Manley v. State of Georgia
Citation | 279 U.S. 1,49 S.Ct. 215,73 L.Ed. 575 |
Decision Date | 18 February 1929 |
Docket Number | No. 429,429 |
Parties | MANLEY v. STATE OF GEORGIA |
Court | U.S. Supreme Court |
Messrs. Marion Smith, W. T. Colquitt, and Arthur Gray Powell, all of Atlanta, Ga., for appellant.
Mr. Reuben R. Arnold, of Atlanta, Ga., for the State of Georgia.
[Argument of Counsel from page 2 intentionally omitted] Mr. Justice BUTLER delivered the opinion of the Court.
Appellant was convicted in the superior court of Fulton county, Georgia, of a violation of section 28, art. 20, of the state Banking Act of 1919 (Acts Ga. 1919, p. 219). The judgment was affirmed in the highest court of the state. 166 Ga. 563, 144 S. E. 170. Appellant challenged the validity of that section on the ground, among others, that the presumption created by it is so unreasonable and arbitrary as to amount to a denial of due process of law in violation of the Fourteenth Amendment. His contentions were overruled by both courts, and that question is here for decision. Section 237(a), Judicial Code (28 USCA § 344).
The questioned section follows: 'Every insolvency of a bank shall be deemed fraudulent, and the president and directors shall be severally punished by imprisonment and labor in the penitentiary for not less than one (1) year nor longer than ten (10) years; provided, that the defendant in a case arising under this section, may repel the presumption of fraud by showing that the affairs of the bank have been fairly and legally administered, and generally, with the same care and diligence that agents receiving a commission for their services are required and bound by law to observe; and upon such showing the jury shall acquit the prisoner.'
This section is in words substantially the same as one first found in the Georgia Penal Code of 1833. But its meaning has been changed by a recent statutory definition of insolvency. Section 5, art. 1, Banking Act of 1919, declares: 'A bank shall be deemed to be insolvent, first, when it cannot meet its liabilities as they become due in the regular course of business; second, when the actual cash market value of its assets is insufficient to pay its liabilities to depositors and other creditors; third, when its reserve shall fall under the amount herein required and it shall fail to make good such reserve within thirty (30) days after being required to do so by the superintendent of banks.' Prior to its enactment, none of the conditions specified was deemed insolvency. Griffin v. State, 142 Ga. 636, 642, et seq., 83 S. E. 540, L. R. A. 1915C, 716, Ann. Cas. 1916C, 80.
Construing section 28, after this enlargement of the meaning of insolvency, the state court, in Snead v. State (1927) 165 Ga. 44, 139 S. E. 812, held that, upon proof of insolvency, it is presumed to be fraudulent, and an accused president or director is presumed to be guilty. The court said at pages 53, 55, of 165 Ga. (139 S. E. 817), that this
The indictment in the case at bar merely alleges that at a time and place specified appellant, being president of a bank named and he and two others being directors of said bank 'and the said accused being by law then and there charged with the fair and legal administration of the business and affairs of the said' bank 'then and there pending and during the said official charge and responsibility of the said accused, the said' bank 'did become fraudulently insolvent, contrary,' etc.
Referring to the language of the section, the court in this case declared that the affairs of a bank are 'fairly and legally' administered when they are administered 'honestly' and 'in accordance with law.' And it said, at pages 578, 579, of 166 Ga. (144 S. E. 178), that the presumption that the insolvency is fraudulent The proviso permits the presumption that a crime has been committed to be repelled by the showing specified therein; and, under the decisions of the court, the accused may show any facts that tend to rebut the presumption that he is guilty of the offense charged.
State legislation declaring that proof of one fact or a group of facts shall constitute prima facie evidence of the main or ultimate fact in issue is valid if there is a rational connection between what is proved and...
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