6^f ((orn^ll IGam ^rljool Eibrary KF 995.5.S°6T" "'"™™"'' ^"""y miSmmiZ%S,^''''''°"^ Of all the Cornell University Library The original of tliis book is in tlie Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924018877583 A DIGEST Off ALL THE DECISIONS OF ALL THE COURTS RELATING TO NATIONAL BANKS EEPORTED From 1864 to April 1, 1898. HAL H. SMITH, Of thb Michioah Bab. CHICAGO: T. H. FLOOD AND COMPANY. 1899. . COFYEIGHT, 1899, BY • HAL H. SMITH. STATE JOURNAL PEINTINO COMPANY, Printers and Stbrbotypbrs, lUDIEOH, WIS. PREFACE. The following pages have been compiled in an en- deavor to gather together all the case law relating to the national banking system. Litigation as to this branch of onr commercial life multiplies each year. The polit- ical interest in the subject is increasing with even greater rapidity. Every condition dfemahds that we should be thoroughly conversant with all the d'eifiisions of the courts relating to it. It is hoped that this Digest may be useful to the professional and to the business man alike, and that the banker as well as the lawyer will be able to utilize it in the solution of the many problems that arise daily in his routine work. In the selection of the matter, every case that does not bear directly on the construction of the bank act has been eliminated, and out of about five thousand cases ex- amined fourteen hundred have been used. The citations, however, in those chosen will amply cover all the cases relative to any proposition of banking law. It has not been thought advisable to append the text of the National Bank Act, but a cursory examination of the legislation as to this subject may not be out of place. The original National Currency Act was approved February 25, 1863, and was entitled " An Act to provide iv PREFACE. a national currency secured by a pledge of United States stocks, and to provide for the circulation and redemption thereof." In this form it was inconsistent, unsymmet- rical, and with great difficulty construed to cover the widely-varied and rapidly-changing conditions of the country. Its provisions at once became the object of criticism and censure. Three seictions or provisions in particular were attacked, — section 15, which it was found permitted an increase of the capital stock of an associa- tion without the approval of the comptroller and subject to no limitation by him; sections 15 and 30, which, when construed together, practically allowed a bank to organize without a deposit of bonds with the government ; and section 31, which, though intended to prohibit the loaning by the bank on the security of , its own capital stock, did in effect prohibit loans by it on the security of the stock of any other corporation. Under stress of these criticisms another act was framed, correcting, changing and remodeling the old one. It was approved on June 3, 1864; was embodied in the sixty-second title of the Revised Statutes of 18Y3, and on June 20, 1874, was by Act of Congress denominated the National Bank Act; for the "legal tender note" had now become the " national currency " par excellence, and that title was no longer deemed applicable. No amendment was made in 1865 except as to the amount of circulating notes permitted, though the comptroller of the currency urged the advisability of changing the pro- visions limiting loans to one-tenth of the capital, so that PREFACE. y it would cover all liabilities, both for loans and deposits, except balances between national banks; the providing for the reduction of the capital stock to meet impair- ment, and the requiring of a report from each bank on the first Monday of each month in lieu of the quarterly and monthly reports then provided for. In 1867 the comptroller again asked for action in re- gard to the requirements for reports, but without result. March 3, 1869,-however, an amendment was passed pro- viding for the return of five reports during the year, as called for by the comptroller. The Act of 1864, providing as to state taxation of national banks, had given rise to much litigation, and February 10, 1868, its proper construction was fixed by Act of Congress. In 1869 the loan of money on the security of United States notes or national bank notes was prohibited; the certification of a check when there was not an amount equal to the amount of the check on deposit was forbid- den, and the crime of aiding and abetting an officer in violating the Act was defined. The year 1870 saw several amendments. July 13, by an amendatory act purporting to provide for the redemp- tion of the three per cent, loan certificates and to in- crease national bank notes, the establishment was. per- mitted of national banks authorized to issue circulation to the amount of eighty per cent, of the par value of their bonds deposited with the government. This circu- ti PKEFACE. la-tion was l-edeeinable in gold coin and these associations were denominated " National Gold Banks." July 14, 1810, an act was passed requiring banks going into voluntary liquidation to deposit monejr sufficient to retire their outstanding circulation within six months from the date of the vote to go into liquidation. The power of the comptroller over the banks was in- creased and their credit strengthened by the Act of March 31, 1873, providing that the comptroller could place any bank in the hands of a receiver which did not levy an assessment on its shareholders to restore its impaired capital, within three month after notification) of such im- pairment. In 1873 much investigation was made as to the Bank Act, but no further action was taken until the following year, when thei provisions for the redemption fund with the Treasurer of the United States were engrafted on the law, and the money reserve on circulation was abolished on all but the Gold Banks. The Act of 1875 repealed the provisions limiting the amount of circulating notes redeemable in gold. Specie payments, it was expected, would soon be resumed, and it was apparent to all that the legal tender nbte would then disappear. The void must therefore be filled by the increase in national bank notes. The beneficial e£fect which would have undoubtedly followed the enactment was, however, forestalled by the Act of 1878, fixing the limit below which the legal tender should not be re- PREFACE. vii duced, and by the Act of February of tbe same year, pro- vidiug for tbe issue of silver certificates. In 18Y6 it was provided that a receiver could be ap- pointed for any violation by the bank of the Act, or for any default on a judgment rendered against the bank; that a shareholder's liability could be enforced by a creditor; and that an agent of the shareholders could upon certain contingencies be chosen to close up the bank's business. The Act of 1882 provided for the extension of the corporate existence of national banks for twenty years upon conformance with certain conditions. By the Act of February 14, 1882, the ISTational Gold Banks were enabled to be converted into national banks and speedily embraced the privilege. May 1, 1886, provision was made for the increase of the capital stock of an association by a vote of two-thirds of the shareholders and on the approval of the comp- troller; under the same Act also an association could change its name and place of business, carrying with it, however, the liabilities, rights and powers of the old bank. August 13, 1888, the jurisdiction of the courts as to actions by or against national banks was defined. April 3, 1892, another defect in the law of 1864 as amended in 18Y6 was remedied by the amendment pro- viding that after the payment of the creditors of the bank in full and the redemption of the bank's circulation, a meeting of the shareholders ttiay be called to elect, if they so choose, an agent to close up the remaining assets viii PREFACE. of the bank. This provision as to the shareholder's agent was again amended March 2, 1897, by defining the pro- cedure when such an agent shall die, refuse to serve, resign, or be removed. July 28, 1892, the redemption of national bank notes was made obligatory though the notes had been put into circulation without the signature of the officers of the bank. The legal tender notes and national bank notes were made subject to taxation as money in hand or on deposit under the laws of any state or territory by the Act of August 13, 1894. Such, in the main, has been the growth of the National Bank Act from its inception to the present time. Con- ceived in the necessities of the civil war, it has stood the test of the times of peace and commercial activity that • have followed, and is now enabled to successfully cope with the same doctrines of fiat money which hindered its growth in its earlier years. However beneficial may be the amendments that are now being proposed, they cannot, without danger, change the basic principles of this legislation, the solidity and integrity of which will continually develop as we study the cases that are roughly noted in this Digest. Hal H. Smith. Ionia, MicmaAN, May 1, 1899. TABLE OF TITLES. Abatement. AcaOMMODATION PaPEK. Actions. Agent of Sharbholdbes. Assessment. Attachment. Bills and Notes. Bills oe Exchange. Bonds op Officers. Books of NATiONAii Banks. Branch Banks. Broker. Capital Stock. Cashier. Certificate of Deposit. Certification of Checks. Charter. Chattel Mortgages. Circulation. Claims. Clbaring-Hotjse. Collateral Securities. Collections. Commercial Paper. Comptroller of the Currency. Conflict of Laws. Constitutional Law. Conversion of State Banks. Criminal Law. Deposits. Directors. Dissolution. District Attorney. Dividend. estoppeu Examination of Nat'l Banks. ExpiEATiON OF Corporate Ex- istence. Extension of Corporate Ex- istence. False Entries. Forfeiture. Increase of Capital Stock. Indictment. Injunction. Insolvency. Interest. Jurisdiction of Courts. Lease. Liability of Shareholders. Liquidation. Loans. Mortgage. Name. National Bank Act. Notice. Officers. Organization. Place of Business. Power of National Banks. Practice. Preferences. X TABLE OF TITLES. Pkefeeeed Claims. Pebsident. Kbal Estatb. Eecbiveh. Reduction of Capital Stock. Eepoet. Set-off. Shabeholdebs. Special Deposits. State Banks, Conveesion op. Taxation. Transfer op Stock. Tkeasxjeer, United States. Ultka Vibes. United States. Usury. Vice-Peesident. TABLE OF CASES DIGESTED. Abbott V. Bangor (54 Me. 540). Const. Law, 1; Tax., 323. Aberdeen First Nat. Bank v. Che- halis County (33 Pao. R. 1051; 6 Wash. 604). Tax., 2, 107, 157, 315. Aokerman v. Halsey (37 N. J. Eq. 356: 38 N. J. Eq. 501). Dir., 51, 57, 58. Adair v. Robinson (35 S. W. R. 734). Tax. 178. Adams' V. Daunls (1 N. B. C. 510; 39 La. Ann. 315). Actions, 8. Adams v. Johnson (107 U. S. 351). Rec, 75; Tr. Stock, 44 Adams v. Nashville (1 N. B. C. 148; 95 U. S. 19). Tax., 101, 149. Adams v. Spokane Drug Co. (57 F. R. 888). Set-oflf, 33. Mtaa. Ins. Co. v. Mayor (153 N. Y. 331; 47 N. E. R. 593). Tax., 16. Albany City Nat. Bank v. Maher (6 F. R. 417). Tax., 115, 186. Albion Nat. Bank v. Montgomery (74 N. W. R. 1103; 15 Bk. 'L. J. 341; 30 Chi. L. N. 334). Us., 8. Albuquerque Nat. Bank v. Perea (35 Pac. R. 776; 5 Gilder., N. M., 664). Tax., 75, 76. Albuquerque Nat. Bank v. Perea (147 U. S. 87). Tax., 305. Allen V. Carter (119 Pa. St. 193; 13 Atl. R. 70). Cash., 31. Allen V. First Nat. Bank of Xenia (1 N. B. C. 888; 23 Ohio St. 97). Loans. 15; Power, 24; Us., 36. Allen V. Scandinavian Nat. Bank (46How.Pr.,N.Y.,71). Att.,6. AUis V. United States (155 U. S. 117). F. Ent., 81. Alves V. Henderson Nat. Bank (3 N. B. CT 453; 89 Ky. 126). Us., 47, 66. American Exchange Nat. Bank v. First Nat. Bank (83 F. R. 961 ; 48 U. S. A 633). Dir., 11. American Nat. Bank v. Nat. Wall Paper Co. (77 F. R. 85). Power, 98. American Siu:ety Co. v. Pauly (170 U. S. 133). Cash., 19. American Surety Co. v. Pauly (170 U. S. 160). Pres., 3, 4 Anderson v. First Nat. Bank of Grand Forks (67 N. W. R. 831; 5 N. D. 45). Power, 103, 104 Anderson v. Line (14 F. R 405>. Lia. Sh., 30. Anderson v. Philadelphia Ware- house Co. (3 N. B. C. 133; HI U.S. 479). Lia.'Sh., 17. Andrews v. King Co. Nat. Bank (1 Wash. St. 46; 33 Pao. R. 409). Tax., 301. Appeal of Second Nat. Bank of Titusville (2 N. B. C. 364; 85 Pa. St. 538). Us., 39. Appeal of Second Nat. Bank of Titusville (3 N. B. C. 740; 96 Pa. St. 460). Us., 71. Armstrong v. American Ex- change Nat. Bank (133 U. S. 433). Claims, 18. Armstrong v. Bank (59 F. R. 873). Claims, 5. Armstrong v. Chemical Nat. Bank (41 F. R. 384). Pref., 5, 15. Armstrong v. Chemical Nat. Bank (83 F. R. 556; 54 U. S. A. 463). Cash., 6. Armstrong v. Ettleshon (36 F. R. 209). Rec, 63. Armstrong v. Helm (13 Ky. L. R. 460). Setoff, 10. Armstrong v. Law (87 W. L. Bui., Ohio, 100). Set-off, 49. xu TABLE OF CASES DIGESTED. Armstrong v. Scott (36 F. R. 63). Set-off, 18. Armstrong v. Scotten (39 Ind. 425). Circ, 3. Armstrong v. Second Nat. Bank of Springfield (38 F. R 883). Org., 16; PI. of Business, 4. Armstrong v. Stanage (37 F. R. 508). Cap. Stock, 3, 3; Claims, 11. Armstrong v. Trautman (36 F. R 275). Reo., 63. Armstrong v. Warner (49 Ohio St. 376). Set-otf, 23, 34. Armstrong v. Wood (37 F. R. 508). Cap. Stock, 3, 3. Arnot V. Bingham (55 Hun, 553; 29 Am. St. R. 878; 9 N. Y. Supp. 68). Claims, 75. Aspinwall V. Butler (133 U. S. 595). Cap. Stock, 10; Sh., 5, 7. Atlantic Nat. Bank v. Harris (2 N. B. C. 454; 118 Mass. 147). St. Bks., Conv. of, 20. Atlas Nat. Bank v. Savary (127 Mass. 75). Power, 19. Attleboro Nat. Bank v. Rogers (125 Mass. 339). Power, 22. Auburn Savings Bank v. Hayes (61 F. R. 911). Claims, 64. Austin V. Alderman (14 Allen, Mass., 359). Tax., 18. Austin V. Alderman (1 N. B. C. 15; 7 Wall., U. S., 694). Tax., 64 B. BagnoU v. State (25 Wis. 113). Tax. 17. Bailey v. Mosher (63 F. R. 488). Off., 8. Bailey v. Mosher (74 F. R 15). Dir 72 Bailey'V. Sawyer (1 N. B. C. 356; 4 Dill., U. S., 463). Lia. Sh., 53, 75, 76, 82, 83. Baker v. Ault (Bankers' Mag., April, 1897. p. 574). Inj., 4 Baker v. Beach (85 F. R. 836). Lia. Sh., 44 Bajier v. Old Nat. Bank (86 F. R 1006). Lia. Sh., 5, 16. Baker v. Reeves (85 F. R 837). Tr. Stock, 51, 53. Baker v. Woolston (37 Kan. 185). Sh., 19. „ „ Balbach V. Frelinghuysen (15 F. R 675). Pref., 9; Set-off, 35. Baloh V. Wilson (3 N. B. C. 374; 35 Minn. 299; 38 Am. R 467). SetroS, 17. Baldwin v. Canfield (26 Minn. 43). Power, 37. Baldwin v. State Nat. Bank (3 N. B. C. 378; 1 N. W. R, O. S., 361). Power, 37. Bank of Bethel v. Pahquioque Nat. Bank (1 N. B. C. 77; 81 U. S., 14 WalL, 383). Actions, 11; Claims, 1, 24; Diss., 3, 3; Dist. Atty., 5; Insol., 4; Juris. Cts., 33: Rec, 30, 47. Bank of Cadiz v. Slemmons (3 N. B. C. 361; 34 Ohio St. 142; 33 Am. R 364). Dir., 20; Us., 52. 127. Bank of Gloversville v.- Burr (27 Hun, N. Y., 109). Power, 148. Bank of Montreal v. Fidelity Nat. Bank (113 N. Y. 667; 20 N. E. R. 414: 1 N. Y. Supp. 852). Att., 7, 8. Bank of Redemption v. Boston (125 U. S. 60; 3 N. B. C. 300). Tax., 19, 124i 156. Bank v. Armstrong (148 U. S. 50). Claims, 54. Bank v. Lanier (1 N. B. C. 70; 78 U. S., 11 Wall., 369). Power, 80, 134; Sh., 21; Tr. Stock, 2. 6,11. Bank v. Wade (84 F. R 10). Dir., 39 Bankv. Zent (3 N. B. C. 698; 39 Ohio St. 105). Sp. Dep., 8. Barker v. Livingston County Nat. Bank (30 EL App. 591, 607). Power, 70. Barnes v. Hall (55 Vt. 430). Tax., 217. Barnet v. Muncie Nat. Bank (3 N. B. C. 18; 98 U. S. 855). Vs., 136, 1.50. Barrett v. Henrietta Nat. Bank (78 Tex. 223). Rec, 37. Barrett v. Nat. Bank (85 Tenn. 426). Us., 145. Bartley v. Hayden {74 F. R 913). Rec, 62. ■^ABLE OF CASES DIGESTED. sail Bashaw v. United States (47 F. R. 40). Dist. Atty., 1. Batohelor v. United States (156 U. S. 426). Ind., 6. Beal V. Essex County Savings Bank (67 F. R. 816). Sh., 1. Beal, Receiver, v. City of Summer- ville (50 F. R. 647). Claims, 57. Beard v. Independent District of Pella City (88 F. R. 375). Claims, 55. Beckham v. Shackleford (8 Tex. Civ. App. 660; 39 S. W. R 200). Set-off, 16. Bell V. Hanover Nat. Bank (57 F. R. 821). Pref., 12, 13. Bird's Executors v. Cookrem (1 N. B. C. 284; 2 "Wood, U. S., 32). Reo., 86. Birmingham Nat. Bank v. Mayor (16 S. R. 520; 104 Ala. .634). Liq., 3. Bissell V. First Nat. Bank of Franklin (69 Pa. St. 415). Cash., 1. Blackmore v. Woodward (71 F. R. 321). Lia. Sh., 43. Blair v. First Nat. Bank of Mans- field (2 N. B. C. 173; 2 Phillip, 111; 10 Ch. L. N. 84). Off., 3. Blanchard v. Commercial Nat. Bank of Taooma (75 F. R. 349). Off., 11. Bletz V. Columbia Nat. Bank (30 Am. R. 348; 87 Pa. St. 87). Us., 161. Bly V. Second Nat. Bank (79 Pa. St. 453). Us., 96. Board of Commissioners v. Blston (1 N. B. C. 425; 33 Ind. 97). Tax 33 Bobs v.'People's Nat. Bank (31 S. W.R. 888; 93 Teun. 444). Us., 73, 107. Boone County Nat. Bank v. Lati- mer (67 F. R. 37). Claims, 47. Booth V. Welles (42 F. R. 11). Claims, 68. Bowdell V. Farmers' & Merchants' Nat.. Bank (2 N. B. C. 146; 1 Hughes, 307). Lia. Sh., 14; Tr. Stock, 55. Bowden v. Johnson (3 N. B. C. 55; 107 U. S. 351). Lia. Sh., 61, 62, 77; Tr. Stock, 4 Bowden v. Morris (3 Fed. Cas. 1031; 1 Hughes, 378). Insol., 3. Bowden v. Santos (1 N. B. C. 371 ; 1 Hughes, 158). Tr. Stock, 43. Bowen v. First Nat. Bank of Me- dina (34 How. Pr., N. Y., 408). Att, 3. Bowman v. First Nat. Bank (9 Wash. 614; 38 Pac. R. 211). Claims, 48. Boyd V. Olvey (82 Ind. 394, 398). Cir., 4. Boyer v. Boyer(3 N. B. C. 151; 113 U. S. 689). Tax., 148, 151, 197. Bradlev v. The People (1 N. B. C. 14; "4 Wall, U. S., 459). Tax., 119. Branch v. United States (1 N. B. C. 363; 13 U. S. Ct. CI. 286). Dep., 5, 6. Bressler v. Wayne Co. (32 Neb. 834; 49 N. W. R. 787). Tax., 118, 125, 141, 171. Briggs V. Hammonwald (35 Mich. 474). Power, 76. Briggs V. Spalding (141 U. S. 132). Dir., 22, 23. BrinckerhoflE v. Bostwick (3 N. B. C. 591; 88 N. Y. 52). Char., 4; Dir., 56; Juris. Cts., 32. Broderick v. Brown (69 F. R. 497). Set-off, 50. Brown v. Adams (5 Biss., U. S., 181). Tr. Stock, 33. Brown v. Farmers' & Merchants' Nat. Bank (31 S. W. R. 310, 385; 88 Tex. Sup. 265). Pres., 17, 19. Brown v. Finn (34 F. R 134). Lia. Sh., 8. Brown v. French (80 F. R. 166). Tax., 193, 203. Brown v. Marion Nat. Bank (93 Ky. 607; 18 S. W. R 635). Us., 13, 56. Brown v. Marion Nat. Bank (18 Sup. Ct. R 390; 169 U. S. 416). Us., 11. Brown v. Second Nat. Bank (1 N. B. C. 849; 73 Pa. St. 309). Us., 83, 107, 153. Brown v. Tillinghast (84 F. R. 71). Cap. Stock, 34; Lia. Sh., 81. Brownell v. Armstrong (26 W. L. Bui., Ohio, 465). Set-off, 43. XIV TABLE OF CASES DIGESTED, Buffalo German Ins. Co. v. Third Nat. Bank (51 N. Y. Supp. 667; 15 Bk. L. J. 409). Tr. Stock, 13. Buie V. Commissioners of Fay- ettesville (3 N. B. C. 343; 75 N. C. 367). Tax., 58. Bullard v. Nat. Bank (1 N. B. C. 93 ; 85 U. S., 18 Wall., 589). Sh., 31; Tr. Stock, 6, 7, 11. Bundy v. Cooke (3 N, B. C. 316; 128 U. S. 185). Lial Sh., 34. Bundy v. Jackson (24 F. R. 628). Cap. Stock, 29, 30. Burhans v. First Nat. Bank (53 F. E. 163). Actions, 34 Burrows v. Niblack (84 F. R. 111). Cap. Stock, 81. Burt V. Bailey (73 F. R. 693: 19 C. C. A. 651; 36 U. S. A. 676). Lia. Sh., 11. Burton v. Burley (2 N. B. C. 134; 2 Biss., U. S., 353). PI. of Bus., 3; Pres., 32. Bushnell v. Chautauqua County Nat. Bank (1 N. B. C. 794; 10 Hun, N. Y., 378; aflCd., 74 N. Y. 290). Deposits, 2. Butler V. Aspinwall (33 F. R. 317). Sh., 6. Butler V. Cookrell (73 F. R. 945). R. Est., 9. Butler V. Coleman (3 N. B. C. 391 ; 134 U. S. 731). Att., 7, 7a. Butler V. Eaton (141 U. S. 340). Cap. Stock, 13 ; Setoff, 48 ; Sh., 3. Butler V. Poole (44 F. R 586). Lia. Sh., 98. c. Cadle V. Baker (87 U. S., 20 Wall., 650; 1 N. B. C. 108). Rec, 15, 76. Cadle Y. Tracy (1 N. B. C. 330; 11 Blatch., U. 8., 101). Actions, 12. Cage V. Shepard (Tex., 46 S. W. R. 839). Liq., 10, 13. Cake V. First Nat. Bank (1 N. B. C. 890; 86 Pa. St. 303). Us., 129. California Nat. Bank v. Ginty (108 Cal. 148; 41 Pao. R. 38). Us., 21. California Nat. Bank v. Kennedy (167 U. S. 363). Power, 110, 111. Cameron v. First Nat. Bank (Tex., 34 S. W. R. 178). Power, 95. Campv. Land (Cal., 54Pac. R. 839). Power, 61. Canfleld v. State Nat. Bank (1 N. B. C. 313; 1 N. W. R., O. S., 178; 5 Fed. Ca& 11). Power, 71. Carpenter v. Nat. Bank (50 N. J. L. 6). Us.. 108. Case V. Bank (100 U. S. 446; 3 N. B. C. 47). Dir., 69; Lia. Sh., 88; Tr. Stock, 39. Case V. Berwin (32 La. Ann. 321). Rec, 48. Case V, Citizens' Nat. Bank of Louisiana (3 Woods, U. S., 38; 1 N. B. C. 276). Power, 6. Case V. Terrell (1 N. B. C. 67; 11 Wall., U. S., 199). Rec, 34, 55. Case, Receiver, v. Small et al. (10 F. R. 722). Compt. Cur., 2; Lia. Sh., 3. Casey v. Adams (2 N. B. C. 103; 103 U. S. 66). Us., 168. Casey v. Galli (1 N. B. C. 143; 94 U. S. 673). Lia. Sh., 61, 75, 76, 84, 90; Org., 14, 31; St. Banks, Conv. of, 1. Casey v. La Societe de Credit Mo- bilier (3 Woods, U. S., 77; IN. B. C. 385). Power, 2, 4, 103, 164; Pref., 1, 2; Pres.. 30; Rec, 28. Castle V. City of New Orleans (46 La. Ann. 542; 18 S. R. 190). Tax., 190. Central Nat. Bank v. Connecticut Mut. Life Ins. Co. (3 N. B. C. 20; 104 U. S. 54). Liq., 5. Central Nat. Bank v. Hazard (80 F. R. 484). Rec, 44, 45. Central Nat. Bank v. Pratt (115 Mass. 539). Us., 18. Central Nat, Bank v. Richland Nat. Bank (1 N. B. C. 801: 53 How., N. Y., 186). Att.. 8, 10. Central Nat. Bank v. United States (137 U. S. 355). Div., 1; Tax., 30, 31, 139, 192. Central Nebraska Nat. Bank v. Wilder (33 Neb. 454). Div., 6. Chapins v. Merchants' Nat. Bank (14 N. Y. St. R 273). Power, 83, 84. ^ Chapman v. Bank (130 Pa. St. 86- 13 Atl. R. 707). Set-off, 39. ' Chapman v. First Nat. Bank (Ohio 47N. E. R.54). Tax., 146. TABLE OF CASES DIGESTED. XV Charleston y. People's Nat. Bank (1 N. B. C. 898; 5 S. C. 103; 33 Am. E. 1).' Cap. Stock, 16. Charlotte PirstNat. Bank v. Mor- gan (132 U. S. 541). Actions, 16. Chase v. Cameron (47 F. R. 674). Rec, 83. Chase Nat. Bank v. Faurot (149 N. Y. 533; 44 N. E. R. 164). Us., 151. Chatham Nat, Bank v. Merchants' Nat. Bank (1 N. B. C. 769; 4Th. & C, N. Y., 196). Actions, 30. Chemical Nat. Bank v. Armstrong (50 P. R. 798). Claims, 80. Chemical Nat. Bank v. Armstrong (59 P. R 373). Claims, 19, 30, 30; Vice-Pres., 4 Chemical Nat. Bank v. Armstrong (65 P. R. 573). Vioe-Pres., 4 Chemical Nat. Bank v. Armstrong (76 P. R. 389). Off., 5; Power, 8; Vice-Pres., 4 Chemical Nat. Bank v. Bailey (1 N. B. C. 260; 12 Blatch., U. S., 480). Claims, 1, 17, 23. Chemical Nat. Bank v. City Bank (156 III. 149: 40 N. E. E. 828). Power, 143. Chemical Nat. Bank v. Havermale (53 Pac. R. 1071). Power, 116, 117. Chemical Nat. Bank v. Hartford Dep. Co. (156 ni. 532; 41 N. E. R. 335). Lease, 3; Rec, 30. Chemical Nat. Bank v. Hartford Deposit Co. (161 U. S. 1). Claims, 10; Rec, 21. Chemical Nat. Bank v. World's Colimibian Exposition (170 IlL 83;48N.E. R.331). Claims, 33. Chetwood v. California Nat. Bank (113 Cal. 649; 45 Pac R. 854). Agt. Sh., 4 Chicago Fire Proof Mfg. Co. v. Park Nat. Bank (145 lU. 481; 82 N. E. R. 534). Us.. 17. Childs V. Alexander (33 S. 0. 169). Us., 139. Chipman v. McClellan (1.59 Mass. 363 ; 34 N. E. R. 879). Power. 38. Church V. Ayer (80 F. R. 587). Agt. Sh., 9. Citizens' Nat. Bank v. Dowd (35 F. R. 340;. Claims, 38, 65. Citizens' Nat. Bank of Louisiana V. Board of Assessors (49 Am. R. 518; 54 F. R 7S). Tax., 83. Citizens' Nat. Bank of Noblesville V. Hawkins (71 F. R 369). Lia. Sh., 7. City V. Bayard (39 Ind. 460). Tax., 89. City Nat. Bank v. Thomas (46 F. R 861). Pres., 18. City Nat. Bank of Paducah v. Paducah (5 Cent. L. J. 345). Tai, 114 City Nat. Bank of Poughkeepsie V. Phelps (8 N. B. C. 637; 97 N. Y. 44; 49 Am. R 513). St. Banks, Conv. of, 6, 11. City of Boston v. Bgal (55 F. R 26). Tax., 330. City of Carthage v. First Nat. Bank (2 N. B. C. 379; 71 Mo. 508). Tax., 48. City of Indianapolis v. Vajen (111 Ind. 240). Tax., 177. City of Pittsbm-gh v. First Nat. Bank (55 Pa. St. 45). Conf. Laws, 1. City of Richmond v. Scott (1 N. B. C. 445; 48 Ind. 568). Tax., 155. City of Spokane v. First Nat. Bank (68 F. R 983). Claims, 74 City of Springfield v. First Nat. Bank (3 N. B. C. 524; 87 Mo. 441). Tax., 77. City of Summerville v. Beal (49 F.R790). Claims, 51, 52, 53, 57. Claassen v. United States (142 U. S. 140). Ind., 10. Claflin V, Houseman (98 U. S., 8 Otto, 180). Actions, 13; Juris. Cts., 33. Clapp V. City of Burlington (43 Vt. 579). Tax., 56. Clarke Nat. Bank v. Bank of Albion (52 Barb., N. Y., 593). Cash., 13, 14 16. Cleveland, Brown & Co. v. Shoe- man (40 Ohio St. 176). Power, 75. Clews V. Bardon (36 F. R. 617). Dir., 25, 26. Clute V. Warner (Bankers' Mag., Sept. 1896, p. 316). Set-off, 40. Cocheco Nat. Bank v. Haskell et al. (51 N. H. 116). Cash., 7, 37. XVI TABLE OF CASES DIGESTED. Cochran v. United States (157 U. S. 386). F. Ent., 24, 25 ; Ind., 26 ; Report, 5. Cookrill V. Abeles (86 F. R. 505). Cap. Stock, 4; Power, 34; Rec, 54. Cookrill V. Cooper (86 P. R. 7). Dir., 39, 70. Coffee V. Nat. Bank of Missouri (1 I N. B. O. 644; 46 Mo. 140). Sp. Dep., 35. Coffin V. United States (162 U. S. 664). Crim. Law, 27-31. Coffin V. United States (156 U. S. 433). Crim. Law, 37; F. Ent., 37; Ind., 31, 32. Colgin V. City Nat. Bank (40 S. W. R. 684). Us., 63. Collins V. Chicago (1 N. B. C. 191; 4 Biss., U. S., 473). Tax., 3, 7. Colt V. Brown (13 Gray, Mass., 333). Set-off, 14. Columbia Nat. Bank v. Matthews (85 F. R. 934). Cap. Stock, 30, 31. Columbus Nat. Bank v. Bletz (2 Penny., Pa., 169). Us., 41. Commercial Nat. Bank v. Arm- strong (39 F. R. 684). Claims, 69. Commercial Nat. Bank v. Pirie (83 F. R. 799). Aco. Paper, 4. Commercial Nat. Bank of Cleve- land V. Simmons (1 N. B. C. 294; 10 Alb. L. J. 155; 1 Flipp. 