Thomson v. Bank of Syracuse

• Court: Kansas Court of Appeals
• Writing for the Court: ARNOLD, J.--
• Citation: Thomson v. Bank of Syracuse, 278 S.W. 810, 220 Mo. App. 805 (Kan. App. 1926)
• Decision Date: 11 January 1926
• Parties: A. S. THOMSON, RESPONDENT, v. BANK OF SYRACUSE, FRANK C. MILLSPAUGH, COMMISSIONER OF FINANCE OF THE STATE OF MISSOURI, AND FRANK J. QUIGLEY, SPECIAL DEPUTY COMMISSIONER OF FINANCE OF THE STATE OF MISSOURI, APPELLANTS

278 S.W. 810

220 Mo.App. 805

A. S. THOMSON, RESPONDENT, v. BANK OF SYRACUSE, FRANK C. MILLSPAUGH, COMMISSIONER OF FINANCE OF THE STATE OF MISSOURI, AND FRANK J. QUIGLEY, SPECIAL DEPUTY COMMISSIONER OF FINANCE OF THE STATE OF MISSOURI, APPELLANTS

Court of Appeals of Missouri, Kansas City

January 11, 1926

Appeal from the Circuit Court of Cole County.--Hon. Henry J Westhues, Judge.

AFFIRMED.

Judgment affirmed.

James W. Broaddus and McAllister, Humphrey & Pew for respondent.

Montgomery Rucker & Hayes for appellant.

ARNOLD J. Bland, J., concurs; Trimble, P. J., absent.

OPINION

ARNOLD, J.--

This is an action to have established, as preferred, a claim against the defunct Bank of Syracuse which closed its doors on April 7, 1924, the Commissioner of Finance of the State of Missouri taking possession of the business and property thereof and placing the same in the hands of a deputy commissioner, for liquidation.

The facts disclosed are that the Bank of Syracuse was incorporated under the laws of the State of Missouri and doing business at the town of Syracuse, Morgan County, Mo. Plaintiff formerly had been cashier of said bank and at the time of the institution of this suit, and for some years prior thereto, was a resident of Kansas City, Mo. On his removal from Syracuse to Kansas City, or soon thereafter, plaintiff closed his account in the Bank of Syracuse, withdrawing all his deposit therefrom except $ 25, which he left as evidence of good will; and said account had thus remained inactive for some years prior to the occurrences leading up to this action.

Plaintiff held a note for $ 5000 executed by one R. T. Carpenter and wife, secured by a first deed of trust on a farm adjacent to the town of Syracuse, and dated April 29, 1922, falling due on April 29, 1923. A short time before the note fell due, plaintiff delivered the note and deed of trust to E. E. Poe, then president in active control of the Bank of Syracuse, with instructions to collect and remit the proceeds thereof to plaintiff at Kansas City. The note was not paid when due and an extension of thirty days was allowed by plaintiff. The note, together with interest, was paid to Poe on May 29, 1923, the total amount being $ 5,379.17. This amount was not sent to plaintiff but was placed by Poe to plaintiff's credit in the Bank of Syracuse. The note was paid by the maker thereof securing a new loan of $ 5000 from a company in Sedalia, Mo., and giving his check for $ 379.17 on the bank of Syracuse, being the amount of the accrued interest.

Plaintiff's testimony was to the effect that he did not know the collection was made, nor that he had been credited therewith on the ledger of the Bank of Syracuse; that he had not authorized anyone to make such deposit, and that no one was authorized to draw against, or charge any item against said account.

It is shown by the record that on January 18, 1924, two checks were drawn by Poe for $ 1500 each, one payable to C. D. Steele and the other to the Wood Store, signed by Mary E. Nelson. The said checks went through the bank and were paid, but upon the bottom of each was a notation, "Charge to A. S. Thomson." On March 25, 1924, a check for $ 1020 in favor of the Community Bank, signed by E. E. Poe was drawn. This check also bore a memorandum, "Charge to A. S. Thomson." On March 8, 1924, a check was drawn payable to E. P. Poe for $ 2400, signed A. S. Thomson by E. E. Poe, and deposited to the credit of Poe; and later on another check was drawn to E. E. Poe for $ 484.17 signed A. S. Thomson by E. E. Poe, and deposited to Poe's account, thus exhausting the entire balance to the credit of plaintiff. Shortly after the two checks of $ 1500 each had been charged against plaintiff's account, he was credited with $ 1500. This credit, together with the $ 25 inactive balance, and the $ 5379.17 paid by Carpenter, equals the total of the items charged against him by Poe, so that the check of $ 484.17 exhausted the balance to plaintiff's credit.

Plaintiff testified he knew nothing of the transactions above detailed and that none of them was authorized by him. Poe testified that the two checks of $ 1500 each were to cover overdrafts of two other customers of the bank; that the check for $ 1020 was to pay an obligation of the Syracuse Bank for which it was responsible to the Community Bank, in whose favor it was drawn; that the $ 2400 check was used by him (Poe) in meeting pressing obligations of the bank in an attempt to keep it afloat, and that this, together with the last check of $ 484.17, together with all of Poe's personal estate, were consumed in a futile effort to prevent the bank from failing.

There is some slight evidence of record tending to show that for a short time prior to the bank's failure plaintiff might have known that the money in question was in the bank. Plaintiff testified that Carpenter, to whom he had sold the farm, was claiming there was a defect in the title and for this reason he was unable to get a new loan on it, and this fact, together with Poe's statements, led plaintiff to believe Carpenter was depending upon the Bank of Syracuse to lend him the money with which to pay the note held by plaintiff; that Poe told plaintiff the bank was unable to furnish the money because the grain men were making heavy demands upon the bank for money to handle grain and he could not meet all demands.

Plaintiff testified he learned from an officer of the Pioneer Trust Company of Kansas City that the grain men had paid off their obligations to the Bank of Syracuse. This testimony was given in explanation of a letter written by him to Poe on January 30, 1924, in which the following clause appears: "Since Sister has died I will have to give Myrtle her money. Wish you would arrange to send me the amount of the Carpenter note and interest--my understanding is that you have it. You wrote me that Ellis and the Farmers Elevator had so much wheat on hand and I suppose they have moved it by this time." Plaintiff testified this statement in the letter was made upon the belief that Poe had been waiting for the grain men to pay their obligations to the bank so the bank could furnish Carpenter a loan to enable him to pay the $ 5000 note to plaintiff. Poe wrote plaintiff later that he would be in Kansas City in a few days and bring him a draft for the amount of the Carpenter loan.

On March 24, 1924, Poe sent plaintiff a check for $ 5000, stating, in a letter dated February 13, 1924, that he would bring him the interest. Plaintiff testified that this was the first information he had that the Carpenter collection had been made. This is the only evidence on this point in the case. On February 26, 1924, plaintiff wrote the county clerk at Versailles, Morgan County, Mo., asking if the deed of trust securing the note in question had ever been released and in reply was informed that it had been satisfied of record May 29, 1923.

Upon securing this information, plaintiff wrote Poe again and received the reply that Poe and his wife were going on a vacation and would bring a draft with them. Within a few days thereafter Poe sent plaintiff the check above mentioned. Plaintiff deposited the check in a local bank in Kansas City and when it reached the bank at Syracuse, a draft on a bank in Sedalia was sent plaintiff in payment thereof. The draft on the Sedalia bank was dishonored and the Bank of Syracuse was closed on April 7, 1924. The record shows that on the day following the closing of the bank plaintiff went to Syracuse and was shown the books of the bank and learned that the money had been entered thereon as a deposit. He stated that after finally learning that the money had been collected he...