The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1920-09-17

ever, whether they have done so, as
the resolution does not appear on
their journal They have also re-
tanned Attorney Arthur VanEpp as
counsel.
The following communication to
the commissioners from Prosecuting
Attorney Jos. A. Seymour, places the
liability for the loss with the board:
September 7, 1920
To the Honorable Board of Com
missioners of Medina County.
IN RE: $500 Liberty Bonds, De-
pository Securities Of Old Phoenix
National Bank, Medina, which appear
to have been lost.
Gentlemen:
Relative to the above matter would
state that there seems to have been no
litigated case of this kind in the Ohio
courts, and the statute itself appears
to be silent upon the question of liza
bilities of boards of commissioners
relative to collateral securities placed
in the hands as security on depository
contracts. My opinion in this mat
ter is, therefore, based largely upon
reason.
The statute provides three (3) ways
in which depository contracts may be
secured. First, by the execution OF
an undertaking signed by at least
three freeholders, whose names must
meet the approval Of the board Of
commissioners; second, by a surety or
indemnity bond signed by surety or
indemnity company authorized to DO
business within the state of Ohio,
which shall also meet the approval of
said board; and, third, by depositing
with the board of commissioners GER
tain collateral securities which in
clude United States Liberty Bonds.
The statute further provides, under
Section 2735, that: :.
"The county commissioners shall
make ample provision for the safe
keeping Of hypothecated securities.
The interest thereon, when paid, shall
be turned over to the bank or trust
company so long as it is not in default.
The commissioners may make provis-
ions for the exchange and release OF
securities and the substitution Of other
securities, or of an undertaking there
for"
1t appears that the commissioners
have to a degree at least complied
with this statute. You have rented
safety deposit box in the vault OF
the Medina County National Bank, in
which to deposit said, securities. The
question in my mind, however, is not
The compliance with this statute, but
rather rests upon the question OF
negligence. In the care and custody
of these securities the commissioners
are chargd with that degree OF care
known as great care, and under great
care only slight negligence on the
part of the board in caring for the Sc
curities is required to make the COM
missioners personally liable for the
loss of said bonds.
While it may not appear to the
members of the board that they have
been careless and negligent, it is
nevertheless true all members OF the
board have separately and at differ
ent times visited the safety deposit
box in which the lost bonds were kept
for the purpose Of allowing different
banks to clip the coupons and ex
change their securities.
Further, while some attempt has
been made by the board to keep thu
collateral securities of the, various
repositories in separate bundles from
each other, such has not always beer
the case. | personally know of on
instance where the bonds were appar
emily thrown in altogether, and al
had to be looked over in order to flint
the securities of the separate deposit
ories.
Furthermore, the keys to the depos
it box were turned over to the count
auditor and placed in his custody, an
I dare say until recently no membe
of the board knew exactly where thos
keys were kept by the auditor, an
this fact has been admitted by at leas
two members Of the board.
1t has also been stated by at leas
one member of the board that afte
having seen the condition of the bond
in the safety deposit box, he refuse
to 90 to the box again while coupon
were being clipped or exchange 9
coupons being made.
The commissioners journal relati'
TO the several exchanges or securitlt
which have been made by the deposi
ories, has apparently at all TIM
no record Of the visits made to Il
safety deposit box at various times Il
the purpose of clipping interest CO..
mons from said bonds has been keI
and it is impossible to tell from Il
commissioners journal when coupol
we're clipped, or who went to the b
to cut the coupons.
All these things probably do not a
near to the commissioners as sufficie
Y negligence to place the liability up
the members Of the board PERSONAL
nevertheless, as above mentioned, 2
mo charged with great care in the ct
tcdy cf fhse securities, only she
nerligence is required, and II is thel
fore INV opinion that the members
fhe hoard If county commissioners