449; 6 Fed. Cas. 226). Actions, 1, 6. Commissioners of Rice County v. City Nat. Bank of Faribault (23 Minn. 380). Tax., 38. Commissioners of Silverbow County V. Davis (3 N. B. C. 546; 6 Mont. 306). Tax., 31. Commonwealth v. Barry (116 Mass. 1). Crim. Law, 39. Commonwealth v. Felton (101 Mass. 304). Crim. Law, 35, 43. Commonwealth v. Ketner (92 Pa. St. 372). Crim. Law, 25, 41. Commonwealth v. Tenney (97 Mass. 50). Crim. Law, 40. Commonwealth v. Merchants' & Manufacturers' Nat. Bank (2 N. B. C. 459; 2 Pear. Dec, Pa., 386). St. Banks, Conv. of, 18. Commonwealth Bank v. Clark (4 Mo. 49). Power, 46. Conklin v. Second Nat. Bank (45 N. Y. 655). Att., 26; Tr. Stock, 5,11. Continental Nat. Bank v. Folsom (3 N. B. C. 350; 78 Ga. 449). Ac- tions, 18. Continental Nat. Bank v. Mc- Geoch (92 Wis. 286; 66 N. W. R. 606). Dir., 18. Conway v. Halsey (44 N. J. L., 15 Vroom, 462; 3 N. B. C. 571). Dir., 39; Sh., 36. Conway v. Sohall (43 W. N. C, Pa., 328). Att., 33. Conzman v. First Nat. Bank (137 Ind. 698 ; 37 N. E. R. 392). Tax., 311. ■ Cook County Nat. Bank v. United States (3 N. B. C. 68; 107 U. S. 445). Cir.. 8; Claims, 77, 78. Cooke V. State Nat. Bank of Bos- ton (1 N. B. C. 698; 52 N. Y. 96). Actions, 13, 30; Cert. Ch., 6; Juris. Cts., 24, 33. Cooper V. First Nat. Bank (40 Kan. 5; 18 Pac. R. 937). Cash., 24 Corcoran v. Batchelder (3 N. B. C. 491; 147 Mass. 541). Loans, 3,8. Corn Exchange Nat Bank v. Blye (3 N. B. C. 634; 101 N. Y. 303; 4 N. E. R. 635). Rec., 33, 33. County Comm'rs v. Farmers' & Mechanics' Nat. Bank (3 N. B. C. 352; 48Md.ll7). Tax., 26. County of Lackawana v. First Nat. Bank (94 Pa. St. 221). Tax., 49. County of Lancaster v. Lancaster County Nat. Bank (2 N. B. C. 415; 7 W. N. C, Pa., 29). Tax., 39. County of Wilson v. Nat. Bank (103 U. S. 771). Jm-is. Cts., 12. Covington City Nat. Bank v. City of Covington (21 F. R 484). Tax., 23, 50. Cox V. Beck (83 F. R. 369). Us., 155. Cox V. Elmendorf (97 Tenn. 518; 37 S. W. R. 387). Tr. Stock, 37. TABLE OF CASES DIGESTED. XVU Cox V. Robinson (83 F. R. 377; 70 F. R. 760). Cash., 4 Cox ^r. Robinson (70 F. R. 760). Off., 3. Craigie v. Hadley, Reo. (99 N. Y. 131; 14 Abb. N. C. 409; 1 N. E. R. 537). Claims, 41. Craft V. Tuttle (37 Ind. 333). Tax., 90. Craigie v. Smith (3 N. B. C. 679; 14 Abb. N. C. 409; aff'd, S. C, 99 N. Y. 131). Claims, 50. Creelc v. Merchants' Nat. Bank (10 Heisk., Tenn., 618). Us., 37. Crocker v. Marine Nat. Bank (1 N. B. C. 575; 101 Mass. 340). Actions, 13. Crocker v. Whitney (1 N. B. C. 745; 71 N. Y. 161; rev. in 103 U. S. 99). Power, 24, 45. Crocker, Assignee, v. First Nat. Bank of Chetopa (1 N. B. C. 817 ; 4 Dill., U. S., 358; 3 Cent. L. J. 537; 6 Fed. Cas. 837). Us., 64, 98. Cross V. North Carolina (133 U. S. 133). Crim. Law, 35. Crossley v. Township Commission- ers (16 Bk. L. J. 34). Tax., 69. Crui^shank v. Fourth Nat. Bank (16 F. R. 888). Actions, 37. Cummings v. Fourth Nat. Bank (31 F. R. 85). Tax., 809. Cummings v. Nat. Bank (2N. B. C. 74; 101 U. S. 153). Tax., 197. Curtis V. Ward (58 Mo. 395). Tax., 34, D. Daggs V. Phenix Nat. Bank (53 Pac. R. 301). Int., 15. Danahy v. Nat. Bank of Denison (64 F. R. 148). Juris. Cts., 4. "Danforth v. Nat. State Bank (48 F. R. 371; 1 C. C. A. 63; 3 U. S. A. 7). Power, 13; Us., 13, 46, 159. Darby v. Berney Nat. Bank (97 Ala. 643; 11 S. R. 881). Cash., 30. Davenport Bank v. Davenport (133 U. S. 83; 3 N. B. C. 385). Tax., 95. Davenport Nat. Bank v. Board of Equalization (64 Iowa, 140; 19 N. W. R. 889). Tax., 130. Davies, Receiver, v. Marine Nat. Bank (34 F. R. 194). Actions, 39 Davis V. Cooke (1 N. B. C. 656: 9 Nev. 134). Actions, 30; Juris. Cts., 24. Davis V. Elmira Savings Bank (161 U. S. 375). Claims, 63. Davis V. Essex Baptist Society (3 N. B. C. 110; 44 Conn. 583). Lia. Sh., 23, 24. Davis V. Industrial Mfg. Co. (14 N. C. 371). Set-off, 23, 34 Davis V. Knipp (93 Hun, N. Y., 297; 36 N. Y. Supp. 705). Set- off, 15. Davis V. Randall (115 Mass. 540). Us., 18. Davis V. Stephens (17 Blatch., U. S., 259; 2 N. B. C. 158; 20 A. L. J. 490). Lia. Sh., 4 Davis V. Weed (3 N. B. C. 115; 44 Conn. 569). Lia. Sh., 40, 41. Davis Estate v. Watkins (Neb., 76 ■ N. W. R 575; 15 B. L. J. 655). Compt. Cur., 1; Lia. Sh., 63; Org., 33; Rec, 24 De Haven v. Kensington Nat. Bank (1 N. B. C. 883; 81 Pa. St. 95). Sp. Dep., 18. Delano v. Butler (3 N. B. C. 163; 118 U. S. 634). Cap. Stock, 8, 9, 13; Lia. Sh.. 69. Delaware & L. & W. R. R. Co. v. Oxford Iron Co. (3 N. B. C. 582; 38 N. J. Eq. 340). Tr. Stock, 11. Dent V. Mattison (73 N. W. R. 416). Lia. Sh., 46. Denton v. Barker (79 F. R. 189). Claims, 15. 22; Inj., 5. Deposit Bank of Owensboro v. Davis County (Ky. App., 39 S. W. R 1030). Tax., 15. Ditty V. Dominion Nat. Bank (75 F. R. 769). Pres., 28. Doty V. First Nat. Bank (53 N. W. R. 77; 3 N. D. 9). Tr. Stock, 1, 14 Dow V. Irasburg Nat. Bank (50 Vt. 112; 2 N. B. C. 421; 38 Am. R. 493). Us., 161. XVIU TABLE OF CASES DIGESTED. Dow V. "CJnited States (83 F. R. 904; 37 C. C. A. 140). Grim. Law, 3, 14, 15; F. Ent., 4; Ind., 27. Dowd V. Stevenson (105 N. C. 467; 10 S. E. R 1101). Pres., 156. Dresser v. Traders' Nat. Bank (43 N. E. R. 567; 165 Mass. 120). Power, 96, 99. Driesbach v. Second Nat. Bank of Wilkesbarre (3 N. B. 0. 19; 104 U. S. 53). Us., 137. Drovers' Nat. Bank v. Potvin (74 N. W. R. 734). Cash., 39. Duncan v. First Nat. Bank of Mt. Pleasant (1 N. B. C. 360; 8 Fed. Gas. 30: 11 Bankr. Mag. 787; 15 Alb.,L. J. 330: S. C, 9 Fed. Gas. 91; 6 Wkly. Notes Cas. 158; 24 Int. Rev. Dec. 206). Int., 5;ITs.,110. Duncomb v. N. Y. & N. R. R. Co. (84N. Y. 190;. Loans, 6. E. Eaton V, Pacific Nat. Bank (3 N. B. G. 483; 144 Mass. 260). Cap. Stock, 23. Eaton V. Union County Nat. Bank (40 N. E. R. 693; 141 Ind. 159). Tax.. 184. Elder v. First Nat. Bank of Ot- tawa (1 N. B. C. 488; 13 Kan. 338). Loans, 16. EUerbee v. Nat. Exchange Bank (19 S. W. R. 241; 109 Mo. 445). Gash., 25; Power, 14. Ellis V. First Nat. Bank of Olney (3 N. B. G. 378; 11 Bradw., 111., 275). Us., 133. Ellis V. Little (27 Kan. 707; 8'N. B. C. 440; 41 Am. R. 434). Rec, 36, 43, 90, 91. Elmira Savings Bank v. Davis (73 Hun, 357; 142 N. Y. 590). Claims, 61, 63. El Paso Nat. Bank v. Fuchs (Tex., 34 S. W. R. 303). Sp. Dep., 13. Elwood V. First Nat. Bank (41 Kan. 475; 31 Pac. R. 673). Rec, 11, 18. Emory v. Joice (70 Mo. 587). Power, 157. Engelke v. Schlenker (75 Tex. 559; 13 S. W. R. 999). Tax., 332. Evans v. Exchange Bank (79 Mo. 182). St. Banks, Con v. of, 9. Evans v. United States (153 U. S. 608). Ind., 9. Evansville Nat. Bank v. Britton (3 N. B. C. 48; 105 U. 8. 333), Tax., 131, 162. Evansville Nat. Bank v. Metropol- itan Nat. Bank (1 N. B. G. 189; 2 Biss., U. S., 537). Tr. Stock. 8. Everett's Appeal (71 Pa. St. 216). Tax., 91. Exchange Nat. Bank v. Miller (19 F. R. 373). Tax., 99, 105, 163. Exeter Nat. Bank v. Orchard (39 Neb. 485). Us., 51, 153. Exeter Nat. Bank v. Orchard (88 N. W. R. 144; 43 Neb. 579). Us., 83. F. Farmers' & Meoh. Nat. Bank v. Dearing (1 N. B. G. 117;' 91 U. S. 39). Const. Law, 5; Us., 18, 36. Farmers' & Mech. Nat. Bank v. Hoagland (7 F. R 159). Us., 11, 53-55. Farmers' & Mech. Nat. Bank v. Rogers (1 N. Y. Supp. 757). Actions, 23. Farmers' & Merchants' Nat. Bank V. Robinson (53 Pac. R. 762). Power, 60. Farmers' & Merchants' Nat. Bank V. Smith (77 F. R. 631; 14 C. G. A. 61; 82 U. S. A. 53). Gash., 5, 9; Power, 113, 130. Farmers' & Merchants' Nat. Bank >. Wallace (13 N. E. R. 439; 45 Ohio St. 153). Power, 39. Farmers' & Traders' Nat. Bank v. Hoflfman (61 N. W. R. 418; 93 lo'fa, 119). Tax., 84, 85, 189, Farmers' Nat. Bank v. Backus (Minn., 77 N. W. R. 142). Exp. of Corp. Ex., 3. Farmers' Nat. Bank v. MoElhinnev (43F.R.801). Juris.Cts.,7,19. TABLE OF CASES DIGESTED. XIX Farmers' Nat. Bank -v. Templeton (90 Tex. 503; 39 S. W. E. 914). Pres., 6. Farmers' Nat. Gold Bank v. Storer (60 Cal. 387). Us., 148. Farrow v. First Nat. Bank (Ky., 47 S. W. R 594). Us., 147. Feckheimer v. Nat. Exchange Bank (79 Va. 80; 5 Am. & Eng. Corp. Cas. 80). Power, 80, 81; Tr. Stock, 6. iFidelity Safe Deposit & Trust Co. V. Armstrong (35 F. E. 567). T jPfi ^^ "1 Fifth Nat. JBank v. Pierce (Mich., 75 N. W, E. 1058). Power, 6", Fifth Nat. Bank of Pittsburgh v. Pittsburgh & C. S. E. E. Co. (1 F. E. 190: 8 N. B. O. 190). Juris. Cts., 18; Sh., 35. Finn v. Brown (142 U. S. 56). Dir., 5, 42; Lia. Sh., 10; Vioe-Pres., 1, 5. First Com. Bank v. Talbert (61 N. W. E. 888: 103 Mich. 635). St. Banks, Conv. of, 17. First Nat. Bank v. Armstrong (43 F. E. 193). Org., 15. - First Nat. Bank v. Ayers (66 F. E. 160; 160 U.B. 660). Tax., 137. First Nat. Bank v. Bailey (39 Pac. E. 83; 15 Mont. 801). Tax., 304 First Nat. Bank v. Bennett (33 Mich. 520). Power, 145; Pres., 14, 15. First Nat. Bank v. Board of Ee- viewers (41 La. Ann. 181). Tax., 158. First Nat. Bank v. Bohne (8 F. E. 115). Juris. Cts., 5. First Nat. Bank v. Chapman (9 Ohio C. C. E. 79). Tax., 135. First Nat. Bank v. City Council (52 N. W. E. 334; 86 Iowa, 38). Tax., 166. First Nat. Bank v. Citizens' Bank of Topeka (9 Fed. Cas. 87; 2 Cent. L. J. 757). Sp. Dep., 4. First Nat. Bank v. Commonwealth (Ky.App.,33S.W.E.1105). PI. of Business, 8. First Nat. Bank v. County of Douglass (1 N. B. C. 267; 3 Dil- lon, U. S., 398). Actions, 2; Tax., 9. First Nat. Bank v. De Morse (Tex. Civ. App., 36 S. W. E. 417). Setoff, 1. First Nat. Bank v. Denson (32 S. E. 518). Us., 3, 89. First Nat. Bank v. Douglass County (1 N. B. C. 268; 3 Dil- lon. U. S., 330). Tax., 314. First Nat. Bank v. Farwell (7 F. E. 518). Tax., 100. First Nat. Bank v. First Nat.' Bank (22 S. E. 976). Cash.. 3. First Nat. Bank v. Forest (40 F. E. 705). Juris. Cts., 3. First Nat. Bank v. Garlinghouse (33 Ohio St. 492; 1 N. B. C. 811; 10 Am. E. 751). Us., 18, 31. First Nat. Bank v. Graham (1 N. B. C. 875; 79 Pa. St. 106). Sp. Dep., 20. First Nat. Bank v. Haire (1 N. B. C. 480; 36 Iowa, 443). Power, 34, 36. First Nat. Bank v. Hansen (33 Minn. 40). E. Est., 8. First Nat. Bank v. Harris (1 N. B. C. 590 ; 108 Mass. 514). Power, 17. First Nat. Bank v. Herbert (44 F. E. 158). Tax., 96. First Nat. Bank v. Hershire (1 N. B. C. 465; 31 Iowa, 18). Tax., 318. First Nat. Bank v. Hubbard (1 N. B. C. 912; 49 Vt. 1). Juris. Cts., 22. First Nat. Bank v. Hungate (62 F. E. 548). Tax., 301. First Nat. Bank v. La Due (40 N. W. E. 367 ; 39 Minn. 415). Att, 8,23. First Nat. Bank v. Lamb (50 N. Y. 95; 10 Am. E. 438). Us., 43. First Nat. Bank v. Ledbetter (Tex. Civ. App., 34 S. W. E. 1042). Cash., 38. First Nat. Bank v. Lindsay (45 F. E. 619). Tax., 180. First Nat. Bank v. Marshall (36 111. App. 440; 3 N. B. C. 401). Sh., 17, 18. First Nat. Bank v. Mclnturf (43 Pao. E. 839; 8 Kan. App. 536). Us., 40, 78. First Nat. Bank v. Merchants' Nat. Bank (1 N. B. C. 915; 7 W. Va. 544). Cert. Ch., 3-4. XX TABLE OF CASES DIGESTED. First Nat. Bank v. Meredith (44 Mo. 500). Tax., 24. First Nat. Bank v. Moore (48 F. R. 799). Eec, 83. First Nat.' Bank v. Morgan (133 U. S. 141). Us., 133. First Nat. Bank v. Nat. Exchange Bank (39 Md. 600). Power, 109. First Nat. Bank v. Peavey Ele- vator Co. (73 N. W. E. 403). Power, 161. First Nat. Bank v. Peterborough (1 N. B. C. 658"; 56 N. H. 38). Tax., 38. First Nat. Bank v. Pierson (34 Minn. 140). Power, 6, 15, 33. First Nat. Bank v. Randall (1 W. & W. Civ. Cas., Tex. Civ. App., 973). Org., 13. First Nat. Bank v. Smith (1 N. B. C. 390; 65 III. 44). Tax., 55. First Nat. Bank v. Smith (65 N. W. E. 437; 8 S. D. 7). Power, 30. First Nat. Bank v. Stone (64 N. W. E. 487; 106 Mich. 367). Cash., 8,11. First Nat. Bank v. Stone (88 F. E. 409). Tax., 117. First Nat. Bank v. Tinstman (3 N. B. C. 183; 36 Leg. Int. 338; 9 Fed. Cas. 93). Int., 9. First Nat. Bank v. Turner (43 Pac. E. 936; 3 Kan. App. 853). Us., 40, 119. First Nat. Bank v. Waters (7 F. E. 152). Tax., 191. First Nat. Bank v. Watkins (31 Mich. 483). Tax., 1. • First Nat. Bank of Aberdeen v. Andrews (34 Pac. E. 913; 38 Am. St. E. 885; 7 Wash. 261). Conf. Laws, 3; Power, 48. First Nat. Bank of AUentown v. Hooh (3 N. B. C. 375: 89 Pa. St. 334; 33 Am. E. 769). Power, 136. First Nat. Bank of Allentown v. Eex (3 N. B. C. 373; 89 Pa. St. 308; 38 Am. R 767). Sp. Dep., 15,21. First Nat. Bank of Billings v. Province (51 Pao. R. 821). Tax., 53. First Nat. Bank of Charlotte v. Nat. Exohajige Bank (1 N. B. C. 134; 93 U. S. 123). Power, 73,107,108. , ^ _, . First Nat. Bank of Clarion v. Brenneman's Executors (7 Atl. E. 910; 114 Pa. St. 315; 3 N. B. C. 755). Sh., 20. First Nat. Bank of Clarion v. Gruber (3 N. B. C. 895; 87 Pa. St. 465; 80 Am. R. 878; 91 Pa. St. 377). . Int., 17; Us., 135, 161. First Nat. Bank of Concord v. Hawkins (83 F. E 301). Lia Sh., 13, 13. First Nat. Bank of Concordia v. Eowley (34 Pao. E 1049; 53 Kan. 394). Us., 94 First Nat. Bank of Decatur v. Johnson (11 S. R 690; 97 Ala. 655). Pref., 16. First Nat. Bank of Decatur v. Priest (50 III 331). Power, 94. First Nat. Bank of Dorchester v. Smith (57 N. W. E. 996; 39 Neb. 90; S. C, 36 Neb. 199). Us., 107. First Nat. Bank of Fort Scott v. Drake (35 Kan. 564; 57 Am. R 193). Dir., 16. First Nat. Bank of Grafton v. Babbidge (36 N. E. R 463; 160 Mass. 563). Pres., 15c. First Nat. Bank of Greenville v. Sherburne (3 N. B. C. 383; 14 Bradw., ILL, 566). Power, 11. First Nat. Bank of Grimdy Center V. Moore (83 Iowa, 740). Us., 133. First Nat. Bank of Louisville- v. Kentucky (76 U. S., 9 WaU., 353). Tax., 33. First Nat. Bank of Lyons v. Ocean Nat. Bank (1 N. B. C. 738; 60 N. Y. 278). Cash., 17; Dir., 17; Power, 129. First Nat. Bank of Memphis v. Kidd (1 N. B. C. 935; 30 Minn. 334). Org., 7. First Nat. Bank of Monmouth v. Brooks (3 N. B. C. 387; 32 HI. App. 238). CasK, 1; Cert. Dep., 7. TABLE OF CASES DIGESTED. XXI First Nat. Bank of N. Bennington V. Bennington (2 N. B. C. 437 ; 16 Blatch., U. S., 53). Power, 137. First Nat. Bank of Peterboro v. Child (3 N. B. C. 465; 39 Am. R. 474; 130 Mass. 519). Us., 113. First Nat. Bank of Plattsburgh v. Sowles (46 F. R 731). Dir., 45. First Nat. Bank y. Reno (73 Iowa, 145; 34 N. W. R. '796). Power, 93 First Nat. Bank of Sandy Hills v. Fancher (1 N. B. C. 697; 48 N. Y. 524). Tax., 316. First Nat. Bank of Selma v. Colby (1 N. B. C. 109; 88 V. S., 21 Wall., 609). Diss., 6 ; Reo., 31. First Nat. Bank of Shreveport v. Board of Reviewers (41 La. Ann. 181 ; 5 S. R. 408). Tax., 11, 15. First Nat. Bank of Sioux City v. Peavey (69 F. R. 455). Claims, 31, 33. First Nat. Bank of South Bend v. Bannister (Kan., 54 Pao.-R. 20). Power, 163. First Nat. Bank of Tecumseh v. Overman (3 N. B. C. 556; 22 Neb. 116). Juris. Cts., 33; Us., 161. First Nat. Bank of Uniontown v. Stauffer (3 N. B. C. 178; 1 F. R. 187). Us., 45. First Nat. Ban'f of Waterloo v. Elmore (8 N. W. R. 547 ; 53 Iowa, 541). Power, 46. First Nat. Bank of Wellsburg v. Kimberlands (16 W. Va. 555). Pres., 1, 2, 11, 26, 29. First Nat. Bank of Whitehall v. Lamb (50 N. Y. 95; 10 Am. R. 438). Us., 4. First Nat. Bank of Xenia v. Stew- art (3 N. B. C. 96; 107 U. S. 676). Cap. Stock, 44. First Nat. Bank of Youngstown V. Hughes (9 Fed. Cas. 103; 3 N. B. C. 176; 106 U. S. 533; 5 Cin. L. Bui. 515). Books Nat. Bank, 3. Fisher v. Continental Nat. Bank (64 F. R. 707). Power, 141. Fisher v. Knight (61 F. R. 491). Set-off, 19. Fisher v. Tradesman's Nat. Bank (64 F. R 706). Power, 90; Re- port, 6. Fisher v. United States Nat. Bank (64 F. R 710). . Claims, 67. Fisher v. Yoder (53 F. R. 565). Rec, 56. Flannagan v. California Nat. Bank (56 F. R 959). Cash., 13. Fleckner v. Bank of United States (8 Wheat, U. S., 338). Cash., 1. Flint V. Board of Aldermen of Boston (1 N. B. C. 571 ; 99 Mass. 141). Tax., 228. Flint Road Cart Co. v. Stevens (83 Mo. App. 341). Claims, 70. Florence R & I. Co. v. Chase Nat. Bank (17 S. R. 720; 106 Ala. 364). Us., 76. Foil's Appeal (3 N. B. C. 411; 31 A. L. J. 37; 91 Pa. St. 434). Cap. Stock, 34. Fort Dearborn Nat. Bank v. Sey- mour (73 N. W. R 734). Abe. Paper, 5; Cash., 10; Dir., 2. Fortier v. New Orleans Nat. Bank (3 N. B. C. 140; 112 U. S. 439). Actions, 29; Power, 58, 66; R Est., 1. Foss V. First Nat. Bank of Denver (2 N. B. C. 104; 3 F. R 185). Juris. Cts., 1. Foster v. Chase (75 F. R 797). Lia. Sh., 36, 37. Foster v. Lincoln (74 F. R. 382; aff'd, 79 F. R. 170; 24 C. C. A. 470). Tr. Stock, 53. Fowler v. Scully (1 N. B. C. 854; 72 Pa. St. 456; 13 Am. R. 699). Power, 24, 46. Fraker v. Cullom (24 Kan. 679). Us., 144. Frazer v. Siebern (16 Ohio St. 614; 1 N. B. C. 936). Tax., 17. Freeman Mfg. Co. v. Nat. Bank of Republic (35 N. E. R. 865: 160 Mass. 398). Inj., 1, 2. Frelinghuysen v. Baldwin (13 F. R. 395). Rec, 58. Fresno Nat. Bank v. Superior Court (34 Pac. R 157; 83 Cal. 491). Actions, 14: Juris. Cts., 36. Fridley v. Bowen (87 111. 151; 3 N. B. C. 334). Power, 46, 53. Furber v. Stevens (35 F. R. 17). Claims, 44. xxu TABLE OP CASES DIGESTED. G. Gaar v. Centralia Nat. Bank (20 III. App. 611). Power, 68. - Gadsden v. Thrush (15 Bk. L. J. 707). Power, 58; Us., 133. Gallot V. United States (87 F. R. 446). Crim. Law, 33. Garner v. Second Nat. Bank (66 F. R. 369). Att., 20. Gatch V. Finch (34 F. R. 566). Lia. Sh.,80;Pref., 30. German Nat. Bank v. Meadow- croft (3 N. B. C. 463; 95 111. 134). Power, 103. German Nat. Bank of Chicago v. Kimball (3 N. B. C. 9; 103 U. S. 733). Tax., 111. ' Germania Nat. Bank v. Case (3 N. B. C. 35 ; 96 U. S. 638). Lia. Sh.. 76; Power, 73. Gerner v./Thompson (74 F. R. 135). Dir., 39, 63; F. Ent., 34. Getman v. Second Nat. Bank of Oswego (3 N. B. C. 599; 89 N. Y. 136). Us., 117. Gibbons v. Anderson (80 F. R. 345). Dir., 4, 39. Gibson v. Peters (150 U. S. 343). Dist. Att., 8, 4. Goldsburg v. Inhabitants of War- wick (1 N. B. C. 593; 113 Mass. 384). Tax., 67. Goodbar v. City Nat. Bank (78 Tex. 461). Tr. Stock, 11. Gorgas' Appeal (79 Pa. St. 149). Tax., 150. Graham v. Nat. Bank of New York (3 N. B. C. 293: 32 N. J. Eq. 804). Power, 55. Graves V. Spokane Nat. Bank (47 F. R. 673). Rec, 77. Graves v. Spokane Nat. Bank (1 N. B. C. 493; 10 Bush, Ky., 23). Bonds Off., 1, 3, 9. Green v. Walkill Nat. Bank (1 N. B. C. 7B6; 7 Hun, N. Y., 63). Insol., 4; Rec, 23. Griffin v. Chase (54 N. W. R. 572; 36 Neb. 328). Claims, 56. Grow V. Cockrill (39 S. W. R. 60; Bank. Mag., June, 1897, p. 880). Power, 105. Gruber v. First Nat. Bank of Clar- ion (3 N. B. C. 383; 87 Pa. St. 468; 30 Am. R. 378). Char., 1; Int., 5, 10; Us., 161. Guild V. First Nat. Bank of Dead- wood (4 8. D. 566; 57 N. W. R. 499). Int., 16; Us., 7, 33. Guthrie v. Reid (3 N. B. C. 751; 107 Pa. St. 351). Us., 30. H. Hade, Receiver, v. MoVay (3 N. R C. 353; 31 Ohio St. 331). Set- off, 31; Us., 161. Hagar v. Union Nat. Bank (63 Me. 509\ Div., 4. Hale V. Walker (1 N. B. C. 471; 31 Iowa, 344). Lia. Sh., 14 Hall V. Fairchild First Nat. Bank (30 Neb. 99; 46 N. W. R. 150). Us., 68. Hall V. Farmers' & Merchants' Nat. Bank (Mo., 46 S. W. R. 1000). Cash., 20; Power, 59. Hallam v. Tillinghast (75 F. R. 847). Rec, 89. Hambright v. Nat. Bank (3 N. B. C. 419; 71 Tenn. 40; 31 Am. R. 629). Us., 118. Hammond v. Hastings (134 U. S. 401). Tr. Stock, 13. Hand v. Atlas Nat. Bank (55 How. Pr., N. Y., 231; 9 Abb. N. C. 287). Dir., 66. Hanover Nat. Bank v. Johnson (90 Ala. 549; 8 S. R. 42). Org., 7. Hanson v. Heard (38 AtL R 788X Cash., 3, 18. Harrington v. First Nat. Bank of Chittenango (1 N. B. C. 760; 1 Thom. & Cook, N. Y, 361). Off., 1, 10. . Harrison v. Vines (46 Tex. 15). Tax. 97, Harvey V. Allen (2 N. B. C.439; 16 Blatoh., U. S., 39). Att., 37. Harvey v. Lord (10 F. R 236; 11 Biss., U. S., 144). Lia. Sh., 93. Havens v. Nat. City Bank (1 N. B. C. 783; 6 Thom. & Cook, N. Y., 346). Att., 31. Hayden v. Chemical Nat. Bank (84 F. R. 874; 55 U. S. A. 430; 15 Bk. L. J. 313). Pref., 31. Hayden v. Thompson (67 F. R. 273; rev. by 71 F. R. 60). Dir., 39. Hayden V. Thompson (71 F. R. 60; 17 C. C. A. 572; 36 U. S. A. TABLE OF CASES DIGESTED. XXlll 361). Dir., 60; Div., 2, 3; Lia. Sh., 74; Rec, 49. Hayes v. Beardsley (136 N. Y. 399; 33 N. E. R. 855). Dir., 47; Pref., 19. Hayes v. Shoemaker (39 F. R. 319). Tr. Stock, 37, 36, 41. Hay ward v. Eliot Nat. Bank (8 N. B. C. 1; 96 U. S. fill). Cap. Stock, 46. Hazard v. Nat. Exchange Bank (36 F. R. 94). Tr. Stock, 15. Hazlen v. Lyndonville Nat. Bank (41 Atl. R. 1046). Actions, 9. Heath v. Second Nat. Bank of La- fayette (3 N. B. C. 406; 70 Ind. 106). Power, 43. Hendee v. Connecticut & P. R. R. Co. (36 F. R. 677). Rec, 64. Henderson v. Myers (3 N. B. C. 759 ; 11 Phila., Pa., 616). Rec, 84 Henderson to use of Second Nat. Bank (3 N. B. C. 740: 96 Pa. St. 460). Us., 71. Henderson Nat. Bank v. Alves (IS K. L. R. 759; 91 Ky. 143; 15 S. W. R. 133). Us., 64. Hennessey v. City of St. Paul (55 N. W. R. 1123; 54 Minn. 319). Power, 154; R. Est., 3. . Hepburn -v. School Directors (1 N. B. C, 113; 33 Wall., U. S., 480). Tax., 88, 116, 153, 164. Hershire t. First Nat. Bank (1 N. B. C. 476; 35 Iowa, 273). Tax., 82 Higgins V. Hayden (73 N. W. R. 380). Claims, 85. Higley v. First Nat. Bank (1 N. B. C. 883; 36 Ohio St. 75; 20 Am. R. 759). Us., 114. Hill V. Nat. Bank of Barre (15 F. R. 433). Us., 61. Hill V. Nat. Bank of Barre (56 Vt. 583). Us., 77. Hill V. Nat. Albany Exchange Bank (105 U. S. 319; 8 N. B. C. 45). Tax., 131, 196. Hines v. Marmolejo (60 CaL 229). Int., 3. Hintermeister v. First Nat. Bank (1 N. B. C. 741; 64 N. Y. 313). Us., 74. 88. ■ Hirsh V. Jones (56 F. R. 137). Sh., 27. Hitz V. Jenks (133 U. S. 397). Rec, 94. Hobart v. Gould (8 F. R. 57). Set- off, 41. Hobart v. Johnson (8 F. R. 493). Lia. Sh., 54. Hobbs V. Western Nat. Bank (3 N. B. C. 187; 8 W. N. C, Pa., 181). Sh., 35; Tr. Stock, 31. Hodgson V. MoKinstry (43 Pac. R. 939; 3 Kan. App. 413). Liq., 13. Hoke V. People (133 HL 511). Crim. Law, 25, 43. Holm V. Atlas Nat. Bank (84 F. R. 119). Off., 14. Holmes v. Boyd (90 Ind. 883; 3 N. B. C. 414). Power, 33, 33. Holmes v. Nat. Bank of Wilming- ton (18 S. C. 81; 44 Am. R. 558). Actions, 13; Att., 5. Holt V. Thomas (105 CaL 278; 38 Pac R. 891). Lia. Sh., 79. Home V. Greene (1 N. B. C. 648; 52 Mass. 452). Tax., 32. Home V. Nat. Bank of Commerce (41 S. W. R. 790). Set-off. 31, 39 Horton v. Mercer (71 F. R. 153). Lia. Sh., 38. Hot Springs School Dist. v. First Nat. Bank (61 F. R. 417). Rec, 87. Howard Nat. Bank v. Loomis (3 N. B. C. 434; 51 Vt. 349). Power, 30. Howe V. Barney (45 F.R, 668). Dir., 63; Sh., 36. Howell V. Village of Cassopolis (1 N. B. C. 637; 35 Mich. 471). Tax., 73. Hower v. Weiss Malting & Elev. Cc (55 F. R. 356). Inj., 3. Hubbard v. Board of Supervisors (33 Iowa, -130). Tax., 3, 50, 120. Hubbell V. Houghton (86 F. R. 547). Lia. Sh., 6. Huffaker v. Nat. Bank (1 N. B. C. 504; 12 Bush, Ky., 287). Org., 19. Huggins V. Citizens' Nat. Bank (24 S. W. R. 926; 6 Tex. Civ. App. 33). Us., 134. Hughitt V. Hayes (136 N. Y. 163; 33 N. E. R. 706). Set-off, 35, 37. XXIV TABLE OF OASES DIGESTED. Hulitt V. Bell (85 F. E. 98). Cap. Stock, 28; Lia. Sh., 48, 64, 65. Hummell v. First Nat. Bank (33 Pac. R. 72). Actions, 23. Hungerford Nat. Bank v. Van Nostrand (1 N. B. C. 589; 106 Mass. 559). Actions, 20. Hunt, Appellant (3 N- B. C. 474; 6 N. E. R. 554; 141 Mass. 515). Cei-t. Dap., 1. Huntington v. Krieger (3 Ohio Dec. 533). Us., 19. Huntington V. Palmer (8 F. R. 449). Tax., 199. Hutchinson v. Crutoher (Bank. Mag., May, 1897, p. 784; 39 S. W. R 735). Claims, 13, 14 Illinois Trust & Sav. Co. v. First Nat. Bank (15 F.R. 858). Claims, 49. Importers' & Traders' Nat. Bank V. Littell (46 N. J. L. 506). Us., 78. Importers' & Traders' Nat. Bank V. Littell (47 N. J. L. 233). Us., 149. Importers' & Traders' Nat. Bank V. Peters (4 N. Y. Supp. 599; afl'dbvl33N.Y.272). Claims, 2, 42, 43. Independent District of Pella v. Beard (83 F. R. 5). Claims, 54, 55. Independent District of Pella v. King (80 Iowa, 498; 45 N. W. R. 908). Claims. 54. In re Aldrich (16 F. R. 369). Cir., 5. In re Armstrong (41 F. R. 381). Pref., 14. In re Beard's Estate (50 Pac. R 326). Lia. Sh., 42. In re Brade's Estate (165 Pa. St. 184; 35 W. N. C, Pa., 497). Cap. Stock, 33. In re California Nat. Bank Stock- holders (53 F. R. 38). Rec, 41. In re Duryea (2 N. B. C. 170 ; 8 Fed. Cas. 131). Power, 67. In re Eno (54 F. R 669). F. Ent, 32. In re Herman (50 F. R. 517). Rec, 38. In re Manufacturers' Nat. Bank (1 N. B. C. 192; 5 Biss., U. S., 499). Insol., 3. In re St. Albans Nat. Bank (49 F. R. 130). Claims, 36; Lia. Sh., 31. In re Third Nat. Bank (4 F. R. 775; 9 Biss., U. S., 535). Rec, 93. In re Van Campen (3 Ben., U. S., 419; 1 N. B. C. 185). Crim.Law, 11; F. Ent., 23. In re Wild (1 N. B. C. 246; 11 Blatoh., U. S., 243). Int., 3; Us.. 6. Interstate Nat. Bank v. Ferguson (30 Pac E. 237; 48 Kan. 732). Dep., 4 Irons V. Manufacturers' Nat. Bank (17 F. R. 308). Tr. Stock, 49. Irons V. Manufacturers' Nat. Bank (21 F. R. 197). Lia. Sh., 29, 57. Irons V. Manufacturers' Nat. Bank (37 F. R. 591). Lia. Sh., 67. Irons V. Manufacturers' Nat. Bank (1 N. B. C. 203; 6 Biss., U. S., 801). Rec, 10. J. Jackson v. United States (20 Ct. CI. 398). Claims, 81. Jacobus V. Monongahela Nat. Bank (35 F. R. 395). Att., 34, 35. Jenkins v. Nat. Village Bank (58 Me. 375). Power, 78, 79. Jewett V. Whitcomb (69 F. R. 417). Rec, 88. Johnson' v. Charlottesville Nat. Bank (8 Hughes, U. S., 657; 13 Fed. Cas. 885; 2 N. B. C. 199). Aco. Paper, 3. Johnson v. First Nat. Bank of Gloversville (2 N. B. C. 302; 74 N. Y. 339 ; 30 Am. R. 303). Us., 1. Johnson v. Laflin (1 N. B. C. 331; 17 Alb. L. J. 146; 5 Dill., U. S., 65). Sh., 31; Tr. Stock, 18, 25, 26. Johnson v. Lafiin (3 N. B. C. 13; 1 03 U. S. 800). Tr. Stock, 30, 31, 38, 39. TABLE OF CASES DIGESTED. xxv Jones V. Rushville Nat. Bank (37 N.B.R.338; 188Ind.87). Tax., 211. Jordan v. Nat. Shoe & Leather Bank (74 N. Y. 467). Setoff, 3. K. Kansas Valley National Bank V. Rowell (1 N. B. C. 353; 3 Dill., U. S., 871). Power, 34, 46. Kelsey v. National Bank of Crawford (1 N. B. C. 847; 69 Pa. St. 486). St. Banks, Conv. of, 13. Kennedy v. California Savings Bank (101 Cal. 495; 35 Pao. E, 1089). Power, 133. Kehnedy v. Gibson (1 N. B. C. 17; 75 U. S., 8 Wall., 498). Dir., 39 ; Dist. Att., 3; Insol., 5; Lia. Sh., 58, 58, 75, 76. 84, 88, 89, 91, 93; Rec, 6, 63, 73, 78, 79. Kerr v. Urie (86 Md. 73; 37 Atl. R. 789). Sh., 13-15. Keyser v. Hitz (8 N. B. C. 340: 3 Mackay, D. C, 473). Compt. Curr., 5. Kevser v. Hitz (133 XJ. S. 138). Compt. Cur.. 3; Lia. Sh., 30, 33, 33; St. Banks, Conv. of, 8; Tr. Stock, 17. Kimball v. Dunn (89 F. R. 783). Ex. of Nat. Banks, 3. King V. Armstrong (50 Ohio St. 333; 84 N. E. R. 163). Lia. Sh., 59; Set-off, 11, 45, 46. Kinser v. Farmers' Nat. Bank (58 Iowa, 738; 18 N. W. R. 59). Actions, 84. Kissam V. Anderson (145 U. S. 485). Cash., 33. Knickerbocker v. Wilcox (83 Mich. 200; 31 Am. St. R. 595). Power, 146. Knight V. Old Nat. Bank (14 Fed. Cas. 778; 3 Cliff. 439). Tr. Stock, 7. Koons V. First Nat. Bank (89 Ind. 178). Tr. Stock, 83. Kyle V. The Mayor (1 N. B. C. 808; 75 N. C. 445). Tax., 71. La Dow V. First Nat. Bank (31 Ohio St. 334). Int., 6. La Dow V. First Nat. Bank (87 N. E. R. 11; 5 Ohio C. Ct. R. 147). Int., 14. La Sassier v. Kennedy (8 N. B. C. 388; 133 U. S. 531). Tr. Stock, 19. Laing v. Burley (3 N. B. C. 369; 101 111. 591). Tr. Stock, 10. Lake Erie & Western R. R. v. In- dianapolis Nat. Bank (65 F. R. 690). Claims, 39. Lake Ontario Nat. Bank v. Onon- daga County Bank (7 Hun, N. Y., 549). Diss., 5. Lamb v. Pioneer Bldg. & Loan Co. (106 Ala. 591; 17 S. R 67).. Name, 1. Lancaster Co. Nat. Bank v. Smith (62 Pa. St. 47). Sp. Dep., 16. Lanham v. First Nat. Bank (43 Neb. 757: 60 N. W. R. 1041), Us., 108. Latimer v. Bard (76 F. E. 536), Cap. Stock, 5, 18, 19. Latimer v. Wood (73 F. R. 1001). Claims, 6. Lazear v. Nat. Union Bank of Baltimore (2 N. B. C. 861; 53 Md. 78; 36 Am. R. 355). Us.,- 35, 90. Leach v. Hale (31 Iowa, 69; 1 N. B. C. 466 ; 7 Am. R. 112). Power, 138, 189: Sp. Dep., 6. Leather Mfrs. Nat. Bank v. Cooper (3 N. B. C. 808; 130 U. S. 778). Actions, 36. Lebanon Nat. Bank v. Karmany (3 N. B. C. 746; 98 Pa. St. 65), Us., 69, 161. Lee V. Citizens' Nat. Bank of Piqua (3 Gin. Sup. Ct. 298). Ac- tions, 17; Tr. Stock, 16. Leoti V. First Nat. Bank of Fisher (26 Pac. R. 488; 45 Kan. 736), Tax., 79, 140. Lewis V. Switz (74 F. R. 381). Lia. Sh., 85. L'Herbette v. Pittsfield Nat. Bank (38 N. E. R. 368; 163 Mass. 137), Power, 106. XXVl TABLE OF CASES DIGESTED. Libby v. Union Nat. Bank (3 N. B. C. 358; 99 111. 683). Power, 41. Lieberman v. First Nat. Bank (40 S. W. R. 388). Bonds Off., 8, 9. Lilly V. The Conunissioners (69 N. C. 300). Tax., 33. Linn County Nat. Bank v. Craw- ford (69 F..R. 533). Rec, 56,57. Lionberger v. Rouse (43 Mo. 67). Tax., 34 Lionberger v. Rouse (1 N. B. C. 41 ; 9 Wall., U. S., 468). Tax., 132, 133 Little v. Little (131 Mass. 367). Tax., 93. Lookwood V. American Nat. Bank (1 N. B. C. 895; 9 R. I. 308; 11 Am. R. 353). Dir., 9, 10; St. Banks, Conv. of, 14, 15. Lookwood V. Beokwith (6 Mioh. 168). Set-oflE, 39. Loftin V. Citizens' Nat. Bank (85 Ind. 341). Tax., 43. Logan Bank v. Townsend (139 U. S. 67). Juris. Cts., 10; Power, 133. Logan Nat. Bank v. Williamson (3 Cin. Ct. R., Ohio, 118). Cert. Dep., 3. Lomax v. First Nat. Bank (39 S. W. R. 655). Us., 133. Louisville Trust Co. v. Kentucky Nat. Bank (87 F. R 143). Us., 63, 100, 109. Luberg v. Commonwealth (2 N. B. C. 408: 94 Pa. St. 338). F. Ent, 33. Lucas V. Coe (86 F. R. 973). Lia. Sh., 33. Lucas V. Government Nat. Bank (1 N. B. C. 873; 31 Am. R. 17: 78 Pa. St. 338). Us., 35, 115, 134 Lynch v. Merchants' Nat. Bank (23 W. Va. 554; 46 Am. R. 530). Us., 103, 104, 161. Lyons v. Lyons Nat. Bank (19 Blatch., U. S., 379). Power, 137. M. McAden v. Com. Mecklenberg Co. (3 N. B. C. 694; 97 N. C. 355). Tax., 144 McCann v. First Nat. Bank of Jef- ferson ville (3 N. B. C. 434; 113 Ind. 354). Cap. Stock, 35, 27. McCann v. Rogers (15 K. L. R. 137). Diss. 7. McCartney v. Kipp (171 Pa. St. 644; 33 Atl. R. 333). Loans, 13. MoClellan v. Chipman (164 U. S. 347). Pref., 23. McConnelville v. Gilmor (36 F. R. 377). Ag. Sh., 1. McConville v. Means (31 Wkly. L. Bui. 193). Setoff, 30. McCormick v. Market Nat. Bank (163 111. 