Evening star., 1943-03-06
Bank Contends j. 5.
Should Bear Loss
For Fictitious Checks
National Metropolitan
Answers Federal Suits
: Involving $55.S03

Claiming that the Government
should bear the loss when it issues
fictitious checks, warranting them
to be genuine, the National Metro
politan Bank today has filed in Dis
trict Court answers to two suits in
volving total Of $55 300. .48 instituted
on behalf of the Treasury.
One suit grows out of Government
allegations that it paid out more
than $40 900 to four local banks on
checks said to have been forged by
Samuel N. Hedges, former super
1ntendent of the painting and deco
rating shop of the Senate Once
Building. Hedges. sentenced March
~. 1912, after pleading guilty to
the charges. is now serving from 20
months to five years for forgery.
Other banks being sued for smaller
sums in connection with the same
alleged forgeries are the Columbia
National, the Anacostia and the
Hamilton National.
$37,742 Against Metropolitan.
At the time this suit was filed,
Bernard j. Long. Assistant United
States Attorney, explained that the
largest Government claim In the
Hedges case-$37 ,742 .65-has been
placed against the National Metro
politan which comes into the suit,
he said, because it cleared checks
OF the Anacostia Bank and cashed
these with the Treasury.
The National Metropolitan's Sec
ond answer-in which it is denied
the bank owes the Government
$l8,, .83-is made in connection
within alleged forgeries committed
by James H. Foley, civilian employe
Of District Marine Headquarters,
who Is said to have cashed IA bogus
checks and converted the proceeds
to his own use.
The Government. the answer
states, redeemed the checks between
1885 and 1888, paying the bank
$18,060.83. The answer states that
when Foley learned of the investi-
cation Of the case, he went to New
York and killed himself.
The Government alleges that the
bank guaranteed the Endorsements
on the forged checks and cashed
these with the Government and thus
is responsible for making good the
sums involved.
In denying Government claims,
George c. Gertman, attorney for
the bank, wrote there was nothing
about the checks to indicate that
they were bogus as they were nor
NAL In form, each bore the stamp
or seal Of the United States. each
was signed and validated by an
omcer of the United States vested
with authority to sign checks in its
behalf in payment of legitimate
obligations"
Claims Defendant Misled.
The answer states that Govern
ment warranties that the checks
were bona fide misled the defendant
into indorsing and cashing the
checks. disarmed the defendant of
the protection which the warranties
would have carried Il true and lulled
the defendant into sense of false
security.
In the Foley case answer, Mr..
Gertman notes that the Govern
ment 'owes to the public the duty
To- Issue only- legitimate checks to
legitimate creditors of the Govern
ment and that If 1t issues ficticious
checks, warranting them to be gen.
uine, equity and fair play require
that 1t should bear the loss"
He further notes that when the
Government unintentionally issued
these checks and put them in the
forger's hands, it deprived the pub
Lie Of the protection which normal
legitimate checks carry"
A legitimate check, the answer
stated, must be lost or stolen to
suffer forgery. whereas the checks
In the Foley case, it is said, being
the product of an inside job" were
~predestined to be forged"