Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1912-08-16

ING FlICy-SlSuCA iNdtIOudl @uduA uSlU
no deposit upon which these checks
could be drawn
A light of cunning came into Egan
Bedfords face. Il know that" he
said; ''but the bank is better than any
mans account made the bank stand
good for the checks"
How" said Stratton, and l thought
there was the faintest shadow of q
smile fitting about the corners of his
eyes.
Bedford's broad face lighted with
victory He thrust his hand into the
bosom of his coat, took out letter
and telegram and spread on the
table. There" he said, ''is the banks
guaranty in black and white and yell
low" Then he added, with a sneer.
Il guess your banks not broke; is it,"
The lawyer moved some papers I'M
til he found a printed statement. The
bank" he said, has assets valued at
thirty-f1ve millions of dollars; it's LA
bilities are some ten millions. That
would be, believe, twenty-five mil
lions above insolvency"
''Then," said Bedford, II want my
money"
Doubtless" replied Stratton.
Bedford exploded with anger 81 am
tired of this confounded nonsense!"
he shouted. 'Tf the bank won't pay
these checks, will sue it."
"Then you will lose," replied the
lawyer quietly.
'Lose!" cried Bedford. "The bank
guaranteed these checks, l tell you.
There is the guaranty; don't you see
| it?" and he pushed the papers across
the table with his fat hand.
II see it." said the lawyer; "but it
is not worth filing room"
''What?" shouted Bedford.
'This guaranty OF the Fifty-eighth
National bank" continued Stratton,
lis utterly void"
Bedford plunged back on his heels
like man struck violently in the
| breast. He waived his fat arm at
his counsel, whom he hitherto had ig-
nored. Judge" he gurgled, Judge,
do you hear that?"
Judge Hacker, whose knowledge Of
the law is said to equal that of any
practitioner in New York, arose and
came over to the table. He nodded to
us, then he spoke quietly to his con-
frere in the law.
"Stratton," he said, "give me accu-
rately your position in this matter"
Coleman Stratton touched an cleo
trio button, scrubbed memorandum
on scrap of paper and handed it to
the Office boy who entered. Then he
turned to Judge Hacker.
This contract of the Fifty-eighth
National bank with Egan Bedford &c
Co. is one purely of guaranty, and is
ultra wires on the part of the bank.
The Revised Statutes of the United
| States give national bank no author
ity to guarantee the debts of another.
| A national bank, as you are aware,
/ cannot exercise powers in excess OF
those conferred upon it by statute.
Egan Bedford & Co. and, for that, all
| persons equally with the bank are
| bound to take notice of the statute.
The guaranty is void and the bank is
not liable"
Judge Hacker listened attentively.
"Have you the Revised Statutes?" he
said.
eyes," replied Stratton, handing
him the volume Section 51S6."
Judge Hacker opened the book on
the table and began to read it care
| fully. In moment he looked up. do
you know of an authority constituting
this statute?" he said.
Mr.. Stratton touched his bell, and
the Office boy came in with a copy OF
the Federal Reporter" Stratton
handed the book to Judge Hacker.
page $685." he said.
Judge Hacker took the volume to
| the window and went carefully over
the case Egan Bedford followed him.
peeping now over and now under his
arm, as though. the lawyer were exam
lining some incomprehensible Internal
machine. His face was tense.
The whole plan of Randolph Mason
was now laid open. Plain, even to
young Winfield Gerry. He slipped his
hand into mine and wrung it.
Presently Judge Hacker closed the
L
Then he spoke to Stratton. "You seem
to be right about this" he said. "This
decision of the United States circuit
| court of appeals appears conclusive.
The Fifty-eighth National bank did
not receive this money and conse-
quently it cannot be taken to be in the
position of obtaining benefit by its
void act. This money was paid to
Winfield Gerry and not to the bank"
] Then he turned to Egan Bedford, you
will have to look to Mr.. Winfield Ger
ry for the payment of these checks"
Bedford raised his arms above his
head and dropped them with hope
less gesture. Sue him, sue that fell
low!" he cried. "He is not worth
| tinker's dam. He hasn't dollar!"
Young Gerry took out his purse.
stripped off his rings, unlocked his
pearl pin from the tie and handed
them to Bedford. you are mistaken"
he said; there is quite an estate"