100). Org.. 1; PL of Business, 2; Power, 159. McCracken v. Covington City Nat. Bank (4 F. R. 603). Att., 10. McCrory v. Chambers (48 111. App. 445). Power, 155. McCuUooh V. Maryland (4 Wheat., U. S., 316). Const. Law, 1. McDonald v. First Nat. Bank (41 111. App. 368). Att., 4 McDonough v. Nat. Bank of Hous- ton (34 Tex. 309). Org., 17. MoFarlin v. First Nat. Bank (68 F. R. 868). Org., 17; Sh., 10. McGhee v. First Nat. Bank (58 N. W. R. 537; 40 Neb. 93). Us., 23, 68. Mclver v. Robinson (1 N. B. C. 372; 53 Ala. 456). Tax., 183. McLaughlin v. Chadwell (7 Heisk., Tenn., 389). Tax., 57. McMahon v. Palmer (102 N. Y. 176; 6 N. E. R. 400). Tax., 98. McVeagh v. Chicago (1 N. B. C. 381; 49111.318). Tax., 174 Magruder v. Colson (1 N. B. C. 554; 44 Md. 349; 33 Am. R. 47). Lia. Sh., 14, 19. Maguire v. Board of Review (71 Ala. 401 ; 6 Am. & Eng. Corp. Cas. 453). Tax., 338. Main v. Second Nat. Bank (1 N. B. C. 300; 6 Biss., U. S., 26). Actions, 10. Mallon V. Hyde (76 F. R. 388). Dir., 37, 38. Manufacturers' & Mechanics' Nat. Bank v. Commonwealth (73 Pa. St. 70). St. Banks, Conv. of, 19. Manufacturers' Nat. Bank v. Hall (86 Me. 107). Juris. Cts., 29. TABLE OF CASES DIGESTED. XXVll Mapes V. Scott (3 N. B. C. 328; 88 , 111. 353). Power, 40. Marion Nat. Bank v. Thompson (40 S. W. R. 903; 15 Bankers' Mag. 198). Us., 106, 131. Market Nat. Bank v. Pacific Nat. Bank (3 N. B. C. 673; 30 Hun, N. Y., 50). Att, 17; Pref., 6. Markson v. First Nat. Bank (Fed. Cas. No. 9,097; 9 Chi. L. N. 108). Us., 75. Massey V. Fisher (63 F. R. 958). Claims, 45, 71, 73. Mathews v. Columbia Nat. Bank (79 F. R. 558). Cap. Stock, 6; Sh., 33, 24. Mathews v. Skinker (1 N. B. C. 647; 63 Mo. 329). Power, 84, 54. Matthews v. Abbott (3 Hask. 286; 16 Fed. Cas. 1094). Power, 24. Maynard v. Bank (1 N. B. C. 892; 1 Brewst., Pa., 483). St. Banks, Conv. of, 4. Mayor v. First Nat. Bank of Macon (59 Ga. 648). Tax., 46. Mayor of New York v. Tenth Nat. Bank (3 N. B. C. 655; 111 N. Y. 446). Loans, 20. Meade Center Nat. Bank v. Grimes (30 Pao. R. 474; 49 Kan. 319). Us., 38. Mercantile Nat. Bank v. New York (131 U. S. 138; aN. B. C. 343). Tax., 104, 124, 156. Mercantile Nat. Bank v. Shields (59 F. R. 952). Tax., 73, 106, 133, 134, 145. Mercer v. Dyer (15 Mont. 317; 39 Pac. R. 314). Set-off, 39. Merchants' & Farmers' Nat. Bank V. Myers (74 N. C. 514). Us., 77. Merchants' Nat. Bank v. Arm- strong. (65 F. R. 932). Rep., 7. Merchants' Nat. Bank v. Brown (17 F. R. 161). Actions, 38. Merchants' Nat. Bank v. Carhart (95 Ga. 394; 22 S. R. 628). Sp. Dep., 23. Merchants' Nat. Bank v. Fouche (Ga., 31 S. E. R. 87). Cap. Stock, 82. Merchants' Nat. Bank v. Gaslin (43 N. W. R. 483; 41 Minn. 553). Liq., 4, 9. Merchants' Nat. Bank v. Guilmar- tin (83 Ga. 503; 31 S. E. R. 55). Sp. Dep., 23. Merchants' Nat. Bank v. Hanson (33 Minn. 40; 53 Am. R. 5). , Power, 6, 33. Merchants' Nat. Bank v. Mears (1 N. B. C. 353: 8 Biss., U. S., 158; 17 Fed. Cas. 57; 24 Int. Rev. Rec. 103). Power, 34, 36. Merchants' Nat. Bank v. Moninger (49 Iowa, 249). Power, 9. Merchants' Nat. Bank v. Robin- son (91 Ky. 552; 31 S. W. R. 136). Set-off, 2. Merchants' Nat. Bank v. Sevier (14 F. R. 662). Us., 9. Merchants' Nat. Bank v. Sevier (27 Alb. L. J. 446). Power, 8. Merchants' Nat. Bank v. State Nat. Bank (1 N. B. C. 47; 10 Wall., U. S., 604). Cash., 15; Cert. Ch., 1,5; PL of Business, 1; Power, 131, 151. Merchants' Nat. Bank of Bangor V.' Glendon (120 Mass. 97). Org., 6. Merchants' Nat. Bank of Little Rock V. United States (101 U. S. 1; 2 N. B. C. 100). Tax., 34, 35. Merchants' Nat. Bank of Toledo V. Cummings (1 N. B. C. 936; 17 Fed. Cas. 60). Tax., 114. Mei'chants' & Planters' Nat. Bank V. Trustees of Masonic Hall (63 Ga. 549; 3 N. B. C. 320; S. C, 65 Ga. 603). Rec, 17. Merrill v. First Nat. Bank (75 F. R. 148). Claims, 5. Merrill v. Fla. L. & Imp. Co. (60 F. R. 17). Cap. Stock, 36; Claims, 66. Metropolitan Nat. Bank v. Clag- gett (141 U. S. 520). St. Banks, , Conv. of, 7, 8. Michigan Ins. Co. v. Eldred (143 U. S. 293). St. Banks, Conv. of, 5. Miller v. First Nat. Bank (3 N. B. C. 711; 46 Ohio St. 434). Tax., 188. Miller v. Heilbron (3 N. B. C. 830; 58 CaL 133). Tax., 339. Miller v. Howard (95 Tenn. 407). Dir., 43. XXVIU TABLE OF CASES DIGESTED. Mills V. Soott (99 U. S. 35). Lia. Sh., 85. 86. Mills Co. Nat. Bank v. Perry (33 N. W. R. 341; 73 Iowa, 15). Loans, 19. Mintzer v. County of Montgomery (54 Pa. St. 139). Tax., 15. Missouri R. Tel. Co. v. First Nat. Bank of Sioux City (1 N. B. C. 401 ; 74 111. 317). Juris. Cts., 30 ; Us., 163, 164 Mitchell V. Walker (3 N. B. C. 180; 35 Int. Rev. Rec. 180). Juris. Cts., 13. Mohrenstecker v. Westervelt (87 F. R. 157). Crim. Law, 5. Molver v. Robinson (53 Ala. 456). Tax., 136. Moniteau Nat. Bank v. Miller (73 Mo. 187; 1 N. B. O. 843). Us., 143. Monmouth First Nat. Bank v. Strang (38 IlL App. 335; 8. 0., 138 IlL 347). Org., 18; Sp. Dep., 3. Monongahela Nat. Bank v. Over- holt (3 N. B. 0. 735; 96 Pa. St. 337). Us., 87. Moore v. Jones (3 N. B. C. 144; 3 Woods, U. S., 53). Lia. Sh., 14 Moore v. Mayor & Comm. of Fay- ettesville (3 N. B. C. 350; 80 N. C. 154; 30 Am. R. 75). Tax., 74 Moorehouse v. Second Nat. Bank of Oswego (30 Am. R. 75; 3 N.B. C.631; 98N.Y.503). Us., 116. Moores v. Citizens' Nat. Bank of Piqua (3 N. B. C. 110; 111 U. S. 156;. Tr. Stock, 43. Morris v. Dixon Nat. Bank (55 111. App. 388). Power, 133. Morris v. Merchants' Nat. Bank (30 111. App. 54). Att, 18. Morrison v. Price (23 F. R. 217; aff'd in 118 U. S. 634). Lia. Sh., 96, 97. Morseman v. Younkin (1 N. B. C. 460; 37 Iowa, 350). Tax., 231. Mound City Paint Co. v. Commer- cial Nat. Bank (4 Utah, 353). Power, 153. Movius V. Lee (30 F. R. 398), Dir., 13, 14, 15, 37, 28, 59; Pres., 31* Multnomah County v. Oregon Nat. Bank (61 F. R. 913). Claims, 59. Murray v. Pauly (56 F. R. 562). Cert. Dep.. 4 Mutual Life Insurance Co. v. Yates Co. Nat. Bank (54 N. Y. Supp. 743). R. Est., 7. Myers v. Valley Nat. Bank (3 N. B. C. 156; 18 Nat. Bankr. 34). Power, 119, 130; Tr. Stock, 34 Nat. Bank v. Case f3 N. B. C. 25: 99 U. S. 638). Lia. Sh., 14; Tr^ Stock, 43. Nat. Bank v. City of New Bedford (30 N. E. R. 533; 155 Mass. 313). Tax.. 165. Nat. Bank v. Colby (1 N. B. C. 109; 31 Wall., U. S., 609). Att., 37. Nat. Bank v. Commonwealth. (1 N. B. C. 34; 9 Wall., U. S., 353). Tax., 7, 86. Nat. Bank v. Drake (57 Am. R. 193; 11 Pac. R. 445; 35 Kan. 564). Dir., 1. Nat. Bank v. Earl (3 OkL 617: 39 Pac. R. 391). Power, 158. Nat. Bank v. Graham (1 N. B. C. 875; 100 U. S. 699). Sp. Dep., 1, 14 Nat. Bank v. Hills (2 N. B. C. 456). Tax., 226. Nat. Bank v. Johnson (3 N. B. C. 25; 104 U. S. 271). Int., 7, 8. Nat. Bank v. Scott (30 Oreg. 431;. 36 Pac. R. 376). Loans. 9. Nat. Bank v. Ti-imble (40 Ohio St. 639). Us., 64, 98. Nat. Bank v. United States (2 N. B. C. 439; 101 U. S. 1). Tax., 335. Nat. Bank v. Whitney (3 N. B. C. 5; 103 U. S. 99). R. Est., 1. Nat. Bank of Auburn v, Lewis (3 N. B. C. 305; 75 N. Y. 516; 31 Am. R. 484). Us., 135. Nat. Bank of Auburn v. Lewis (3 N. B. C. 587; 81 N. Y. 15). Ac- tions, 35;' Us., 67, 84 85. Nat. Bank of Camden v. Pierce (3 N. B. C. 177; 18 A. L. J. 16). Tax., 63. TABLE OF CASES DIGESTED. XXIX Nat. Bank of Chattanooga v. Mayor (1 N. B. C. 903; 8 Heisk., Tenn., 814). Tax., 45. Nat. Bank of Chemung v. Elmira (1 N. B. O. 715; 53 N. Y. 49). Tax., 188. Nat. Bank of Commerce v. Atkin- son (55 F. E. 465). Aoc. Paper, 1; Pres., 9, 33. Nat. Bank of Commerce v. Lick- ing V. L. & M. Co. (23 S. W. R 881). R. Est., 4. Nat. Bank of Commerce v. Nat. Bank of Missouri (80 Fed. Cas. 1121). Power, 135. Nat. Bank of Commerce v. Wade (84 F. R. 10). Dir., 53-55. Nat. Bank of Commonwealth v. Galland (45 Pao. R. 35; 14 Wash. St. 502). Org., 3. Nat. Bank of Commonwealth v. Mechanics' Nat. Bank (1 N. B. C. 133; 94 U. S. 437). Claims, 7. 15. Nat. Bank of Dakota v. Taylor (58 N. W. R. 297; 5 S. D. 99). Cap. Stock, 37-40. Nat. Bank of Fairhaven v. Phehix Warehouse Co. (1 N. B. C. 784; 6 Hun, N. Y., 71). Org., 23 ; PI. of Business, 6, 7. Nat. Banlc of Fayette Co. v. Du- shane (8 N. B. C. 739; 96 Pa. St. 340). Us., 140. Nat. Bank of Genesee v. Whitney (3 N. B. C. 5; 103 U. S. 99). Power, 50, 58. Nat. Bank of Glovers ville v. John- son (3 N. B. C. 25; 104 U. S. 271). Us., 22, 97. Nat. Bank of Gloversville v. Wells (15 Hun, 51 ; 79 N. Y. 499). Aco. Paper, 3. Nat. Bank of Jefferson v. Bruhn & Williams (64 Tex. 571; 53 Am. R. 571). Int., 1, 7. Nat. Bank of Jefferson v. Fare (25 F. R. 209). Juris. Cts., 8. Nat. Bank of Lancaster v. John- son (91 Ky. 181). Us., 64, 161. Nat. Bank of Madison v. Davis (1 N. B. C. 350; 8 Biss., U. S., 100). Us., 39. Nat. Bank of Metropolis v. Ken- nedy (1 N. B. C. 87; 84 U. S., 17 Wall., 19). Rec, 50, 70. Nat. Bank of New York v. Har- mon (79 F. R. 891). Lia. Sh., 20. Nat. Bank of Pemberfcon v. Porter (125 Mass. 333; 28 Am. R. 335). Power, 19. Nat. Bank of Redemption v. Bos- ton (8 N. B. C. 300; 135 U. 8. 60). Tax., 109. Nat. Bank of Virginia v. City of Richmond (42 F. R. 877). Tax., 4 Nat. Bank of Winterset v. Eyre (3 N. B. C. 234; 53 Iowa, 114). Us., 146. Nat. Bank of Xenia v. Stewart (3 N. B. C. 96; 107 U. S. 676). Power, 82. Nat. Commercial Bank v. McDon- nell (93 Ala. 387; 9 S. R. 149). Org., 34. Nat. Commei'cial Bank of Mobile V. Mayor (2 N. B. C. 440 ; 62 Ala. 384). Tax., 300. Nat. Exchange Bank v. Beal (50 ,F. R. 355). Rec, 37. Nat. Exchange Bank v. Gay (57 Conn. 224, 234). Ext. Corp. Ex., 3. Nat. Exchange Bank v. Peters (44 F. R. 18). Dir., 51. Nat. Park Bank v. Gunst (1 N. B. C. 797; 1 Abb. N. C. 292). Ac- tions, 26. Nat. Security Bank v. Butler (3 N. B. C. "320; 129 U. S. 223). Pref., 3, 4; Rec, 30. Nat. Security Bank v. Price (3 N. B. C. 320; 22 F. R. 697; aff'd by 129U. S. 223). Pref., 10. Nat. Shoe & L. Bank of New York V. Mechanics' Bank (3 N. B. C. 601; 89 N. Y. 467). Att., 14. Nat. State Bank v. Boylan (1 N. B. C. 798; 3 Abb. N. C, N. Y., 316). Us., 112. Nat. State Bank v. Brainard (61 Hun, N. Y., 339). Us., 46. Nat. State Bank v. Pierce (5 W. N. Cas;, Pa., 344). PI. of Busi- ness, 5. Nat. State Bank v. Young (25 Iowa, 811). Tax., 40, 50. Need V. Wall (70 F.R. 806 1. Rec, 79. Nelson v. Burroughs (9 Abb. N. C, N. Y., 280). Sh., 26. Nevada Bank of San Francisco v. XXX TABLE OF CASES DIGESTED. Portland Nat. Bank (59 F. E. 338). Cash., 31. Newark Bank v. Newark (131 U. S. 168). Tax., 104, 134, 156. Newbegin v. Newton Nat. Bank (66 F. E. 701). Cap. Stock, 33. Newell V. First Nat. Bank (13 K. L. E. 775). Us., 33. Newell V. Nat. Bank of Somerset (1 N. B. C. 501; 13 Bush. Ky., 57). Us., 5, 163. , New Orleans Banking Association V. Adams (3 N. B. C. 807; 3 "Woods, U. S.. 31). Juris. Cts., 31. New Orleans Nat. Bank v. Eay- mond (39 La. Ann. 355). E. Est, 8. Newport v. Mudgett (Wash., 51 Pao. E. 466). Tax., 147. New York v. Commissioners of Taxes (4 Wall, U.S., 344). Tax., 101. Niblaok v. Cosier (80 F. E. 596). Pres. 16. ' I Niblack'v. Park Nat. Bank (30 Chi. L. N. 103). Set-ofle, 13. Nichols V. Stevens (33 Mo. App. 330). Sh., 9. Nicholson v. Nat. Bank (17 S. W. E. 637; 93 Ky. 351). Us., 34 Niokerson v. Kimball (1 N. B. C. 409; 1 Chi. L. J. 43). Tax., 313. Niles V. Shaw (50 Ohio St. 370). Tax. 178. Norfolk Nat. Bank v. Schwenk (63 N. W. E. 1073; 46 Neb. 381). Us., 108, 163. Norris v. Merchants' Nat. Bank (30 111. App. 54). Att, 18. North Bend Nat. Bank v. Milton- berger (51 N. W. E. 383: 33 Neb. 847). Us., 44, 130. Norton v. Derby Nat. Bank (3 N. B. C. 568; 61 N. H. 589). Power, 149, 150. Norwood V. Interstate Nat. Bank (48 S. W. E. 3, reversing 45 S. W. E. 937). Liq., 6. 0. Oates V. First Nat Bank of Mont- gomery (3 N. B. C. 35: 100 U. S. 269). Us., 38. Ocean Nat. Bank v. Carll (1 N. B. C.793;7Hun,N.Y.,837). Eec, 43, 68- O'Conner v. Witherby (111 CaL 533; 44 Pao. E. 837; S. C, 113 Cal. 38). Eec, 80, 81. O'Hare v. Second Nat. Bank of Titusville (77 Pa. St. 96). Loans, o g Oldham v. Bank (3 N. B. C. 688; 85 N. C. 340). Power, 35; Us., 141. Orange Nat. Bank v. Traver (7 Sawy., U. S., 310; 7 F. E. 146). Juris. Cts., 3. Orange Nat. Bank v. Williams (58 N. J. L. 45; 33 Atl. E. 145). Tax., 41. Ordway v. Cent. Nat. Bank (1 N. -B. C. 559; 47 Md. 317; 38 Am. R 455). Juris. Cts., 83; Liq., 3; U^., 161. Ornn v. Merchants' Nat. Bank (1 N. B. C. 490; 16 Kan. 341). Power, 34, 33. Osborne v. Bank of United States (9 Wheat., U. S., 738). Const. Law, 1; Juris. Cts., 1. Osborne v. First Nat. Bank (34 Atl. E. 858; 175 Pa. St. 494). Us., 10, 131. Ottawa First Nat. Bank v. Ottawa (43 Kan. 394). Power, 88. Ouderkirk v. Central Nat. Bank (119 N. Y. 363; 83 N. E. E. 875). Sp. Dep., 5, 7. Overholt v. Nat. Bank (1 N. B. C. 883; 83 Pa. St. 490). Us., 65, 130, 144. Pacific Nat. Bank v. Eaton (141 U. S. 337; 3 N. B. C. 483). Cap. Stock, 7, 13; Set-oflE, 48; Sh., 3, 5,8. Pacific Nat. Bank v. Mixter (114 U. S. 463; S. C, 134 U. S. 731). Actions, 37. Packard v. City of Lewiston (55 Me. 456). Tax., 60. Palmer v. McMahon (133 U. S. fifiO). Tax., 7, 136, 159. Pangborn v. Westlake (36 Iowa, 546). Power, 163; Us., 49. TABLE OF CASES DIGESTED. XXXI Panhandle Nat. Bank v. Emery (78 Tex. 498). Pres., 24 Pape V. Capital Bank of Topeka (3 N. B. 0. 338; 37 Am. R. 153; 20 Kan. 440). Power, 12. Pardee V. Iowa State Nat. Bank (Iowa, 76 N. W. R. 800). Us., 43, 50, 93. Parker v. Robinson (71 F. R. 256). Sh., 16. Parkhurst v. Citizens' Nat. Bank of Baltimore (8 N. B. C. 463; 61 Md. 254). Actions, 38. Parkhurst v. First Nat. Bank (58 Kan. 136: 35 Pac. R. 1116). Us., 148. Pattison t. Syracuse Nat. Bank (80 N. Y. 83; 36 Am. R. 583). Power, 1; Sp. Dep., 5. Paul V. McGraw (3 Wash. St. 296: 38 Pac. R. 532). Tax., 187. Pauly V. State L. & T. Co. (56 F. R. 430; 165 U. S. 606). Lia. Sh., 15. Paxton V. Vincennes Mfg. Co. (50 N. E. R. 583). Rec, 85. Peavey v. Greenfield (64 N. H. 384). Tax. 176. Pelton'V. Nat. Bank (3 N. B. C. 85; 101 U. S. 143). Tax., 94, 110, 197. Penn v. Borman (103 111. 533). Power, 46, 97; R. Est., 1. People T. Backus (117 N. Y. 196; 23 N. E. R. 759). Ext. Corp. Ex., 3. People V. Commissioners (94 U. S., 4 Otto, 415). Tax., 101, 164. People V. First Nat. Bank (15 Ky. L. R. 748). Us., 166. People V. Fonda (3 N. B. C. 501; 62 Mich. 401). Crim. Law, 35, 43. People Y. Moore (1 Idaho, 504). Nat. Bank Act, 3; Tax., 02. People V. Nat. Gold Bank (51 Cal. 508). Tax., 6. People V. Remington (131 N. Y. 338; 34 N. E. R. 793). Claims, 4. People V. Smith (50 Hun, N. Y., 39; 3 N. Y. S. 460). Tax., 65. People ex rel. Cogger v. Dolan (1 N. B. C. 684; 36 N. Y. 59). Tax., 182, 143. People ex rel. Williams v. Assess- ors (1 N. B. C. 776; 5 Th. & C, N. Y., 155). Tax., 160. People ex rel. Williams v. Weaver (100 U. S. 539; 3N.B. C. 57). Tax., 113, 132, 143. People ex rel. Williams v. Weaver (67 N. Y. 516). Tax., 132. People's Bank v. Mechanics' Nat. Bank (62 How. Pr. 423). Att, 15. People's Bank of Bellville v. Man- ufacturers' Nat. Bank (3 N. B. C. 97; 101 U. S. 181). OS., 13; Power, 143; Vice-Pres., 3, 6. Pepperday v. Citizens' Nat. Bank of Latrobe (183 Pa. St. 519). Power, 115. Peterborough Nat. Bank v. Childs (3 N. B. C. 469; 43 Am. R 509 ; 133 Mass. 348). Us., 138. Peters v. Bain (133 U. S. 670). Claims, 54; Tr. Stock, 33. Peters v. Foster (56 Hun, N. Y., 607; 10 N. Y. Supp. 389). Rec, 12 73 Petition'of Piatt (1 N. B. C. 181; 1 Ben., U. S., 534). Rec, 39. Petrie v. Commonwealth Nat. Bank (143 U. S. 644). Ac- tions, 5. Pettilon V. Noble (2 N. B. C. 120; 7 Biss. 449). Actions, 31. Philler v. Esler (89 W. N. C. 258 r 1 Pa. Dlst. R. 282). Power, 7. Philler v. Jewett (165 Pa. St. 45; 31 Atl. R. 204). Set-off, 5. Philler v. Patterson (168 Pa. St. 468: 33 Atl. R. 86). CL House, 1. Philler v. Yardley (63 F. R. 645). CI. House, 3. Phillips V. Bossard (35 F. R. 99). Bond Off., 4, 7. Pickett V. Merchants' Nat. Bank (3 N. B. C. 309; 33 Ark. 346). Juris. Cts., 31; Us., 70. 160. Pittsburg Loc. & Car Works v. State Nat. Bank (1 N. B. C. 315; 2 C. J. L. 692; 19 Fed. Cas. 785; 21 Int. Rev. Rec. 349). Power, 75. Planters' Loan & Savings Bank v. Berry (18 S. E. R. 187; 91 Ga. 264) Att, 20. XXXll TABLE OF CASES DIGESTED. Piatt V. Beach (1 N. B. C. 182; 3 Ben., U. S., 303.) . Rec, 60. tlatt V. Beebe (1 N. B. C. 725; 57 N. y. 339). Rec, 13, 15, 33. Piatt V. Bentley (1 N. B. C. 758; 11 Am. L. R. 171). Set-off, 38. Pollard V. State ex rel. Zuber (65 Ala., 638). Const. Law, 2. Portland Nat. Bank v. Scott (36 Pac. R. 276; 30 Oreg. 421). Loans. 18. Potter V. United States (155 XJ. S. 438). Ind., 41. Presoott V. Haughey (65 F. R. 653). Dlr., 49, 71. Prescott Nat. Bank v. Butler (83 N. E. R. 909; 157 Mass. 548). Power, 16, 31. Price V. Abbott (17 F. R. 506). Rec, 1. 60. Price V. Coleman (23 F. R. 694). Pref., 17. Price V. Whitney (38 F. R. 397). Tr. Stock, 56. iPrice V. Yates (2 N. B. C. 304; 19 Alb. L. J. 395; 19 Fed. Cas. 1322). Lia. Sh., 98; Rec, 40. Pritchard v. First Nat. Bank (76 N. W. R. 1106). Diss., 4. Pritchard v. Meeklns(98 N. C. 344; 3 S. E. R. 484). Us., 103. Puget Sound Nat. Bank v. King Co. (57 F. R. 433). Tax., 103. Putnam v. United States (162 U. 8. 687). Ind., 11; Pres., 10. E. Rand V. Columbia Nat. Bank (87 F. R. 530). Cap. Stock, 14. Raj^nor v. Pacific Nat. Bank (3 N. B. C. 624; 93 N. Y. 371). Att, 15, 16, 38. Regester v. Medcalf (71 Md. 538). Org., 3. Reynolds v. Nat. Bank (112 U. S. 405). Power, 58; R. Est., 1, 2. Ehoner v. Nat. Bank of Allen- town (3 N. B. C. 331; 14 Hun, N. Y., 136). Att., 9. Rich V. Packard Nat. Bank (138 Mass. 527). Tax., 93. Rich V. State Nat. Bank of Lin- coln (7 Neb. 201). Power, 100. Richards v. Attlebofo Nat Bank (3 N. B. C. 495; 148 Mass. 187). Exp. Corp. Ex., 1, 3; Tr. Stock, 48. Richards v. Incorporated Town of Rook Rapids (31 F. R 505). Tax., 108, 138, 139. Richards v. Kountze (1 N. B. C. 653: 4 Neb. 200). Power, 49. Richardson v. Wallace (17 S. E. R. 735; 39 S. C. 316). Lia. Sh., 70. Richmond v. Irons (3 N. B. C. 811; 131 U. S. 27). Claims, 21; Lia. Sh., 38, 52, 60, 63; Liq.. 7, 8; Rec, 46; Tr. Stock, 45, 46. Richmond First Nat. Bank v. Richmond (39 F. R 309). Tax., 101. Riddle v. First Nat. Bank of But- ler (27 F. R. 503). Cert. Dep., 2; Rec, 29. Roberts v. Hill (28 F. R 311). Pref., 11. Roberts v. Hill (24 F. R 571). Pref., 7, 8. Robertson v. Buffalo County Nat. Bank (58 N. W. R. 715; 40 Neb. 335). Pres., 7. Robinson v. Hall (63 F. R. 222). Dir., 23, 30, 31, 40, 41, 44, 67. Robinson v. Hall (59 F. R 648). Dir., 30, 31, 44, 67. Robinson v. Nat. Bank of New- berne (3 N. B. C. 309; 81 N. Y. 385; 58 How. Pr. 306). Actions, 13; Att, 1, 13; Juris. Cts., 20, 37, 38. Robinson v. Turrentine (59 F. R 554). Lia. Sh., 35. Rockwell V. Farmers' Nat Bank (4 Colo. App. 562; 36 Pac R. 905). Int., 4; Us., 134 Roebling Sons Co. v. First Nat. Bank (30 F. R. 744). Power, 43. Root V. Erdlemeyer (1 N. B. C. 433; 37 Ind. 335). Tax., 88. Rosenback v. Salt Springs Nat. Bank (53 Barb., N. Y., 495). Tr. Stock, 6. Rosenberg v. Weekes (67 Tex. 578; 18 Am. & Eng. Corp. Cas. 140). Tax., 101, 170, 199. Rosenblatt v. Johnston (3 N. B. C. 33; 104 U. S. 462). Tax., 331. TABLE OF CASES DIGESTED. xxxin Rosenheim Real Estate Co. v. Somthem Nat. Bank (Tenn., 46 S. W. R 1026). Att, a Ruffln V. Board of Commissioners (1 N. B. C. 806; 69 N. C. 498). Tax.. 36. RugKles V. City of Fond du Lao (53 Wis. 436; 10 N. W. R. 565). Tax., 175. S. Safiford V. First Nat. Bank (17 Atl. R. 748; 61 Vt. 373). Att., 11. Salt Lake City Nat. Bank v. Gold- ing (3 Utah, 1). Nat. Bank Act, 1; Tax., 8, 20. San Diego Nat. Bank v. California Nat. Bank (52 F. R. 59). Claims, 58. Schierenberg v. Stephens (3 N. B. C. 528; 32 Mo. App. 314). ' Cap. Stpek, X: Sh., 9. Schmidt v. First Nat. Bank (1 N. B. C. 505; 33 La. Ann. 314). Claims, 80. Schrader v. Manufacturers' Nat. Bank (133 U. S. 67). Lia. Sh.. 52; Liq., 11; Pres., 5, 13. Schuyler Nat. Bank v. Bollung (28 Neb. 684; 45 N. W. R 164). Vs., 59. Schuyler Nat. Bank v. Bollung (37 Neb. 620 ; 56 N. W. R. 209). Us., 161. Schuyler Nat. Bank v. Bollung (3 N. B. C. 558; 24 Neb. 821). Us., 123, Soofleid V. State Nat. Bank (9 Neb. 316; 2 N. W. R. 888; 31 Am. R. 412). Power, 53; St. Banks, Conv of, 22. Scott V. Armstrong (146 U. S. 499). Dep., 9; Rec, 25, 26; Set-oflf, 6-S, 14, 28. Scott V. Latimer (89 F. R. 843). Cap. Stock, 11, 12; Lia. Sh., 49, 71. Scott V. Nat. Bank of Chester Val- ley (1 N. B. C. 864; 73 Pa. St. 471; 13 Am. R, 711). Sp. Dep., 21 Scott V. Pequonnock Nat. Bank (15 F. R. 494). Tr. Stock, 24. Searle v. First Nat. Bank (2 Walk., Pa., 395). Power, 114 Second Nat. Bank v. Caldwell (13 F. R. 429). Tax., 44, 47. Second Nat. Bank v. Smoot (3 MacArthur.D.C, 371). Us., 20. Second Nat. Bank of Clarion v. Morgan (165 Pa. St. 199; 44 . Am. R. 652). Us., 25, 93, 150, 156. Second Nat. Bank of Oswego v. Burt (93 N. Y. 233). Bills of Ex., 1; Cash., 20. Security Bank of New York v. Nat. Bank of Commonwealth (3 Hun. N. Y. 287: 4 Th. & C. 518; 1 N. B. C. 774). Insol., 4; Rec, 22. Seeber v. Commercial Nat. Bank (77 F. R. 957). Power, 147. Seeley v. New York Nat. Excliange Bank (2 N. B. C. 340; 4 Abb. N. C. 61; 78 N. Y. 608). Cap. Stock, 26; Div., 5. Seligman v. Charlottesville Nat. Bank (3 Hughes, U. S., 647). Aoc. Paper, 1. Shafer v. First Nat. Bank (58 Kan. 614; 36 Pac. R 998). Us., 49, 60. Sheafe v. Latimer (79 F. R. 931). Lia. Sh., 73. Shelton v. Piatt (138 U. S. 591), Tax., 47. Shinkle v. First Nat. Bank (1 N. B. C. 834; 32 Ohio St. 316). Us., 18, 111. Shoemaker v. Nat. Mech. Bank (1 N. B. C. 169: 3 Abb., U. S., 416: 1 Hughes, 101). Loans; 2; OS., 9 -I Power, 71. Short V. Hepburn (75 F. R 113). Rec, 59„61. Shunk V. First Nat. Bank (1 N. B. C. 820; 22 Ohio St. 508; 10 Am. R. 763). Int., 12; Us., 48. Shute V. Pacific Nat. Bank (136 Mass. 487). Set-off, 4 Simmons \t. Aldrick (1 N. B. C. 931; 41 Wisi 240). Tax., 78. Simons v. Fisher (53 F. R. 905). Pres., 8. Simons v. Nat. Bank of Union Springs (3 N. B. C. 622; 93 N. Y. 269). Power, 47. XXXIT TABLE OF CASES DIGESTED. Sioux Falls Nat. Bank v. Swenson (48 F. R. 630). Tax., 208, 310. Skiles V. Houston (110 Pa. St. 354). Set^JflE, 38. Skowhegan First Nat. Bank v. Maxfield (83 Me. 576). Power, 31. Slaughter v. First Nat. Bank (19 S. E. 430: 109 Ala. 157). Org., 13; Us., 79. Small V. City of Lawrenoeburg (138 Ind. 331). "Tax.. 194. SmaUey v. Burlingten (68 Vt. 443). Tax., 181. Smith V. Exchange Bank of Pitts- burg (1 N. B. C. 886; 36 Ohio St. 141). Power, 6; Us., 91, 158. Smith V. First Nat. Bank of Chad- ron (63 N. W. E. 796; 45 Neb. Smith V. First Nat. Bank (17 Mich. 479). Tax., 1. Smith V. First Nat. Bank of West- field (99 Mass. 605). Cash., 33; Sp. Dep.. 26. Smith V. Philadelphia Nat. Bank (1 Walk., Pa., 318). Power, 118. Smithson v. Hubbell (81 F. E. 593). Juris. Cts., 16. Snohomish County v. Puget Sound Nat. Bank (81 F. R. 518). Juris. Cts., 15. Snyder v. Foster (73 F. R. 136: 41 U. S. A. 95; 19 C. C. A. 406). Tr. Stock, 88. Snyder v. Mt. Sterling Nat. Bank (94 Ky. 231; 21 S. W. E. 1050). Us., 11, 57. Snyder Sons Co. v. Armstrong (37 F. E. 18). Set-off, 26. Soules V. Witters (39 F. R. 403). Setoff, 47. Southwick V. First Nat. Bank of Memphis (1 N. B. C. 789; 7 Hun, N. Y., 96). Att., 8. Sowles V. Nat. Union Bank of Swanton (83 F. R. 696). Tr. Stock, 8. Spafford v. First Nat. Bank of Tama (1 N. B. C. 486; 37 Iowa, 181). Power, 69. Spaulding v. Backus (133 Mass. 553). Setoff, 39. Spokane Co. v. First Nat Bank (68 F. R. 979). Claims, 73. Spokane Co. v. Clark (61 F. R. 538). Claims, 60. Spurr V. United States (87 F. E. 701). Crim. Law, 36, 87. St. Johns Nat. Bank v. Bingham Tp. (Mich., 71 N. W. R. 588). Tax., 219. St. Louis Nat. Bank v. Allen (2 McCrary, U. S., 92; 5 F. R. 551). Juris. Cts., 17. St. Louis Nat. Bank. v. Brinckman (3 N. B. C. 141; 1 F. R. 45). Actions, 7. St. Louis Nat. Bank v. Papin (1 N. B. C. 326; 3 Cent. L. J. 6691 Tax., 161, 306. St. Louis & San Francisco R. R. t. Johnson (138 U.S. 566). Claims, 34 St. Mary's Church v. Nat. Bank (52 N. Y. Supp. 803). Claims, 36, 37. Stanley v. Board of Supervisors (8 N. B. C. 368; 131 U. S. 535). Tax. 167 203 Stanton v. Wilkeson (3 N. B. C. 163 ; 8 Ben., U. S., 857). Lia. Sh., 51 ; Rec, 19. 71. State V. Bardwell (73 Miss. 585; 18 S. R 377). Crim. Law, 47. State V. Curtis (35 Conn. 374). Dir., 13. State V. Fields (63 N. W. R. 653; 98 Iowa, 748). Crim. Law, 44, 45. State V. First Nat. Bank (89 Ind. 302). Tr. Stock, 40. State V. First Nat. Bank (51 N. W. R 587; 2 S. D. 568). Crim. Law, 48-50; Us., 80, 81. State Y. Casting (33 La. Ann. 609). Cir., 3. State V. Haight (31 N. J. L. 128). Tax., 25, 61. State V. Hartford Bank (34 Conn. 340). St. Banks, Conv. of, 3. State V. Menke (43 Pac. R 350; 56 Kan. 77). Crim. Law, 46. State V. Nicholls (23 S. R 980; 50 La. Ann. — ). Crim. Law, 17. State V. Nat. Bank of Baltimore (1 N. B. C. 527; 33 Md. 75). Tax., 18. State V. Phoenix Bank (34 Conn. 306). St. Banks, Conv. of, 3. State V. Teahan (50 Conn. 93). Crim. Law, 39. TABLE OF CASES DIGESTED. XXXV State V. Tuller (34 Conn. 280). Crim. Law, 38, 40. State V. Wells (134 Mo. 388; 85 S. W. E. 615). Ind., 43. State, Debaun v. Smith (55 N. J. L., 36 Vroom, 110). Tax., 70. State Nat. Bank v. Flathers (12 S. R. 243; 45 La. Ann. 75). Power, 63. State, North Ward Nat. Bank v. Newark (3 N. B. C. 290; 11 Vroom, N. J., 559). Tax., 66. State, North Ward Nat. Bank v. Newark (1 N. B. C. 672; 39 N. J. L., 10 Vroom, 380). Tax., 37, . 39. State of Nebraska v. First Nat. Bank (88 F. R. 947). Dep., 3. Stearns v. Lawrence (88 F. R. 738). Pres., 30. Steckel v. First Nat. Bank of Al- lentown (3 N. B. C. 719; 93 Pa. St. 376). Cert. Dep., 5. Stedman v. Eedfield (67 Tenn., 8 Baxt, 337). Us., 145. Stephens v. Bemeys (41 F. R. 401; aff'd, 44 F. R. 642). Eeo., 59. Stephens v. FoUett (43 F. R. 842). Sh., 3, 4. Stephens v. Monongahela Nat. Bank (2 N. B. 0. 398; 88 Pa. St. 157; 33 Am. R. 438). Char., 3; Power, 163; Us., 49. Stephens v. Monongahela Nat. Bank (111 U. S. 197). Us., 138, 150. Stephens v. Overstoltz , (43 F. R. 771). Dir., 36, 39, 50, 61, 68. Stephens v. Overstoltz (43 P. R. 465). Div., 73, 74; Off., 7; Rec, .51. Stephens v. Schuhman (3 N. B. C. 540; 33 Mo. App. 333). Set-oflE, 18, 37. Stetson V. City of Bangor (56 Me. 374). Const. L., 6. Stewart v. Armstrong (56 F. R. 167). Claims, 9; Off., 13. Stewart v. Nat. Bank of Maryland (1 N. B. C. 175; 3 Abb., U. S., 434). Loans, 3, 7. Stilz V. Tutewiler (48 Ind. 600). Tax., 155. Stout V. Ennis Nat. Bank (69 Tex. 384). Us., 137. Strader v. Manville (33 Ind. 111). Tax 59 strong V. Southworth (3 N. B. C. 172; 8 Ben., U. S., 331). Lia. Sh., 75. Stuart V. Hayden (73 P. R 403; 18 C. C. A. 618). Dir., 4a Stufflebeam v. De Lashmutt (83 F. R. 449). Lia. Sh., 1, 66. Succession of Lanaux (47 La. Ann. 643; 17 S. R, 200). Lia. Sh., 14; Sh., 12. Sumter Co. Nat. Bank v. Gaines- ville (2 N. B. C. 449; 62 Ala. 464). Tax., 80. Supervisors v. Stanley (3 N. B. C. ,33; 105 U. 8. 