Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-04-04
THREE LINCOLN
/ MEN ARE LIABLE
/. TO DEPOSITOUS
Supreme Court Holds that Property
Of Thompson, Yates and Hsmer
Estate Stands Back OF De.
funct Bank Deposits,
ABOUT 100000 INVOLVED
Capital National Bank Failed at
Lincoln in 1893 and Case Has
Been in Courts Ever Since.
ECHO or THE BARTLEY CASE

~ WASHINGTON, April ., - Per
sonul property Of Charles ". Yates,
David ". Thompson and ellis +.
Haner, directors of the capital Ma
tonm bank Of Lincoln. which failed
in 1893. was today hold by the au-
promc court TO bo subject 10 satlgfaea
ton Of deposltors induced 10 become
such by false reports on the banks
condition TO the comptroller Of the
currency.
In 40 holding the court reversed
Judgment Of the Nebraska supreme
court, which decided against the
Jones National bank, the Bank Of
staplehurst, the Utica bank and
Thomas Bailey, recovering from the
directors or their estates and dls
rected that tho Judgment Of the dis.
lrict state court In their favor be re-
nstated.
Hundred Thousand Involved.
About 10000 is Involved IN the 1859.
Tho umount of Judgment viii be Dforntod
among the directors, y, 10. Tbompsou, q,
n. Yates aud tho estate " Elias T.,
lfnnor
Tho failure NJ the Capital National
bank nj Lincoln january n, 1893 ana the
subsequont litigation IN which the depos
itofs endeagorod 10 hold tho directors
responsible for tho failure, n numbered
among tho most famous court easea ~
Nebraska,
Following the failure of Tho Capital
fsNatl6nal bank many Of the deD6diots
sued tho directors. on tho theory that the
directors were responsible for the mis-
management Of the institution
Tho cases we're removed 10 the federal
court. whero Judgments we're rendered IN
favor Of tho directors,
-Four depositors Jones National bunk,
seward Bank Of Atapobur9t, staple
hurst, ttIoa bank, Utica, and Thomas
Bailey, seward, sued over agaln in the
district court Of Seward county.
Tho four cases were first removed 70
tho federal court and then remanded,
1'hey were first tried before u Jury IN
tho district court of Seward county IN
xp02, and Judgments rendered against tho
directors
Tic Judgments were affirmed BY TIE
state supreme court md then carried 70
the United statcs supreme court by lhe
directors.
Iirsi Held Not Liable.
in the United states supreme court the
lu1gmons were reversed IN May, 1871. the
court holding that the directors were not
linble for atostlng 10 falac reports Of
the bonk unless they knew Of FALSE
fcations In the reports
, The caBos were tried over again Ia Sew
ard county In 1911, whore judgments were
again rendered against tho dlfcotofa
These judgments were reversed on appeal
IN the state supreme court
The decision announced yesterday by
the United states supreme court rcverseH
Tic judgment Of tho state supreme court
t'h favor Of the directors aud rclnatatoa
.hc last Judgment rendered IN the Sow
ard county diatrlt cnrto tehhodlng aoln
ard county district court holding the dl.
reetors responsible,
hartley Remembered.
Tho name OF Joseph VI Hauloy former
state trcnsurer, h remembered in con
nectiona with tho failure Of the Capital
National bank BARLEY was rcnteneed in
1891 to twenty years IN the penitontiary
and was pardonod by Governor Savage
after hn served five years and seven
months. He was convicted Of emhcszlc'
ment Of public funds. In addition 10 the
prison sentence he was fined i9e,76sr
twice Of the amount Of tho defaleation
spcrifEd IN the complaint
Tho item for tho ombestemont tar
Witch he was convicted consisted of part
al warrant ordered drawn uy the losis
auro 10 reimburse the permanent school
fund % tho state for a loss sustained
Continued on pagc tive, column Twol