Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-07-01
Nebraska
NEW RULING IN BANk LAW
supreme Court Rsverses the Court Of
Douglas CoR1ty.
COURT LAYS DOWN A PRECEDENT
state Baak Of Chicago Cannot Re-
eover from FIRST National of
Omaha On Forged Draft
Caahed by Latter.

tFrou staff Correspondent
LINCOLN. June m.-tspeciaID lin the
case Of the state bank Of Chicago. plaintiff
ard Appellee. against the First National
bank Of Omaha defendant and appellant
the supreme court reversed the decision
OF the Douglas county district court and
a. the same time estahlish,d a new preoe-
dent % law in the banking business Of
Nebraska
The court holds that where a forged
draft alleged 20 Be issued b. one band.
to Be paid bv another, and is cashed b.
third hank. the draWee cannot recover from
The paying bank If the latter has used
ordinary precaution tn the matter
The draft vas on the German hank Of
South Dakota and was made payable to
Charles Titerna- il was drawn for $50 on
the State hank Of Chicago The draft was
cashed BY the First National bank Of
Omaha. the cashier being personally az
euaintsd with the party presenting il for
payment In time the Omaha bank was
paid back the money by the Chicago bank
and later il was discovered that the draft
was q forgery. suit was then brought BY
the Chicago bank against the Omaha hank
for the recovery Of the face Of the draft
In the district court Of Douglas county the
Chicago bank won. but lost in the supreme
eovrt judge Root wrote the opinion Of tire
court ard his syllabue vas as follows:
SYLLABUS in Case
state bank Of Chicago against First Ma
tional bank Of Omaha
/ Where the payee Of an unaceepted
draft to which the drawers name has
been forged and purporting TO have beer
drawn BY bank in South Dakota upon
bank in Illinois. endorses the instrument
generally and sells IL for its face value
10 a Nebraska banker with whom the payee
10 acquainted the drawee. after paying the
Fun
pleads and proves that the holder was
negligent in purchasing the Instrument, or
drawee AZ the time the bill was paid. some
fnfornations. or grounds for suspicion with
En- his knowledge, concerning the genuine
ness Of the bill
In such a case the eashing bank if
u acted in good faith in the transaction.
II not required IA order 70 acq1it Itself
OF a charge Of negligence in purchasing the
bill 10 prove that before such purchase il
inquired OF the drawer whether the instrrl-
the drawee TO learn whether the bill would
T. Where such draft. by reason Of the
pAyee's endorsement, is negotiable BY de-
iivs-g. an endorsement BY the helder is
not a warranty to the drawee that the
drawers signature is genuine
Candidates Coming In.
r D. Sutherland OF Nelson filed his name
with the secretary Of stat today as a candi-
cate for the populist nomination for con-
grens in the Fifth district He filed also q
petition to have his name placed on the
democratic ticket James p. Jatta filed as
a democratic candidate for congress in the
Third district and A 7. Gatewood Of Nc
Cook fled as a democrats candidate for
secretary OF state He filed q petition TO
have his name placed on the populist
ticket.
uawki1s Recommended for PardOn-
Andrew Hawkins has been recommended
70 the governor for pardon July 4 The
recounendarion was signed by Chief JUS
tlce Reese Of the supreme court Attorney
General Thompson Secretary Of State Jun
kin and Warden 7. W. smith Of the state
penitentiary- This was done under the Law
which provides that the governor may is
sue a pardon TO a life prisoner on July
without q bearing providing the same Is
recommended by the above.
Hawkins was sent 70 the penitentiary
for life December "a. ISIS and has been IL
prison longer than any other person con
fined there He was convicted OF the muir
cdr OF a man named Jensen in Red willoE
county the conviction being Of cirrun.
Etantial evidence. Hawkins Is now nearly
70 years old Judge Reese said he signet
the papers because Of the recommendation
Of Warden Smith In whom he had th'
greatest confidence and without investi
eating the case From merely reading ths
opinion In the case the Judge said Haw
kins rights had not been protected in IN,
trial Mr. Junkin signed because OK the Az
Of the prisoner since the conviction o.
Hawkins an affidavit has been filed with
the governor thar a party talking II a sa,
lonn Ia Omaha admitted that be com
uaixred the murder. The governor has II,
case under Adjustment
The State Board Of Health has re-eIecteC
Or w Il. Wilson state health inspector Al
a salary Of 81 500 year.
The three nurse secretaries having re
signed. the following were elected 10 sue
ceed them: Nan Dorsey. Omaha: Lilhs
stuff. Lincoln: Bessie Bixby, LAacola
They serve one. two and three years