305). Tax., 131, 143. Swope v. Leffingwell (105 U. S. 3). Juris. Cts., 9;Power, 58; R. Est., 1,5. Sykes v. Canton Nat. Bank (2 S. D. 243; 49 N. W. R. 1056). Dep., 1; Power, 92. Sykes v. Halloway (81 F. R. 432). • Tr. Stock, 47. T. Talbot V. Silverbow Co. (139 U. S. 438). Ta.jL, 31, 103, 104, 128, 233 Talma'ge v. Third Nat. Bank (8 N. B. C. 603; 91 N. Y. 581). Juris. Cts., 35. Tapley v. Martin (1 N. B. C. 611; 116 Mass. 275). Bonds Off., 3; Org., 8. Tappan v. Merchants' Nat. Bank (86 U. S., 19 WaU., 490). Tax., 54. Taylor v. Hutton (1 N. B. C. 755; 43 Barb., N. Y., 195). Dir., 3; Pres., 33. Taylor v. Nat. Bank (6 S. D. 511; 63 N. W. R. 99). Cap. Stock, 85. Teague v. First Nat. Bank (15 Bank. Mag. 585). Us., 95. Tehan v. First Nat. Bank (39 F. R. 577). Setoff, 53. Telegraph Co. v. Davenport (97 U. S. 369), Tr. Stock, 35. Terry v. Birmingham Nat. Bank (93 Ala. 599). Cap. Stock, 41, 43. XXXVl TABLE OF CASES DIGESTED. Thatcher v. West River Nat. Bank (1 N. B. C. 623; 19 Mich. 196). Org., 9, 10. Thayer v. Butler (141 U. S. 234). Cap. Stock, 13; Set-off, 48; Sh., 2. ■ The Chattahooche Nat. Bank v. Schley (1 N. B. C. 379; 58 Ga. 369). Sp. Dep., 10-12. Third Nat. Bank v. Blake (3 N. B. C. 300; 73 N. Y. 260). Power, 87. Third Nat. Bank v. Boyd (44 Md. 47; 1 N. B. C. 545; 23 Am. R. 35). Power, 77. Third Nat. Bank v. Harrison (3 McCrary, U. S., 316; 8 F. R. 731). Dir., 19. Third Nat. Bank v. Miller (3 N. B. C. 378; 3 W. N. C, Pa., 496). Us., 58. Third Nat. Bank v. Owen (14 S. W. R. 633; 101 Mo. 558). Ac- tions, 31; Bonds Off., 2. Third Nat. Bank of Philadelphia V. Miller (90 Pa. St. 241). Us., 24. Third Nat. Bank of Pittsburg v. Mylin (76 F. R. 385). Tax., 198. Thomas v. City Nat. Bank (58 N. W. R 443; 40 Neb. 501; 46 Neb. 861). Aoo. Paper, 1 ; Power, 144; Pres., 12, 25. Thomas v. Farmers' Bank of Mary- land (46 Md. 43; 3 N. B. C. 248). St. Banks, Conv. of, 21. Thompson v. German Ins. Co. (76 P. R. 892). Rec, 65-67. Thompson v. Pool (70 F. R. 735). Rec, 59. Thompson v. Sohaetzle (50 N. W. R. 631;2S. D. 395). Rec, 69. Thompson v. St. Nicholas Nat. Bank (113 N. Y. 825). Cert. Ch., 8. Thompson v. St. Nicholas Nat. Bank (146 U. S. 240). Cert. Ch., 7, 8; Off., 6; Power, 5. Thornton v. Exchange Nat. Bank (3 N. B. C. 513; 71 Mo. 221). Power, 57. Thorpe v. Wegefrath (93 Am. Dec 789; 56 Pa. St. 83). Cir., 6; St. Banks, Conv. of, ;t3, 16. Thurber v. Miller (14 C. C. A. 482; 67 F. R. 871). Actions, 35. Tiffany v. Nat. Bank of Missouri (1 N. B. C. 90 ; 85 U. S., 18 WaU., 409). Int., 7. Tifft V. Quaker City Nat. Bank (8 Pa. Co. 606; 141 Pa. St. 550; 21 Atl. R. 660). Pres., 15a. Tillinghast v. Bailey (86 F. R. 46). Cap. Stock, 15. 17. Tillinghast v. Carr (83 F. R. 398). Power, 85. Timberlake v. First Nat. Bank (43 F. R. 331). Us., 14-16. Tomblin v. Higgins (73 N. W. R. 461). Us., 154. Tootle V. First Nat. Bank of Port Angeles (33 Pac R 345; 6 Wash. 181). Power, 101. Tourtelou v. Finke (87 F. R. 840). Lia. Sh., 45. Town Co. V. Union Nat. Bank (33 S. R. 291). Power, 118, 125. Trenholm, Compt., v. Commercial Nat. Bank (88 F. R. 338). Char., 6; Ind., 3. Trustees First Presby. Church v. Nat. Bank (29 Atl. R. 330; 57 N. J. L. 37> Ext. Corp. Ex., 1; Power, 89. Turner v. First Nat. Bank of Keo- kuk (1 N. B. C. 454; 36 Iowa, 562). Claims, 29; Rec, 74 Turner v. First Nat. Bank of Mad- ison (3 N. B. C. 408; 78 Ind. 19). Power,. 89. Tuttle V. FrelinghaiLsen (3 N. B. C. 576; 38 N. J. Eq. 12). Pref., 18. U. Ulster Co. Sav. Inst. v. Fourth Nat- Bank (8 N. Y. Supp. 162). Ac- tions, 15. Union Gold Mining Co. v. Nat. Bank (96 U. S. 640). Loans, 3, 6,11. Union Gold Mining Co. v. R. M. Nat. Bank (1 Colo. 531). Char., 3; Loans, 1. Union Nat. Bank v. Louisville, N. A. & C. R R. Co. (14 N. E. R 135; 145 IlL 308; aff'd, 163 U. S. 325). Us., 37, 157. TABLE OF CASES DIGESTED. XXXVU Union Nat. Bank v. Mathews (2 N. R C. 13; 98 U. S. 658). Power, 44, 51, 56, 58, 97; E. Est., 1. Union Nat. Bank v. Rowan (55 Am. R 36; 33 S. C. 339). Power, 18. Union Pac. E. R. Co. v. McComb (1 F. E. 799; 17 Blatch., U. S., 510). Actions, 37. United States v. Allen (47 F. E. 696). F. Ent., 10, 14, 33. United States v. AUis (78 F. R. 105). F. Ent, 13, 21, 30. United States v. Barry (36 F. E. 346). Sh., 22. United States v. Bartow (10 F. R. 874). F. Ent., 13. United, States v. Bennett (17 Blatch., U. S., 357). Cir., 1. United States v. Berry (85 F. E. 208). Ind., 28. United States v. Booker (80 F. E. 376). F. Ent., 8, 9. United States v. Britton (3 N. B. C. 76; 107 U. S. 655). Crim. Law, 8, 33: Ind., 15, 36. United States v. Britton (3 N. B. C. 99; 108 U. S. 193). Crim. Law, 13. 13. United States v. Britton (3 N. B. C. 104; 108 U. S. 199). Crim. Law. 9, 10. United States v. Buskey (38 F. R 99). Crim. Law, 36. United States v. Uadwallader (59 F. R. 677). Crim. Law, 18. United States v. Conant (3 N. B. C. 148; 9 C. J. L. 129; 35 Fed. Cas. 591). Crim. Law, 16; Ind., 1. United States v. Cook Co. Nat. Bank(9Biss., U.S.,55). Claims, 79. United States v. Crecelius (34 F. R. 30). F. Ent, 2. United States v. Curtis (3 N. B. C. 91 ; 107 U. S. 671). Crim. Law, 34; Ind., 30, 34. United States v. Dewalt (138 U. S. 3931. Crim. Law, 34 United States v. Eno (56 F. R. 318). Ind., 4. United States v. Eqe (49 F. R. 852). F. Ent, 4, 5. United States v. Fish (24 F. R 585). Crim. Law, 6, 72; F.Ent, 33. United States v. Folsom (38 Pac. ' R. 70; 7 Gilder,, N. M., 533). F. Ent, 38, 35. United States v. French et al. (57 F. R. 383). F. Ent, 5; Ind., 3, 31-35, 33. United States v. Graves (53 F. R. 634). F. Ent, 3, 15, 16, 30, 39; Report, 1-4. United States v. Greve (65 F. R 488). Ind., 13, 14. United States v. Harper (33 F. R 471). Crim. Law, 1; Dir., 32; F. Ent, 1. United States V. Hartwell (6 Wall., U S., 385). Eeo., 60. United States v. Hugitt (45 F. E. 47). F. Ent, 6. United States v. Jewett (84 F. R. 142). Agt Sh., 143. United States v. Johnson (36 Fed. Cas. 631; 4 Cin. L. Bui. 361). Crim. Law, 4. United States v. Kenny (90 F. R. 257). Crim. Law, 8. United States v. Knox (3 N. B. C. 1; 103 U.S. 433). Lia. Sh., 55, 56,78. United States v. Lee (13 F. R 816). Crim. Law, 7. United States t. Mann (1 N. B. C. 154; 95 U. S. 580; 17 Alb. L. J. 385). Tax., 53. United States v. Means (42 F. R. 599). F. Ent, 17-19. United States v. Nat. Bank of Asheville (73 F. R. 379). Dep., 7 8 United States v. Neale (14 F. R. 767). Dir., 6, 7. 8. United States v. Northway (120 U. S. 337; 3 N. B. C. 199). Crim. Law, 19, 80; Ind., 7, 8, 35. United States v. Peters (87 F. E. 984). F. Ent, 7; Ind., 39. United States v. Potter (56 F. R 83). F. Ent., 9, 36; Ind., 16-19. United States v. Potter (56 F. R. 97). F. Ent, 8, 9; Ind., 37-40. United States v. Ehawn (1 N. B. ' C. 358; 37 Fed. Cas. 784: 33 Leg. Int 258). Tax., 195. United States v. Taintor (11 Blatch., U. S., 374). Crim. Law, 23. XXXVIU TABLE OF CASES DIGESTED. United States v. Vorhees (9 F. E. 143). Crim. Law, 31. United States v. Warner (20 F. R. 616). Ind., 13, 30. United States v. Work (57 F. E. 391). F. Ent, 5; Ind., 83. United States Nat. Bank v. First Nat. Bank (79 F. R. 396). Power, 10. Upton V. Nat. Bank of South Eead- ing (130 Mass. 153). Power, 88. Van Allen v. Assessors (1 N. B. C. 1; 3 Wall, U. S., 573). Tax., 10, 119. Van Antwerp v. Hurlbard (8 Blatoh., U. S., 383; 1 N. B. C. 219). Cir., 10; Juris. Cts., 14 Van Leuven v. First Nat. Bank (1 N. B. O. 734; 54 N. Y. 671). Power, 139. Van Slyke v. State (1 N. B. 0. 939; 33 Wis. 656). Tax., 17. Veazie Bank v. Fenno (1 N. B. C. 23; 8 Wall., U. S., 533). Cir., 7; Const. Law, 4; Tax., 83, 36. Venango Nat. Bank v. Taylor (1 N. B. C. 843; 56 Pa. St. 14). Set-ofiE, 14. Vioksburg Bank. v. Worrell (67 Miss. 47; 7 S. R 319). Tax., 43. Vining v. Bricker (14 Ohio St. 381). Loans, 9. Voltz V. Nat. Bank, (158 lU. 533: 43 N. E. B. 69; aff'g 57 IlL App. 860). Power, 97. W. Wachovia Nat. Bank v. Ireland (39 S. E. R. 835). Us., 136. Wadsworth v. Hooking (61 HI App. 156). Lla. Sh., 94, 95. Waite V. Dowley (1 N. B. C. 137; 94 U. S. 537). Tax., 185, 337. Walden Nat. Bank v. Birch (130 N. Y. 331; 39 N. E. R. 136). Bonds Off., 5, 6; Loans, 10; Power, 86. Walker et al. v. Windsor Nat. Bank (56 F. R. 76). Bonds Off., Wallace v. Hood (89 F. R. 11). Lia. Sh., 72, 73; Power. 121. Warner v. Dewitt County Nat. Bank (3 N. B. C. 223; 4 Bradw., 111., 305). Power, 25. Warner v. Penoyer (82 F. E. 181). Dir., 34 Washington Co. Nat. Bank v. Lee (113 Mass. 521). Org., 4 Washington Nat. Bank v. Eckels (57F. R.870). Rec, 2^. Washington Nat. Bank v. King Co. (9 Wash. 607; 38 Pao. R. 319). Tax., 15, 213. Wasson v. First Nat. Bank (107 Ind. 206; 8 N. E. R. 97). Tax., 14 173. Wasson v. Hawkins (59 F. R. 233). Claims, 46. Watkins y. Nat. Bank of Lawrence (33 Pao. R. 914; 51 Kan, 254). Liq., 1; Eec, 16. Weber v. Spokane Nat. Bank (50 F. R 735). Power, 138-140. Weber v. Spokane Nat. Bank (64 F. E. 208). Power, 136, 137. Weckler v. First Nat. Bank of Hagerstown (1 N. B. C. 533; 43 Md. 581). Power, 134 136. Weir V. Birdsall (50 N. Y. Supp. 375). Power, 156. Welles V. Graves (41 F. R. 459). Char., 5; Dir., 39, 48, 64 65-, Rec, 53, 53. Welles V. Stout (38 F. R 807). Set-off, 51. Wells V. Larrabee (36 F. R. 866). Lia. Sh., 18, 36. Western Imp. Co. v. Des Moines Nat. Bank (72 N. W. R 657 ; 103 Iowa, 455), Power, 160. Western Nat. Bank v. Armstrong (153 U. S. 346). Cash., 6; Off., 4, 5; Power, 133; Vice-Pres., 3, 7. Western Reserve Bank v. Mcln- tire(40OhioSt.538j. St. Banks, Conv. of, 10. Weston V. Charleistown (3 Pet, U. S., 449). Tax., 334 Weston V. Manchester (63 N. H. 574). Tax., 176. Weyer v. Bank (57 Ind. 198). Tr. Stock, 23. Wheeler v. Union Nat. Bank (3 N. B. C. 9; 96 U. S. 368). Us., 2. TABLE OF OASES DIGESTED. XXXIX Wheelock v. Kost (77 III. 296; 1 N. B. 0. 406). Insol, 1; Lia. Sh., 14; Org., 20. 31. WheiTy V. Hale (3 N. B. 0. 531 ; 77 Mo. 30). Power, 64; R. Est., 3,6. White V. Knox (111 U. S. 784; 8 N. B. C. 138). Claims, 8, 16, 36, 27, 28. White T. Nat. Bank (4 W. L. B., Ohio, 791). Power, 153. Whitbeok v. Mercantile Nat. Bank (137 V. S. 193; 3 N. B. C. 309). Tax., 4, 112. Whitney v. Butler (3 N. B. C. 177; 118 U. S. 655). Lia. Sh., 68 ; Tr. Stock, 30. Whitney v. First Nat. Bank (50 Vt. 388; 38 Am. E. 503). Sp. Dep., 8. Whitney v. First Nat. Bank of Brattleboro (55 Vt. 154). Sp. Dep., 19. Whitney v. Eagsdale (1 N. B. C. 429 ; 33 Ind. 107). Tax., 68, 330. Whitney Nat. Bank v. Parker (41 F. R. 403). Tax., 81, 87, 137, 154, 179. Whittaker v. Anwell Nat. Bank (29 Atl. R 203; 53 N. J. Eq. 400). Books Nat. Bank, 4 Whittemore v. Amoskeag Nat. Bank (134 U. S. 537). Juris. Cts., 18. Wichita Nat. Bank v. Smith (73 F. R. 568). Actions, 35. Wickham v. Hull (60 F. R. 326). Juris. Cts., 6; Lia. Sh., 39. Wilder v. Union Nat. Bank (3 N. B. C. 134; 13 Chic. L. N. 84; 9 Biss., V. S., 178; 39 Fed. Cas. 1333). Actions, 33. Wiley V. First Nat. Bank of Brat- tleboro (1 N. B. G. 905; 47 Vt. 546 ; 19 Am. R. 133). Cash., 17 ; Sp. Dep., 9. Wiley V. Starbuck(l N. B. C. 436; 44 Ind. 398). Int., 11; Us., 86. Williams v. American Nat. Bank (85 F. R. 876; 29 C. C. A. 203; 56 U. S. A. 316). Cap. Stock., 45; Lia. Sh., 31. Williams v. City Nat. Bank (Tex., 37 S. W. R. 147). Dir., 31. Williams v. Weaver (75 N. Y. 30). Tax., 113, 169. Williamson v. Mason (18 Hun, N. Y., 97j. Cap. Stock, 43; Cash., 33. WilliamsportNat. Bank v. Knapp (3 N. B. C. 184; 119 U. S. 357). Juris. Cts., 11. Wilmington First Nat. Bank v. Herbert (44 F. R. 158). Tax., 118. Wilson V. First Nat. Bank (1 Wyo. 108). Sh., 11. Wilson V. Pauly (73 F. R. 129). Pres. 37. Wingate v.'Orchard (75 F. R. 341). Set-oflf, 43. Winnemucca First Nat. Bank v. Krieg (31 Nev. 404; 83 Pac. R. 641). Tax., 37, 51. Winter v. Baldwin (89 Ala. 488; 7 S. R. 734). Books Nat. Bank, 1, 3; Ex. of Nat. Banks, 2. Winters v. Armstrong (37 F. R. 508). Cap. Stock, 3, 8 ; Rec, 35. Winton v. Little (3 N. B. C. 735; 94 Pa. St. 64). Power, 44; Pres., 31. Witters v. Foster (36 F. R. 737). Dir., 75. Witters v. Sowles (31 F. E. 1). Dir., 33-35. Witters v. Sowles (48 F. E. 405). Loans, 17. Witters v. Sowles (35 F. R. 168). Tr. Stock, 50. Witters v. Sowles (32 F. R. 758). Conf. Laws, 3. Witters v, Sowles (33 F. R. 768). Ex. of Nat. Banks, 1 ; Lia. Sh., 31. Witters v. Sowles (32 F. R. 130). Set-off, 44. Wolverton v. Exchange Nat. Bank (11 Wash. 94; 89 Pac. R. 347). Us., 31. Wood V. People's Nat. Bank (1 N. B. C. 888; 85 Pa. St. 57). Power, 34. Woodward v. Ellsworth (3 N. B. C. 316; 4 Colo. 580). Tax., 222. Worcester Nat. Bank v. Cheney (3 N. B. C. 337; 87 lU. 603). Power, 27. Wright V. First Nat. Bank of Wellsburg (2 N. B. C. 138; 8 Biss., U. S., 348; 18 Alb. L. J. 115). Us., 99. xl TABLE OF CASES DIGESTED. "Wright V. Merchants' Nat. Bank (1 N. B. C. 331; 1 Flippin, 568). Rec. 7—9. Wright V. Stilz (37 Ind. 338). Tax, 13, 15, 131. "Wylie V. Northampton Nat. Bank (3 N. B. C. 188; 15 F. R. 438; S. C, 119 U. S. 361). Power, 91; Sp. Dep., 17. "Wyman v. City Nat. Bank of Faribault (39 F. R. 734). Loans, 4, 13. T. Yakima Nat; Bank v. Knipe (33 Pao. R 834; 6 Wash. St. 348). Actions, 19; Int., 13: Org., 11. Yardley v. Clothier (49 F. R, 337). Set-off, 33. Yardley v. Clothier (51 F. R. 506). Set-off, 6, 18, 30. Yardley v. Dickson (47 F. R. 8.35). Rec, 61. Yardley v. Philler (167 U. S. 344). SetroS, 9. Yardley v. Wilgus (56 F. R. 965), Lia. Sh.. 37. Yerkes v. Nat. Bank of Port Jer- vis (69 N. Y. 383). Power, 138, 139. Young V. MoKay (50 F. R. 394). Tr. Stock, 33. Young V. Wempe et al. (46 F. R. 354). Compt. Curr., 4; Lia.Sh., a, 50; Rec, 14. Young V. Wough (33 N. J. Eq. 335). Tr. Stock, 9. Zeigler v. First Nat. Bank of Allen- town (39 Am. R. 758; 93 Pa. St. 393). Cert. Dep., 6. Zimmerman v. Carpenter (84 F. R. 747). Lia. Sh., 46, 47, 87. DIGEST OF THE DECISIONS EBLATINa TO NATIONAL BANKS. ABATEMENT. See Actions; Dissolution, 6. ACCOMMODATION PAPER. See Powers, VIIL Guaranty, how affected by usury, see Usitrt, 35. Guaranty by cashier, see Oashiek, 8-11. 1. A national bank cannot indorse commercial paper for accommodation only. (U. S. C. 0. 1893) If at. Bank; of Commerce v. Atkinson, 55 F. K. 465; (Neb. 1894) Thomas V. City Ifat. Bank, 58 N. W. R. 443 ; 40 ISTeb. 501 ; 46 Neb. 861; (U. S. C. C. 18T9) Seligman v. CharlottesvUle Nat, Bank, 3 Hughes (U. S.), 647. 2. The accommodation paper of a national bank is void in the hands of a holder with notice. (U. S. 0. C. 18T9) Johnson v. Charlottesville Nat. Bank, 3 Hughes (U. S.), 657; 13 Fed. Cas. 885; 2 N. B. C. 199; (U. S. 0. C. 1898) Bowen V. Needles Nat. Bank, 87 F. E. 430. 3. Dicta: A national bank cannot loan its credit and indorse a note for accommodation. (N. Y. 1889) Nat, 1 2 ACTIONS. Bank of Gloversville v. Wells, T9 N. T. 499. Keversing JS'at. Bank of Gloversville v. Wells, 15 Hun, 51. 4r. A national bank has no power to enter into contracts of suretyship and guaranty for the sole benefit of others. (U. S. C. C. A. 1897) Commercial Nat. Bank v. Pirie, 82 F. E. Y99; (TJ. S. C. C. 1898) Bowen v. Needles Nat. Bank, 87 F. E. 430. . 5. " Nothing short of the unanimous consent of all the stockholders " of a national bank will bind it as an ac- commodation guarantor. (Minn. 1898) Ft. Dearborn Nat. Bank v. Seymour, 73 N. W. E. 734. ACTIONS. L By National Banks. a. Forum. II. Against National Banks. III. PLEADiNa and Practice. IV. Removal of Actions. See Attachment; Conflict of Laws; Insolvency; Jueisdiction OP CouETs; Organization; Place of Business; Receiver. On bonds of oflacers, see Bonds of Officers, 10, 11. By bank on obligation made to cashier, see Cashier, 30. Proof of charter, see Charter, 1. To forfeit charter, see Charter, 5, 6. Abatement by dissolution, see Dissolution, 6. To enforce liability of directors, see Directors, III. For false entries, see False Entries, 28, 34, 35. Where United States is party, to be conducted by, see District At- torney, 1, 3. Effect of liquidation on, see Liquidation, 3-9. Against insolvent banks, see Insolvency, 4, 5. To enforce liability of shareholders, see Liability of Sharehold- ers, V. Against ofllcers, see Officers, 8, 9. Proof of organization in, see Organization, 3-14 By shareholders, see Shareholders, 35-37. ACTIONS, I, a. 3 Etfect of conversion of state banks on, see State Banks, CONVKfr SION OF, III. As to taxation, see Taxation, VIII, IX. For penalty of usury, see Usury, IV. Garnishment, see Attachment, 31, 23. On claims, see Claims, 33-34; Rbcbivbr, 33. By receiver, see Keceiver, V. I. By National Banks. 1. In general — Judiciary act. — A national bank has no power to sue in the federal courts under the judiciary act, but derives such power from the national banking act. Therefore the limitation of the eleventh section of the judiciary act as to suits on indorsed notes does not apply. (U. S. C. 0. 1874) Commercial Nat. Bank of Cleve- land V. Simmons, 1 JST! B. C. 294; 10 Alb. L. J. 155; 1 Flipp. 449; 6 Fed. Cas. 226. a. Forvm,. (See JuBisDioTioN of Courts.) 2. Federal courts. — National banks, because of their status as such, may sue in the federal courts. (U. S. C. C. 1873) First Nat. Bank v. County of Douglass, 1 N. B. C. 267; 3 Dillon (U. S.), 298. 3. A national bank may bring an action in the federal courts outside the district in which it is located and in that in which the defendants reside. (U. S. C. C. 1871) Manufacturers' Nat. Bank v. Baack, 1 N. B. C. 161; 8 Blatch. (U. S.) 137. 4. The members of such a corporation may be presumed, so far as the question of jurisdiction is concerned, to be residents and citizens of the state in which the bank is located. Ibid. 5. A national bank may bring a suit against a citizen of a state other than that of the bank's location in the cir- cuit court of the United States for the district where such 4 ACTIONS, IL citizen resides, by reason of adverse citizenship alone. (U. S. Sup. Ct. 1892) Petri v. Commercial Nat. Bank, 142 U. S. 644. 6. A national bank has the right to bring suit in the federal courts in the district which comprises the state in which such bank is located; construing section 57 of the act of 1864. (U. S; 0. 0. 18Y4) Commercial ISTat. Bank of Cleveland v. Simmons, 1 IST. B. C. 294; 10 Alb. L. J. 155; 1 Flipp. 449; 6 Fed. Cas. 226. 7. National banks cannot bring suits in federal courts outside the district of their location where the amount in controversy is less than $500. In this respect they stand on the same footing as natural persons. (U. S. C. 0. 1878) St. Louis Nat. Bank v. Brinckman, 2 N. B. 0. 141; 1 F. E. 45. 8. State courts. — National banks and their receivers are amenable to the courts of their state, and may sue in the state courts of their domicile like other corporations. (La. 1878) Adams v. Daunis, 1 N. B. C. 510 ; 29 La. Ann. 315. 9. A national bank is a citizen of the state where located for the purpose of being enjoined from prosecuting a suit in another state. (Yt. 1898) Hazlen v. Lyndonville Nat. Bank, 41 Atl. E. 1046. Citing Petri v. Bank, 142 IT. S. 644. II. Agaiitst National Banks. 10. United States district courts. — A national bank has no habitation outside of the district m which it is located. Therefore it cannot be sued in the district court outside of that district, and service on officers, when in another district, does not give jurisdiction. (U. S. D. 0. 1874) Main v. Second Nat. Bank, 1 N. B. C. 200; 6 Biss. (U. S.) 26. 11. State courts. — A national bank may be sued in any court of the state, county or municipality in which such association is located, in all cases where such courts ACTIONS, IL 5 have jurisdiction under state laws in similar controversies. (U. S. Sup. Ct. 18T1) Bank of Bethel v. Pahquioque Bank, 1 ]Sr. B. 0. TT; 81 TJ. S. (14 Wall.) 383; 12. An action lies in a federal or state court against a national bank only in the judicial district in which it is established. (Mass. 1869) Crocker v. Marine ISTat. Bank, 1 K B. 0. 5T5; 101 Mass. 240; (tJ. S. C. 0. 1873) Cadle v. Tracey, 1 IST. B. G. 230; 11 Blatch. (tJ. S.) 101. 13. The statute authorizing suits in both federal and state courts against national banks is permissive and not mandatory, and congress has no power to oust the state courts of jurisdiction of such cases. (N. T. 1873) Cooke V. State ISTat. Bank of Boston, 1 K B. C. 698; 52 IST. T. 96; (iJ. S. Sup. Ct. 1876) Claflin v. Houseman, 93 TJ. S. (3 Otto), 130; (TSr.T. 1880) Eobinson v. Nat. Bank of JSTewberne, 81 JSr.T. 385; 2 K B. C. 309; 58 How. Pr. 306; (S. C. 1882) Holmes v. JSTat. Bank, 18 S. 0. 31; 44 Am. Eep. 558. 14. ISTational banks have power under the banking act to sue and be sued in any court of law or equity as fully as natural persons, with no distinction as to transitory or local actions, and in a state court outside of the county and city of their location. (Cal. 1890) Fresno IS'at. Bank V. Superior Court, 83 Cal. 491; 24 Pac. E. 157. 15. An action for money had and received against a national bank, the corporate existence of which is admit- ted, is not a suit arising under the laws of the United States. (JST. T. 1889) Ulster Co. Sav. Inst. v. Fourth Nat. Bank, 8 N. T. Supp. 162. 16. Waiver of exemption. — The exemption of national banks from suits in state courts elsewhere than in the county and city where such banks are located is a personal privilege, which they can waive by appearing and making defense without claiming the immunity granted by the act. (U. S. Sup. Ct. 1889) Charlotte First Nat. Bank v. Morgan, 132 U. S. 541. 6 ACTIONS, IIL 17. Section 57 of the banking act, authorizing suits against national banks only in the county of their loca- tion, extends a personal privilege which may be waived by the- banks. (Ohio, 18Y2) Lee v. Citizens' Nat. Bank of Piqua, 2 Gin. Sup. Ct. 298. 18. Attachment bond. — A national bank can be sued on an attachment bond in the state where the contract was made and not in the state of its location. (Ga. 188T) Continental Nat. Bank v. Folsom, 3 IST. B. 0. 350; 78 Ga. 449. III. Pleading asd Peaotice. 19. Proof of incorporation. — Proof that a national bank is doing a general banking business as a national bank, authorized by the laws of the United States, under the name by which it sues is sufficient proof to estabhsh primafacie its incorporation. ("Wash. 1893) Takima Nat. Bank v. Knipe, 33 Pac. K. 834; 6 Wash. 348. 20. The fact that a note is made payable at a certain bank does not necessarily indicate a corporation estab- lished under that. name. (Mass. 1871) Hungerford Nat. Bank v. Yan Nostrand, 1 N. B. C. 589; 106 Mass. 559. 31. The averment of the title of a bank as " The Third National Bank of Baltimore " is not an averment that such bank is a bank organized under the national bank- ing act, and established in the state of its residence. (U. S. C. 0. 1881) Third Nat. Bank of Baltimore v. Teal, 5 r. E. 503. 22. A complaint describing a national bank as a na- tional bank of a city in the state, and alleging that it has been doing business there for ten years, sufficiently states its location and that it is an organized corporation. (N. Y. 1890) Farmers' & Mechanics' Nat. Bank v. Eogers, 1 N. Y. Supp. 757. 23. A national bank is not a foreign corporation within the rule that requires proof of incorporation under a gen- ACTIONS, III. 7 eral denial according to the practice of the courts of this state. (Colo. 1893) Hummel v. First ]S"af. Bank, 32 Pac. E. Y2. 24. Following state practice. — After an action is com- menced in the state courts, such courts are governed solely by state statutes as to their mode of proceeding. (Iowa, 1882) Kinser v. Farmers' ISTat. Bank, 58 Iowa, T28; 13 IJif. W. E. 59. , 25. The provision of the United States Eevised Stat- utes, section 914, that the practice and pleadings, forms and modes of proceedings in circuit and district courts shall conform as near as may be to those existing in the state courts of record, is merely a rule of practice and can- not defeat the object and intention of a federal enactment. (N". Y. 1880) Nat. Bank of Auburn v. Lewis, 3 K. B. 0. .587; 81 K T. 15. 26. Security for costs. — A national bank is a foreign corporation within the meaning of a state statute requir- ing corporations created by " the laws of another state or •country" to give security for costs before prosecuting a cause in the courts of the state. (IST. T. 1876) Ifat. Park Bank v. Gunst, 1 K B. C. 797; 1 Abb. K C. 292. 27. Appeal bond. — Under section 1001, United States Eevised Statutes, no appeal bond is required in suits by or against national banks brought to the United States supreme court by the comptroller. (U. S. Sup. Ct. 1884) Pacific ISTat. Bank v. Mixter, 114 U. S. 463; S. C, 124 U. S. 721. _ 28. Affidavit, cashier. — The cashier of a national bank is the proper person to make the affidavit made necessary by the Maryland procedure act of 1864, chapter 6. (Md. 1883) Parkhurst v. Citizens' Nat. Bank of Baltimore, 3 K B. C. 463; 61 Md. 254. 29. Action in president's name. — Where a suit is brought by the president of a national bank in his own g ACTIONS, IV. name, and is treated by both parties up to the final hear- ing as the suit of the bank and not of the individual, the defendant will not be allowed on such final hearing to assert that the individual and not the corporation was complainant. (U. S. Sup. Ct. 1884) Fortier v. New Or- leans Nat. Bank, 3 N. B. 0. 140; 112 U. S. 439. IV. Bemoval of AonoNS. 30. Under the statutes relating to removal of causes, a national bank is a citizen of the state where it is located, and a cause cannot be removed to the federal courts on the claim that stich bank is a citizen of the United States. (ISTev. 1874) Davis v. Cook, 1 N. B. 0. 656; 9 Nev. 134; (N. T. 1874) Chatham Nat. Bank v. Merchants' Nat. Bank, 1 N. B. 0. 769; 4 Thomp. & Cook (N. T.), 196; (N. T. 1873) Cooke v. State Nat. Bank, 1 N. B. C. 698 ; 52 N. T. 96. 31. A national bank cannot enforce the -removal of the cause from a state to a federal court on the ground that it is organized under the laws of the United States and that the United States courts have exclusive jurisdiction. (U. S. C. C. 1877) Pettilon v. Noble, 2 N. B. C. 120; 7 Biss. (U. S.) 449. 32. Banks organized under the act of congress as na- tional banks are not entitled to have a suit in a state court in which they are defendants removed to the fed- eral courts, they being expressly excepted by section 640 of the Eevised Statutes of 1874. (U. S. C. 0. 1879) Wilder V. Union Nat. Bank, 2 N. B. C. 124; 12 Chig. L. N. 84; 9 Biss. (U. S.) 178; 29 Fed. Cas. 1222. 33. To authorize a removal for the reason that the suit involves a question arising under the constitution and laws of the United States, it must clearly appear from the record, when all inspected together, that a federal question is presented and must be passed upon. Ibid. 34. Under the act of congress of August 13, 1888, na- ACTIONS, IV. 9 tional banks are considered to be, for jurisdictional pur- poses, citizens of the state of their location, and do not now possess the right of removal on the ground that they are federal corporations. (U. S. C. 0. 1893) Burhans v. First Nat. Bank of Leoti, 53 F. K. 163. 35. For Jurisdictional purposes a national bank is a citizen of the state where located, and it therefore is not entitled to a removal of a cause as a federal corporation. (U. S. 0. 0. A. 1896) "Wichita Nat. Bank v. Smith, T2 F. E. 568. (TJ. S. C. 0. A. 1896) Thurber v. Miller, U C. 0. A. 432; 67 F. E. 3Y1, followed. 36. The act of congress of July 12, 1882, provides that the United States courts should not have jurisdiction of suits brought by national banks except in a few cases, imless they would have jurisdiction of like suits by or against a state bank. This section implies that they have no jurisdiction of such suits, either original or by removal. (U. S. Sup. Ct. 1886) Leather Manufacturers' ISTat. Bank V. Cooper, 3 K B. C. 208; 120 U. S. T78. 37. A suit by or against a corporation organized by act of congress is a suit arising under the laws of the United States and removable from a state to a federal court, under section 2 of the act of March 3, 1875. (U. S. C. C. 1883) Cruikshank v. Fourth Nat. Bank, 16 F. E. 888; (U. S. C. 0. 1878) Union Pac. E. E. v. McComb, 1 F. E. 799;17Blatch. (U. S.) 510. 38. A petition for the removal of a cause to the federal courts must contain an averment that the parties are cit- izens of another state. It is not sufficient to aver that they are simply residents of another state. (U. S. C. C. 1883) Merchants' Nat. Bank v. Brown, 17 F. E. 161. 39. Under the statute providing for the removal of causes to the federal courts, a certain state of pleadings is not necessary, but a federal question must be involved ; and where the party removing clearly shows by his plead- 10 AGENT OF SHAREHOLDERS. ings that such a question has arisen, the case is to be held removable, the motion to remove being made before issue was joined or the defendant had even answered. (U. 8. C. 0. 1885) Davies, Kec, v. Marine Nat. Bank, 24 F. E. 194. AGENT OF SHAKEHOLDERS. See Receiver. Director as an agent of the shareholders, see Directors, 1. Appointment of receiver on mismanagement of agent, see Re- ceiver, 11. 