The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-28
MAIN STREET BANK
LOSES TEST SUIT
Law and Equity Court Enters
Judgment for $4O3 in Favor
of Planters National.
ECHO OF FITZGERALD CASE
Litigation Grew Out of For
geries by Bookkeeper for
Kingan & Co.

The Law and Equity Court yester-
Street Bank OF Richmond In favor Of
the Planters National Bank for s4OS7l
The case grew out OF the forgeries by
+. Fl. Fitzgerald OF the Endorsement of
Albert +. Jordan upon three checks
which he had stolen from kingan &c
Company. Ltd. and deposited TO his
credit in the Main Street Bank
Fitzgerald had served term in the
penitentiary for grand larceny. and
upon his assurances OF reform. and at
the Intervention of friends. was at the
expiration OF his half-tilne, employed
by Kfngan e Company In 1895. For
some years the concern had been hand
ling Its Smithfield ham business under
the name of a. f. Jordan, and checks
were daily sent them payable TO the
order of Jordan whose rights had
been purchased by Kingan e. Company
Fitzgerald. who was employed as as
sistant bool<kecper and not as cashier
stole checks payable to Jordan amount
ing to about $500. concealing his theft
by forged acknowledgements to tho
RENTING customers and false entries
in his books. He then deposited the
checks. with the Endorsement of Jor-
dan forged by him. in the Main Street
Bank Of Richmond to his credit.
Deposited In Planters HANK
The Main Street Bank deposited the
checks in the Planters National Bank,
which sent them to the out-of-town
points, on which they were drawn and
where they were paid. Several months
later Fitzgcrald's frauds were DIS
covered. and demand being made by
Kingan & Company upon their custom
ers for tho amount OF the several
checks. repayment was made by them.
They In turn demanded credit OF their
local banks, and the sing given. those
banks made similar demand upon the
Planters National Bank of Richmond,
which was complied with
The Main Street Bank. failing in It's
turn 10 respond. suit was Instituted
against it by the Planters National
Bank upon the ground that the Main
Street Bank. by indorsinE the checks,
had warranted the genuineness of a.
L. Jordan's Endorsement. The Main
Street Bank contended that 1t was not
liable for several reasons. among
others, that Kin GAR & Company were
guilty OF negligence In having employ
ed an eX-convict: that they were also
guilty of laches In not having sooner
discovered the frauds of their cmploye,
and that the name OF A. +. Jordan was
a fictitious name and the checks were
really. therefore, payable 10 bearer.
Was Test Case.
All OF these contentious were over
ruled by the court and Judgment given
for the entire amount claimed. The
case was Il test case, and other pending
cases Will be governed by its result.
IT is understood that an appeal will be
taken to the Supreme Court of APP
peals. though that court, IN n similar
action last year by the Seaboard Ma
tionai Bank Of New York, against the
Bank OF Richmond. refused to inter-
fcre with the Judgment.
The facts Of this case are suhstan-
TALLY the same as those In which re-
lief was refused Kingan & Company
about four weeks ago by the United
States District Court. Fitzgerald had
stolen money orders OF his employers.
had forged their names 10 the receipt
and obtained tho money-about $3.50.
Judge Waddill held that the position
OF the government as TO money orders
Is not the same as that Of a bank to
checks drawn upon it-that in the
operation Of money order system.
the government is not engaging in
commercial transactions, but Is cXer-
cising n governmental power for the
public benefit. and. therefore. should
not DO held liable for paying money
orders upon = forged receipt.