The herald., 1896-01-09
HARRISON'S Tow T% and C@?gs!ez
PAINT
p. H. Mathews 23O S. Main St.
THE NEVADA BANK ALL RIGHT
1t viii Not Lose Anything Through Dear
Eorgeries


A few days ago in San Francisco, man
| named A. II. Dean, alias A. II. Holmes
raised" a $l2 draft to $4,000 and
cashed it, drawing 100000 at the Nevada
bank, of which I. w. Hellman is the presi-
| dent. There has been some talk as to
who would lose the money, but the follow
Ing interview with Mr.. Hellman. taken
| from the San Francisco Call of Tuesday
shows the law in the case, very clearly:
President |. W. Hellman of the Nevada
bank claims that his bank is not one cent
! the loser owing to the honoring OF the
| forged draft.
"A man by the name of A. H. Dean
opened an account with the bank some
weeks ago." said Hellman yesterday, "de-
posting considerable currency. At times
he drew small amounts, but always rede-
posted the money, and at times he added
to the amounts he drew when he replaced
it in the bank.
ION the 18th of December he deposited
draft from the Bank of Woodland, paya-
BILE to the CrockerW oolworth bank. That
check, during business hours on the l7th
ult, was sent to the clearing house for
payment and was paid by the Crocker-
Woolworth bank on the Sth. If, by mis-.
take, forged check is sent by any one OF
the various banks to the clearing house
and is paid and the mistake not discovered
within certain number of hours and the
check returned to the bank from which it
was originally sent to the clearing house,
the liability of the bank sending the check
ceases and the loss devolves itself upon
the bank paying the check. This being
the case in this instance the Crocker-Wool-
worth bank is the loser and we are not out
a cent.
Every check sent by any bank which
goes through the clearing house must be
stamped under the provisions of article II,
section 2, of the constitution OF the San
Francisco clearing house, which reads as
follows:
All negotiable paper deposited for clear
ance by the members of this association
shall bear the stamp of the depositing
bank, which shall clearly indicate the name
o. the bank, its clearing house number and
the date of clearance. The stamp shall be
for clearing house purposes only, and shall
guarantee the validity and regularity OF all
prior Endorsements on the paper SO cleared,
except the indorement of an original payee
of a certificate of deposit, and it shall
not be construed to supply missing in
dorsement.
Further provisions are also made re-
garding the relation of the clearing house
to the various banks. Article 10. section
2, of the clearinghouse constitution COM
pletely covers the payment of the draft
forged by Dean. and under this section we
are not responsible for the loss, but the
Crocker- W oolworth bank is the loser"
Following is the section referred to by Mr..
Hellman:
Section 9. Errors in the exchange and
claims arising from the return of checks or
from any other ceuse are not to be adjusted
through the clearing house. but directly be-
tween the members who are the parties to
them: all checks, drafts, notes or other
items in the exchanges found not good or
missent shall be returned without inten-
tional Inutlaton, or notice of dishonor
given directly to the member from whom
they were received, as soon as examined,
or presented not later than two hours on
ordinary days, or three hours on collection
days from the hour set for clearance in
which said returned vouchers were eX-
changed, and the said member shall imme
diately refund to the bank returning the
same the amount for which it had received
credit through the clearing Rouse for the
said checks, drafts, notes or other items so
returned to it.
1.-The Crocker- W oolworth bank contin-
ued Mr.. Hellman, "did not notify us that
the draft was forgery until couple of
weeks after it had been paid; consequent
ly it is their own error, and no one can be
blamed but themselves, and they are the
losers.
1--WE did not pay the money out to Dean
until the 18th ult.. and if they had notified
US according to the bylaws we should have
refused payment, but, as it is, we cannot
be held responsible for an error on their
part"