1. An " agent " is only the receiver under another name. (U. S. C. C. 1888) McConnellville v. Gilmor, 36 F. E. 2Y7. 2. The federal courts have jurisdiction of suits by and against the " agents " of national banks appointed under the national banking act. Ibid. 3. An " agent " of a national bank appointed to succeed a receiver may be substituted in such receiver's place in any pending action. Ibid. 4. The agent of a national banking association ap- pointed to wind up its afifairs is a quasi-puhliG officer, if not a public officer. (Cal. 1896) Chetwood v. California JSTat. Bank, 113 Cal. 649; 45 Pac. E. 854. 5. As such agent he is entitled to receive from an indi- vidual stockholder moneys received by such stockholder to the use of the corporation. Ibid. 6. Criminal responsibility. — An agent of a national bank in liquidation is within the meaning of the section of the national banking act as to embezzlement, abstrac- tion or wilful misapplication of the funds of a national bank. (TJ. S. C. C. 1897) United States v. Jewett, 84 F. E. 142. 7. An appointment of an agent in liquidation of a na- tional bank does not terminate the association, although ASSESSMENT — ATTACHMENT. 11 it limits its transactions and the powers of its officers. Ibid. 8. An agent in liquidation may also be a president, di- rector or clerk of the bank. Ibid. 9. An agent chosen by the stockholders of a national bank to wind up its affairs has no more power than a re- ceiver and cannot enforce the individual liability of the stockholders except when it is necessary to pay the debts of such bank. (U. S.C.C. 189T) Church v. Ayer, 80 F.E.587. ASSESSMENT. See T.TABTT.TTv OF Shaeeholdebs. ATTACHMENT. See Injunction. Priority of claim by receiver, see Receivee, 31. Action on attachment bond, see Actions, 18. Transfer of stock by, see Transfer of Stock, 3. 1. Attachment may issue.^An attachment can issue from a state court against a solvent national bank. (E". Y. 1880) Eobinson v. Nat. Bank of JSTewberne, 2 E". B. C. 309; 81 ]Sr. Y. 385; 58 How. Pr. 306. 2. National banks being foreign corporations are lia- ble to attachment proceedings in the courts of the state. (ISr. Y. 188T) Bowen v. First Nat. Bank of Medina, 34 How. Pr. (K Y.) 408. 3. Non-resident corporation, — The national banking act, in providing that attachments and injunctions shall not issue from state courts against national banks be- fore final judgment, applies only to suits brought in the county or city in which such associations are located. (N. Y. 1876) Southwick v. First Nat. Bank of Memphis, 1 N. B. C. 789; 7 Hun (N. Y.), 96. 12 ATTACHMENT. 4. An attachment cannot issue from a state court against a solvent national bank in another state. (111. 1891) McDonald v. First Nat. Bank, 41 111. App. 368. 5. An action may be begun by attachment against a national bank in a state court other than that of its loca- tion. (S. C. 1882) Holmes v. Nat. Bank of Wilmington, IBS. C. 31; 44Am. K. 558. 6. An action may be begun by attachment against a national bank doing business in another state but having no property within the state where such action is brought. (]Sr. Y. 1873) Alien v. Scandinavian Nat. Bank, 46 How. Pr. 11. 7. Attacliraent may not issue. — Under the national banking act the remedy of attachment against a national bank before judgment is denied both in state and federal courts. (U. S. Sup. Ct. 1888) Butler v. Coleman, 3 N. B. C. 291; 124 U. S. 721; (N. T. 1889) Bank of Montreal v. Fi- delity Nat. Bank, 112 N. T. 667; 1 N. T. Supp. 852; 20 N. E. E. 414. 7 a. A bond based on a void attachment is likewise void and will not sustain an action against the sureties. (U. S. Sup. Ot. 1888) Butler v. Coleman, 3 N. B. C. 291; 124 U. S. 721. 8. An attachment will not lie from a state court against a national bank before final judgment. (N. T. 1876) Cen- tral Nat. Bank v. Eichland Nat. Bank, 1 N. B. C. 801; 52 How. (N. Y.) 136; (N. Y. 1889) Bank of Montreal v. Fidelity Nat. Bank, 112 N. Y. 667; 1 N. Y. Supp. 852; 20 N. E. E. 414; (Minn. 1888) First Nat. Bank v. La Due, 39 Minn. 415; 40 N. W. E. 367; (Tenn. 1897) Eosenheim Eeal Estate Co. v. Southern Nat. Bank, 46 S. W. E. 1026. 9. An attachment cannot issue before final judgment against the property of a national bank. (N. Y. 1878) Ehoner v. Nat. Bank of Allentown, 2 N. B. 0. 331 ; 14 Hun (N. Y.), 126. ATTACHMENT. 13 10. Qiiwre, as to whether the prohibition of the na- tional banking act (sec. 5242, TJ, S. Eev. Stat.), that no attachment should issue against a national bank before final judgment, applies to both solvent and insolvent na- tional banks. (TJ. S. 0. C. 1880) McCracken v. Covington City lifat. Bank, 4 F. K. 602. Citing Central 'Na.t. Bank V. ISTat. Bank, 52 How. (K T.) 136; 1 K B. C. 801. 11. Section 5242, United States Eevised Statutes, pro- hibits an attachment being issued before final judgment against a national bank, and such an attachment does not give notice to an absent defendant so as to give the court any jurisdiction of such defendant or of the subject-matter. (Yt. 1889) Saflord v. First Nat. Bank, IT Atl. E. 748; 61 Vt. 373. 12. Constitntional law. — The provisions of the national banking act that no attachment, injunction or execution shall issue against a national bank before final judgment in an action in a state court is a constitutional provision within the power of congress. (Md. 1874) The Chesapeake Bank v. First l^fat. Bank of Baltimore, 40 Md. 269; 17 Am. Eep. 601. 13. Insolvent national banks. — The words of prohi- bition in section 5242, United States Eevised Statutes, apply only to an insolvent association or one which is about to become so. (K". Y. 1890) Eobinson v. liat. Bank of ITewberne, 2 JST. B. C. 309; 81 JST. Y. 385; 58 How. Pr. 306. 14. The prohibition as to attachment against the prop- erty of a national bank applies only to insolvent banks. (]S". Y. 1882) ISTat. Shoe & Leather Bank v. Mechanics' ]Srat. Bank of the City of Newark, 3 N. B. C. 601; 89 N. Y. 467; (N. Y. 1898) People's Bank v. Mechanics' Nat. Bank, 62 How. Pr. 422., 15. An attachment issued against an insolvent national bank is illegal, and the subsequent acquisition by the bank of further capital and consequent solvency does not ren- 14: ATTACHMENT. der it valid. (S. Y. 1883) Eaynor v. Pacific iTat. Bank, 3 ]Sr. B. C. 624; 93 N. T. 3T1. 16. Although the bank after the attachment paid some of its creditors in Ml, this does not estop it from ques- tioning the validity of the attachment for the benefit of the remaining creditors. Ibid. 17. An attachment against a national bank can only be sustained when it shall have been issued before the commission of any act o'f insolvency. (S. Y. 1883) Mar- ket Nat. Bank of ISTew York v. Pacific lif at. Bank, 3 N. B. C. 672; 30 Hun (K Y.), 50. 18. Waiver of prohibition. — The prohibition of the national banking act as to the issuing of an attachment against national banks is a personal privilege belonging to such banks and may be waived by them. (111. 1889) Norris v. Merchants' Nat. Bank, 30 111. App. 54. 19. Seizure void. — A seizure of the property of a national bank on an attachment from a state court before final judgment is void whether the bank be solvent or in- solvent, and a bond given to dissolve such attachment is likewise void. (Ga. 1892) Planters' Loan and Sav. Bank v. Berry, 18 S. E. E. 137; 91 Ga. 264. 20. Service by attachment void. — Service on a na- tional bank of an attachment issued without authority and being prohibited by the banking act does not give the court jurisdiction. (U. S. C. 0. 1895) Garner v. Sec- ond Nat. Bank, 66 F. E. 369. 21 . Garnishment. — A national bank, when the deposi- tory of a bankruptcy court, is not subject to garnishment. (N. Y. 1875) Havens v. Nat. City Bank, 1 N. B. G. 783; 6 Thomp. & Cook (N. Y.), 346. 22. A national bank or its receiver may be summoned as a garnishee under an attachment in a state court issued after judgment against the defendant, and such proceed- ing does not conflict with United States Eevised Stat- BILLS AND NOTES. 15 utes, section 5243. (Pa. Com. PI. 1898) Conway v. Schall, 42 W. N. C. 328. 23. Restraining proceedings.— Where an attachment is illegally issued from a state court, the remedy is not by an injunction to restrain the action, such action being- entirely void. (Minn. 1888) First Nat. Bank v. La Due, 39 Minn. 416; 40 N. W. E. 36Y. 24. Damages — Interest. — A loss of interest occa- sioned by an attachment wrongfully laid is clearly an injury for which damages are recoverable against the wrongful litigant. (U. S. C. C. 1888) Jacobus v. Monon- gahela IsTat. Bank of Brownsville, 35 F. E. 395. 25. , fees. — Counsel fees and other expenditures in the attachment suit cannot be recovered as damages- on the bond. Ibid. 26. Priority. — Certificates of national bank stock are quasiruegotiahle, and an unrecorded transfer for value will prevail over a subsequent attachment levied by a. creditor without notice. (U. S. C. C. 1880) Continental Nat. Bank v. Eliot Nat. Bank, 7 F. E. 369. 27. The attachment of an individual creditor levied after insolvency is subordinate to the lien of the receiver- appointed subsequent to such insolvency. (U. S. Sup. Ct. 1874) Nat. Bank v. Colby, 1 N. B. C. 109 ; 21 Wall. (U. S.) 609; (U. S. C. C. 1879) Harvey v. Allen, 2 N. B. C. 439; 16 Blatch. (U. S.) 29. 28. Constitutional law. — Act of congress of July 12, 1883, does not operate as a repeal of section 5242, United States Eevised Statutes. (N. T. 1883) Eaynor v. Paoifla Nat. Bank, 3 N. B. C. 624; 93 N. Y, 371. BILLS AND NOTES. See Accommodation Paper; Powers. 16 BILLS OF EXCHANGE — BONDS OF OFFIOERa BILLS OF EXCHANGE. See Cebtipication of Checks; Powees, IL 1. Section 5200, TJnited States Eevised Statutes, does not require that bills of exchange should be accompanied by a bill of lading, but is only designed to prevent dealing in speculative and accommodation paper. (E. Y. 1883) Second -Nat. Bank v. Burt, 93 JST. T. 233. BONDS OF OFFICERS. See Cashier; False Entries; Ofpicees; President. Discretion of directors in taking, see Directors, 30. 1. Approval of. — The acceptance of a bond may be presumed by its retention by the association and the en- tering of the oflacer upon the discharge of his duties. (Ky. 1873) Graves v. Spokane Nat. Bank, 1 N. B. C. 492; 10 Bush (Ky.), 23. 2. Liability of sureties. — Where an oflBcer of a bank embezzled large funds belonging to the bank, which em- bezzlement was known to the bank, but the bank contin- ued such officer in its employ and took from him a bond on which were sureties ignorant of such misconduct, and deceived by a statement of the bank just published, such sureties are released from liability. (Mo. 1890) Third Nat. Bank v. Owen, 101 Mo. 558; 14 S. W. E. 632. 3. Negligence of directors in failing to examine the books of the bank will not discharge the surety on the cashier's bond. (Mass. 1874) Tapley v. Martin, 1 N. B. 0. «11; 116 Mass. 275; (Ky. 1873) Graves v. Spokane Nat. Bank, 1 N. B. 0. 492; 10 Bush (Ky.), 23. 4. The wrong of the cashier, and the consequent lia- bility of his sureties, will not be excused by the negligence BONDS OF OFFICERS. 17 of the bank officers. (U. S. D. C. 1888) Phillips v. Bos- sard, 35 F. E. 99. 6. The sureties of a cashier of a national bank, who has made a loan on the security of stock of the bank, cannot defend in an action against them for liability as to his misconduct, on the ground that such a loan violated the national banking act. (IST. T. 1891) Walden Nat. Bank V. Birch, 130 K T. 221; 29 N. E. K. 126. 6. The sureties of a national bank cashier are liable for his wrongful act in misappropriating stock held in his name but assigned to him as collateral for a loan made by the bank. Ibid. 7. "Where a cashier of a national bank is elected to hold office at the will of the directors, his sureties will be lia- ble for his default during the whole of such time. (U. S. D. 0. 1888) Phillips v. Bossard, 35 F. E. 99. 8. Representations. — Publications in a newspaper of a statement of the resources and liabilities of a national bank are not representations, the falsity of which will excuse from liability the surety on the bond of one of the bank's officers. (Del. 1898) Lieberman v. First IS&t. Bank, 40 S. W. E. 382. Criticising Graves v. Bank, 10 Bush (Ky.), 23; IK B. C. 492. ' 9. Crime committed through other employment. — It is not a defense to an action on a teller's bond for de- falcation that such defalcation occurred through the per- formance of the duties of bookkeeper when such duties consisted only of the ordinary bookkeeping customarily done by tellers. Ibid. 10. Actions. — A bond of a bank employee signed by a guaranty company but not by the employee does not bind the employee and no action lies thereon. (U. S. C. C. A. 1895) Blackraore v. Guarantee Co. of North Amer- ica et al., 71 F. E. 363. 18 BOOKS OF NATIONAL BANKS — BE ANCH BANKS. 11. An action brought on the ofllcial bond of a cash- ier of a national bank given to the bank under the re- quirements of the national banking act presents a federal question. (U. S. 0. C. A. 1893) "Walker et al. v. Windsor Nat. Bank, 56 F. K. 76. BOOKS OF NATIONAL BANKS. Record of transfer of stock on, see Teansfek op Stock. 1. Inspection of books. — Code of Alabama, 1886, sec- tion 167Y, providing that stockholders in corporations have the right " of access to and inspection and examina- tion of the books, records, papers of the corporation at all reasonable and proper times," applies to national banks and is not in conflict with the banking act. (Ala. 1S90) Winter v. Baldwin, Y S. E. T34; 89 Ala. 483. 2. Stockholders in national banks are under such stat- ute entitled to mcmdarrms to enforce such right of in- spection and examination. Ibid. 3. National bank officers cannot be forced to exhibit the bank's books in order to disclose deposits for purposes of taxation. (U. S. 0. C. 1878) First Nat. Bank of Youngs- town, v. Hughes et al., 2 N. B. C. 176; 106 U. S. 523; 9 Fed. Gas. 103; 5 Oin. L. B. 515. 4. Entries in. — In an action against a receiver for an insolvent national bank, though he produces its books of account, he may still contradict the entries therein, since he represents not the bank alone, but the creditors. (N. J. 1894) Whittaker v. An well Nat. Bank, 52 N. J. Eq. 400; 29 Atl. K. 203. BRANCH BANKS. See Place op Business. BROKER — CAPITAL STOCK, L 19 BROEEB. See PowEES, VL CAPITAL STOCK. 1 Increase of Capital Stock. II. Reduction of Capital Stock. IIL Sale or Capital Stock. See Liability oe Shareholders; Shareholder; Transfer of Stock. Lien of bank on, see Transfer op Stock. Subscription, amount paid in as claim, see Cl a ims, 11. Subscription unpaid, creditor's right to, see Claims, 31, 33. Ownership of, by director, see Director, 5-8. Set-ofE against increase of, see Set-off, 48, 49. Subscriber to increase of, see Shareholders, 4^10. Taxation of, see Taxation, X. Loans by bank on security of its own, see Powers, III, d Power of bank to purchase own, see Powers, 119-131. Impaired capital stock, assessment to restore, see this title, 38; Lia- bility OF Shareholders, 69. Purchase of, by officer, see Criminal Law, 33. I. Inoeease OF Capital Stock. 1. Increase not authorized. — The regularity of an in- crease of capital stock is a part of the subscriber's contract, and when such increase is invalid and unauthorized he is entitled to judgment for his subscription. (Mo. 1888) Schierenberg v. Stephens, 3 N. B. 0. 528; 32 Mo. App. 314. 2. Ifational banks must conform to United States Ee- vised Statutes (sec. 5142), and act of congress of May 6, 1886, in making an increase of their capital stock, and an increase attempted to be made without the consent of two-thirds of the stockholders and the payment in full 20 CAPITAL STOCK, t thereof, together with the certificate of the comptroller, is invalid. (XJ. S. C. 0. 1889) "Winters v. Armstrong; Armstrong v. Stanage; Same v. Wood, 37 F. E. 508, 3. The performance by the association of these condi- tiojis is necessary to the creation of any liability in the subscriber. A showing that the bank represented to the public that the increase in the capital stock was fully sub- scribed, which representation was known and permitted by subscribers, without a showing that the public reUed upon, acted upon or was misled by such misrepresenta- tion, does not estop such subscribers from relying on the bank's failure to observe the statutory requirements as to such increase. Ibid. 4. Payment of. — An amount equal to the increase of the capital stock of a national bank must be actually paid in to make such increase valid. (U. S. 0. 0. A. 1898) Cock- rill V. Abeles, 86 F. E. 505. , 5. Irregularities, waiver. — The acts of the officers of the bank in taking the necessary steps for increasing the stock are held to be the acts of their principals, *. e., of those interested in the increase ; and, while they may hold such oiiicers for their breaches of trust, they cannot set up their own wrong to defeat the rights of innocent parties. (TJ. S. 0. C. 1896) Latimer v. Bard, Y6 F. E. 536. 6. The action of the stockholders in changing the amount of the increase of national bank stock is not bind- ing on a subscriber who subscribed before such change, when it was made at an irregular meeting at which such subscriber was represented by proxy only. (IT. S. 0. 0. 1897) Mathews v. Columbia Nat. Bank, 79 F. E. 558. 7. Any irregularities in the increase of the capital stock of a national bank can be waived by the subscriber, as national banks have abstract power to increase their cap- ital stock irrespective of the different steps in making CAPITAL STOCK, L 21 such increase. (U. S. Sup. Ct. 1890) Pacific ISTat. Bank V. Eaton, 141 U. S. 227; 3 K B. 0. 483. 8. Change in amount of increase, ratification.— Pay- ment made voluntarily of an assessment of the comp- troller on the full amount of a subscriber's share in the increase of the capital stock of a national bank ratifies the action of the comptroller in changing the amount of the increase. (U. S. Sup. Ct. 1886) Delano v. Butler, 3 l^.B. 0.163; 118U. S. 634. 9. Failure to secure whole amount. — A failure to se- cure the whole amount of an increase of capital stock does not absolutely vitiate the increase, but the defect may be waived by the subscriber. Ibid. 10. Comptroller may assent to less. — The comptrol- ler of the currency has the power to assent to an increase of the capital stock of a national bank less than that orig- inally voted by the corporation, but equal to the amount actually subscribed and paid in by the shareholders, and such action would not change the validity of the subscrip- tions. (U. S. Sup. Ct. 1889) Aspinwall v. Butler, 133 TJ. S. 595. 11^ The validity of an individual subscription for stock of a national bank is not conditional on the subscription and payment of the entire amount of the increase, but rests solely on the fact whether or not the single sub- scription is entirely paid for. (U. S. C. C. A. 1898) Scott V. Latimer, 89 F. K. 843. 12. Bona fides — The conditions of United States Ee- vised Statutes, section 5142, as to the validity of an in- crease of capital stock, that such increase shall not be valid until the whole amount is subscribed and approved by the comptroller, do not invalidate lona fide subscrip- tions actually made and paid. Ibid. 22 CAPITAL STOCK, I. 13. Knowledge, estoppel.— A voluntary payment of an assessment on a portion of an increase made with no- tice, either actual or constructive, of the condition of the bank and of the action of the association as to the increase, estops the payor from questioning its validity and annul- ling his subscription. (U. S. Sup. Ct. 1886) Delano v. But- ler, 118 TJ. S. 634; 3 IST. B. C. 163; (U. S. Sup. Ct. 1890) Pacific I^at. Bank v. Eaton, 141 TJ. S. 227; 3 N. B. 0. 483; (TJ. S. Sup. Ct. 1890) Thayer v. Butler, 141 TJ. S. 234; (U. S. Sup. Ct. 1890) Butler v. Eaton, 141 U. S. 240. 14. A subscriber for an increase of national bank stock who receives original stock instead and accepts, pays for and votes same is liable thereon upon the insolvency of the bank. (TJ. S. C. C. 1898) Eand v. Columbia Nat. Bank, 8T F. K. 520. 15. The acceptance of a certificate of national bank stock as a part of an authorized increase of such stock, the reception of dividends thereon and the voting of same, .estops the subscriber from questioning the validity of the increase. (U. S. C. C. 1897) Tillinghast v. Bailey, 86 F. E. 46. 16. Certificate of comptroller, — The validity of an increase of capital stock depends on the certificate of ap- proval of the comptroller of the currency. (S. C. 18Y4) Charlestown v. People's Nat. Bank, 1 N. B. C. 898 ; 5 S. 0. 103; 22 Am. Kep. 1. 17. The certificate of the comptroller of the currency as to the increase of the capital stock of a national bank is conclusive as to the facts upon which such certificate is based. (U. S. 0. C. 1897) Tillinghast v. Bailey, 86 F. E. 46. 18. The certificate of the comptroller of the currency in approving of the increase of the capital stock of a na- tional bank is conclusive except as against a direct at- tack. (TJ. S. C. 0. 1896) Latimer v. Bard, 76 F. E. 536. CAPITAL STOCK, L 23 19. The officers of a national bank in taking the nec- essary steps to increase the capital stock of such bank are the agents of the shareholders, and such shareholders can- not assert their wrong in making such increase as against third parties whose rights intervene. Ibid. 20. The certificate of the comptroller of the currency that the capital stock of a national bank has been in- creased to a certain amount is conclusive of the regularity of such increase. (U. S. C. 0. A. 1898) Columbia 'E&t. Bank v. Mathews, 85 F. K. 934. 21. A shareholder who by proxy assents to a proposed increase of the capital stock by any multiple of $50,000 up to $300,000 is bound by any increase up to $300,000, and, having voted his stock and received dividends, can- not be heard to say such increase was irregular. Ibid. 22. Recovery of subscription— False representations. The failure to return shares in an increase and to demand back his money before the insolvency of the bank does not estop a subscriber from recovery on the ground that his subscription was procured by false representations. (U. S. C. C. A. 1895) Newbegin v. Newton Nat. Bank, 66 F. K. TOl. 23. , whole amount not subscribed. — Payment of subscription, on implied condition that the proposed in- crease be entirely subscribed and paid in and approved by the comptroller, entitles the subscriber to recovery on default of such condition. (Mass. 188Y) Eaton v. Pacific Nat. Bank, 3 N. B. C. 483; 144 Mass. 260. 24. , illegal increase. — A payment of a subscrip- tion to an increase of the capital stock of a national bank under the belief that the subscriber was liable therefor is not a voluntary payment and may be recovered back, the increase not having been legally made. (U. S. C. 0. 1897) Brown v. Tillinghast, 84 F. E. Ill, I i 24 CAPITAL STOCK, II, IIL II. Eeduction of Capital Stock. 25. Corporations have no implied power to enlarge or diminish their capital or distribute it among the share- holders prior to the final winding up of the corporation. (Ind. 1887) MeCann v. Eirst Nat. Bank of Jeffersonville, 3 N. B. C. 434; 112 Ind. 354. 26. Retention of proceeds. — The amount of the re- duction of a national bank's capital stock cannot be re- tained as surplus, but must be distributed among the shareholders. The power of such retention is not discre- tionary in the directors. (N. T. 18Y8) Seeley v. New York Nat. Exchange Bank, 2 N. B. 0. 340; 4 Abb. N. C. 61; T8 N. T. 608. 27. Subsequent realization on '^bad debts." — The shareholders of a national bank whose capital has been reduced are not entitle'd to a distribution of funds after- wards realized from " bad debts." The right to a distribu- tion depends on the, condition of the bank at the time of the reduction and not subsequently. (Ind. 188T) Me- Cann V. First Nat. Bank of Jeffersonville, 3 N. B. C. 434; 112 Ind. 354. 28. Assessment to restore impaired capital stock.— An assessment by the comptroller of the currency on national bank shareholders to restore impaired capital, under United States Kevised Statutes, section 5205, must be levied by the shareholders, and does not lie within the power of the directors. (U. S. 0. 0. 1898) Hulitt v. Bell, 85 F. K. 98. III. iSale of Capital Stock. See Transfer op Stock. 29. It is not a valid sale of national bank stock by the bank, under United States Eevised Statutes, section 5201, where the bank transfers said stock to its president, taking CAPITAL STOCK, IIL 2& Ms note therefor, which note is destroyed and the stock transferred back in an attempt to avoid liability thereon. The sale under this section must be a real and lonafide one. (TJ. S. 0, 0. 1885) Bundy v. Jackson, 24 F. E. 628. 30. Such a purchase and transfer back from the presi- dent to the bank is illegal and can neither be authorized nor ratified when done. Ibid. 31. A purchase by a national bank of some of its own- stock for cash is void, and the bank may recover the money thus unlawfully pg-id out in an action of assumpsit. (U. S. 0. C. A. 1898) Burrows v. JSTiblack, 84 F. E. 111. 32. To pay assessment, — A sale of national bank stock under the provisions of United States Eevised Statutes^ section 5205, is void if at such sale the stock is sold for less- than the assessment thereon to pay which such sale is had. (Ga. 1898) Merchants' Nat. Bank v. Fouche, 31 S. E. E. 87. 33. Execution sale. — Congress has not declared that shares of stock in national banks shall not be subject to- seizure for debt. (Pa. 1895) In re Brades' Estate, 165 Pa. St. 184; 35 W. K C^ 497; Appeal of Wood, same.. 34. Agreement to sell, specific performance. — Semhley that a bill in equity will not lie to enforce the specific per- formance of an agreement to sell national bank stock. (Pa. 1879) Foils' Appeal, 2 IST. B. C. 411; 21 Alb. L. J. 27; 91 Pa. St. 434. 35. Kescission. — One who purchases stock relying upon fraudulent misrepresentations as to the condition of the bank may rescind the purchase and recover notes he has given therefor. (S. D. 1895) Taylor v. National Bank, 6 S. D. 511; 62 ]Sr. W. E. 99. 36. The representations of the president of a national bank as to the condition of the bank are a material part of the purchase of stock, and such purchase can be re- scinded if they be false. (U. S. 0. C. A. 1893) Merrill v. Florida Land & Improvement Co., 60 F. E. 17. ■^Q CAPITAL STOCK, III 37. Misrepresentations. — A party buying national bank stock has a right to rely on the representations of the president and is not obliged to investigate as to their truth, and is not estopped by delay in discovery of their falsity. (S. D. 1894) JSTat. Bank of Dakota v. Taylor, 6 S. D. 99; 58KW. E. 297. 