The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-02-12

In the city court yesterday a suit Was
filed by Leon G. Gilbert and George W.
Clay, partners. doing business as Gilbert
& Clay, against the American Trust and
Savings bank for various sums Of money
amounting to SOHO
There are sixteen counts In the COM
plant. claiming eight sums of money.
Each sum is claimed in two distinct
counts, the following being copy of
counts one and two:
Counts In Complaint.
Count 1.-The plaintiffs claim of the de-
PENDANTS, American Trust and Savings
bank, body corporate, $3.50 due to plain
tins upon a deposit in and for said amount
made by the plaintiffs with the defendant
(the latter then earring on regular bank
ing business). prior to the Sth day Of
February 1906 with interest thereon, and
the plaintiffs aver ON said Sth day of
February 1905, they had on deposit with
the defendant, to the credit of the plain
tiffs, said amount, subject to be drawn
or checked out by the plaintiffs and on
said Sth day of February, 1906 the plain
tiffs gave check on said bank for $3.50,
payable to the order of s. NJ Webster
which said check had been procured from
the plaintiffs by Alexander r. Chisolm,
to the plaintiffs, through their agents,
that he was acting for said S. NJ. Web
ster III receiving the said checks, and
plaintiffs aver that there was no such
person as s. NJ. Webster, of which fact
the plaintiffs were Ignorant at the time
said check was drawn, and the said CHS
ohm after so receiving said check, drawn
and payable as aforesaid, fraudulently
endorsed upon said check the name s. NJ.
Webster and the said check so endorsed
was paid by the defendant although said
endorsement was fraudulent as herelnbe-
fore set out, and the plaintiffs aver that
before the commencement OF TINS sun
they demanded of the defendant 10 pay TO
plaintiffs the amount of said deposit,
which said demand was refused.
Count two: And the plaintiffs claim
of the defendant the further sum OF
$3.50. with interest thereon, which said
sum was deposited by plaintiff with the
defendant. on or prior TO FEBRUARY D.
1906, and the same was on said DAY
on deposit in said bank to the credit OF
plaintiffs, the said amount being depos-
tied subject to withdrawal or checkihs
out by plaintiffs, the defendant then be
ing engaged in regular banking bus
mess: and the plaintiffs aver that prior
to the bringing of this suit they de-
nanded to allow plaintiffs to Withdraw
or to check out said sum, which demand
was refused by the defendant
The other counts in the complaint are
similar in all respects except In the dates
OF the checks and the amounts, which
are as follows: March 10. ala5; March
10. 1852; March II. 5000; March 20, $3.50;
May 10, $500: May 5, 1900; July 2, $l2,OoO,
making altogether a total of $50 ITO.
Results From Chisom Transactions.
The suit arises out of the transac tions
of Alexander r. ChIsolm. the former de-
faulting paying teller of the First Ma
tional bank of Birmingham, @ho traded
in cotton futures Under the name or ..
NJ Webster, and who endorsed checks
drawn by plaintiffs in favor of S. NJ.
Webster, which checks were paid by the
defendants. According to the allegations
of the complaint there was no such per-
son as s. NJ. Webster and that the en-
dorsement was fraudulent.
Crawford Makes Statement.
w. w. Crawford, president of the
American Trust and Savings bank, in
reply TO inquiry, stated that he under
stood that suit had been flied, s the
attorney of A1essrs. Gilbert Clay had
made demand upon him officially last
week and payment refused
He stated in the interview that all the
checks had been paid through the Biz
mingham Clearing house upon the
stamped endorsement of the First Nation
al Dank OF lDiS CITY. which BudldHlcNu
the endorsement of S. NJ. Webster.
The customs and rules OF the Birming-
ham Clearing house are that checks are
paid through the clearing house only
when all previous endorsements are guar
anteed by the bank sending the check
through the clearing house
In this instance all the checks men
TONED in the suit were paid by the Amer
lean Trust and Savings bank upon the
ct a Of Eirqf National
bank of Birmingham, Ala.
Mr.. Crawford states, upon advice OF his
lawyers that Messrs. Gilbert & Clay can
not recover from the American Trust
and Savings bank cont; but in any In
stance the American Trust and Savings
bank Is protected against all loss by
the reason of the fact that all the checks
bore the clearing house endorsement of
the First National bank Of Blrmingh IN,
Ala.
President Harding Interviewed.
w. =. G. Harding. president of the
First National Bank, when seen by an
Age-Herald reporter, said that he knew
nothing Of the suit until his attention
was called 10 the notice of 1t in an
afternoon paper He had no statement
to make in reference TO It further than
to say that suit for about the same
amount OF these checks had been filed
several months ago by the attorneys for
the First National Bank against Gilbert
& Clay. adm expressed the opinion that
the latter's suit against the American
Trust & Savings Bank might possibly be
a part Of their line Of defense OF the
suit brought by the First National Bank
against themselves. He called attention
to the fact that the whole transaction
was fully brought out last summer in
C,hisolms preliminary trial before the
United states commissioner, when CHS
ohm admitted that he had opened an ac-
count with Gilbert & Clay under the az
stunned name Of s. NJ. Webster, and tina
he had received the checks payable to s.
NJ. Webster direct from their local repre-
sentative and had made all endorsements
thereon.