State v. Alexander, 23517.

Citation167 Wash. 15,8 P.2d 298
Decision Date25 February 1932
Docket Number23517.
PartiesSTATE v. ALEXANDER.
CourtUnited States State Supreme Court of Washington

Department 1.

Appeal from Superior Court, Clark County; Geo. B. Simpson, Judge.

C. B Alexander was convicted for unlawfully loaning bank's funds and for theft of bank's property, and he appeals.

Affirmed.

Dale McMullen and Claude C. Snider, both of Vancouver, for appellant.

D Elwood Caples, of Vancouver, for the State.

BEELER J.

In count I of the information the defendant, C. B. Alexander was charged with having unlawfully loaned to himself as an officer of the American Security Bank of Vancouver, a banking corporation, the sum of $1,875 of the bank's funds without having procured a resolution authorizing and approving such loan by a majority of the directors at a meeting at which he was not present. This count is based upon section 3259, Rem. Comp. Stat., which reads:

'No bank or trust company shall, nor shall any officer or employee thereof on behalf of such corporation, directly or indirectly, loan any sum of money to any director, officer or employee of such corporation, unless a resolution authorizing the same and approved by a majority of the directors, at a meeting at which no director, officer or employee to whom the loan is to be made shall be present, shall be entered in the corporate minutes.
'Every director and officer of any bank or trust company who shall borrow or shall knowingly permit any of its directors, officers or employees to borrow, any of its funds in an excessive amount or in violation of the provisions of this section, shall be personally liable for any loss or damage which the corporation, its shareholders or any person may sustain in consequence thereof, and shall also be guilty of a felony.'

In count II the defendant was charged with the theft of a promissory note of the value of $910, executed by J. N. Latham, and which note was payable to, and in the possession of, the bank at Vancouver, together with $965 of the bank's money. This count is based upon sections 2601-2605, Rem. Comp. Stat., and, in part, reads: 'That he, the said C. B. Alexander, on or about the 1st day of December, 1928, in the county of Clark, State of Washington, did, then and there with intent to deprive and defraud the owner thereof, unlawfully and feloniously take, steal and appropriate to his own use property of the American Security Bank. * * *' (Italics ours.)

A trial to the jury resulted in a conviction as charged. Motion for a new trial being denied, judgment and sentence were entered upon the verdict, and this appeal followed.

From the evidence, the jury were warranted in finding these facts: That from July, 1926, to April 15, 1929, the appellant was president of the American Security Bank at Vancouver, Wash., and a member of the board of directors and one of its principal stockholders; that the bank closed its doors on April 15, 1929, at which time it passed into the hands of the banking supervisor for liquidation; that Latham was a director and stockholder of the bank; that the stockholders of the bank, prior to September 24, 1928, mutually agreed to a voluntary assessment being levied against their respective stock; that Latham's stock was assessed $900, and on that day he executed and delivered his promissory note, payable to the order of the bank, in payment of his assessment; that Latham owned fifteen shares of stock valued at $125 per share or a total valuation of $1,875.

At some time prior to December 1, 1928, considerable friction arose between the appellant and Latham, and, by reason of that fact, together with the further fact that the appellant had been negotiating with the American Banking Corporation, a banking institution, with a view of having that company purchase and take over the American Security Bank of Vancouver, the appellant was anxious and desirous to get possession of the Latham stock, apparently for the purpose of eliminating Latham from the board of directors, and also for the purpose of consummating the deal with the American Banking Corporation. With this end in view, the appellant, on December 1, 1928, interviewed Dick Hardison at his place of business in Vancouver, and persuaded and induced him to execute his promissory note in the sum of $1,875 payable to the order of the American Security Bank. Hardison testified: 'The doctor (meaning appellant) told me he was in a jam and asked me to sign the note.' It was understood between Hardison and the appellant that the latter would pay the $1,875 and that Hardison would be relieved thereof. Hardison never received any money on this note. After securing Hardison's signature to the note, the appellant took it to the bank, where a record was made indicating that it was an ordinary loan to Hardison; the record further showing a credit to Hardison's account in the sum of $1,875. On the same day the appellant transferred this credit of $1,875 to his own account as trustee. This account appears on the records of the bank as 'C. B. Alexander, Trustee, account'; that the board of directors never authorized, by resolution or otherwise, the making of this loan of $1,875 to either the appellant or to Hardison.

With the bank records in this shape, the...

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4 cases
  • GMB Enterprises, Inc. v. B-3 Enterprises, Inc.
    • United States
    • Washington Court of Appeals
    • 29 Enero 1985
    ...who owned 99 percent of corporate shares could not utilize such corporate entity to evade a legal obligation); State v. Alexander, 167 Wash. 15, 8 P.2d 298 (1932); Annot., Construction and Application of Statutes Prohibiting or Limiting Loans to Bank's Officers or Directors, 49 A.L.R.3d 727......
  • State v. Knizek
    • United States
    • Washington Supreme Court
    • 26 Noviembre 1937
    ...of the crime substantially charged therein, unless the defendant would thereby be prejudiced in a substantial right.' In State v. Alexander, 167 Wash. 15, 8 P.2d 298, situation very similar to that in the case at bar was presented, and it was there held that an amendment at the close of all......
  • State v. Sylvia
    • United States
    • Washington Supreme Court
    • 19 Mayo 1938
    ...the record Before us we are compelled to assume that no right of appellants were infringed by amending the information. State v. Alexander, 167 Wash. 15, 8 P.2d 298; State v. Smiley, 167 Wash. 342, 9 P.2d Appellants contend they cannot all be charged in the same count. Rem.Rev.Stat. § 2605,......
  • State v. Berg, 33464
    • United States
    • Washington Supreme Court
    • 7 Junio 1956
    ...court's ruling. Under such circumstances, the court may properly permit an amendment to cure a defect in the pleadings. State v. Alexander, 167 Wash. 15, 8 P.2d 298. And since the information charged that the funds were misappropriated with the intent to deprive or defraud the owner thereof......

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