38. Semble, the fact that such purchaser afterwards, as cashier, signed a statement of the bank's condition to the comptroller, would not estop him from setting up fraudulent representations of the bank made previously, "when the true condition of the bank did not accord with such statement. The action of such purchaser in attend- ing a meeting of the stockholders and voting his stock after the discovery of the fraud perpetrated upon him does not of itself estop him from rescinding the purchase. Ibid. 39. The knowledge imputed to a national bank cashier as to the condition of the bank depends on his actual, not on his nominal, connection with the bank. And he is not estopped, simply by reason of his position, from setting up a fraudulent representation as a ground for the rescission of a purchase of capital stock. Ibid. 40. The only duty resting on a purchaser of such cap- ital stock is that he shall act promptly on the discovery of the facts which entitle him to a rescission, not that he should be diligent in their discovery. Ibid. 41. Sale, conversion. — A sale without notice to the pledgor of shares of stock pledged as collateral is not a conversion, it appearing that the purchaser was merely a nominal purchaser, and that the certificates were never delivered to him, but -were retained by the pledgee and afterwards sold pursuant to a proper notice. (Ala. 1890) Terry v. Birmingham Nat. Bank, 93 Ala. 599. 42. For conversion of stock pledged as security the CASHIER. 27 pledgor is entitled to recover as damages the highest mar- ket value, together with the dividends shown to have been paid on the stock. Ibid. 43. The sale of shares of national bank stock by the bank itself, for the pm-pose of increasing a customer's de- posit account,' is within the incidental powers of a national bank as a part of the regular business of banking. (IST. Y. 18T7) Williamson v. Mason, 12 Hun (IST. T.), 97. 44. Ultra vires loan, recovery by owner. — The pro- hibition of the statute against a national bank loaning money on its own stock can be urged by the parties only before the contract is executed. JSTo recoveiy can be had afterwards, and equity will not interfere. (IJ. S. Sup. Ct. 1883) First JSTat. Bank of Xenia v. Stewart, 3 K B. 0. 96; 107 U. S. 676. 45. In an action against a national bank for money loaned for which it issued stock as security, the bank can- not be heard to s^y that the issue of such stock was ultra vires. (U. S. C. C. A. 1898) Williams v. American Nat. Bank, 85 F. E. 376. 46. Action by debtor to redeem.— An action by a debtor to redeem stock pledged is not maintainable after the lapse of three and one-half years, and when the stock has been resold on due notice to the debtor and an ac- count of the same made, and he has not complained. (U. S. Sup. Ot. 1877) Hayward v. Elliot IsTat. Bank, 2 JST B C. 1: 96 U. S. 611. CASHIER. L POWEBS OF. II. Liability or. III. Liability op Bank fob Acts of. IV. Miscellaneous. See Bonds op Ofpicees; Oppicees. 28 CASHIER, L Power of to make affidavit, see Actions, 28. Fraudulent issue of oertiflcate of deposit by, liability of bank, see Certificate of Deposit, 5, 7. Power lo certify checks, see Certification of Checks, 5. Cashier, directors liable for default of, see Directors, II, a. False entries by cashier, see False Entries, 32-25. Transfer of stock by, see Transfer of Stock, 37, 39, 43. Liability of surety for, see Bonds of Officers, 3-9. Obligation of during organization, see Organization, 14, 17. Conversion of special deposit by, see Special Deposit, 38. Ownership of stock, see Vice-President, 5. Note of, for loan of bank, see Powers, 143. Note to cashier as payee, defense of usury on, see Usury, 153. I. POWEES OF OaSHIEE. 1. In general. — The cashier of a national bank is the general executive ofl&cer to transact its business in all things not peculiarly within the control of the directors; he is the agent of the corporation and not of the direct- ors. (Pa. 18T1) Bissel v. First l^at. Bank of Franklin, 69 Pa. St. 415; (U. S. Sup. Ct. 1823) Fleckner t. Bank of United States, 8 Wheat. (U. S.) 338; (HI. 1886) First Nat. Bank of Monmouth v. Brooks, 3 N. B. 0. 387; 22 111. App. 238. 2. Even though the powers of a cashier of a national bank are expressly limited by the directors, such a limita- tion will not affect those to whom it is unknown if the transaction was within the ordinary scope of the busi- ness. (Ala. 1898) First ISTat. Bank v. First Nat. Bank, 22 S. E. 976. 3. The cashier of a national bank ^T-wTia/aae has au- thority to solicit and do business, and to bind the bank to the extent of obligations ordinarily pertaining to the bank's business. (N". H. 1897) Hanson v. Heard, 38 Atl. E. 788. 4. "Where the directors of a national bank permit the CASHIER, L 29 cashier to hold himself out to the world as having the complete control of its business, so that innocent parties make contracts with such cashier in the belief that he is so authorized by the directors to take such entire control, the bank cannot repudiate the contract as contrary to by- laws of the bank which the directors have not enforced. (U. S. 0. 0. A. 189Y) Cox v. Kobinson, 82 F. K. 2TY. 6. When the business in which a national bank is for the time engaged is beyond its legitimate business, the person so dealing with its cashier has no right to pre- sume that the cashier has any power to act therein with- out express authority from the board of directors. (TJ. S. 0. C. A. 1896) Farmers' & Merchants' E"at. Bank v. Smith, 11 F. E. 691; 14 0. C. A. 61; 32 U. S. A. 52. 6. Borrow money. — Undisputed proof of a usage among banks to allow their executive officers to borrow money for the bank is a sufficient showing of special authority on the part of a certain bank to its cashier to make loans therefor and to hold the bank liable on such loans. (U. S. 0. C. A. 1897) Armstrong v. Chemical Nat. Bank, 83 F. E. 556 ; 54 U. S. A. 462. Distinguishing "Western If at. Bank V. Armstrong, 152 U. S. 346. 7. Discharge of debts.— A cashier of a national bank in general has no authority to discharge its debts without payment, or to bind the bank by an agreement that a surety would not be called upon to pay a note he has signed. But a statement by such cashier to a surety that a note was paid, by which statement the surety is induced to change his position, estops the bank from denying that the note was paid. (K H. 1871) Cocheco Nat. B^nk v Haskell, 51 KH. 116. 8. Guaranty.— The power of a cashier of a national bank to guarantee paper cannot be disputed by the bank 30 CASHIER, L When it has left its entire management to him. (Mich. 1895) First Nat. Bank v. Stone, 106 Mich. 361; 64 K W. E.487. 9. The selling of a mortgage bond not being within the lawful power of a national bank, a cashier thereof has no authority to bind the bank by a guaranty of such bond. (U. S. C. C. A. 1896) Farmers' & Merchants' ]S"at. Bank v. Smith, Y7 Fed! K. 691; 14 C. C. A. 61; 32 U. S. A. 52. 10. A cashier of a national bank has no power to bind the bank by any kind of an accommodation contract. (Minn. 1898) Ft. Dearborn Nat. Bank v. Seymour, 73 N. W. K. 734. 11. The giving of the entire management of a bank ta the cashier estops such bank from disputing the power of such cashier to guarantee commercial paper rediscounted. (Mich. 1895) First Nat. Bank v. Stone, 106 Mich. 367; 64 N. W. R. 487. 12. Payment of drafts. — The payment of the drafts, of a third person on a bank's customer not being within its power, the cashier has no authority to pay the same. (U. S. C. C. A. 1893) Flannagan v. California Nat. Bank, 56 F. E. 959. 13. Certify checks. — The cashier of a national bank, as. one of its officers, has authority in the regular course of its business to certify checks drawn on the bank by its customers, where any officer could do the same and bind the bank, and persons dealing with the bank are not bound by any special restrictions imposed on him by the corporation whose agent he is. (N. Y. 1868) Clarke Nat. Bank v. Bank of Albion, 52 Barb. (N. Y.) 592. 14. The cashier has no power to certify a check unless he has funds of the drawer in hand sufficient to meet, the check. This limitation is in the law presumed to be; CASHIER, II. 31 known to all persons dealing with the bank through such cashier. Ibid. 15. The cashier, having received funds into the bank^ has authority to certify checks in payment therefor. (U. S. 0. e. ISYO) Merchants' Nat. Bank v. State Nat. Bank, 1 N. B. C. 47; 10 Wall. (U. S.) 604. 16. Such cashier has no power to certify a check until on or after the day on which it is made payable, and a certification before is notice to all that the cashier, in making it, exceeded his authority. (N. Y. 1868) Clarke Nat. Bank v. Bank of Albion, 62 Barb. (K Y.) 592. 17. Receiving propei;ty for safe-keeping, — The cash- ier of a national bank has no power to receive special deposits for the accommodation of customers unless spe- cially authorized so to do. (N. Y. 18T5) First Nat. Bank of Lyons v. Ocean Nat. Bank, 1 N. B. 0. T28; 60 N. Y. 278; (Yt. 1875) Wiley v. First Nat. Bank of Brattleboro, 1 N. B. C. 905; 47 Vt. 546; 19 Am. E. 122. 18. Agreement to pay usury. — The cashier of a na- tional bank has no power to bind the bank by a promise to pay usurious interest. (N. H. 1897) Hanson v. Heard,. 38 Atl. E. 788. 19. Retirement of. — A cashier of a national bank does, not " retire " during the suspension of the bank and its investigation by a national bank examiner, and at least not before the appointment of the receiver. (TJ. S. Sup.. Ct. 1898) American Surety Co. v. Pauly, 170 U. S. 133. II. LlABIUTT OF CasHIEE. 20. Excessive loans. — A cashier is not liable for loss. on a loan exceeding ten per cent, of the capital stock of the bank when such loan is in the shape of a draft drawn against existing values. (N. Y. 1883) Second Nat. Bank of Oswego V. Burt, 93 N. Y. 233. 32 CASHIER, in. III. Liability of BAuk foe Acts of. 21. Misrepresentations.— ^WWe, a cashier of a na- tional bank is not, simply by reason of his position, author- ized to make representations as to the bank, and the bank cannot be held liable for such statements. (U. S. C. C. 1893) Nevada Bank of San Francisco v. Portland Nat. Bank, 59 Y. E. 338. 22. Misconduct. — Where stock in the bank bad been transferred to the cashier of a national bank for the use of and with the knowledge of the bank, and is appro- priated by him to his own use, the bank is liable to the original owner thereof. (E. T. 1 STT) Williamson v. Mason, 12 Hun (K T.), 97. 23. Negligence, clerks. — Where no negligence is shown in the selection of the cashier, it is not negligence to in- trust to such cashier the hiring of the clerks employed in the bank. (Mass. 1868) Smith v. First Nat. Bank of Westfield, 99 Mass. 605. 24. Eatification, acquiescence. — A national bank hav- ing, by its cashier, taken property under a chattel mort- gage, and disposed of the same to pay an indebtedness ■ due, cannot avoid accounting for the surplus on the ground that the act of the cashier was ultra vires. (Kan. 1888) Cooper V. First Nat. Bank, 40 Kan. 5; 18 Pac. E. 937. 25. The action of the cashier of a national bank in ne- gotiating illegal and fraudulent notes given for subscrip- tions to the capital stock of an insurance company is rati- fied by the bank subseqiien tly collecting the interest on such notes. (Mo. 1892) Ellerbee v. Nat. Exchange Bank, 109 Mo. 445; 19 S. W. E. 241. 26. The acceptance of a deed by a cashier of a national bank in the general routine business of the bank binds the bank, though such deed be ultra vires as to such bank. (Mo. 1898) Hall v. Farmers' & Merchants' Nat. Bank, 46 S. W. E. 1000. CASHIER, IV. 33 IV. Miscellaneous. 27. Agency, estoppel. — A statement by a cashier of a national bank to a surety on paper held by the bank, that such paper is paid, on which statement the surety relies and gives up securities, will estop the bank from denying the payment of such paper. (S. H. 1871) Cooheco Nat. Bank v. Haskill et al., 51 If. H. 116. 28. Notice. — The cashier of a national bank being its executive oiBcer, notice to such cashier is notice to the bank. (Tex. 1896) First Nat. Bank v. Ledbetter (Tex. Civ. App.), 34 S. W. E. 1042. 29. Evidence that the cashier of a national bank had no notice of fraud in the transaction, and that the bank had no agent in such transaction but himself, is suffi- cient to establish the 'bona fides of the bank. (Mich. 1898) Drovers' Nat. Bank v. Potvin, 74 N. W. R. 724. 30. Action by bant. — When a bank owns paper which runs to its cashier, it may sue in its own name, alleging either a promise to its agent for it, or that such agent's name was used by adoption for that of the principal. (Ala. 1892) Darby v. Berney Nat. Bank, 11 S. R. 881; 97 Ala. 643. 31. Other profession, misdemeanor. — The statute of a state declaring that it is a misdemeanor for the cashier of a national bank to engage in any other profession, occupation or calling than that of his office does not apply to cashiers of national banks. (Pa. 1888) Allen v. Carter, 119 Pa. St. 192; 13 Atl. R. 70. 32. Misconduct, liability of third party. — Money em- bezzled by the cashier and transferred to a third party cannot be recovered from that party when he has re- turned it to the correspondent of the bank, of which re- turn the bank has knowledge. (U. S. Sup. Ct. 1891) Kissam v. Anderson, 145 TJ. S. 435. 3 34: CERTIFICATE OF DEPOSIT. CEETIFICATE OF DEPOSIT. 1. Power to issue.— A certificate of deposit issued by a national bank is not deemed a promissory note and is not a violation of United States Kevised Statutes, section 5183, forbidding the issuance of notes to circulate as money. (Mass. 1886) Hunt, Appellant, 3 N. B. C. 4T4; 141 Mass. 515; 6 IST. E. E. 554. 2. Post notes. — Certificates of deposit issued in the ordinary course of banking business by a national bank to depositors and payable to order are not post notes within the prohibition of section 5183 of the Kevised Statutes. (U. S. 0. C. 1886) Eiddle v. First Nat. Bank of Butler, 27 F. E. 503. 3. Certificates of deposit representing an actual loan are not post notes within the meaning of United States Eevised Statutes, section 5183. (Ohio, 188Y) Logan Ifat. Bank v. "Williamson, 2 Oin. Ct. Eep. (Ohio), 118. 4. Consideration of. — The stockholders of a national bank are not to be held liable on a certificate of deposit issued without consideration by its cashier to cover his overdraft in another bank. (U. S. C. C. 1893) Murray v. Pauly, 56 F. E. 562. 5. Liability of bank — Officer's fraud. — A national bank is liable on a fraudulent certificate of deposit issued by its teller, since it cannot set up the fraud of its own ofiicers as a defense to repayment. (Pa. 1880) Steckel v. First ]^at. Bank of AUentowa, 3 K B. C. 719; 93 Pa. St. 376. 6. Where a depositor, unable to read, deposited money in a national bank with the cashier and took a certificate therefor, which was found to be the certificate of another banking firm, the bank, receiving the deposit was held liable. (Pa. 1880) Zeigler v. First JSTat. Bank of Allen- town, 39 Am. E. 758; 93 Pa. St. 393. CERTIFICATION OF CHECKS. 35 7. A national bank is liable on a certificate of deposit for money received by the cashier in the rightful dis- charge of his duties, regardless of his subsequent fraudu- lent disposition thereof. (111. 1886) First ISTat. Bank of Monmouth v. Brooks, 3 N. B. C. 387; 22 111. App. 238. • CERTIFICATION OF CHECKS. Cashier's power to certify, see Cashiee, 13-16. . Indictment for wrongful, see Indictment, 37-41. Wrongful certification of, see Criminal Law, 86, 87. 1. Power of bank. — A certified check is a valid instru- ment of banking, and not against the policy of the bank- ing act. (U. S. Sup. Ct. 1870) Merchants' ISTat. Bank v. State ISTat. Bank, 1 1ST. B. C. 47; 10 Wall. (d. S.) 604. 2. The act of congress of March 3, 1869 (U. S. Kev. Stat., sec. 5208), makes it unlawful for national banks to certify checks unless the drawer has at the time an amount of funds on deposit equal to the amount of the check, but does not invalidate a promise to pay when there shall be suf- ficient funds on hand for the purpose. (W. Va. 1874) First mt. Bank v. Merchants' Nat. Bank, 1 N. B. C. 915; 7 "W". Ya. 544. 3. An acceptance conditioned on the future payment of a draft becomes operative on payment of same. Ibid. 4. Oral promise. — An oral promise to pay when drawer of check shall have an amount on deposit equal to amount of check is valid and enforceable. Ibid. 5. The power of a national bank to certify checks may be exercised by the cashier without special authorization. It exists in him by virtue of his office. (U. S. Sup. Ct. 1870) Merchants^ JSTat. Bank v. State ]STat. Bank, 1 K B. 0. 47; 10 Wall. (U. S.) 604. 86 CHARTER. 6. Liability of bank.— Only a Una fide holder can en- force a national bank's liability on a check certified by the cashier when there are no funds in the bank to meet it. (N. Y. 18Y3) Cooke v. The State IsTat. Bank of Boston, .1KB. C. 698; 52 K Y. 96. 7. The certification of checks by a national bank on the faith of a pledge of bonds is unlawful, but the bank is bound by such certification and the government alone can question its validity. (TJ. S. Sup. Ct. 1892) Thomp- son V. St. Nicholas Nat. Bank, 146 U. S. 240. 8. Over-certification, effect of. — The over-certification of a check in violation of the banking act is no bar to the bank enforcing its lien on the collaterals which it holds as security for same. (N. Y. Sup. Ct. 1891) Thompson v. St. Nicholas Nat. Bank, 47 Hun, 621; 113 N.T. 325; S. C, 146 U. S. 240. CHARTER. See Oeganization; State Banks, Conveesion of. Forfeiture of, see Powers, X. 1. How proven. — The charter of a national bank is a private act and must be pleaded and proved as all other private "acts. (Pa. 1879) Gruber Nat. Bank v. Clarion, 2 N. B. 0. 382; 87 Pa. St. 468; 30 Am. K. 378. 2. Forfeiture of charter. — A violation of the national banking act and consequent forfeiture of a bank's charter can be determined only in a suit by the comptroller, and until such determination the bank can continue business. (Pa. 1879) Stephens v. Monongahela Nat. Bank, 2 N. B. 0. 398; 88 Pa. St. 157; 32 Am. E. 438. 3. Under United States Revised Statutes, section 5308, a forfeiture of the rights and privileges of a national bank CHATTEL MORTGAGES — CIRCULATION. 37 must be determined by a proper court of the United States in a suit instituted by the comptroller in his own name, and the association must stand until so dissolved. (Colo, 1872) Union Gold Mining Co. v. E. M. Nat. Bank, 1 Colo. 531. 4. The provisions of the United States Eevised Statutes, section 5239, as to the violation of the national banking act by the directors, applies to violations of such act only as the assumption of powers in excess of the franchise granted or a disregard of the prohibitions of the act. (N. T. 1882) Brinckerhofl v. Bostwick, 3 N. B. C. 591; 88 ]Sr. T. 52. 5. Actions to determine, limitation. — The forfeiture of the charter of a national bank for doing acts prohibited to its directors is subject to the limitation of five years imposed by section 104:7, United States Eevised Statutes. (U. S. C. C. 1890) Welles v. Graves, 41 F. E. 459. 6. An information against a national bank for the for- feiture of its charter must charge that the directors of such bank knowmgly permitted the acts in violation of the. statute. (U. S. C. 0. 1889) Trenholm, Comptroller, V. Commercial Nat. Bank, 38 F. E. 323. CHATTEL MOETGAGES. See Powers, II, o. CIRCULATION. Payment by United States and reimbursement therefor, see Claims, IV, d. Liability on conversion of state bank, see State Bank, Conveesion OP, 7, 8. Taxation of, see Taxation, I, e. 38 CIRCULATION. 1. Validity .— The oiroulating notes of a national bank are valid though they do not bear the imprint of the seal of the treasury. Such seal forms no part of the contract. (U. S. 0. 0. 18Y9) United States v. Bennett, 11 BlatoL (U. S.) 35T. 3. " United States currency." — The circulating notes or bills of national banks, authorized to circulate as legal tender and as a medium of trade, are included in the phrase "United States currency." (La. 1871) State t. Gasting, 23 La. Ann. 609, 3. Legal tender. — National bank bills are not legal tender. (Ind. 1868) Arnsworth v. Scotten, 29 Ind. 495. 4. Money is gold or silver coin, or notes made legal tender by a valid statute. National bank notes are, there- fore, not money in the legal acceptance of the term. (Ind. 1882) Boyd v. Olvey, 82 Ind. 294, 298. 5. Amount. — United States Kevised Statutes, section 51Y2, provides for the printing of national bank notes. No provision is made for a note for less than $1. Such a note is not only unknown to the law, but its issue is un- lawful. (U. S. D. 0. 1883) In re ^IdricB, 16 F. E. 369. 6. State bank notes. — State bank issues of notes are not money under the national banking act, and a national bank is not bound to receive them as money in its own proper business. (Pa. 186T) Thorp v. "Wegefrath, 56 Pa. St. 82; 93 Am. Dec. 789. 7. , power of congress. — Congress has power to restrain the circulation of state bank notes and notes not issued on its authority, in the furtherance of its constitu- tional power to provide and secure a currency for the en- tire country. (U. S. Sup. Ct. 1869> Yeazie Bank v. Penno, 8 Wall. (U. S.) 533; 1 N. B. C. 22. 8. Set-ofF against bonds securing circulation.— The United States has no preference which it can set ofip against CLAIMS. 39 the bonds deposited with it to secure the circulation ex- cept to reimburse it for money advanced in redeeming notes. (U. S. Sup. Ct. 1883) Cook Co. Nat. Bank v. United States, 3 K B. C. 68; lOY TJ. S. 445. 9. The treasurer of the United States has no power over the five per cent, redemption fund in his hands for the redemption of circulation except for that purpose. osits. 34. Beceived after insolvency. — Deposits received by a national bank after insolvency may be re»laimed by the depositor, as such acceptance is a fraud upon him. (U. S. Sup. Ct. 1889) St. Louis & San Francisco Ky. Co. v. John- son, 133 U. S. 566. 35. The holding of a bank open as ready to transact business is an implied representation-of solvency, and the reception of a deposit, when the insolvency is known to the officers, is a fraud on the depositor. (Neb. 1897) Hig- gins V. Hayden, 73 IST. W. E. 280. 36. The depositor must, however, in order to recover, rescind the deposit before it has become commingled with the funds of the bank. Ibid. 37. The plaintiff presented his certificates of deposit at a national bank for payment and was told by the cashier to indorse them, but their payment was forbidden by the president before he had delivered them again to the cash- ier. Held, not entitled to a preference on the insolvency of the bank. (N. Y. 1898) St. Mary's Church v. Nat. Bank, 52 N. T. Supp. 802. 38. A general fraud will not give the person defrauded a lien on a particular fund, and in the case of a creditor of a national bank thus defrauded by the officers he must stand with the other creditors. (U. S. C. C. 1888) Citizens' Nat. Bank v. Dowd, 35 F. E. 340. 46 CLAIMS, V, a. 39. When a depositor unsuspectiBgly deposits funds "with a bank which is insolvent and whose insolyency is known to the officers, and such funds have come into the hands of the receiver, they may be recovered by the de- positor. (TJ. S. C. C. 1895) Lake Erie & Western E. E. Co. V. Indianapolis Nat. Bank, 65 F. E. 690. 40. Checks and drafts fraudulently received by a bank in contemplation of insolvency cannot be recovered ■when they are entered to the general credit of the depositor as cash, there being no means of identifying them and sep- arating them from the general funds of the bank. (Tenn. 1896) Bruner v. First Nat. Bank, 9Y Tenn. 740; 81 S. W. E. 286. 41. The receiving of a deposit by a national bank whose drafts have gone to protest, and which was then insolvent, is a fraud on the depositor and entitles him to reclaim such drafts or their proceeds. (E". T. 1885) Cragie et al. V. Hadley, Eeceiver, 99 N. T. 131; 14 Abb. N. 0. 409; IN. E. E. 537. 42. The receipt of a draft by a national bank when hopelessly insolvent and expecting to close its doors, hav- ing no idea of continuing business, is a fraud on the de- positor, and if such draft or its proceeds can be traced it can be recovered. (N. T. 1891) Importers' & Traders' Nat. Bank v. Peters, 4 N. T. Supp. 599; affirmed, 123 N. T. 272. 43. Such a reclamation does not constitute a preference under section 5242, United States Eevised Statutes, since the creditor does not claim under a transfer from the bank, but under his original title. Ibid. 44. Replevin where deposit remains intact. — Where the officers of a national bank fraudulently receive money on deposit knowing the bank to be insolvent, and the deposit does not become mingled with the funds of the banlf, the depositor can maintain replevin therefor. (U. S. C. 0. 1888) Furber v. Stephens, 35 F. E. 17. CLAIMS, V, b. 47 45. Pursuing in receiver's hands — Actual identifi- cation of the money innocently deposited after insolvency is not necessary, but if it is traced into the bank vaults, and an equal sum is found in the hands of the receiver,, it can be recovered. (U. S. C. C. 1894) Massey v. Fisher, 62 F. E. 958. 46. Where a national bank, through its officers, fraud- ulently concealed its insolvency from a depositor, such concealment is a fraud on the depositor, and entitles him to rescind the transaction and to- recover the proceeds of the checks from the receiver, who held them among other assets of the bank. (U. S. C. C. 1894) Wasson v. Hawkins, 69 F. R. 233. b. ColleoUons. 47. The confusion of the proceeds of notes, deposited for collection, with the general assets does not forbid a lien for such proceeds if they can be traced to the assets. (U. S. 0. 0. 1895) Boone County ISTat. Bank v. Latimer, 67 F. R. 27. 48. Where the collecting bank forwards its own ~Eew York draft to the original owner, who accepts it, the re- lation of debtor and creditor arises, and not that of trustee and cestui que trust. (Wash. 1894) Bowman v. First Nat.^ Bank, 9 Wash. 614; 38 Pac. E. 211. 49. The receipt and collection of a draft by a national bank, known at the time to be insolvent, is fraudulent, but the sender must trace the proceeds of such draft into the funds and the hands of the receiver in order to re- cover the same. (U. S. 0. 0. 1883) Illinois Trust & Sav- ings Bank v. First JSTat. Bank, 15 F. R. 858. 50. A customer depositing a draft in a national bank for collection may, the bank having been insolvent at the time, rescind the transaction for fraud and recover the proceeds of such draft. (JST. Y. 1884) Cragie v. Smith,. 48 CLAIMS, V, U Abb. N. 0. (N. Y.) 409; 3 N. B. 0. 6Y9; affirmed, 99 N. T. 131. 61. The question whether or not the title pagsed to checks deposited in a bank which subsequently becomes insolvent is a question of fact, not of law. Where the inference from the transaction is that the checks were de- posited as cash for immediate credit, the title is held ta pass, and the relation of debtor and creditor arises. (TJ. S. 0. 0. 1892) City of Summerville v. Beal, 49 F. E. T90. 52. But where the insolvency is declared immediately after the reception of the checks, and that condition must have existed at the time, the taking of the deposit is a fraud on the depositor and he may recover the proceeds. Ibid. 53. An allegation that the bank was insolvent through the acts of the officers charges them with sufficient knowl- edge of such insolvency to show fraud. Ibid. 54. To- establish a preferential trust in the funds of a national bank under the Iowa decisions, it is not neces- sary to trace the deposit into a specific property in the hands of the receiver, but simply to show that the estate in his hands had been increased thereby. (TJ. S. 0. C. 1897) Independent Dist. of Bella v. Beard, 83 F. E. 5. Distinguishing Peters v. Bain, 133 U. S. 670; Bank v. Armstrong, 148 U. S. 50. Following Independent Dist. V. King, 80 Iowa, 498; 45 N. W. E. 908; District Township V. Farmers' Bank, 88 Iowa, 194; 55 N. W. E. 342. 55. In order to establish a preferential trust in the funds of an insolvent national bank, it must be shown that the trust fund had been mingled with the other funds of the insolvent so as to increase such funds. (TJ. S. 0. 