Logan National Bank v. Williamson

1 Ohio Cir. Dec. 395
CourtLogan Circuit Court
DecidedFebruary 15, 1887
StatusPublished

This text of 1 Ohio Cir. Dec. 395 (Logan National Bank v. Williamson) is published on Counsel Stack Legal Research, covering Logan Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Logan National Bank v. Williamson, 1 Ohio Cir. Dec. 395 (Ohio Super. Ct. 1887).

Opinion

Seney, J.

The petition of Elizabeth Williamson, plaintiff below, alleges that the defendant, the Logan National Bank, is a corporation incorporated and organized under the laws of the Unitéd States, and that on or about the 5th day of [396]*396April, 1884, the said defendant, in consideration of a deposit of money, then made by the plaintiff, Elizabeth Williamson, with the said Bank, made and delivered to the plaintiff its certificate of deposit, a copy of which is attached to the petition as follows: .

“$1,900.00. Logan National Bank, West Liberty, O., April 4th, 1884.
“Mrs. E. Williamson has deposited in this bank nineteen hundred dollars, payable to the order of herself, 12 months after date, on return of this certificate, with 6 per cent, interest from date.
“No. 7533. F. P. Taylor, Cashier.”

That the bank thereby promised to pay to plaintiff, or her order, the sum of $1,900,00, one year after the date thereof, with six per cent, interest from date. The bank and its assets were afterwards placed in the hands, and under the control of Wm. B. Todd, as receiver thereof. The plaintiff presented to the said Wm. B. Todd, as such receiver, the said certificate of deposit, and demanded an allowance of the same as a valid claim against the said bank. But the receiver refused and still refuses to allow the same, and rejected it, and notified the plaintiff that she must bring suit. The plaintiff prays judgment with interest.

To this petition the defendant, the bank, filed a general demurrer, which was overruled and an exception taken.

The defendant then filed an answer in substance as follows: admitting its corporate existence and its insolvency: the receivership of Todd; that the certificate of deposit was issued by one Taylor who was at the time the cashier; but denies the same was issued by the bank or its authority; denies it was issued in consideration of a deposit of money, but admits the certificate was presented to Todd for allowance and his rejection thereof; denies that plaintiff had money on deposit with said bank at any time, or in the sum of $1,900, and denies every other allegation of the, petition. Defendant further says, that the said pretended certificate of deposit was made payable at twelve months after the date thereof, and to the order of plaintiff, and the same was issued in violation of an act of congress, which prohibited the issuing, by all banks organized under said act, of ‘post-notes.’ or any other notes intended to circulate as money; said pretended certificate of deposit would circulate and was intended to circu'late as money, and the same was and is void; all of which was well known to said plaintiff when she received the same; that at the time the plaintiff received from the said cashier said pretended certificate of deposit, she left in currency with said cashier on deposit the sum of $220, and no more, and that this defendant is wiling to allow said sum, and offers to confess judgment thereon in favor of the plaintiff for said amount, with interest from September 18, 1884; that said pretended certificate of deposit was issued without any other consideration, than said deposit of said currency; that it was issued without the authority of the directors or officers of said bank, and in violation of law, as the plaintiff then well knew.

A motion was then made to strike from the answer these words: “That the said pretended certificate of deposit was made payable in twelve months after the date thereof, and to the order of the plaintiff, and the same was issued in violation of an act of congress which prohibited the issuing by all banks organized under said act of ‘cost-notes,’ or any other notes intended to circulate as money; said pretended certificate of deposit would circulate and was intended to circulate as money, and the same was and is void; all of which was well-known to said plaintiff when she received the same.”

Said motion to strike from the answer was sustained by the court, and to which the bank excepted.

The plaintiff then filed a reply, denying each and every allegation of fraud and want of consideration.

Upon the issues thus joined a jury was waived, and the cause was submitted to the court upon the pleadings and evidence, and at the request of the bank, [397]*397Judge John A. Price, judge of said court, made his separate finding of facts, which are as follows:

1. On the 5th day of April, 1883, Samuel Taylor and Wm. R. Fisher were and prior to that time had been engaged in business as private bankers, under the firm name and stjde of “The Logan County Bank of Taylor & Fisher.”

Frank P. Taylor was cashier, and Paul S. Davis, teller of said private bank, and on the date aforesaid said bank issued to the plaintiff a certificate of deposit, of which the following is a cop3r:

CERTIFICATE OF DEPOSIT.
“$1,600.00. Logan County Bank, West Liberty, O., April 5th, 1883.
“Mrs. Elizabeth Williamson has deposited in this bank sixteen hundred dollars, paj’able to the order of herself on return of this certificate, properly endorsed, 12 months after date, with 5 per cent, per annum only for the time stated. No interest after maturity.
“No. 7431. P. Davis, Teller, Cashier.”

2. On or about the 7th of June, 1883, the said Logan County Bank ceased to do a general banking business, and went into liquidation, the co-partnership continuing to exist, for the purpose of winding up its affairs, until about the 22nd of September, 1884, when it made a general assignment for the benefit of creditors.

But alter said partnership ceased to do a general banking business, it did continue to renew its certificates of deposit, and to re-discount its bills receivable,

3. In the month of June, 1883, the said Samuel Taylor, Wm. R. Fisher, and others became incorporated and organized as a National Banking Association under the laws of the United States, by the name of the Logan National Bank, of West Liberty, Ohio, with a capital stock- of fifty thousand dollars. Said Samuel Taylor became the owner of $13,000 of said National Bank stock; and said Wm. R. Fisher became the owner of either $13,000 or $12,500 of said stock. Of said bank, said Samuel Taylor became a director and president, said Wm. R. Fisher a director and vice-president, said Frank P. Taylor, cashier, and said Paul S. Davis, teller. Said bank, with a directory of nine members, then commenced business; acquired and took possession of the banking room, furniture, fixtures, safes, and vaults of said Logan County Bank and continued in business therein until September 22, 1884, when it suspended and went into the hands of a receiver.

4. Said Samuel Taylor and Wm. R. Fisher acquired and paid for their stock in the Logan National Bank with funds acquired on their credit, and by converting a portion of the assets of the Logan County Bank. But none of the funds to pay for their said stock was raised on the credit of the Logan National Bank; nor did they raise any such money with the privity of the National Bank.

5. After the organization of said National Bank, said Taylor & Fisher sold and transferred thereto the bills receivable of said Logan County Bank to the amount of about $28,000.

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Bluebook (online)
1 Ohio Cir. Dec. 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/logan-national-bank-v-williamson-ohcirctlogan-1887.