The news-democrat. (Providence, R.I.) 1906-1909, 1907-06-10
BIC PENSION
SW|MDLE To Be
AIRED AGAIN

The noted forgery case in which
William A. Munson, a pension attorney
OF this city was convicted OF mulcting
the government. is recalled by an ap-
peal filed in the United States supreme
court by the government against the
National Exchange bank OF this city
for the purpose OF recovering the loss
It sustained through Munson's pecula-
tions.
The case against the bank arises
from its refusal to pay the government
the money lost on forged checks which
Munson cashed at that bank, the banks
refusal coming on technical grounds.
decision in favor OF the government
against the bank was reversed by the
court of appeals.
The peculations came through the
rule that the pensions OF widows who
remarry are supposed to lapse soon
as the wedding ceremony has been
performed. but Munson, who handled
the pension checks OF numerous clients.
as was proven at his trial. failed to
notify the pension bureau OF the re-
marriage of one of them in 1884. and
for 13 years drew her pension himself
by forging her Endorsement on the
checks. As others OF his clients mar
ried or died he added them TO his pri-
vate list by forging their signatures,
until 1897 when his crime was dis
covered. These cases at that time num-
bered 49, and Munson had drawn in
the neighborhood OF $4,000 from the
federal treasury by the forgeries.
An anonymous letter received at the
pension bureau notified the officials
that one OF the Providence widows then
drawing a pension had remarked. An
inspector sent to this city found that
the information was correct. as far as
the second matrimonial venture was
concerned, but that while the checks
had been cashed regularly, the ex-
pensioner had not received a cent OF
them since her marriage. The forgery
was traced to Munson. Fourteen in
spectors were engaged for each name
OF the invalid pension rolls in the dis
trict and in addition to- uncovering
Munson's operations they discovered
that 115 other widows who had remar-
ried were still drawing their pensions,
apparently unconscious that their ac-
tions were illegal Notwithstanding
they each received printed notice to
the effect on the document which ac-
companied the checks each month.
II was found that in the 12 years
OF his wrongdoing he had forged the
signatures TO several hundred checks.
ranging from s24 to $40 each. He was
arrested and sentenced TO five years
Imprisonment in the state prison, but
died there before serving out his term.
The government then set about re-
covering the money IL had lost through
Munson's operation. Two OF the Provi-
dence banks that had cashed portion
of the forged checks, upon demand
being made, paid over the amounts
claimed, but the National Exchange
bank refused on the ground that the
government by failing for six months
after the forgeries were discovered to
notify II of the fact had lost the right
to recover, according to the rules OF
banking. Suit was then instituted
against the bank for $4,000. the total
of the checks IL had cashed for Mum
SON and the trial court. after holding
that the banks plea OF nonliability
through the negligence In notice was
not available as a defence where no
resulting damage was shown, ordered
judgment for s5361 together with s26S2
interest. rejecting part OF the claim
on technicalities.
The court OF appeals reversed the
judgment OF the lower court and held
that the forged Instruments were
treasury warrants which had exactly
the same standing at law as COM
mercial paper. In other words. IL de-
cided that a check issued by the gov
ernment should be treated exactly like
a check drawn ny an individual, which
under commercial law required prompt
notice on the discovery OF forgery. The
production of proof OF loss through
delay OF notice. the court said. was
unnecessary. because the bank by the
delay alone might be deprived OF the
opportunity TO prove it, In this case
the bank was not notified until six
months after Munson's forgeries were
known. and the government having
been negligent. sleeping on Its rights.
the court held IL could not recover