0. A. 1898) Beard v. Independent Dist. of Bella City, 88 F. E. 375. Overruling same case, 83 F. E. 5. 56. Moneys received on collections and to be remitted CLAIMS, V, c. 49 at once, if held, constitute a trust fund in the hands of the agent and do not hecome a part of the assets. The owner is therefore entitled to payment in full. (N'eb. 1893) Griffin v. Chasp, 36 Neb. 328; 54 N. W. K. 572. 57. A deposit of checks for collection is a bailment al- though such checks were credited to the depositor, and on the subsequent failure of the bank the bailor is entitled to the proceeds. (U. S. C. 0. A. 1892) Beal, Eeceiver, v. City of Summerville, 50 F. K. 647. Affirming City of Summer- >dlle V. Beal, 49 F. E. 790. c. MisceUcmeous. 58. County funds. — A deposit of county funds in an in- solvent national bank is entitled to no preference over other claims on the banks assets in general, it not appear- ing that such funds form any part of such general assets. (U. S. C. C. 1892) San Diego County t. California ISTat. Bank, 52 F. E. 59. Distinguished by Multnomah County V. Oregon Ifat. Bank, 61 F. E. 912. 59. "Where county funds are deposited in a national bank and a- certificate of deposit is given marked " spe- cials," such deposit constitutes a trust fund in the hands of the bank and the county may recover same from the re- ceiver. (U. S. 0. C. 1892) San Diego County v. Califor- nia Nat. Bank, 52 F.vE. 59. See Multnomah County v. Oregon Nat. Bank, 61 F. E. 912. 60. A creditor of an insolvent national bank is entitled to no preference unless he establish that the bank held his funds as trustee and that they either have been kept intact as such trust fund or can be traced into the receiv- er's hands. (U, S. C. C. 1894) Spokane County v. Clark, 61 F. E. 538. 4 50 CLAIMS V, c. 61. Deposits of sayings banks. — The preference pro- hibited by the statute is a transfer of property or money in contemplation of insolvency, and does not include the payment in full of the deposit of a savings bank made with a national bank with the understanding that it will be repaid in full. (]^. Y. 1894) Elmira Savings Bank v. Davis, Y3 Hun, 35T; 142 IST. Y. 590. 62. Laws of 1892, chapter 689, providing for the prefer- ence of the claim of a savings bank, is not in conflict with • the national banking act. Ibid. 63. A statute which directs the preference of debts due savings banks in the settlement of insolvent banks is re- pugnant to the national banking act and inapplicable to national banks. (IT. S. Sup. Ct. 1895) Davis v. Elmira Savings Bank, 161 TJ. S. 2Y5. 64. The question as to whether a savings bank is en- titled to a preference as to its claim against an insolvent national bank is a federal question arising under the laws of the United States. (U. S. C. 0. 1894) Auburn Savings Bank v. Hayes, 61 F. E. 911. 65. Fraud of oflBcers. — A claim arising out of the fraud of national bank officers, which wrecked the bank, is not entitled to any preference over other claims on ac- count of such fraud. (U. S. 0. 0. 1888) Citizens' Nat. Bank v. Dowd, 35 F. E. 340. 66. Fraudulent sale of stock.— Where the proceeds of a fraudulent sale of bank stock are turned over to the bank which is the real owner of the stock, neither the bank nor any creditor can have any interest which will prevent restitution. (U. S. 0. C. A. 1893) Merrill v. Florida Land & Improvement Co., 60 F. E. lY. 67. Fraudulent rediscounts. — The fraudulent state- ments of the president of a national bank as to its solv- ency when rediscounting its paper constitute a fraud on the purchaser and entitle him to recover back the pro- CLAIMS, V, 0. 51 ceeds. (U. S. C. 0. A. 189i) Fisher v. TJnited States Nat. Bank, 64 F. K. 710. 68. Contribution Iby directors to make up capital. — A deposit of money in the name of trustees in a national bank, made by the directors thereof to strengthen the bank and take up objectionable paper in order to prevent the closing of the bank by the comptroller, is not entitled to preference on insolvency over the claims of other cred- itors. (U. S. C. C. 1890) Booth v. "Welles, 42 F. K. 11. 69. Trust funds. — Where a national bank, acting as agent, converts the property of its principal and becomes insolvent, the principal can recover, as a trust fund, such property in so far as it can be traced in the hands of the receiver. (TJ. S. 0. C. 1889) Commercial Nat. Bank v. Armstrong, 39 F. K. 684. 70. Money placed in the hands of a cashier of a na- tional bank to indemnify him as surety on an attachment bond and mingled by him with the bank funds is a trust fund, and, on the insolvency of the bank, remains such in the hands of the receiver and must be paid in full. (Mo. 1888) Flint Eoad Cart Co. v. Stevens, 32 Mo. App. 341. 71. Where funds paid into a national bank for the pur- pose of taking up a note are diverted from this purpose and the note is not paid, such action is a fraud, and the funds become a bailment to be preferred out of the assets of the bank if they can be proven to have become a part of such assets. (U. S. C. C. 1894) Massey v. Fisher, 62 F. E. 958. 73. It is not necessary to identify the particular money in the bank vaults, but only to trace the fund into his hands and show that as large an amount has remained there continually until the receiver took possession. Ibid. 73. Simply a misapplication of property intrusted to a national bank does not entitle the owner to a general lien 52 CLAIMS V.d. on the assets. (U. S. 0. C. A. 1895) Spokane County v. First Nat. Bank, 68 F. K. 9Y9. 74. But where it is shown that the funds so misapplied continuously remained in the hands of the bank, and came into the hands of the receiver, guch a lien can be enforced; (TJ, S. 0. C, A. 1895) City of Spokane v. First Nat. Bank, 68 F. E. 982. 75. Remedy, bailment. — Where a national bank has received funds under circumstances which establish the relation of bailor and bailee, which funds, on the insolv- ency of the bank, pass into the hands of 4he receiver, the remedies provided by the federal law for winding up the affairs of a national bank are not exclusive, but an action will lie against the receiver for the recovery of such funds. (N. Y. 1890) Arnot v. Bingham, 55 Hun, 553; 29 Am, St. Eep. 878; 9 N. T. Supp. 68. d. The United States. 76. The United States is empowered to caU for secu- rity from national banks for public money deposited, and if such security proves insufficient it must stand with the other creditors as to its claims. (U. S. Sup. Ot. 1882) Oook County Nat. Bank v. United States, 3 N. B. G. 68; lOr U. S. 445. 77. The United States statutes, which give priority to the claims of the United States as against bankrupts, have no reference to national banks. Ibid. 78. The balance in the hands of the United States after it has been reimbursed for advances in redeeming notes should be distributed ratably among all the creditors. Ibid. 79. The government has a lien on money under its control belonging to an insolvent national bank in order CLEARING-HOUSE — COLLATERAL SECURITIES. 53 to discharge any lawful debt that may be due to it from such bank, but has no priority as to postal or money-order funds on deposit in such bank. (U. S. D. 0. 18Y9) "United States V. Cook County Nat. Bank, 9 Biss. (U. S.) 65. 80. The United States is a preferred creditor of an in- solvent national bank as to all claims except the expenses of administration. (La. 18Y0) Schmidt v. First Nat. Bank, 1 N. B. C. 505; 22 La. Ann. 314. 81. The government must take ;pro rata with other creditors for a tax due to it from an insolvent national bank. (U. S. 1885) Jackson v. United States, 20 Ot. CI. 298. CIEAKINGHOUSE. - 1. The forming, by national banks, of a clearing-house association, and the settlement of daily balances there- with by clearing-house certificates secured by the deposit with such clearing-house of money and securities, is not a violation of the national banking act, but within the regular business and power of such banks. (Pa. 1895) PhiUer v. Patterson, 32 Atl. E. 26; 168 Pa. St. 468. 3. Where a national bank, on the eve of insolvency, deposits with its clearing-house checks -and drafts of other banks, which are paid by such banks, and the proceeds applied by the clearing-house after the insolvency of the bank to the payment of the indebtedness of the bank to the clearing-house, held, not a preference within the national banking act. (U. S. C. C. A. 1894) Philler v. Yardley, 62 F. E. 645. COLLATERAL SECUEITIES. See Powers, III, c. 54 COMPTROLLEB OF THE CURRENCY. COLLECTIONS. See Claims, IV, b; Set-off. Preference by application of, see Pbeferbnce, 14 Power of bank as to, see Powers, 153. COMMERCIAL PAPER. See Powers. COMPTROLLER OF THE CURRENCY. Assent of, to increase of stock, see Capitai, Stock, 16-31. Power of, to appoint receiver, see Rboeiyer, 1-6. Order of, as to action by receiver, see Reoeitbe, 49, 50. Action against, see Jurisdiction, 14 Direction to enforce shareholders' liability, see Receiver, 53, 79. 1. Appointment, proof of. — The courts take judicial notice of the act of congress providing for the appoint- ment of a comptroller and deputy comptroller of the cur- rency, and defining their powers. (Neb. 1898) Davis Es- tate V. Watkins, 15 B. L. J. 655; 76 JST. W. E. 575. 2. Claims, power as to. — The comptroller of the cur- rency is not authorized to compound or settle claims of an insolvent national bank against its debtors. This can only be done under United States Revised Statutes, sec- tion 5234, by authority of the court in which the same are contested. (U. S. C. 0. 1881) Case, Eeceiver, v. Small et al., 10 F. E. 722. 3. Deputy comptroller. — A certificate of organization signed by the deputy comptroller of the currency as " act- ing comptroller of the currency " is a sufficient certificate within the Eevised Statutes of the United States, section 5154. (U. S. Sup. Ct. 1889) Keyser v. Hitz, 133 U. S. 138. CONFLICT OF LAWS. 55 4. The deputy comptroller of the currency is author- ized 'by the banking act to act for the comptroller in cer- tain contingencies, and it will be presumed, if no other showing is made, that the deputy, in acting for the comp- troller in a certain instance, has acted lawfully. (U. S. C. C. 1891) Young t. Wempe et al., 46 F. E. 354. 5. The certificate of the comptroller of the currency is conclusive as to the regularity of the proceedings of con- version from a state into a national bank. (Dist. Colum- bia 1883) Keyser v. Hitz, 3 IST. B. 0. 340; 2 Mackay, 4T3. CONFLICT OF LAWS. As to preference, see Peefeeence, 33. As to taxation, see Taxation, XL As to usury, see Usury, I, III, o. 1. National banks are responsible only to federal gov- ernment, and are entirely independent of state interfer- ence and state legislation. (Pa. 1887) City of Pittsburgh V. First ISTat. Bank, 55 Pa. St. 45. 3. In an action by the receiver of a national bank, the title to certain mortgages being in question, held, that such title was governed by the state laws under which they were taken. (U. S. C. C. 1887) Witters, Eeceiver, V. Sowles et al., 32 F. E. 758. - 3. The decision of the supreme court of the United States as to its jurisdiction of a judgment of a state court against a national bank should be conclusive as to the state courts. (Wash. 1893) First iNat. Bank of Aberdeen v. An- drews et al., 7 Wash. 261; 34 Pac. E. 913; 38 Am. St. E, 885. 4. The opinion of a state court upon a question of gen- eral commercial law is not a " law " within the meaning of the federal statute (sec. 34, Judiciary Act). That sec- 50 CONSTITUTIONAL LAW. tion is limited to local statutes and local usages and does not extend to contracts aad other instruments of a com- mercial nature. (U. S. Sup. Ct. 1879) Brooklyn City & Newton E. E. Co. v. ISTat. Bank of Eepublic, 2 K B. 0. 90; 22 A. L. J. 189; 102 U. S. 14. CONSTITUTIONAL LAW. Taxation, as to, see Taxation, XL 1. Congress lias power under the constitution to incor- porate a national bank. (U. S. Sup. Ct. 1819) McCulloch V. Maryland, i Wheat. 316; (TJ. S. Sup. Ct. 1824) Osborne V. Bank of United States, 9 Wheat. 738; (Me. 1867) Abott V, City of Bangor, 54 Me. 540. 2. National banks organized under the national bank- ing act are agencies or instruments of the general govern- ment, designed to aid in the administration of an impor- tant branch of the public service, and are appropriate means to that end, constitutionally authorized under a proper exercise of the powers of congress. (Ala. 1880) Pollard V. The State ex rel. Zuber, 65 Ala. 628. 3. Congress has power to give to national banks, and to their contracts and dealings with the world, any spe- cial immunities and privileges exempting them, in the discharge of their business with others, from the laws and- remedies applicable in like cases to other citizens. (Md. 1874) The Chesapeake Bank v. Eirst JSTat. Bank of Baltimore, 40 Md. 269; 17 Am. E. 601. 4. Congress has power under the constitution to pro- vide a general currency for all the states, and can legis- late to secure the benefit of the same. (U. S. Sup. Ct. 1869) Yeazie Bank v. Fenno, 1 JST. B. C. 22; 8 Wall. (U. S.) 583. CONVERSION — CRIMINAL LAW. 57 5. National banks are instruments designed to be used to aid the government in the administration of an im- portant branch of the public service, and the states can exercise no control over them except in so far as congress may see proper to permit. (U. S. Sup. Ct. 18Y5) Farm- ers' & Mechanics' Bank v. Bearing, 1 IST. B. 0. IIY; 91 TJ. S. 29. 6. Congress has power to establish national banks in a state without the consent of the state legislature. (Me.- 1868) Stetson v. City of Bangor, 56 Me. 274. CONYERSION. See State Banks, Conveesion os". CRIMINAL LAW. 1 Offenses Punishable Undee United States Statutes.^ a. Misapplication of Funds. b. Embezzlement and Abstraction. 0. Aiding and' Abetting. d. Miscellaneous Offenses. 11 Offenses Punishable Undek State Statutes. See False Enteies; Indictments. Misapplication by cashier, effect on sureties on bond, see Bonds OF Ofeicees, 3, 6. Embezzlement by cashier of money obtained on certificate of deposit,- see Certificate of Deposit, 5, 6, 7. Cashier engaging in other profession, misdemeanor, see Cashier, 31.. Perjury by director, see Director, 6, 7. False entries by, see False Entries, 26. As to agent of shareholder, see that title. Action on bond for, see Bonds of Officers, 9. 58 CRIMINAL LAW, I, a. I. Offenses Punishable TJndek United States Statutes. a. MiawppliGotion of Funds. See Indictment. 1. Essentials of offense, intent, conversion.— To con- stitute criminal misapplication, of the moneys, funds or credits of a national bank there must be a wrongful ap- propriation or conversion by the oflB.cer charged, to his ■own use or to the use of some one other than the associa- tion, Avith intent to injure or defraud the association or some other person or company. (TJ. S. 0. 0. 188T) United States V. Harper, 33 F. K. 471. 2. The " intent " within the meaning of United States Hevised Statutes, section 5209, does not necessarily involve malice or ill-will against the bank. It is sufficient that the intent be such that if it is carried into execution it will necessarily or naturally injure or defraud the bank. (U. S. ■0. 0. 1898) United States v. Kenny, 90 F. E. 257. 3. An intent to wilfully misapply the funds of a na- tional bank cannot be inferred simply from the payment of a check drawn on the bank when there are no funds to meet it. (U. S. 0. 0. A. 1897) Dow v. United States, S2 F. E. 904; 27 C. 0. A. 140. 4. The word "moneys," in United States Eevised Statutes, section 5209, includes all money and national currency notes. (U. S. C. C. 1879) United States v. John- son, 26 Fed. Cas. 621; 4 Gin. Law Bui. 361. 5 . To constitute the misapplication of the f imds of a national bank there must be a conversion to the use of some person other than the bank, with intent to injure and defraud it, and the taking of notes which are merely renewals of other notes held by the bank, is not misap- plication within the meaning of the statute. (U. S. 0. 0. A. 1898) Mohrenstecker v. Westervelt, 87 F. E. 157. CRIMINAL LAW, I, a. 59 6. The crime of misapplication of the funds of a na- tional bank may be committed by the personal act of the officer or by his direction. He is guilty as a principal offender if he procures or causes such act to be done, hav- ing by virtue of his official position the power to so direct and procure such action. (U. S. C. C. 1885) United States V. Fish, 24 F. E. 585. 7. It is not necessary to constitute the crime of mis- application of the f )mds of a national bank that the male- factor receive any of the funds so misapplied. It is sufficient if it be done vsrith intent to injure or defraud the association. (U. S. 0. 0. 1882) United States v. Lee, 12 F. R. 816. 8. Use and benefit. — The wilful misapplication indict- able under section 5209, United States Eevised Statutes, must be for the use and benefit of the person charged, or of some other person other than the association, with in- tent to injure and defraud the association or some other body corporate or natural person. (U. S. Sup. Ct. .1883) United States v. Britton, 3 K B. C. 76; lOT U. S. 655. 9. Conspiracy, declaration of dividend. — ^A declara- tion of an illegal dividend is not a criminal misapplication of funds, but only an act of maladministration on the part of the officers making it, and may cause the forfeiture of the bank charter. (U. S. Sup. Ct. 1883) United States v. Britton, 3 K B. C. 104; 108 U. S. 199., 10. It is a conspiracy under section 5440, United States Revised Statutes, for the officers of a national bank to procure a dividend to be declared out of the net profits when there were no net profits to pay it. Ibid. 11. Overdraft, intent. — An overdraft made by the president of a national bank by appropriating to his own use moneys of the bank with intent to defraud the bank is an embezzlement within the national banking act. 60 CRIMINAL LAW, I, b. (U. S. D. C. 1868) In re Van Campan, 2 Ben. (U. S.) 419; 1 K B. C. 185. 12. Fraudulent discount. — "Where an insolvent officer of a national bank offers his note, indorsed by another insolvent, to the directors, and they discount it, he is not liable for wilful misapplication if he uses the proceeds. (U. S. Sup. Ct. 1883) United States v. Britton, 3 IST. B. 0. 99; 108 U. S. 193. 13. Deposit, assignment of. — The fact that an officer of a national bank permitted a debtor of the bank to withdraw his deposit while so indebted will not make him liable for misapplication of funds, but amounts only to an act of maladministration. Ibid, 14. , evidence. — Under an indictment for a wil- ful misapplication of the funds of a national bank, a showing that the accused made and deposited to his credit fictitious checks is not sufficient without a showing that such credit was drawn upon and thereby some of the Ijank's funds converted. (U. S. 0. 0. A. 189Y) Dow V. United States, 82 F. E. 904; 27 C. 0. A. 140. 15. On a trial for the wilful misapplication of the funds of a national bank it is error to charge the jury that under the state statute a certain act was a misdemeanor, when such act does not constitute that offense under the United States statute. Ibid. b. ETmhezzletnent cmd Abstract/ion. 16. Definition of embezzle. — The word " embezzle " appears to mean a crime which a person has the oppor- tunity to commit by reason of some office or employment, and includes in its signification some breach of confidence or trust. (U. S. C. C. 1879) United States v. Conant, 2 N. B. 0. 148; 9 Cent. L. J. 129; 25 Fed. Gas. 591. 17. "Embezzle," as used in Ke vised Statutes of United CEIMINAL LAW, I, b. 61 States, section 6209, signifies the " wrongful appropria- tion of the property of another by the party intrusted there- with, or who has the possession of, it under some trust duty or office." (La. 1898) State v. MchoUs, 23 S. E. 980 ; 50 La. Ann. . 18. Offenses distinguished. — Embezzlement, abstrac- tion, and wilful misapplication of the moneys and funds of a national bank are distinct and separate offenses, since the evidence to establish each essentially differs from that required for the other. They may be embraced in one indictment when set up in separate counts. (U. S. D. C. 1893) United States v. Oadwallader, 59 F. E. 611. 19. It is not necessary, to constitute the crime of wil- ful misapplication, that the officer charged should be in actual possession of the funds by virtue of a trust. But as to the crime of embezzlement, it must appear that the money and funds were embezzled at a time when they were in the possession of the officer in his official char- acter. (TJ. S. Sup. Ct. 1887) United States v. Northway, 3 KB. C. 199; 120 U. S. 32Y. 20. Knowledge, intent. — To constitute the offense of abstraction it is necessary that the funds should be ab- stracted from the bank without its knowledge and con- sent, with intent to injure and defraud it or some other company or person. Ibid. 21 . The words in United States Eevised Statutes (sec. 6209), " with intent to injure or defraud," apply to the crimes of embezzlement, abstraction, and wilful misappli- cation of the funds of the national bank as well as to the crime of aiding or abetting the same offense. (U. S. 0. 0. 1881) United States v. Yoorhees, 9 ¥. R. 143. 22. Bad faith, fraud. — The misappropriation of the funds of a national bank by an officer of such bank with- out fraud, in the exercise of his official discretion and for 62 CRIMINAL LAW, I, c. the supposed advantage of the bank, is not punishable, But if such action be taken with a fraudulent intent in bad faith it is punishable. (U. S. 0. C. 1885) United States V. Fish, 24 F. K. 585. 23. Consent of president as defense. — It is no defense to a charge of embezzlement, abstraction, or misapplica- tion of the funds of a national bank that such acts were committed with the knowledge and consent of the presi- dent and some of the directors. The intent to defraud is to be conclusively presumed from the doing of the acts which constitute the offense. (U. S. D. 0. 1873) United States V. Taintor, 11 Blatch. (U. S.) 3U. 24. Fanishment. — The crime of embezzlement and making false entries by an officer of a national bank is an infamous offense, punishable by imprisonment in a state prison, and for which the accused can be held only on indictment or presentment by the grand jury. (U. S. Sup. Ct. 1888) United States v. De Walt, 128 U. S. 393. 25. Jurisdiction of courts. — The offense of embezzle- ment from a national bank does not come within the jurisdiction of the state courts, but is cognizable by the federal courts alone. (Mich. 1886) People v. Fonda, 3 K B. C. 501; 62 Mich. 401; (Mass. 1869) Commonwealth v. Felton, 101 Mass. 204; (Pa. 1879) Commonwealth v. Ket- ner, 92 Pa. St. 372; (111. 1887) Hoke v. People, 122 111. 511. 26. The United States circuit court has exclusive juris- diction of the offense of embezzlement of the funds of a national bank. (U. S. C. C. 1889) United States v. Buskey, 38 F. K. 99. c. Aiding and Abetting. See Indictment. 27. Who may be guilty. — A person to be an aider and abettor need not have any official relation with the bank CEIMINAL LAW, I, d. 63- if only he actively assists an officer of such bank to un- lawfully take from such bank its funds, and to knowingly and wilfully misapply such funds to the use of any person other than the bank. (U. S. Sup. Ct. 1895) Coffin v. United States, 162 U. S. 664. Coffin v. United States, 156 U. S. 432, followed. 28. A common purpose is not necessary. There is only necessary a misapplication of the mone^J's wi^h the joint intent to injure and defraud the bank. Ibid. 29. A third party having no relation to or interest in the bank may aid and abet the president in misapplying its funds. It is not necessary that he have the same pur- pose as the president, if his intent comes within the stat- ute. Ibid. State v. Teahan, 50 Conn. 92. distinguished. 30. ISTo matter how actively a third person co-operates with an officer of a national bank, he can only be indicted as an aider and abettor under the statute. Ibid. 31. The question of the intent of an aider and abettor should be gathered from all the evidence, and the ques- tion of one particular purpose is immaterial. Ibid. 32. Conviction of principal.— The offense of aiding and abetting an officer, clerk or agent of a national bank is an independent offense for which the accused may be tried separate from his principal. (U. S. C. C. A. 1898> Gallot V. United States, 87 F. E. 446. d. MisceUcmeous Offenses. 33. Purchase of stock with intent to defraud.— Pur- chase of stock in violation of section 5201, United States Eevised Statutes, made with intent to defraud, by an offi- cer named in section 5209, is not punishable under the lat- ter section unless it appears that such purchase amounts to a conversion, to the use of the person named or of som& •64 CRIMINAL LAW, IL one else, of the moneys and funds of the bank by the party charged. (U. S. Sup. Ot. 1883) United States v. Britton, 3 K B. 0. Y6; lOYTJ. S. 6§5. 34. Perjury. — A false oath by a national bank oflScer taken before an officer not authorized to administer such oath is not ground for an indictment for perjury under United States Eevised Statutes, section 5392. (U. 8. Sup. Ct. 1883) United States v. Curtis, 3 N. B. C. 91; 107 U. S. 6Y1. 35. Forgery. — The false making of a promissory note payable at or to a national bank is not a crime punish- able under the national banking act and exclusively cog- nizable by the United States courts. (U. S. Sup. Ct. 1889) Cross V. North Carolina, 132 U. S. 132. 36. Wrongful certification of checks. — The United States statutes as to the wrongful certification of checks by an officer of a national bank impose on such officer the duty of knowledge of the state of the account against which such check was drawn, and that duty cannot be abrogated by the by-laws of the bank or a division of duties among its officers. (U. S. C. C. 1898) Spurr v. United States, 87 F. K. 701. 37. It is not necessary, in an action against the presi- dent of a national bank for illegally certifying checks, to show actual knowledge of the state of the account; it is enough to show facts that would put him on inquiry and that he wilfully refrained from investigating same. Ibid. II. Offenses Puotshable Undee State Laws. 38. Power of state. — The business of a national bank being conducted within the state, under its jurisdiction and with its citizens, the state legislature can pass any law affecting that business, or may protect the bank and CRIMINAL LAW, II. 65 its customers by penal enactments. (Conn. 1867) State V. TuUer, 34 Conn. 280. 39. Larceny. — An officer of a national bank can be indicted under the provisions of the state statutes for lar- ceny of the bank funds, as distinguished from embezzle- ment. (Mass. 1874) Commonwealth v. Barry, 116 Mass. 1. 40. Embezzlement. — The embezzlement of the prop- erty of individuals deposited with the bank may be pun- ished under state laws. (Mass. 1867) Commonwealth v. Tenney, 97 Mass. 50; (Conn. 1867) State v. TuUer, 34 Conn. 280. 41. The crime of embezzlement of the funds of a na- tional bank by an officer of such bank is not punishable under state laws. (Pa. 1879) Commonwealth v. Ketner, 92 Pa. St. 372. 42. A state court has no jurisdiction of the offense of embezzlement from a national bank. (Mich. 1886) Peo- ple V. Fonda, 3 JST. B. C. 501 ; 62 Mich. 401. Coni^a, Hoke V. People, 122 111. 