The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1914-12-22
STOCKHOLDERS
ARE NOT LIABLE
Supreme Court Ruling in Co.
lumbia Bank and Trust
Company Case.
JOLT FOR BANKING BOARD
}. A. Menetee Wins Test Case
Brought by J. D. LsngfOrd
Involving $780, 1000.

4 s"'erc Jolt was administered 10
the state bank commissioner and the
hnnkn. board In it, efforts 10 com.
pIeie the liquidation Of the defunct Co
lunbm Bank and Trust company Of
Oklahoma City when the state SUI.
pr'mc court held this morning that
stockholders In that concern could not
be held liable Tor double the amount
Of their stock.
The decision was handed down In
the case Of J. ID. Landlord, state bank
commissioner against ] A. Menef.o
ana was rendered on re- hearing. the
supreme court formerly laying down
ia" reverse principle that the stock.
holders NJ the defunct concern could
u' held 10 repay to the state double
the liability as represented by their
entire stock holdings The former opln.
Ion was rendered before the retirement
Of Justices Williams, Hayes and Dunn
und was cOncurred In by the entire
court at that time with the exception
of Justice Dunn.
BY Loofborough.
The opinion Of the court today was
/ written by Justice r. II. LOofboro Igh
ana Is concurred in by all members of
the court excepting Justice Riddle who
wrote long dissenting opinion.
The case was originally brought by
the bank commissioner In the district
court Of Caddc county, seeking 10 re.
cover double the amount Of stock own.
ed In the Columbia Bank and Trust
company by j. A. Menetee, former
state treasurer. amounting 20 S26.OOO.
The bank failed while Menefee was
treasurer In 1909 and the failure was
the biggest financial and political sen.
kation that developed during the Has.
kell administration.
The bank commissioner stated An his
petition that the liabilities Of the bank
were far In excess Of the assets apd
that the liability Of Stockholders under
the double liability clause Of the state
banking act would amount to about
$2OO.om. The trial court found In fu-
vor Of Menefee and the bank commits.
Sioner appealed the decision Of the
lower court being reversed by the first
supreme court opinion.
Extent Of Liability.
Justice LoofbOrough In his opiDIon
holds that the extent Of Menefee's liza.
lbiiity h measured by Section 10 Of the
Trust company act and TX ~ the ex.
tent OF double the amount that Is un-
paid upon stock held by him. The con.
tention Of the state that Menefee conli
he held liable for the entire amount of
stock owned by him or $2O0,OO0 even
though paid for at the time OF the
failure In oyerruled In the opinion.
The Columbia Bank and Trust com
pany was organized In 1905 under the
laws OF oklahoma Territory governing
trust companies and which gave thetu
right to do a banking business. The
court holds that the section OF this law
fixing liability Of stockholders was nE
changed after statehood and that stock.
holders In trust company organized
under that statute cannot be held NJ
Sponsible under the double liability
provision Of the general banking stat
ute governing state banks even though
the Institution were engaged In a bank
ing business.
Justice LOOfborruugh also held that
II the legislature had Intended to make
stockholders in trust companies amen.
able to this provision of the state bank.
Ing net II would have 50 provided.
Riddle Dissenis.
Justice Riddle, In his dissenting
opinion, takes the opposite view. aud
holds that when the state seeks 10 en-
force the double liability clause the do
PENDANTS should he estoppcd from IA.
serting that they were organized un.
der the trust company act
"'This principle Of estoppel has BEN
viduals assuming similar positions to
vlduals assuming similar prositlons to,
ward each other says Justice Riddle
and has been enforced In this court
against individuals under the same
state Of facts, and why Il should not
he applied In the present case I am
unable tu discover"
Justice Riddle believes that the
Judgment Of the trial court should have
, have been reversed. lie also believes
that since the Columbia Bank snd
: Trust company secured the benefits Of
! the guarantee fund and permitted it,
: deposltors 10 be paid therefrom Il
should also share In the general in.
bllity to the guarantee fund a. pro
vidpd for gtnte bnukg