Norwich bulletin., 1914-07-02
HOW COURTS ARE
 AGAINST BANKERS
John Edson Brady Says the Judges
 Are Not to Blame.

John Edson Brady, formerly of this city, who is now legal editor of the Banking Law Journal of New York city. was a speaker at the Iowa Bank CTS association convention in Clin- ton. Iowa, in June upon the topic Judicial Discrimination Against Bank CTS.
 In the Clinton Herald MT. Brady is quoted as saying that the fault in this lies not with the judges.
 An extract from his address is giv- en as follows:
 "The courts must apply the law as they find it," he said. Certain rules have been allowed to grow up which the judges must follow and which work unfairly against banks-"
 He then took up a number of GUS toms followed by banks and explain ed that a custom to be recognized in court must be reasonable. moral legal, and not contrary to public policy. He illustrated his talk throughout by quoting cases in point.
 One custom among some banks which is not recognized by the courts, he said is that of sending a check for collection direct to the bank on which 1t is drawn. In case of the failure of the drawee bank, in the meantime, he said. the collecting bank is held re- sponsible to the depositor. The only means by which this can be avoided in some cases, he said, is to make a contract with depositors, setting aside the right under the law of the depos- itor to hold the bank responsible.
 Discriminated Against.
 There is a rule of law, he said. that money paid out under a mistake of or. There are exceptions, however and these apply to bankers. That happens, he asked, when q bank comes into court in an effort to ! recover money serroneously paid out on a check which resulted in an over- draft. The bank is never allowed to recover from the third party who re- ceived the money, although the courts quarrel over the reason for the ex- ception.
 The same applies to money paid out on a check with a forged signature the courts holding that the bank must recognize the signatures of depositors In this way they are following an old ] precedent established in English courts many years ago.
 In some states, he said, however bankers are permitted to recover under cerain circumstances. The Iowa su- preme court has held that where the payee receives a check under cir cumstances that should arouse sus. picion and fails to investigate the banl may recover from the payee What are the bankers going to dC ! about it, he inquired. They must lool to the legislatures. was the answer But the legislatures cannot act auto. matically. They have plenty to dt
 without going out of their way to dis l cover the woes of the bankers. l He then cited a number of cases O l egregrious blunders made by legisla i lures through too much haste in tn, i preparation of law and said the sug 1 gestions has been made there is some
 thing wrong with the law-makint 1 bodies of the United States, that tn,
 membership is too great, the pay to, i small and the meetings too short It has also been suggested he sai, | that better results could be obtaine, | with smaller body in session all O
 the time and with the pay suficien
 to attract capable legislators ] The bankers must ascertain where
 in the law is defective, he said, an, advocate reforms by every prope means in their power.
 1 At the conclusion of the meeting
 Acting President Epperson called at
 tention to the Iowa state highwa,
 commission exhibit in the Coliseum prepared at the instance of the low