Daily capital journal. (Salem, Oregon) 1903-1919, 1915-02-23
OF SUPREME
COURT FAVORS WIDOW
LaChmund Loses the Case
Against GiIe & CO.---Other
Decisions Announced

From the whole case it appears
that the defendant (the First National
Bank of Roseburg) through its presi
dent decoyed an ignorant old woman,
who relied upon the credit of the bank,
into making an equivocal contract,
whereby she must probably lose her
money unless the defendant pays it, as
in good morals it ought to do, Under
such circumstances courts will not be
astute to search for technical reasons
to enable the defendant to escape from
the consequences of a contract made
for il by its chief officer.
Basing its action upon the above con.
clusion the supreme court this morning,
in an opinion written by Justice Ne
Bride affirmed the decree of Judge
T. j. Cleeton of the circuit court for
Douglas county, in which Elizabeth
Byron, widow past so years of age,
was awarded Judgment for balance
Of $3,254,25 upon her account with the
First National Bank Of Roseburg. The
money was alleged to have been bor
rowed from the widows funds on de.
posit in the bank by its president r. |
h. Sheridan and the bank sought toI
escape the obligations on the plea that
Sheridan had no right to borrow money
in the name Of the bank without au.
thority of the board Of directors. The
supreme court finds that the trans.
actions between Sheridan and Mrs.
Byron had gone on for more than a
year past and that, having had knowl.
edge Of such transactions, the board Of
directors passively il not actively
acquiosccd in the business relations
existing between the bank and the
innocent and trusting widow and the
bank should stand responsible for any
sums due her
Lachmund "stung" For Bill
Holding that inasmuch as the dc.
fondant, Louis Lachmund, in guaran-I
teeing the credit of Robert Glisan TO
II. S. Gilc & Co., to the amount Of $500,
did not exact or make any spccifica.
tions to the effect that any sums
which Glisan might pay on The account
with Gile & Co., should apply to the
relief Of Lachmund IS guarantee, the
supreme court this morning held the
latter liable on his credit agreement
for the balance Of account ON bill Of
merchandise to the amount Of $3.50. .
The opinion is written by Justice
Burnett and the decree Of Judge Kelly,
of the circuit court for Marion county,
is affirmed
Different IN This Case.
In case somewhat similar to the
above the court, in an opinion written
by Justice Burnett, holds that, mas.
much as the written agreement of
Leroy LomaX to stand surety for |. D.
Watson to Rothchild Bros Of Portland,
on any credit to the extent Of $500,
was q mere declaration OF offer ON
the part of Lomax with nothing TO
show its acceptance or mWahty of
agreement ON the part Of Rothchild
Bros, and is not a valid contract
Lomax was sued for balance of
$S0703 due Rothchid Bros. on nc.
count Of Watson, for which amount
Rothchild Bros. was given decree by
Judge Morrow Of the circuit court for
Mulmomah county which dccrce is
reversed by the appellant court and
the cause rommdcd The supreme
court however reserves It's opinion
upon the question of whether or not the
guarantee is valid under the Oregon
statute of frauds which rs moro string
cnt than those Of any other state called
to the courts attention
Other cascs decided by the court this
morning Wcrci
Frank o, Blair respondent ys, West
cm Ccdnr Company; appeal fron
Columbia County; Circuit md.o Cleo.
ton affirmed Opinion by Justice
Burnett
Fred Waldffor respondent ys.
Thomas A. Bcchill. ct AL; appeal from
MuIinomah county; Circuit Judge Clce.
ten reversed, Opinion 10y Justice
Burnett
st. Johns Lumber Coo respondent
VS. Robert pritz, ct AL; appeal from
Multomph county; Circuit Judge Nor.
row affirmed Opinion 10y Justice
Harris
II. G. Mcdowell respondent, VS.. B.
J.. Carothors; appeal from Marion
County, action TO scttlc dispute over
location of boundary line between
OF htieonts, Circuit Judge
Galloway affirmed. Opinion by Jus.
ticc Bean
Former opinion Ia favor of respond.
ents was adhered tu in the case of
Oregon Lumber 4 Fuel Cos respondent,
vs., Oak Nolan; appeal from ATultuomah
county Action to forccloso ON NOR