The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1910-01-22
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ed by that bank
The final step was to sell the bal
ance Of the stock in the Middlepor1
concern to Mr.. Bryan at the price oI
$50, 600 fer the payment Of which Ii.
executed hss notes.
The result was that IN a few week.
after Bryan Bought the Mfddlepor'
property Il was sold under iudlciai
proceedings and did; not sell for any
thing like enough to pay the debt.
against It existing at the time Bryar
bought the stock. II Bryan should be
required to pay these notes thers
would be an absolute loss OF the $47,
$4,000 and the amount trans
f.rred and used by this concern
amounting to nearly $4,000 more. The
stock In the Fox Tank and Vatyo q.
wan worthless.
The notes outstanding are as fol.
lows:
June TO-, 1908. $4,000.
July 16. 1903, $47 900.
August 1c, 1908, $4,000.
!Aagresating $4,000, When Mr.. Bryan
discovered how many of these note1
had been issued he exclaimed, "Wherr
in the hi has the money gomez"
ccveraI suits In this State and In
Pennsylvania arc now pending to col.
lect these notes. In the meantime Mr.
Bryan died. The 8 uits now pcndln,,
in this court are The c~!asizens' Bank u
Cameron for $4,000, The M. & M. Ma.
tionaI Bank Of Columbus tor $43 ,ooJ
and the City Bank Of Wheeling for
$4,000. Separate suits were brought
in %cl,ancery and consolidated. he "a
gre0ate ct $4,000 The PLAINTIFF are
all banks and claim to have bouahr
these notes in due course Of business
for value, before maturity and with.
out motive or knowledge of The fraud.
Judge Mason holds tina. all these
notes we're procured by fraud and are
absolutely void in the hands of tie
payees. or any enuorsee or holder hav.
Ing notice o. the fraud. Passing upon
the claims Of each Of the plaintiffs he
decides:
That the Car-eron bank had actual
knowledge. Of Il fraud committed by
he persons wiz Er5cured the notes
UPON which it sues. and participated
in the fraud and therefore cannot re-
covet. ~
That the Columbus bank had con.
structive notice, at least, of the fraud
committed ty the parties who procured
the notes for the Miuuieport property;
that the fraud being alleged and prov.
en- by the defendant, the burden was
on the pIaint!f to prove 1t had no no
t:ee OF the fraud. Judge Mason thinks
the facts and circumstances Of the
transfer Of rhis paper to she coIun1.
bus bank proves that this bank must
have known the PAPER MAS fraudulent
unless the officers of the bank closed
their eyes SO they could not see, and
in such cases he insists that "guilsy
knowledge and wilfulI ignorance mean
tho same thing"
He holds that iris bank Is not an
Innocent holder and cannot rzcover
referring to the suit brought by the
City Bank OF Wheeling Judge Mason
takes pains to say in unequivocal
turing that there is nothing In this
case to show that the officers Ct this
bank hau knowledge of or in any man.
ner participated in the fraud by whici,
the paper held by this bank, was Oh
ta.1cd. n { says the cashier Of this
bank seer,s to have relied on the caat1
ier Of the Cacnron bank, from whom
he received the paper and the infor'
nation. The notes sued on by this
bank are a part Of the series Of notes
executed by LolIer, attorney in fae-
dated June 10, 1903. He holds tina,
Lolier In executing these notes (tht
$4,000 series) clearly exceeded his
authority, and that OF the cashier oil
the bank had examined this power Of
attorney as It was his duty to CO, and
With he Is presumed to have done
he would have discovered from 1t and
The information given hin, BY the cash
Ter Of the Cameron. bank at the tin,e,
that LoIIer had no authority to sign
tBryan's narne to these notes., and tina.
they were weld and could not be col
Elected.
These notes are also declared to &c
uncoIIeetatle.
Unless the Supreme Court shall re,
verso Judge Mason, these banks viii
have to lose $4,000.
Bryan owned at the tire these suits
were began, and still owns, a valuable
Goa! plant near Monongah. |; Is be.
Ing %eperated under a lease by the Fair;
mont Coal Company. The royalties