Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1868-12-09

NASHVILLE, TENNESSEE, DECEWBER TERN, 1867
ruorAs n cstDvrtr 81 u ~ ~
THE NORTHERN BANK OF KENrueKY's. q. Y.goHNsoN..
On the sth Of October 1850 the defendant R. Y Johnson
YORK. each T 500 sud both "a &c Il
ing language, viz:
Baak Of dzerSa, STATE 81 Isnnes.ss cqrtsviHe
bred dollars r. Y. Johnson, Cashier
mes d5s: y iSaoSssssn, were tsgql.z ps,.sd ne
daily presented for payment demand made and payment
fused and ar sSh n PTSssStsd f9t
the Circuit Court Of Montgomery county sgsnst THE Bank Of
America 4 to Isonsssss ne md K and
shows on tie trial. vdTs he Plea sSd ja s u the
2h Of September 1861 as BY confession was Jointly rendered
On the LIST Of January 1885, the defendant in error Y
Johnson filed his petition in the Circuit Court writ Of
ror coran noe aegps among other things that he
been ssrvea with process he was under ne seller
judgment taken against him. that he merely
ed as officer bank order bring the corporation
into court that plea him withdrawn without
authority end through mistake Of the attorney bank etc
signed which plea was died. traversng Che En-
UTs SssS a3G sS snsd Which vas
pronounced on the verdict OF the jury recalling
this Judgment the record has been ed error
All questions Whlos nsns Perhaps, very properly arise
agreement OfeoaRss Sats and he sSsis Sueson S g
ted for determination whether ne defendant John
dersY
II is insisted defendant Johnson lot only did not
the corporation Of the bank for which he
act Cashier but hat be transcssdsd Che ot
thority az such in drawing he drana which cenete the
foundation Of this action and thereby rendered himself per-
sonally liable to the holders.
The drafts appear been drawn at the "Bank Of
Bank Of America OF Tennessee. suit brought against
charter name O-wit: The spank Of America
Tennessee which the corporation took no exceptions
aud suffered Judgment go against and it is
TO- late 5Ss Par'y' sdvan'1s a fG@
But tht Second sgqsd mde diecss shd
bonds and every contract behalf the company
saa be signed by the President and eounterned and
ed by the Cashier Of the company and the funds Of the
pany shall wise be held responsible for any
Aforesaid" Acts Of 1855 Oh. 2iO section a. art &
SIT admitted 70 be rue the court in the
that when The charter of incorporation prescr6es the par
cuar mode in which its contracts shall be authenl-
al persons in general bound only by the and con-
tracts q thsr aseuss EhD p scoPe Oflhsir
tanned the charter every deeng With the corporation
h bound 70 NOTICE go no aenne rule u 70 be und either
manner and form in which its acts and contracts shall evil
denced then general usage and the course usness
Of saiar Institutions, govern the officers vii be pre-
umed have been invested with the customary authority
course viii be binding the institution in favor Of
third persons having ~ kngvlsage 70 the cOntrsEy
20 individuals and corpsrsons how provisions Of this
charter understood assumes to prescribe parc
edy all contracts intended be comprhended within the
provisions of the charter before quoted in order bind
The corporation be made IN reasonable conformity thereto
But intended to comprehend the drawing and ndorsng
Of bills Of exchange drafts and checks in the ordinary dis
charge Of the duty Of he Cashier u said hR the Cashier
Of bank, virtue Oe genersy sntusted With ne pOtea
by the bank general agent in the negotiation
arement disposal Of them. Prms faee therefore,
The bank he must be deemed to have auhorty to transfer and
indorse negotiable securities held by the bank for its
20 be proved These are some Of the reheraI and ne
cesssry duties Of the Cashier the executive oeeT
banking any ssx ASs S
erai course business, eersnly at liberty 70 but
restriction and that seeh restriction k known to
hose with whom in the habit Of doing business.
III counter signature the Cashier any
whatever, before the funds Of The bank should be
oosrs Of the Cashier indorse b Of exchange
ras checks in the ordinary discharge Of lis duties
Il Sdditios 10 this autaoT via ssns % Be- sustained By
ne sssss q Msrchshs 5ssh = oeHs BsSk ksy e.
directly before the suPrems Court Of the United
States, in which the same doctrine was recognized
Columbia, Wheat {. s. R. 1926, almost the identical
Of the bank in that contained provision that "a bills
mn Of he coporstio should be signed bv ne President and
sountersgned by the Cashier aud that the funds 1.-THE
portion should in be liable for any contract
aFcmeut unless the same signed counersgned
Aforesaid and the court held that this section did
ply extend 10 and undertakings implied in law
and that the bank liable for advanced check
made 10 the Of business and signed by the Cashier
only So il clear, both upon and authority
well the general Of banks shown in this
cord that the Cashier Of bank, its executive officer
through whom all the moneyed operations Of the bank
ansacted may VIRTUE oci bind the funds OF the hank IN
matters Of contract sprDging out Of his legitimate add ord
nary Cashier and the Restrictions the char
requiring the signature Of the President and counter sig
Of the Cashier extend comprehend such
the drawing and ndorsng Of bills OF exchange
drafts and checks which implied by Law part Of the
ordinary duties Of the Cashier.
II follows from this view Of the that the defendant in
his did transcend the scope OF his authority Cash
the bank violate the spirit and meaning OF its char
and he is therefore, Individually responsible for the
drafts IN controversy 20 the holder
Affirm the Judgment. MIILIGAN. Judge.
Attest: }. G. FRAzER, Clerk.