State v. Lewis

20 S.W.2d 529, 323 Mo. 1070, 1929 Mo. LEXIS 500
CourtSupreme Court of Missouri
DecidedOctober 8, 1929
StatusPublished
Cited by11 cases

This text of 20 S.W.2d 529 (State v. Lewis) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Lewis, 20 S.W.2d 529, 323 Mo. 1070, 1929 Mo. LEXIS 500 (Mo. 1929).

Opinion

*1077 WALKEK, J.

The appellant was charged by indictment in the Circuit Court of Shelby County with having, on the 8th day of October, 1925, as president of the Clarence Savings Bank, received a check for $530, for deposit in said bank, with knowledge of the fact that the same was, at the time, insolvent and in a failing condition. A change of venue was granted’, and the case was transferred to the Macon County Circuit Court for trial. Upon a trial to a jury, the defendant, was convicted and sentenced to two years’ imprisonment in the penitentiary. From this judgment he appeals.

On the 12th and 13th days of October, 1925, an examination of the affairs of the bank was made by two examiners of the State Finance Department, which disclosed that while the books of the bank showed bills payable to the Quincy-Bicker National Bank of $5,000, the indebtedness by the Clarence Bank to the Quincy Bank was $20,000; that a discrepancy of $16,152.96 existed in the account of the bank with the Mercantile Trust Company of Quincy; and a *1078 discrepancy of $2,610 in the bank’s account with the Hannibal Trust Company. The examiners of the State Finance Department notified the directors of the bank of its condition and informed them that, unless the impairment of the bank’s capital, as shown by their examination, be immediately corrected, the insolvency of the bank would be declared and an order made requiring it to cease operating. With a supplemental order that the business of the bank and a record of its proceedings be kept separate from its past transactions, it was permitted to continue in business until October 16, 1925, when, the order of the -bank examiners not having' been complied with, a resolution was prepared, signed by all of the directors, placing the bank in the hands of the State Commissioner of Finance, and it was ordered closed by the board of directors, October 17, 1925, and its affairs were taken over by the State Finance Department for liquidations.

So much of the resolution of the board of directors, omitting the formal opening and close of the same, as may be relevant to the matter at issue, is as follows:

“Our attention was called by the examiners to the difference of $16,152.96, existing between our records and those of the Mercantile Trust Company of Quincy, Illinois. Our records showing the amount due from them to be $16,352.9'6 more than their records show to be due us. Our attention was also called to the fact that this difference had existed during the months of August and September previous to the present time. Likewise attention was called to the difference between our records and those of the Hannibal Trust Company of Hannibal, Missouri, in the sum of $2,610.83. Our account showing said Trust Company to owe us this $2,610.83 more than the books of said Trust Company show to be due us. Also we find the bank has been obligated' at the Quiney-Ricker National Bank, Quincy, Illinois, in the form of bills payable in the sum of $20,000 of which $15,000 is not shown on our records as a liability of this bank. We also find slow and doubtful notes aggregating some $40,000.
‘ ‘ In view of the above facts and after thorough discussion in which each member of the board participated, motion was made by H. S. Maupin, duly seconded by W. J. Daniel, that this bank be closed and placed in the hands of the Department of Finance of the State of Missouri and that examiners South and Shelby be notified of our action and instructed to take charge of the bank. The president and cashier are hereby instructed to place a notice on the front door of this bank, as follows: ‘ This bank is in the hands of the Commissioner of Finance of the State of Missouri, by order of the Board of Directors. ’
“Motion carried by unanimous vote of the Board of Directors,”

*1079 The liquidation of tin* bank by the .state examiners was commenced soon thereafter, and was in progress at the time of the trial of the defendant in May, 1927. It was shown at that trial that not only had the defendant in his last statement, October 12, 1925, falsified the condition of its accounts with the three banks heretofore mentioned, but that at least $100,000 of the notes payable to the bank were worthless. This was testified to by several witnesses. Among others a Mr. Killam, who had been placed in charge of the bank by the State Finance Department, testified that during the fifteen months that had elapsed since he took charge of the bank he had made a careful investigation of the financial standing of the makers of these notes and had made persistent efforts to collect them, and that at least $100,000 of the same were uncollectible and worthless. He also testified that the total amount of the bank’s personal loans at the time it was closed, eight days after the deposit was made, was $359,-474.03, instead of $354,375, and that its real estate was of the value of $12,901.50, instead of $21,500, as set forth in the bank’s last statement made five days before its board of directors resolved to discontinue its business on account of its failing condition. Following this resolution of the board of directors the bank was ordered closed by the State Finance Department. There was additional testimony by Howard Combs president of the Shelby County Bank of Clarence, that he had been in the banking business in Clarence for seventeen years; that he was familiar with the financial condition of the people of that vicinity, and in his opinion, after having examined the paper of the Clarence Savings Bank, that $123,209.97 of its bills receivable were uncollectible. According to the foregoing a summary of the State’s evidence adduced to show the bank’s insolvency, shortages were disclosed in the amount of $33,763.79 in its bills payable, worthless paper in the sum of $123,209.97, and that is carried an item in its real estate account of $10,000, in excess of its ownership or equity therein. Thus of its total resources in the amount of $429,195.78, as set forth in its last statement made by the defendant, there were fictitious and worthless items in the amount of $166,793.76.

Tn the defendant’s testimony, from which it appears he was the only one familiar with the bank’s condition, he attempts to explain the discrepancies between its real condition and that set forth in the statement which he was required by law to make and did make. His testimony was not given credence by the jury; and measured according to its merit, if its verity be not questioned, it falls short of a defense to the charge made against him. This much clearly appears: that the defendant, during his years of connection with the bank, had been given free hand as to its superintendence and control. He not only managed the routine matters of its daily business, but *1080 loaned its money and passed upon the financial worth of those who borrowed it. If there were no other evidence in support of that fact, the resolution of the board of directors, expressive of their surprise at the bank’s real condition,' is ample to confirm it. We are left, therefore, to a consideration of such procedural errors as the record may disclose in the review of this case.

The defendant’s assignments of error consist in the improper admission of testimony;

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Bluebook (online)
20 S.W.2d 529, 323 Mo. 1070, 1929 Mo. LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-lewis-mo-1929.