De Kay v. United States

280 F. 465, 1922 U.S. App. LEXIS 1812
CourtCourt of Appeals for the First Circuit
DecidedApril 20, 1922
DocketNo. 1493
StatusPublished
Cited by3 cases

This text of 280 F. 465 (De Kay v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Kay v. United States, 280 F. 465, 1922 U.S. App. LEXIS 1812 (1st Cir. 1922).

Opinion

JOHNSON, Circuit Judge.

Edward P. Metcalf, the president of the Atlantic National Bank of Providence, R.'L, the plaintiff in error, and John W. De Kay were jointly indicted in the District Court of the United States for the District’ of Rhode Island upon three indictments, in which Metcalf was charged with misapplying the funds [466]*466of the bank in violation of section 5209, R. S. (Comp. Stat. § 9772), and the two De Kays with having aided and abetted him. John W. De Kay was not within the jurisdiction of the court. These indictments were joined, and Metcalf and the plaintiff in error, who will be hereinafter referred to as the defendant, were tried together. Both were convicted; Metcalf upon all ten counts in all the indictments submitted to the jury and Henry E. De Kay upon all except one count in one indictment.

The misapplication charged was the withdrawal of the money of the bank upon nine drafts, six drawn by one B. M. Riker upon the Mexican National Packing Company, and three by the Massachusetts Chemical Company upon John W. De Kay, when neither the Mexican National Packing Company nor John W. De Kay were indebted to the drawer, and when both Metcalf and the defendant knew them to be worthless, and intended only as a device to obtain money from the bank. The drafts drawn upon the Mexican National- Packing Company are designated by counsel as “Mexpac” drafts, and those drawn by the Chemical Company as “Chemical” drafts, and they will be so designated herein.

Five of the “Mexpac” drafts and the three “Chemical” drafts were, by direction of .Metcalf, credited to his account at the bank before they had been accepted, or the amount for which they had been drawn collected, and their amounts were afterwards withdrawn by checks of the said Metcalf and paid over to the defendant or his ^brother, John W. De Kay, or the Mexican National Packing Company, Limited. The other “Mexpac” draft was credited to the account of John W. De Kay at the bank and this amount was withdrawn from the bank by the defendant, who had a power of attorney to draw upon his brother’s account.

The jury was fully and carefully instructed upon all the essential elements' of the offense set out in the statute, and no error is assigned, either to the instructions given or to the admission or exclusion of testimony.

The only questions raised by the assignment of errors which have been argued are:

First. Whether there was any substantial evidence to sustain the verdict.

Second. Whether Henry E. De Kay is entitled to the benefit of the grant of amnesty and pardon contained in the President’s proclamation hereinafter discussed.

The determination of the first question calls for a careful examination of the record.

The defendant and his brother, John W. De Kay, were interested in the reorganization of the Mexican National Packing Company, which had been engaged in the packing business in Mexico. The defendant had been appointed receiver of the company, which had got into financial difficulties, and with his brother, John W. De Kay, had formed a new corporation known as the Mexican National Packing Company, Limited, which had taken over all the assets of the old company, and the De Kays were attempting to finance the new company.

[467]*467Henry E. De Kay had an office in New York City. John W. De Kay was attempting in London to float the sale of the bonds of the new company, and another brother, Louis, acted as superintendent and manager of the company in Mexico.

E. P. Metcalf, since 1902, had been the president of the Atlantic National Bank. In 1909, as the guest of John W. De Kay, he made a trip to Mexico and as a result of this trip and his examination of the property of the Mexican National Packing Company, he purchased for the bank a draft for £5,000 sterling, drawn by that company upon the British & Mexican Trust Company of London, which was not paid, but afterward put into the form of a note made by a clerk of the De Kays named Moyer, and this note was unpaid when the bank closed. Because of this transaction the directors of the bank were opposed to taking any more obligations of the De Kays, or in which they were interested, and Metcalf knew this. Pie, however, interested himself in the reorganization of the Packing Company, and admitted that, for his services in assisting the De Kays in financing the new company, he was to receive the sum of $25,000 and also a block of its stock. Through his own holdings, and those of others which he managed, he controlled a majority of the stock of the Atlantic National Bank, Outside of his indebtedness, he estimated, at the time of the transactions covered by the indictments, that he was worth $50,000; that his income was $15,000 per year, $9,000 being derived from his salaries as president of the bank and as an officer of two corporations, and $6,00(3 as dividends upon stock owned by him. The bank was closed on April 14, 1913, and a receiver appointed.

[1] The sentences imposed by the court upon all the counts of all the indictments were to be served concurrently, and in no case exceeded the maximum penalty provided by the statute, so that, if there was any substantial evidence to sustain the verdict against the defendant upon any count, it must stand. Abrams v. United States, 250 U. S. 616, 40 Sup. Ct. 17, 63 L. Ed. 1173.

[2] These “Mexpac” drafts were signed by one B. M. Riker, who was a stenographer in the office of the defendant. The name of the drawee was left blank, as well as the date and amount of each draft, and all were sent, by direction of the defendant, to Metcalf to use as he saw fit. They were made payable five to ten days after sight at a bank in the city of Mexico and all but one were credited, by order of Metcalf, to his account at the bank before their acceptance or collection. One was credited to the account of John W. De Kay at the bank, upon which the defendant was authorized to draw. Metcalf then, with checks upon this account, obtained cashier’s checks, which were sent to the defendant in New York, or he caused the account of John W. De-Kay at the bank to be credited with them. Many “Mexpac” drafts had been used at the bank in a similar manner by Metcalf before the use of these six, and the defendant, from his New York office, had kept Metcalf informed as to the dates of maturity of these drafts and sums necessary to cover them.

The Chemical Company drafts were drawn, by direction of the defendant at the request of Metcalf, upon John W. De Kay, payable in [468]*468Rondon, and were credited to the account of Metcalf at the bank, by his direction, and cashier’s checks for approximately their amounts were sent to John W. De Kay.

There was evidence that Metcalf knew that all the drafts were fictitious, and that he was told, both by 'Henry E. De Kay and his brother, that there were no funds to meet them when they were drawn, and that it would be necessary for him to supply funds at their maturity.

The defendaht admitted that the purpose of using both the “Mex-pac” and “Chemical Company” drafts was to borrow money; and there was evidence from which the jury could find that it-was to be borrowed from'the bank by the use of fictitious paper, which did not have to meet the approval of its directors, as loans.

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Bluebook (online)
280 F. 465, 1922 U.S. App. LEXIS 1812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-kay-v-united-states-ca1-1922.