The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-12
BANK LIABILITY.

deposit are expressed m the recent decision
in the case OF the Niagara Woolen company
against the Pacific Bank. where Presiding
Justice lnsraham writes an opinion holding
! the bank liable. IN which Justice Dowlins
concurs. Justice Mclaughlin roncurs in the
result, but on different ground. and Justice
scott dissent-. With Justice clarke concur
ring The decision % the Court NJ Appeals
IN IN" case ot tn" Havana central Raii-
way company ~ the knickerhocker lrIss
Company figures IN the decision.
hsIaCts OF the case are stated nv Presiding
Justice lngTaham. The plaintiff Sas a cor
poratlon Of which one Joseph iioTo~Itz MAS
president down To MAY /. iOoA. when he Was
succeeded by Philip HnTowItl. who con
ttnued president until October -, 100,
The plaintiff was organized To act a. selling
agent for the American Wool"n COMPANY ..
and its capital stock Wa substantially all
issued tn Philip Horowit1. and was deposited
with the American Wooden Company under
an agreement betw cen HorosI1 and the
two corporations. The president had gem
eral mana cement Of tn. business under the
bylaws. but was without power To draw or
indor-e checks or other obligations OF thh'
character This Was done nv IN" treasurer.
" no wa- al officer or en- ployee Of IN. Amer
lean Noolan Company. This Was part OF a
plan To secure the American Wooden tom
phnv TOR goods sold 30 Philip ioroNltz son
composed OF Philip and Joseph Horo~iN.
bacaus. the American Wooden Company did
not care to extend credit to the Arm
In June, 1904, Philip Hor"witz, under
,h. ar,n nam. Of pb,lIn uorowitz A Son
,p.nad an account IN the ,t.fendant's bank
He began to deposit checks in tn" bank to
the credit Of the firm which had been drawn
Ia the order of the piainiin hut were IN
dor-..d IN blank with the name oi Joseph
Horowltz a. plaintiff lie continued making
49,, ,,,,,~-,,. nr,iI pc,ohar "a when tn.
,,,ai r,,,,,h,r ., ch.ck. daposited VA.
H., 20 ,,,onn,irs 70 a total of as 40
~. So. -, ,h., rla,rud rornor,tion and
,,,., ,r,,.,,. W., ~ Jos.nh UoroNitz wer.
49, a., -, ,,,,,I,,,r,
" "a, - - -, a., ,.,hob a, mi,
',.,,,,.,a,,,, ,,.,. fnr In..ph uo,owitz to
49,, ~ 3D., I'll ,,,r.,.,.i =, IN. nIain,id
- 49,, - 'n,,L- H. I,t M, inland
'''i . 80 -, -, ,,,,,n,tr.. honk
'" 49,, ,,r,,,..n
n'', va n, r., ,h,,E. .er.
= -. Ii -, d., ,,,oti, ~
- I..,.. ,,,h u,r,,,,,, a~,r,c,.d
''., -, -, 49,, ., ~, ,r,,.r
rom Wv nov, ''.' -, - .,....,..,a,,,
VI Wv P'''''''' '''.'. , 49,. -, ..,,,, No.,
J." ~ " ,',,,. - 49,. ~, ,,,
XIV" =" va" ...,
counts w WV ~ " ,',','
a. "hpaln wien w" 'r ,,l'' $50 -
-, -. - b., ,h., c,II.c,t,ps
'""' 'n'S VII $50, = - 49,,
WIRE ~''" "''' Nv ''
a.,
IN '|''"n W. ~ 80
I'h"'n' """' ""
p''A''''' anu ~ - -.
"I -" - 49, -, -,
Us" 49,. a., g., ~, ,h., do,c,d
based -""' "p"" we ~ wv, Wv
ant. haNhH "'''p''" wv ~ "'I" ~
l""t"n them. T","l'en N" p'''n'"i 'n'"r''
for which IN" i"i'hdah' was b"hhu L" &c
count u VA conceded thaf h"row'N
miSHppr"puaiad the checks, which wcr"
the nropSrty Of IN" plain'tN and that tn"
defendant collected 'ha checks az N" re-
mes, of HornwirZ and reviewed the PRIV
,eed. and II was Also established that he
- ,,l, :, ,,>nrrru.h she ,ui.anpropria-
,,ano -, ,bc md rbetr proceeds nv the
'''' W ~" ,t, - .tt,.,,,,,, -, nd
'.,' W w -, -, -, b..
''"N'"" 49, li,, -, a,..A.,,
own -" Nv I,'o'",, ,".i.I,,-.'
however. u"I~h"- Nl"h nv MI" w
~" transportation being hr"hHh' mono y"
N" defendant. ar n"ii"" "t -u'h 'a''- ~
required An inN"<hsa'l"h ar INJURY ny IN"
defendant A. =" N" ownership OF ~" 'h"'h-
and the right OF Horowity to apply the pro
c,.ds to hi. own ~ r-onsl account non
their face they were PAYABLE 10 IN" plan
IN A CORPORATION whit" the Endorsement
showed that HorowIII vas the president Of
IN. corporation
The defendant Hsd motto" III the fact mat
Hor"wt'2 had an account ~ IN" bank which
wa, nn' Of the corporation. hu' OF IN" nrm
OF which he was a member and thar IN"
proceeds were deposited 10 tn" cr"d' of N"
arm iu-ii"" InrTahAih saws lNt'h"F
assume the settled law NJ THIS STATE maj "
Horowi'f had pr"srnt-d these checks :" me ~
PENDANT hank ana Ass"c the defendant to receive
them - payment ~ an Indebtedness rN>urs IN
favor y, the defendant agAinsl HorowiH indlNiiH
n.y - ;hr "rsr ~ Phiip HOroNin S"r. ~
Which h. vs. member the Defendant would
rav- beer put upon inquiry - To tn- night ~
Ao-owl'r - the MONEY ~ the plainn' Ia pay
hi. Individual Indebtedness Havana 'cnusI
81, road COMPANY hulcSrrhocE-r rr'.st com
pary .11 Npr ~, III and cases ihcF~ cite!
. 40" 49, ~" 'ah' nc >A-h' 'I,' W"'n aSLp -
h"r""iN th' '',''n'' 80
I.'"A' AZ 49, -, - ,h. L.,
nor wv W -. -. ~, 81 o., ~, un.,,,t,,
Wv a., ,,,.,r-.. .hscz. 10 r,y hi. ind,
-. ,,.',.,,.,,.. ~ ,.rdrr.r,rd N. rule
-, . 49,, 800. ,,-,, IN. ia, rn,t IN. bank re-
=, ,Iy,n,,xe by reason ~ mis- dcfalcatlrn
~, nr,,rn r, trust hy Hornviry ru' snlsIS pom
inc ,,c' tn,' he defendant VS. caargcsb~ with
ro.i.r hat Hornwir, was gsIG the money en-
,....,,., ~ agent or for a purpose