Daily capital journal. (Salem, Oregon) 1903-1919, 1911-10-04

Bank, ct ais, v. DeVlin, MultnOmah
County.
Louis J. Wilde, plaintiff, V. Oregon
Trust & Savings Bank, a corporation
ct ais, defendants; George d. Wisch-
husen, appellant, v. Thomas G. Dew
lin, as receiver OF The Oregon Trust
& Savings Bank, corporation, Louis
J. Wilde, and The Oregon Trust &
Savings Bank, corporation, respon-
dents. Appeal from the circuit court
for Multnomah county. The Hon c.
U. Gantenbein, Judge. Argued and
submitted Sept 10, 1911. S. II. Cru
ber, for appellant A. f. Clark, for
respondents. Mcbride, J. Affirmed.
Decided September 26. 1911.
Petitioner was a depositor in the
Oregon Trust & Savings Bank. On
August 81 1907, at the suit of Lonls
J. Wilde, the bank was declared in
solvent, and Thomas c. Devlln was
appointed by the circuit court Of
Multnomah county as receiver of its
assets and property. At this date
petitioner had on deposit in the bank
including interest, $32O9.59. On Sep
tember n, 1907, a number Of the
creditors Of the bank, including pc
tltloner, entered into an agreement
with the German American Bank, Of
which Wilde was president, whereby
they agreed to accept certain bonds
of the Home Telephone Company Of
Puget Sound, OF Tacoma, Washing
ton, and the Independent Telephone
Company Of Omaha, Nebraska, for a
certain per cent of their claims
against the Oregon Trust & Savings
Bank, the German American Bank to
pay the balance of the claims in
cash Thereafter the court made an
order, directing the receiver to sell
and transfer all the assets of the Or
egon Trust & Savings Bank to the
German American Bank upon the
condition that 1t should assume and
pay the claims against the insolvent
bank within two years; the assets
were to be held by the receiver and
turned over to the German Ameri-
can Bank only as required by it for
the purposes of liquidating the debts
of the insolYent bank. The condi-
tlons Of the order are lengthy and
are not material to the questions
raised on this appeal The German
American Bank proceeded with the
liquidation until 1t had discharged
about 85 per cent of the debts of the
insolyent corporation, either Ly the
substitution of bonds or securities, or
by the payment of money, the amount
so paid aggregating about $l,S00O00,
leaving about 100000 of debts of the
insolvent bank stll unsatlsfed when
this petition was filed.
The claim of petitioner against the
insolyent bank was filed on Septem-
ber 2S, 1907, and on March II. 1910,
the petitioner served notice upon
the receiver. notifying him that he
had rescnded the contract of Sep
tember q, 1907, for the reason that
he had been induced to enter into it
by false representations as to the
value of the bonds, and for the fur
ther reason that no bonds had been
rendered to him, and demanding im-
mediate payment of the amount OF
his deposit and interest. On the Goth
of March, 1910, the petition here in
question was filed in the circuit
court, setting forth among other mat
ters that the petitioner was induced
to enter into the contract to take tel
ephone stock by false representa-
tions made to him by Wilde, presi-
dent of the German American Bank
and Deylin, the receiver, to the effect
that the Oregon Trust Il Savings
Bank was to be re-organized and
that the telephone bonds were MS
good as the money; that he would
receive interest on the amount ut &
per cent per annum, payable semi
annually instead of per cent
which was the amount the insolyent
bank had agreed to pay upon his de.
poslt; that petitioner believed such
representations to be true and relied
upon them; that, subsequently, h,
found the representations to be abso.
lutely false or untrue and that the
bonds were not worth more than one.
half their face value; that petitioner
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