Portland Bank to the credit of the Kendrick Bank. That loan was extended from time to time at the request of the Kendrick Bank. In December, 1910, the Portland Bank received from the Kendrick Bank these two letters:

'Kendrick State Bank, Kendrick, Idaho, Dec. 6, 1910.

'J. W. Newkirk, Cashier First National Bank, Portland, Oregon-- Dear Sir: In reference to our C-- D-- due Dec. 12th for $5,000.00. Would it be possible for us to get an extension on this for six months? The collections with (us) are at a standstill, and from the outlook I am of the opinion they will continue so until another crop is harvested. We inclose our C-- D-- for $5,000.00 for the time asked for in case you can grant us the extension asked to replace the one you hold. We are writing you on another sheet for this to be carried in another way, with our reasons for asking for the change. Hoping you will grant us the favor of an extension, and thanking you for your many kindnesses of the past, I am,

'Very truly yours,

J. W. Bradbury, Prest.'

'Kendrick State Bank, Kendrick, Idaho.

'Kendrick, Idaho, Dec. 6, 1910.

'J W. Newkirk, Cashier First National Bank, Portland, Oregon-- Dear Sir: I am sending herewith my personal note for $5,000 with Kendrick Bank stock for the like amount attached, for your consideration. We would like to have you, in case you can grant us the extension asked in letter regarding our C-- D-- for $5,000 due Dec. 12, 1910, to have you take this note and pass to our credit in place of the C-- D-- . The reason for this is: In our statements to the state bank commissioner, which are published, we now have to publish any certificates of deposit to other banks for borrowed money as such, and in a farming community this always causes unfavorable comment and naturally hurts. I feel sure our average daily balance as we have kept it for the past few months will be kept as strong, and we want this extension more to keep our reserve in as good shape as possible. ...