United States v. National Exchange Bank

• Decision Date: 02 February 1891
• Citation: 45 F. 163
• Court: U.S. District Court — Eastern District of Wisconsin
• Parties: UNITED STATES v. NATIONAL EXCHANGE BANK.

45 F. 163

UNITED STATES v. NATIONAL EXCHANGE BANK.

United States Circuit Court, E.D. Wisconsin.

February 2, 1891

Elihu Colman, U.S. Atty.

Van Dyke & Van Dyke, for defendant.

BUNN J.

This action is brought to recover the sum of $1,159.05, the amount of a check drawn by the post-office department at Milwaukee on the defendant, in favor of one Anton Erben, and made payable to him or his order on December 3, 1889, and paid on that day by the bank to one Adolph Schuman upon a forged indorsement. The facts, about which there is no controversy are substantially these: Some time in July, 1889, Anton Erben, who had then recently come to this country from Austria, came to Milwaukee, and applied to the German Aid Society, and requested the secretary, Mr. C Reuter, to help him to obtain work. This society is a corporation doing business in Milwaukee, its purpose being to render aid and give advice to emigrants and other persons who need such assistance. After recording his name in the record book of the society, Erben was sent by the society to Elm Grove, Wis., to work on a farm. From here he drifted about and finally settled down as a section hand on the railroad at Woodruff, Wis. Here he fell in with one Adolph Schuman, who was working and boarding at the same place, and with whom Erben became intimate. After a little Erben and Schuman fell to courting the same girl in the family of their host, to whom Erben disclosed the fact that he had a sum of money amounting to 3,000 guilders due him from Austria. By this means Schuman, as is supposed, soon after, became possessed of the same secret, and from this moment set himself systematically and ingeniously at work to defraud Erben of this money. Woodruff was then the end of the line of the Milwaukee & Lake Shore Railroad, and had no post-office, the men going thence to Minoqua, five miles away, to get their mail. Schuman volunteered to carry Erben's letters to and from this post-office. On a certain Sunday, Erben wrote a letter to his father, Anton Erben, Sr., in Austria. In this letter he spoke of his money, and also a certain pass-word agreed upon between him and his father, without which the money was not to be sent; such pass-word being the date of young Erben's birth, July 9, 1849. On the way to Minoqua Schuman opened this letter, which gave him the secret which was the key to unlock the treasure he sought. He at once opened correspondence with Anton Erben, Sr., at Oberhagen, Austria, always carrying over to Minoqua Erben's letters, and bringing them back from the office. He would open Anton Erben's letters to his father, read and destroy them, write others in their places, imitating Erben's hand, and signing his name. And when letters came for Erben, Schuman would destroy them and write others in their places. Finally he wrote a letter to Anton Erben, Sr., in Austria, requesting him to send the money, and giving the agreed pass-word, signing, as usual, Anton Erben's name. Then an answer came from Anton Erben, Sr., saying the money had been sent addressed to Anton Erben, care of the German Aid Society, Union depot, Milwaukee, Wis. This letter was also intercepted by Schuman. On reading it he returned to Woodruff, picked a quarrel with Erben, and announced his intention of leaving to find work elsewhere. This was about November 15, 1889. Schuman then came to some small place near Milwaukee, and from there wrote, signing Erben's name, to Mr. Reuter, secretary, to forward any mail addressed to him, as he expected valuable letters to come in care of the society. Soon two letters came addressed to Anton Erben in the care of the society, containing the money orders, and Mr. Reuter forwarded them as requested. On December 3d, Schuman presented himself at the office of the German Aid Society in Milwaukee, when the secretary tells him he does not know him. 'What,' says Schuman, 'don't you remember Anton Erben, who was here in July, and for whom you obtained work? Besides, you forwarded me some letters, and I have them here. ' He thereupon handed Mr. Reuter the money orders, and a letter from Anton Erben, Sr. Then Reuter begins to think he is indeed Anton Erben, and, without demanding further evidence, takes Schuman to Milwaukee post-office, and in his official capacity as secretary and agent of the German Aid Society in whose care the letters and orders had come, identifies Schuman as the true payee, indorses one order with Schuman, as 'C. Reuter, Agent,' and in the name of the society vouches for him. The postmaster, knowing that Reuter was the secretary and agent of the society in whose care these advices and orders had come, and that he had been in the habit of identifying payees almost daily at his office, after asking the usual questions provided by law and the rules of the department, accepted the identification as fulfilling all the requirements of section 1297, Postal Laws & Reg. 1887, and gave to Schuman, in the name of Anton Erben, a check on the defendant bank for the amount of the orders, fully believing him to be the Anton Erben named in the order as payee, and entitled to the money. Reuter then went with Schuman, as was his custom, to the bank, and identified Schuman as the payee named in the check, and as the person who had just been identified by the post-office department as Anton Erben, and entitled to the money. The check being payable to Anton Erben or order, Schuman and Reuter each indorsed it, Reuter signing as 'C. Reuter, Agent.' And thereupon the bank paid to Schuman the amount of the check, which he began immediately to spend lavishly and foolishly about the city, purchasing, among other things, a gold watch, a gold-headed cane, four gold rings, and a rather expensive pipe. This coming to Reuter's knowledge the next day, his suspicions were aroused, and he tried to find Schuman, but it was too late. Schuman had gone, no one knew where, and has not been found. About January 19, 1890, the real Anton Erben came to Milwaukee, and presented himself before the secretary, and recalled himself to his recollection. Reuter questioned him, and told him that his money was gone. 'Ah, no,' says Erben, 'no one can get my money without the pass-word, and no one knows what that is but my father and I.' Things remained in about this state until March 9th or 10th, when Erben made complaint, and stated the case to Moritz Von Baumbach, the Austrian consul at Milwaukee. On March...