Evening star., 1919-10-10
BANK DIRECTORS
MUST Be D|uGENT
: ~
Negligent Official Heavily
PenaIized-E. J. McQuade
Elected Council Member.
-
LOCAL STOCKS FIRM
BY I. A. FLEMING.

= John Shelton Williams, controller OF
the currency, has taken especial care
TO bring before the directors of the
national banks of the country the
case of Bowerman, appellant, vs. Ham,
.ner. receiver. recently adjudicated be-
fore the United States Supreme Court
in which the appellant. director of
small national bank in Salmon.
Idaho, was defeated in an effort to
escape the judgment of a lower court
for gross negligence in that he failed
Ito discharge his common-law duty as
IA director of the institution.
The appellant was a man OF some
importance and reputation. resided In
"a city or town 200 miles away from
Salmon and during five and ne-half
year period of dictatorship failed to
ATTEND a meeting of the directory.
He failed to keep himself advised of
the general condition of the bank
while lending his name as director,
three large loans were made to Of
.ficers of the bank, through permitting
;Gverdrafts and receiver was appointed.
n Director Bowerman claimed that he
was not liable for the reason that
the records did not show that he
knowingly conoented to the three ex-
icessive loans.
The verdict was against the d.
.Tectors and they were assessed not
only for the excess of the loans, but
also for the entire loss with interest.
&. The point in issue is that there is
"a common-law liability and duty for
n bank director to diligently admin
. lister the affairs Of a bank. The let
tier will be read to all directors Of ma
stional banks.
* Elected Bank Director.
y Marshall L. King of Washington,
sAlexandria and Charlotte was yester-
day elected director of the District
National Bank.
No Other City in Race.
Joshua Evans. jr, of the Riggs Ma
.fional Bank returned this morning
from st. Louis, where he had been in
attendance on the American Bankers
Association convention.
= He expressed the belief that Wash
1ngton would surely be chosen as the
convention city for the 1920 conven-
ton. Sentiment among the bankers
present was almost unanimously IA
yorable. Invitations were extended
rather unimportant cities.
z. J. McQuade Honored.
! Edward J. McQuade, cashier of the
Liberty Savings Bank. was today
;schosen a member Of the executive
council Of the American Institute of
Banking, a position for which he was
recommended by every past president
of the Washington Chapter of the A.
y b and the present president. Victor
II. Deyber.
9 Steel Tonnage Report.
Unified orders on the books of the
United States Steel Corporation Sep
stember 80 totaled 6,2S4, ,638 tons, an
8 increase OF 1855 tons as compared
with the untitled orders August 80.
81 Steel stock was very strong on Wall
street selling up to 111N. the highest
rated.
Local Stocks Higher.
There was q decided Improvement
In the local security market. with
way preferred. fractional improve
ment in Washington Gas, point bet
terment in Lanston Monotype and
fsmaterial gain in Graphophone COM
. mon.
\ Fractional shares of Graphophone
! common sold at 46A. and then a quo
-tation lot sold at so. an advance of
Z several points. with so bid and high
t.or prices asked.
z Lanston sold at 81 and Mergenthaler
AT 140x.
* Railway preferred brought So and
s2h. Gas. 5oh and Capital Traction
sS The only bond transactions were in
Railway 4s, at 62x and 62A