The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-02-04
An Important Bank Case Decided.

city In the United states circuit Court, Hon. Thomas
terests &c well Is the amount Of money Involved has
attracted much attention. We present our readers with
. brief outline Of te history as follows
tebitshed in 1853, old unoccuped charter, with
capital OF S50c00. OF this capital large controlling In
and s ussers ~ the Hersss. and Mechsncs' Bank Of
this CITY, the remaining $l2 900 being held by parties In
Maine. AT that time the well known stephen Bronson
caaher and general financial agent Of the Merchants
and Mechanics Bank. Through ais engineering, Thomas
j. Jones formerly In . banking house in this city was
sent to FArpg .on to become cashier Of tho Sandy
River Bank, at the option. however Of Its managers. He
wac accepted his bonds being auly prepared here. he
assumed nis position with the secret understanding that
managers allowed him. be increased TO o. 900 per
snru difference 70 be sed TO the Merchants and
Mechanics Bank a. money Of Jones"
With this secret understanding With his employers on
n side Of The lakes Jones so r.n&ed the Affairs oil
MS down Fast employers thai the Merchants and Ne
chsnics Bank Of Chicago had at ali times during the
Bron,or alton nom $40 600 to $4,000 OF the
funds Of tie sandy River Bank, over aud above what
appeared upon The book. Of me latter some deveope
settlement seemed desirable on the part OF the mana
gers Of The Merchants and Mechsnies'.
In July. 1885, the sum of $22, 600 stood charged
sganst he latter the books Of the former and the
then resident, Mr. Woodwork, with Cashier Bronson,
bad interview In New York city with Cashier Jones,
Of bcb settemeot arrived NJ by Jones giving
cept in full and taking ei7oto OF Bronsons private pa
per and SIC IN casb thus squarpg accounts wecn
eeyeopsmepts srowlDs on, Of this $40 600 cash pay
meet that the encn q the sandy River Bank officers
called 10 the matter and this su't Instituted, Rss
much the cash pay ment contested largely q short
time drafts Of Bronson, private, endorsed by Cashier
Jones oBcsy. Thtse drsfs were protested, ana suits
for $3.50 and were brough, against the exnk 81
FAYm,r g,on endorseYs.
An sttemp, al an psnauon all round fcrswed aud
thh suit vss brought s principal points boss presented
ne Sondy Rire Bank q Flrnisstcr, Grir< u. The
Nechona' dad Meshanie,' Bark " Cai;aqo This was An
action brought BY the psiutn against the defendant Tor
Al hslsu nf An AL eged IN ~ q
claimed wbsevey balance wss due was settled and
PAID IN jury 1855, In New York. BY al nrs7gon ent be
tween the President Of the Cncaso Bank and the Cashier
Of the Pennington Bark. when tue latter gaze recept
10 full for the amount dps he sandy River Bank denied
that this ece wAs bin ug on the erouns MAJ n Dash
Ter bad iskep % part payment not money but The notes
bsof third ysrles, which II has inus Cd tie cashier
had authority o cashier TO reoeive. part Of the
pans account conssed or The salary paid TO ih cash.
Ter OF tie farnins.on Bank and 10 its Pr sidert, and
which charged 10 the oeiepdent Ia pursuance OF
srpnss made by The cashier OF the Caicsso Bank,
Mr. Jones IN September 1852 aud subse Juenty Il sp
pcsring hat Mr. Jones not nt Tar u!ngon 10 act
CASHIER by ,bose who hsd controlling IL crest in both
balbs.
ne Court Instructed tho Jury generally upon the lsr
ef the ind a. 20 the pay ment OF the salary OF INC
csshnr o. The Fu mirgon sAns ~ ne aelsn cant pur'
ntsb snd not binding on The Chicago Bank and
also rsuc'eo the jGry that cashier OF oans hal
The rieh virtue Of hs Cce 20 sisohafge de !
due ,ne bank BY taking other securities for the dect
Cror these two poina the charge Of tie Court MAS "a
follows
M Bsousou q, the oashier Of the Merchans' and Ne
chsnics' Bank, had no rpht beoaase no was cashier
merely to make the contract be made with Mr. Jonos o'
the 1s,b september, 1858, 10 ss ~ bind tho bsuk
there mist have been express srtntry from the bank
uiipg fr n bscespsTy Implication. And In or
der TO be binding on ibe cana 1s uoale nave 70 DC
10 the nature oftns Appointment nf aaen and not
srpoipineni 70 the cathersnip Of osLr In an'thsr
STATE.
asie 10 rerorm any &c. .nlch could perform Ipeii
ard which 70 no, proo'bted by sw
the ritsns IN no account .nics 10 alleged are
chsrscd ,ne defendant as salary of Me- Jones' have
been admitted sllowed by Ins bank, IS hanf, for
services p"rfor ned, hen the cry may charge toe de
fend vitn them, ", with tall Knowledge n al the
sc,s steod.p9 &. rsyment too bank hss ioBSed or r
lowed ~ the nature of conpeusauon for services per
formed spc not ~ 'slAry mer,y, ihtn tninf tue De
same rule 70 sppli ab 10 Mr.. Beloner the president
The cs,iier d, q bank IL ordinarily TIE executive
Greer Of The eank BE he ssen' tsrossa va mon
The bark seuorsiy held, hin ous % the word a.
hsvirg authority 10 act, according 70 the ger "a
usage, practice and course NJ business, ard al sce
cone By him ~thir the scope OF suct usage, prsc
tee and course Of business, bind the bank AZ "
third persons woo vsrysct business Win him N ~
faith Of bis Official cssEscier ard perhaps maj
be presumed, without proof and mere.g from Nv
ofnec that ne 10 authorized % r-ceipi and dncnArf
debts and doiver up securities on payment or DIS
charge Of he cee, for ,hey held and he
bave rover TO endorse bIe. notes SC Tor cohecuon
He may draw checks for unds IN other banks Possoii
theee powers mshi be erred fro his Official position
But sin HE authority 10 limited authority and when
PARTY claims dvcbsyee from debt due the bank, no
By payment but by giving other or different notes Oil
or securities whch the cashier has sgreed 70 tsse an
release the de,t ns aathsr,y, hike that Of ssy oshe
aren't, nrst be shown oy proof.
AZ esner. RUE j1ry have mo- rrn' 70 Infer thr
ca.her or park sucb mas she altboriiy 70 o9mpro
miso and dict a-ge deBss without payment or ~ asic
other ,tures bul the Authority from The hank must
shown expre,siy CT by Necessary implication or ~ mus
sxss and Ne established By the particular usage or prac
ce or cde OF doiuf business 81 the bank, or must
rsaed or acquescsd by the bank In order 70 be bss
ing -
Ancy beng out ABOUT four hours hey brought IN ver
do, Of s2s coo for plsip,ias.