The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1922-05-25

would be natural. If you draw DRAFT
an bank or some company, present
it to a bank, and deposit II there anu
that draft is dishonored would they
charge it back to mes No. They
would charge it back to you. lha'
shows another instance where FRANK
| Waterman was the guy who was be-
hind this paper. 1t was his indebted
ness. otherwise they wouldn't have
! charged it back to him. Now tnat
shows that this paper was not pur,
chased. Then it wasn't discounted
was it9 All right. We will go ht-
| tie further along that line. The DIS
count of Bill of Exchange drawn IN
good faith against actual existing val
1 hes. Now what did the evidence show
| that most of these drafts were drawn
againstg Was it for goods SOLIDS NO,
it was to take up Frank Waterman s
checks, to pay bunch of those little
drafts which had become due and put
| them into such items as these $25,0Oj
! drafts, four of them. Now here let
us see what the evidence was along
that line, regarding these Bills OF FL,
change drawn in good faith against &c
tual existing values. Mr.. Becker test.
| fled, Gentlemen, that there would have
to be a bill of lading attached to
these drafts or some shipping docu'
ment. Now :. ism I that reasonable 4
Why's Suppose this had been followed
in this case. Now the different men
said that Bills of Lading were not at.
tached to these drafts. Mr.. Dempsey
to his knowledge there was never a
bill of lading brought into that bank
and attached to any draft. Suppose
there had been. Suppose they had com.
piled with the meaning and intention
of that Statute, what would have hap
penedf Frank Waterman comes IN
there and draws draft on Bradford
Kennedy, Joy Tarbell, or some ethcs
lumber company for, we will say,
$500 All right. He has got car
of lumber down on the track ready for
shipment. He brings in his bill of lad
ing; the bank receives that bill of lad
ing; takes that draft which he has
drawn and that bill of lading, and the
draft is sent to Spokane, or Omaha "
wherever this car is consigned. Then
what happensa Do they pay direct,
as is the notation on lot of these
drafts? No, they will pay direct to
the State Bank of Kamiah. Whenever
a bill of lading is attached to one Of
those drafts the bank has some physi-
cal hold ON those actual existing values
against which they have advanced
this money That means that they are
going to get that money because, as 7
said, they have got physical grip
in that, so that when that is paid at
the other end it will not be paid to
Frank Waterman but it will be pail
back there to that bank. Now ism t
that reasonable7 Taking his eonstruc-
ton of this, that an existing value is
logs in the pond or lumber in the pile,
now let us see what the evil of such
| a construction as that would bes Take
this very case right here. Assuming
his construction of that, that lumber
away up there in the woods at Caribel
or logs in the pond is existing value
All right, they advance this monay
What hold have they got on thnt
What have they got to show that wher
that property is sold that the bank is
| going to Receive the proceeds of those
salesf No more than you or I, and the
evidence in this case shows it. No
Bills of Lading were attached to these
drafts. They were drawn against logs
in the pond. Did the bank receive any
money from the proceeds of the sale
of those logs, if there ever were any
saless No, absolutely not They
would come in there and draw the Sc
drafts; they would send those drafts
and they would come back with no
tation Paid Direct, Now here TAX
| ing a concrete illustration, suppose
one Of you gentlemen, went out here
to buy some hogs to ship to Spokane
to Armour we will say. All right. You
go out here and gather up a bunch ef
hogs, bring them into the stock yards,
and they are weighed out and you gst
a bill of lading. You want to pay the
farmers from whom you have purch as
ed those hogs. You take that bill of
lading up to the bank and draw a
draft against Armour of Spokane, and
the bill of lading is attached to that
draft. All right, will Armour and
Company pay you directf No, the
bank has got that physical hold on
that payment whenever it is made.
Now ism t that reasonables
/ My contention is this, that to sLy
lumber in the pile or logs in the pond,
you might as well say timber in the
tree 1t means the same thing exactly.
You cannot make any other distinction
out of it. 1t is not an actual exis.
ing value. How do they know it is ac-
| tually existing7 How did the Defend