, 1877-05-05

foTHRs or T1IEsE co1PoKAT1oNa TO uUT
STOCKS.
Intho case Of A. II. Durlcy, Nccctvor Of the
cook County National Dnnk, w. Osorge S. Bow.
en-, tho question was raised an to tho legal power
nf a National Bank 10 buy stncks on ita own uc.
count. uJatyt 1873, uowen made 4 note for
s!.hc0, which was discounted by tho
Cook County National Dank,. It being ec-
cuEcd by 100 hhaees OF stock OF tho
Lske Superior Iron Company. In December
following he authorized his brothor, Chaunccy r.
Bowen, Tho yico.rscpidsnt OF the bank, to sell
the stock Ut 70 tenta on tho dolnr and apply Tho
ptocaeds IN satl4faction Of tho mute. e. 7. Bowen
negotiated tnlc. and tlAsN went 10 D. F. Allen,
The President Of the bank, to get tho stock. telling
him Of Tho arrangement. Alien then offered to
fako tho stock on account Of tho bank and credit
ueorso b. Daweh with thu proceeds on his noto, at
Ie rate Of 10 CENTS on tho dollar on tho par vsluo
u the sllatrs. That WIS all which was duno
toward settlement of the matter. Whom hurley
took possession Of tho bauk lc found tho note un.
paid. and commenced suit thereon, to which Iiowea
pleaded the payment by stock ~ aboyo etAlel.
The Juavo held taat It had not been shown that
Tho contract had been carried out. The stock was
rot t0d by The bank, and no credit wis eIvon fok It
70 tieoFgo s.. ll0wun tho books of tho hank t,ur
"a tey aote. Thy Ncecisst hal found i!.v notu nn,
Il ds es5r.s %h''s A'B u:%s. sss.
i!iths bank held The stock u collateral. III. Il.
.eH ako hau statru That he had nO recollection uf
ny such arrangement, and from at tho cIrcum-
liz III '4t Ts: e sst 'af o%s sss
aon a Su' e. I'D IL st ~
held tolac stock In tbs aa.as Gum,psnY riSassI to
IT, bank. md which he proposed to aeIl with bla
Boston bank,, however. i was not carried out.
Ai!ea being President and 9. r. Uqwsn vtcc. prrs.
.!4isht Neorgo 8. bowch had ~ right 10 seiY on
1ess ss, h!' interests b completing ths airansa.
l'ut e.en u those fact. did not sn.iclcntly
ucleht In law The Cook County National Hank
va sss o.gnalxed nnder The act 81 toigtssH authorize
ssens ap r. nn,x,p o. Ns.son1a nank'ns op
spceIsl'y delegated 10 Il, and snch ~ were necvsra.
Ms. ~ inssdens thereto; Tho power to buy or nel!
"a not an tncllcnt 10 Thu Transaction OF thelr
sasiIs.. easi; c1sep: ~ stocks might ts taken ss
ffusly ~, lsot. II was po.sble that National
p.o,set!on, On foscc,osnro Of default IN paymsnt
q The debt, hoeon,s tbs purchaser, to prevent
~ ~ !: ':s f. ss2 l. rssdas IT,:
wa claimed, bccsmu Tho purch4scr OF the atock In
Sais.tlG, q t. Gtsof:. .he ytes President
!es anicer no4t aboyp him IN lank being Tho buyrE
on behalf Of the bunk. The transaction was one In
ssse1s s sank S had ns a5rht to and Va.
tht tTioient presumption for The Court to assln,o
H. tas suggsstssa y! want q pewe. ueea1rea to
VaahEs4 49 tI@ p4uk 4lkGF tu2 Ink between
noWea and Allen. and thai tue proposed xrrau9c-
nsnt wa not completed for that itason. The pre-
1se point u SD ia Ill. present caxo bad not tho
Ssafo Remarked In conclusion. becu pa~scd upon
NE conrtt hut tho canelurtaas hu had reached
;ise ;ese tally sustained hy 4cseEst authorities. Tie
!gugmrnt would. therefore, be io fnror Ut the
Fta'ana iof the amount Ut the note.
AoAAs w. COOK COUNTY NATIONAL BANK.
~ tae eaae " l"ha Il. adams VI. Thu Cook
nttahIy National liank, two dcnlurrers tu special
b,ea. aS Sese dl'oscl IT. THY planlir had sued thq
s*uk IN tho guarantees Of kW0 uOteB fQk S. OOj
ea,a,n,ss a %sas b. u & Matt 4 co: WHICH + q!
H. make nor Aushottzo the making ol
~, fNAfanteea nor assent Thereto; and,
Ssuna, ahn: II had no powrr under iii
i"Htoaai !1anktny law to luAkx such Ruasantses.
sni fe Noaaelt oysEruted tho demurrer 10 the ar.t
tse1"n,p ,pea huldsnr tae plea good because tho d..
tract! naa no proper authority 70 make tha con.
i.s. eata npun. All corporations Wgfe pbIfR,d
H. 8. 1niouEh AxentA, aud npthIug was shown ID
ill., W ~ eatopptnx the bunk from drnytp1
aur.t91 o. IL sgent 10 mako kha contracts ID
IL. fiun. M The demurrer " the SECOND spcc!aj
r. was sustained, ~ tho plea pnly amounted Il
n"w issue. II sslse tho qucstiup ~ 10 IN
enr,i y! National 1ianls u gultantpo paper vhIch
tSst5.D tAset under the :eusEal tx4uy, and hpticl
r,,s ~ ~ las trial oI thp tA.c.
Tha sgt"AAs tAs ~ NATIONAL uAGks GENERALLY,
e,.ioSS 'easth .nd BY far The u,ost Important dc,
H. -, ysHefIAJ morning waa that III the case oI
snss National DAuk " WyAadutts ", Ths