The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-07-09
MONTGOMERY HAS
LOST BOND CASE
Bondsmen of County Treasurer
Cochran Are Not Liable
MAY YET RECOVER MONEY
Judge Jones Decides That Depositing
of Check Is Mere Matter of Book
keeping and No Money Was
Ever Passed.

Montgomery, July ESPECIAL Mont
gomery County has lost its suit against
the bondsmen of Treasurer Cochran for
the s1l1,0OO for which 100000 of bonds
authorized by the last legislature were
sold to Josiah Morris & Co. The suit went
off on the pleadings as to that fund,
only the money in the hands of the
treasurer arising out of the general col
lections of the county being involved in
the final issue, and amounting only to
some $4,000.
Inc bonds were authorized by spec
ial act of the legislature, which express
es the duty of the treasurer to be the
safe keeping o. the proceeds of the
bonds. The act imposes on the board of
revenue the function of selling them.
Judge Jones CONSTITUTES this act as elm
mating the treasurer altogether from
any official connection with collecting or
receiving the money, and therefore as
exempting the bondsmen from any liabil-
ity in connection with what may have
occurred In the collection or receiptipg
for the money by the treasurer from the
bond purchasers. The liability of the bond
is only for the safe keeping of the pro-
ceeds after they had been officially re-
ceived by the treasurer from the board
of revenue.
Facts in the Case.
The facts as admitted in the pleadings
are that the bank gave a check for the
money and that this check was deposited
in the Morris Bank, and passed to the
credit of the treasurer on the account
which he kept there. Cochran's agent
as treasurer, was John Kohn, cashier of
the bank. The contention Is that no
money was ever passed, that it was a
mere matter of book keeping, that no
money evr came into the treasurer's keep
ing and that, therefore, no liability of
the bond for its safe keeping ever accrued
at all. This contention is sustained, but
the ruling goes even further, and says
that Cochran had no authority to re-
ceive the proceeds of the bonds at all
from the purchaser. In other words, until
the board of revenue collected the pro-
ceeds and turned them over to the treas
urer, any act of Cochran's in connection
with it was his Individual act and not
the act of the treasurer. The whole
ground is thus swept under the county s
feet, and nothing is left it but to appeal,
which will be done.
Attorneys Say Judge Is Wrong.
The county's attorneys contend stoutly
that the trial judge is in error, that the
treasurer's genral duties under the code
were being followed when he received the
check for the bends, and that any breach
of duty or negligence or misconduct on
his part in connection with the transact
ton is precisely such an act as the bond
is intended to guard against That he
gave his receipt to the board of revenue
for the money, and that he paid as much
as 1880 In warrants drawn on this partic-
ular fund.
The grand jury Is investigating the
bond sale and today had before 1t as
witnesses the Baltimore attorneys of the
bond company, and the general agent of
the company The question Is as to the
commission of any fraud upon the county
In the conversion Of the bonds without
due and proper payment. The community
is profoundly stirred UP over the suit and
nothing else IS talked Of among the law
yers and the people
The bond company offered one day last
week to compromise the claim for $780,
in cash, and leave the county its claim
against the Morris Bank unimpaired. AS
the bank has paid two installments and
Is a going concern with prospects of
ultimately pulling out everybody Is now
saying that the county ought to have
accepted the compromise. Unless Judge
Jones should be reversed on appeal, the
county has nothing left but its claim on
the bank. and from this 1t may yet recov-
| er the entire amount.
The case is now being tried before a
| jury to determine certain matters of fact
| and to give the compliments opportunity
| to except to the rulings of the court,
| which they are doing. 1t is agreed that
/ the county will get verdict for the
| 1872, 900 of the general fund.