511. 43. A person cannot be convicted as an accessory to a felony under General Statutes of Massachusetts, chapter 168, paragraph 4, when he procured the embezzlement of a national bank cashier, since such embezzlement is made only a misdemeanor by the national banking act. (Mass. 1869) Commonwealth, v. Felton, 101 Mass. 204. 44. Deposits fraudulently received. — Acts Eighteenth General Assembly, chapter 153, sections 1 and 2, which provide for the punishment of any officer of a bank for receiving deposits Avhen such bank is insolvent, applies to officers of both national and state banks. (Iowa, 1895) State V. Fields, 62 K W. R. 653; 98 Iowa, 748. 45. Such act is an aid to the government in maintain- ing the credit of national banks and is not" an interfer- ence with their control by the federal government. Ibid. 5 66 DEPOSITS. 46. Laws 1891, chapter 43, paragraph 16, as to the re- ceiving of deposits by officers of insolvent banks, has no application to national banks or their officers. (Kan. 1895) State V. Menke, 56 Kan. 77; 42 Pac. E. 350. 47. , jurisdiction of courts. — A state court has jurisdiction of the offense of a national bank in receiving deposits when in contemplation of insolvency. (Miss. 1895) State v. Bard well, 72 Miss. 535; 18 S. R 377. 48. Conflict of laws. — Section 4866, United States Statutes, 1888, providing as to the jurisdiction of actions, refers only to civil actions, and does not interfere with the enforcement of the state police law by the state courts. (S. D..1892) State v. First Nat. Bank, 2 S. D. 568; 61 N. W. E. 587. 49. The state can pass no law, police or other, that would hinder or obstruct the bank in the prosecution of the business which under the act of congress it was au- thorized to do. Ibid. 50. The police law of the state yields to the act of con- gress only when displaced by it. Ibid. DEPOSITS. See Officees; CEiMisrAii Law. Deposits, fraudulent receipt of, see Criminal Law, 34 Deposits, fraudulent receipt of, indictment for, see Indictment, 39. Deposits, fraudulent receipt of, liability of directors for, see Dieect- OES, 44, 45, 46. Deposit, interest on as claim, see Claims, I, a. Deposit received after insolvency, preferred, see Claims, IV, a. Eeceived at place of business, see Place of Business, 5, 6. Preference as to, see Peefeeenoe. Set-off against, see Set-off. 1. In general. — ISTational banks have the power to re- ceive deposits (U. S. Rev. Stat., sec. 6136), and that power DEPOSITS. 67 draws with it the power of contracting with the parties to whom the deposit shall be repaid. (S. D. 1891) Sykes V. Canton Nat. Bank, 2 S. D. 242; 49 JST. W. R 1056. 2. A national bank has power to receive a deppsit and to assent to any terms as to the disposal of the money which the depositor may impose. (N. Y. 1876) Bushnell V. Chatauqua County Nat. Bank, 1 N. B. C. 794; 10 Hun (K Y.), 318; afSrmed, 74 K Y. 290. 3. The placing of funds in a national bank at a certain rate of interest and subject to check, in consideration of which the bank executes a bond of indemnity, is a deposit and not a loan, and is within the powers of a national bank. (U. S. C. C. 1898) State of Nebraska v. First Nat. Bank, 88 F. R. 947. 4. It is within the power of a national bank to receive a deposit of city moneys, and agree to pay interest on such deposit and give bond for its security. (Kan. 1892) Interstate Nat. Bank v. Ferguson, 48 Kan. 732; 30 Pac. E. 237. 5. Public money. — The United States is not liable for public money deposited in a national bank which has been designated as a public depositary. (U. S. Ct. CI. 1877) Branch v. United States, 1 N. B. C.'363; 12 Ct. CI. 286. 6. A national bank is not constituted an agent of the government when designated as a public depositary. Ibid. 7. A national bank, accepting for deposit public moneys with full knowledge of their fiduciary character, and of the confidence reposed by the government, becomes a bailee of such funds, bound to devote them to the purpose for which they were deposited, and liable to have such trust enforced in equity. (U. S. C. C. 1896) United States V. Nat. Bank of Ashville, 73 F. R. 379. 8. The bank receiving such moneys with knowledge of such trust relation oannot mingle them with the other funds in the bank and receive interest thereon. Ibid. 68 DIRECTOES, L 9. When due. — A deposit in aa insolvent national bank becomes due when tbe bank is closed by order of the ex- aminer and the comptroller of the currency. (U. S. Sup. Ot. 1892) Scott V. Armstrong, 146 TJ. S. 499. DIBECTORS. L In Genebal. II Liability ov Directobs. a. Acts of Other Officers. b. Excessive Loans. c. Insolvency of Bank. Ill Actions to Enfoece Liabujtt. See Bonds of Officees; Cashiee; Officers. Misapplication of funds by, see Ceiminal Law, 1-15. Eligibility of shareholders after expiration of existence, see E'XTTBrA- TION OF COEPOEATE EXISTENCE, 1. Cashier agent of, see Casheee, 1-5. Acts by, forfeiting charter, see Chaetee, 4r-6. Deception by false entries, see False Enteies, 18. Liability for false entries, see False Entbies, 26. Jurisdiction of action against, see Jtjeisdiotion of Couet, 33. Knowledge of ownership of stock, see Liabilitt of Shaeeholders, 8. Tenure of oflSce under, see Officees, 1. Batiflcation of president's act, see Peesident, 29, 30. Action against, by receiver, see Receivee, 51-53. On conversion from state bank, see State Bane, Conveesion of, 14, 15. Action against, by shareholders, see Shaeeholders, 25-37. I. In General. 1. Powers. — The election of a person as director of a national bank does not constitute him an agent of the corporation with authority to act independently of his feUow members. The board of directors duly convened and acting as such board is the representative of the asso- DIRECTORS, I 69 ciation. The determination of the board thus acting to- gether is the only determination binding the association. (Kan. 1886) ISTat. Bank v. Drake, 35 Kan. 564; 57 Am. E. 193; 11 Pac. E. 445. 2. It is beyond the power of the cashier or the director of a national bank to bind the bank by any kind of an accommodation contract. (Minn. 1898) Ft. Dearborn JSTat. Bank v. Seymour, Y3 IST. "W". E. T24. 3. Directors, and not the stockholders of a national bank, under the act of congress, may remove the presi- dent, though the association has no by-laws giving them such power. (JST. T. 1864) Taylor v. Hutton, 1 JST. B. 0. 755;43Barb. (]Sr. T.)195. 4. Duties. — It is the duty of the directors of a national bank to maintain supervision of the aflEairs of the bank, to have general knowledge of the character of and the man- ner of conducting such affairs, and to give direction to the important business of the bank. (U. S. C. 0. 1897) Gib- bons V. Anderson, 80 F. E. 345. 5. Ownership of stock. — One acting as director and cashier of a national bank must own at least ten shares of stock therein. (U. S. Sup. Ct. 1891) Finn v. Brown, 142 U. S. 56. 6. , oath, perjury. — A director of a national bank commits perjury by making a a wilfully false oath that he is the lona fide owner of a certain number of shares of stock, and that such shares are not hypothecated as security. (U. S. 0. C. 1883) United States v. ISTeale, 14 F. E. 767. 7. When the oath is taken and subscribed by the ac- cused it is complete so far as the accused can make it, and an error of the notary in certifying to it will not affect it. Ibid. 8. Oath. — A notary public may administer the oath required by the national banking act to be taken by 10 DIRECTORS, L the director of a national bank as to Ms ownership of sufficient stock therein! Ibid. 9. The directors of a savings bank converted into a national bank hold ad interim by virtue of their original election until others are elected. Therefore no new oath is required. (R. 1. 1869) Lockwood v. The American ISTat. Bank, 1 IST. B. 0. 895; 9 E. I. 308; 11 Am. R. 253. 10. Meeting, quorum. — A majority of all the direct- ors is necessary to a legal meeting for the passage of a valid by-la"w. Ibid. 11. "Where the directors of a national bank vs^ere by a long custom wont to hold meetings whenever a quorum was present without special notice, to each director, and each director was acquainted with such custom, such meetings would be binding on the entire board and cor- poration. (U. S. C. 0. A. 1897) American Exchange 'Sat. Bank v. First Nat. Bank, 82 F. E. 961; 48 U. S. A. 633. 12. Kemoval, quo warranto. — An information in the nature of a quo wa/rrcmto will not lie in a state court to try the right to office of a director of a national bank. (Conn. 1868) State v. Curtis, 35 Conn. 374 ' 13. Resignation from board. — A director of a na- tional bank is not obliged to take his office, and may ten- der his resignation orally. (U. S. C. 0. 1877) Movius v. Lee, 30 F. R. 298. 14. A president of a national bank is the head of the board of directors and can alone fill the vacancy, and a resignation to him would be a resignation to the board. Ibid. 1 5. The national banking act does not absolutely re- quire a director to serve his whole term, but he may re- sign during the year. Ibid. 16. Liability ofbanlt for acts of. — A national bank is not bound by the individual and separate action of the directors. Their united action as a board is nebessary. DIRECTORS, II, a. Yl (Kan. 1886) First Nat. Bank of Fort Scott v. Drake, 35 Kan. 564; 5Y Am. E. 193. 17. The responsibility of a national bank for acts of its directors is limited to such contracts, debts and en- gagements as may lawfully be made and incurred in the exercise of corporate powers given by the national bank- ing act. (K Y. 1875) First E"at. Bank of Lyons v. Ocean ISTat. Bank, 1 ]Sr. B. C. T28; 60 IST. T. 278. 18. Knowledge of directors. — A national bank is not chargeable with the knowledge of the directors as indi- viduals, but proof of such knowledge should go to the jury when tending to prove the knowledge of the bank. (Wis. 1896) Continental Nat. Bank v. McGeoch, 92 Wis. 286; 66 K W. E. 606. 19. A national bank cannot be charged with the knowl- edge possessed by a director as to the illegality of the consideration of a note of such director discounted by the bank. (U. S. D. C. 1882) Third Nat. Bank v. Harrison, 3 McCrary (F. S.), 316; 8 F. E. 721. 20. Estoppel, usury. — A director of a national bank is not estopped, by reason of his office, from defending an action on a loan from the bank because of usury taken by such bank thereon. (Ohio, 1877) Bank of Cadiz v. Slemmons, 3 E". B. C. 361; 34 Ohio St. 142; 32 Am. E. 364. 21. Disqualification of as judge. — A judge who is a di- rector in a national bank is disqualified from sitting in a case in which the bank is a party. (Tex. 1894") Williams V. City Nat. Bank, 27 S. W. E. 147. II. Liability of Dieeotoes. a. Acts of Other Officers and Agents. 22. Act of agent. — Directors of national banks are not insurers of the fidelity of agents whom they have appointed, who axe not their agents, but the agents of the ^2 DIRECTOES, 11, a. corporation, and are not responsible for losses caused by the neglect of su6h agents, or of other directors, unless the loss is in consequence of their own neglect of duty. (U. S. C. C. 1890) Briggs v. Spaulding, 141 TJ. 8. 132. 23. Mismanagement of oJBficers. — The degree of care to -which directors of a national bank should be bound is that which ordinarily prudent and diligent men would exercise under the like circumstances, and the question of their negligence is ultimately a question of fact to be determined under all the circumstances in the case. This constitutes the measure of their duty and obligation as to the acts of the cashier and managing officer of the as- sociation. (IT. S; 0. 0. A. 1894) Eobinson v. Hall, 63 F. K. 222. Briggs v. Spaulding, 141 U. S. 132, distinguished; 59 F. E. 648, reversed. , 24. Directors of a national bank are not guilty of neg- ligence and liable for losses to the bank's creditors when , they leave the management of the bank to the cashier, whose statements rendered to them show the bank to be solvent, and when there are no circumstances to arouse their suspicion and demand their inquiry. (U. S. 0. C. 189Y) Warner v. Penoyer, 82 F. E. 181. 25. The directors of a national bank are not to be held liable for the negligent acts of their cashier or other offi- cers intrusted with the management of the bank, if they cannot be charged with knowledge of such acts and do not connive in them. (TJ. S. C. G. 1888) Clews v. Bardon, 36 F. E. 617. 26. Semble, the liability of national bank directors under the national banking act is only the common-law liability of a bank director. Ibid. 27. The directors of national banks are charged with the supervision and management of its officers, and are bound to use as much diligence and care as the proper DIRECTORS, n, b. 'j'g performance of those duties requires. (U. S. 0'. 0. 1887) Movius V. Lee, 30 F. E. 298. 28. But directors are only agents of the corporation, and as such are not liable for every act done by one of their body. They do not undertake for each other. Ibid. 29. Directors of national banks are not discharged of their individual liability for losses caused by mismanage- ment, by simply choosing officers of good reputation for ability and integrity, and leaving the affairs of the bank to their supervision. (U. S. C. C. 1897) Gibbons v. Ander- son, 80 F. K. 345. 30. Eonds of officers. — Directors are empowered, but not required, to take bonds of their officers, and failure to do so is not necessarily negligence, making them indi- vidually liable for losses that may occur. (U. S. C. C. A. 1894) Robinson v. Hall, 59 F. E. 648. See S. C, 63 F. E. 222. 31. Fraud. — Eelief will not ordinarily be granted against national bank directors except in cases of active or passive fraud or extreme negligence. (U. S. C. 0. 1894) Eobinson v. Hall, 59 F. E. 648; reversed by same case, 63 F. E. 222. b. Excessvoe Looms. See Loans. 32. Loans made by directors of a national bank in ex- cess of ten per cent, of the capital stock of the bank do- not give rise to any criminal liability, though loss actually occur, if their acts are not in bad faith with intent to de- fraud the bank. (U. S. C. C. 1887) United States v. Har- per, 33 F. E. 471. 33. Loans made by officers of a national bank which result in loss to the association do not alone make them personally responsible when they acted in good faith. (IJ. S. C. 0. 1887) Witters \. Sowles, 31 F. E. 1. 1i DIRECTORS, II, b. 34. Directors of a national bank who knowingly make or permit a loan exceeding ten per cent, of the capital stock are liable individually thereon. The debtor, if a directbr, is only liable in his capacity as a debtor and not as a director. Ibid. 35. National bank directors are not liable for the acts of their associates in which they had no part, of which they had no knowledge, and in which they did not con- nive. Ibid. 36. A director's liability for damages from excessive loans made by him is not affected by the forfeiture or non- forfeiture of the charter in an action by the comptroller. (U. S. C. 0. 1890) Stephens v. Overstolz, 43 F. E. 771. 37.' Washington constitution. — Under the constitu- tion of the state of "Washington, officers of a national bank are responsible individually for deposits received when the bank is insolvent. Such responsibility being fixed, the general laws of the state will enforce the penalty. (TJ. S.'C. C. 1896) Mallon v. Hyde, 76 F. E. 388. 38. Such right of action inures only to the particular depositor and not to the state nor the bank nor to the general creditors. Ibid. 39. Directors of a national bank can be held responsible for losses occasioned by the violation of United States Eevised Statutes, sections 5200 and 5239, without the previous forfeiture of the bank's charter. (U. S. C. C. A. 1898) Cockrill v. Cooper, 86 F. E. 7. Distinguishing Ken- nedy V. Gibson, 1 K". B. C. 17; 8 Wall. (U. S.) 498, and Conway v. Halsey, 44 N. J. L. 462 ; 3 JST. B. 0. 571. Cases cited in support of the above proposition. Stephens v. Overstolz, 43 F. E. 771; Bank v. Wade, 84 F. E. 10; 3 Thomp. Corp., pars. 4113, 4303. Contra, Welles v. Graves, 41 F. E. 459, 468; Hayden v. Thompson, 67 F. E. 273, 277; Gerner v. Thompson, 74 F. E. 125, 131. DIRECTORS, II, o. 75 c. On Insol/venoy. 40. Duty, termination of. — The possession of a na- tional bank by a bank examiner does not mean that the duties of the directors cease, but they are even more es- pecially, charged with care and attention. (U. S. C. 0. A. 189i) Eobinson v. Hall, 63 F. R. 222. 41. It is a fraud on the parfbf directors to check out the full amount of their deposits with full knowledge that the btok is insolvent. Ibid. 42. Ignorance as a defense, — A director who is also vice-president and acts as cashier of a national bank, ap- pearing on its books as a shareholder, cannot shield him- self from liability on his stock by claiming that he is not a shareholder, and that he did not know he held the shares of stock appearing in his name on the books. (U. 8. Sup. Ct. 1891) Finn v. Brown, 142 TJ. S. 56. 43. Deposits after insolvency. — Where directors of a national bank during suspension issue a circular saying that deposits received would be kept in the vault subject to the depositor's order, and a deposit is made relying thereon, which is not so kept, but turned over to the re- ceiver, such directors are liable therefor. (Tenn. 1895) Miller v. Howard, 95 Tenn. 407. 44. Concealment of embarrassment. — Concealment of the bank's embarrassment from the creditors does not amount to a fraud, unless such embarrassment amount to insolvency. (U. S. C, C. A. 1894) Robinson v. HaU, 59 F. R. 648. See S. C, 63 F. E. 222. 45. A notice signed by the directors, representing the bank to be solvent and addressed to the public, is for the creditors, and is not to be relied on by one loaning the bank money. In order to charge the bank to the ben- efit of such a person, the notice and representation must 76 DIRECTORS, IIL be made to him. (U. S. C. C. 1891) First Nat. Bank of Piattsburg v. Soules, 46 F. E. 731. 46. Withdrawal of deposit Iby. — The transfer of stock to an irresponsible person and withdrawal of a deposit by a director of a national bank, who had full knoAvledge of the condition of the bank, held fraudulent when made just previous to insolvency, though he testified that he had no intention of avoiding his liability. (U. S. C. C. A. 1895) Stuart v. Hayden, 72 F. E. 402; 18 C. C. A. 618. 47. Payment of debts, preference. — Payment of a debt to a director of a national bank is not a preference contemplated by Eevised Statutes, section 5242, it ap- pearing that he acted in good faith and was ignorant of the insolvency of the bank. (N. T. 1893) Hayes v. Beards- ley, 136 K T. 299; 32 K E. E. 855. JII. Actions to Enfoeob Liabilitt. 48. In general. — The liability of directors of national banks for declaring wrongful dividends and for making loans in excess of ten per cent, of the capital stock can- not be enforced in an action at law. (IJ. S. 0. C. 1890) Welles V. Graves, 41 F. E. 459. 49. The liability of national bank directors under the national banking act, in an action for damages for fraud- ulent representations, does not preclude a common-law action of deceit for the same representations. (U. S. C. C. 1895) Prescott v. Haughey, 65 F. E. 653. 50. Jurisdiction. — An action against a director of an insolvent national bank by the receiver is brought at law or equity, according as the remedy in either is conven- ient and adequate, and is not to be governed by any other considerations. (TJ. S. 0. 0. 1890) Stephens v. Overstolz, 43 F. E. 771. DIRECTORS, IIL If; 51. By creditors. — The proceedings against directors of national banks under United States Eevised Statutes (sees. 5234 and 5239) are exclusive, and creditors cannot bring an action against them. (U. S. C. C. 1890) 'Nat. Exchange Bank v. Peters, 44 F. E. 13 ; (N. J. 1884) Acker- man V. Halsey, 37 N. J. E. 356; 38 IST. J. E. 501. 52. By the bank. — A suit against the directors of a national bank for mismanagement under United States Eevised Statutes (sec. 5239) may be brought by the bank, and an action by the comptroller to dissolve such bank is not a necessary precedent. (U. S. 0. C. 1897) Nat. Bank of Commerce v. Wade, 84 F. E. 10. 53. An action against the directors of a national bank under United States Eevised Statutes (sec. 5239) is one arising under the laws of the United States, and the fed- eral courts have jurisdiction. Ibid. 54. Such an action may be brought in equity where the transactions are complicated. Ibid. 55. The statute of limitations as to such an action by a national bank against its directors does not begin to run so long as such directors are in control of the bank. Ibid. 56. By receiver. — An action against directors for losses and misapplication of funds may be brought by the re- ceiver. (]Sr. T. 1882) Brinckerhoff v. Bostwick, 3 IST. B. C. 591; 88K T. 52. 57. The stockholders may bring such an action in their own names where the receiver is one of the directors who are charged with the wrong. (N. J. 1884) Ackerman v. Halsey, 37 K J. E. 356; 38 JST. J. E. 601. 58. The state courts have jurisdiction of such an action, since it stands on the same footing as an action by the receiver. Ibid. 59. A receiver of a national bank has power to enforce an action inuring to the benefit of the bank against the directors, and such action may be brought in the name of 78 DTRECTORS, IIL such receiver or in the name of the bank. (U. S. C. C. 1887) Movius v. Lee, 30 F. E. 298. 60. United States Eevised Statutes, section 5239, in providing a remedy for enforcing the individual liability of directors, is exclusive, and such liability can be en- , forced only by the receiver as directed by the comptroller. (U. S. C. C. 1895) Hayden v. Thompson, 67 F. E. 273. See S. C, 71 F. E. 60. 61. The receiver may bring an action at law against a director of a national bank for damages arising from an excessive loan. (U. S. 0. 0. 1890) Stephens v. Overstolz, 43 F. E. 771. 62. The right of action against national bank directors for mismanagement is in the receiver and not in the stock- holders. (U. S. 0. 0. 1891) Howe v. Barney, 45 F. E. 668. 63. An action against national bank directors founded on the national banking act can be brought only by the receiver. (U. S. 0. C. 1896) Gerner v. Thompson, 74 F. E. 125. 64. Serrhble, a suit by the receiver of a national bank against the directors cannot be maintained until the for- feiture of the bank's powers and privileges shall have been adjudged. (U. S. 0. C. 1890) Welles v. Graves, 41 F. E. 459. 65. The federal courts have no original jurisdiction of a common-law action of deceit brought against the di- rectors of a national bank. Ibid. 66. By corporation, parties. — A receiver of a national bank is a necessary party defendant to an action brought against directors of the bank for negligence and misman- agement. Such action should ordinarily be brought by the corporation as complainant. (E. T. 1877) Hand v. Atlas Nat. Bank, 55 How. (JST. Y.) 231 ; 9 Abb. K C. 287. 67. Pleading and practice. — In an action against di- rectors of a national bank for damages arising from excess- DIRECTOES, IIL 7& ive loans, knowledge on their part must be averred, and an allegation that they " permitted " such loan to be made is not sufficient. (U. S. C. C. 1894) Eobinson v. Hall, 59 F. E. 648. See S. C, 63 F. E. 222. 68. The plaintiff in an action against directors of a na- tional bank for damages, arising from excessive loans, need not declare in a separate count for each loan, but may state the aggregate amount made to each party, the damages from each, with an exhibit as to each, showing dates and amounts of the several loans. (U. S. 0. 0. 1890) Stephens v. Overstolz, 43 F. E. 111. 69. Limitations. — • A refusal of the directors of a na- tional bank to transfer stock is not an offense or a quasi- offense on the part of the bank.so that an action therefor will be prescribed by the limitation of one year under the Louisiana statutes. (U. S. Sup. Ct. 1879) Case v. Bank, 2 ]Sr. B. 0. 47; 100 U. S. 446. 70. An action against national bank directors for the violation of United States Eevised Statutes, section 5239, is not barred in one year under the Arkansas code. (U. S. C. 0. A. 1898) Cockrill v. Cooper, 86 F. E: 7. 71. Removal of. — A complaint against national bank directors for fraudulent representations does not state a federal question, but a common-law action of deceit, and therefore is not removable to the federal courts. (TJ. S. C. C. 1895) Prescott v. Haughey, 65 F. E. 653. 72. An action against directors of a national bank by a person injured by their wrongful and unlawful acts, counting on their common-law liability for such acts, does not present a controversy arising under the laws of the United States, and the federal courts have no jurisdictions (U. S. C. C. 1896) Bailey v. Mosher, 74 F. E. 15. 73. Survival of. — The national banking act, in impos- ing a liability on national bank directors, is a remedial 80 DISSOLUTION. statute and not a penal one, and the deatli of the wrong- doer does not terminate the liability. (U. S. 0. 0. 1890) Stephens v. Overstolz, 43 F. K. 465. 74. A right of action exists though the wrong is not discovered until after the death of the director and the appointment of a receiver for the bank. Ibid. 75. Under the laws of Vermont, an action against a national bank director for neglect of duty abates at the death of such director and cannot be revived against his estate. (U. S. 0. C. 1886) Witters v. Foster, 26 F. E. Y37. DISSOLUTION. See Claims; Insolvency; Liquidation; RECErvEE. Appointment of receiver, efiEeot to dissolve, see Reoetvee, 20. Conversion of state bank, no dissolution, see State Bank, Conver- sion OF, 4. 1. What constitutes. — The appointment of a receiver of an insolvent national bank does not dissolve the cor- poration, which continues as an entity until dissolved by the judgment of a court or until the stockholders sur- render the charter. (111. 1895) Chemical Nat. Bank v. Hartford Deposit Co., 156 111. 522; 40 N. E. K. 225. 3. A national bank does not cease to exist as a corpo- ration until its assets are fully administered and distrib- uted. (U. S. Sup. Ct. 1871) Bank of Bethel v. Pahquioque Bank, 1 N. B. C. 77; 81 U. S. (14 Wall.) 383. 3. The appointment of a receiver does not work a com- plete dissolution of the association, but it may still sue and be sued to close its business. Ibid. 4. A national bank is not dissolved as a corporation by going into voluntary liquidation and by transferring all the assets to another bank which assumes all its lia- DISTRICT ATTORNEY. §1 bilities. ("Wis. 1898) Pritchard v. First ISTat. Bank, 76 JS". W. E. 1106. 5. A resolution passed by the board of directors, that a national bank go into dissolution, does not prevent an ac- tion against it. This can only be effected by a repeal of its charter or a judicial decree. (N. Y. 1896) Lake On- tario IS^at. Bank v. Onondaga County Bank, 7 Hun, 549. 6. Effect of actions. — The forfeiture of the rights and franchises of a national bank, judicially determined, dis- solves the corporation and abates a suit against it. (IT. S. Sup. Ct. 1874) First ISTat. Bank of Selma v. Colby, 1 IST. B. 0. 109; 88 U. S. (21 Wall.) 609. 7. A national bank, though it may be dissolved, may collect debts due it and distribute the proceeds of same among its shareholders. (Ky. 1893) McCann v. Eogers, 15 K. L. E. 127. DISTRICT ATTORNEY. Actions for receiver by United States attorney, see Receivek, 78. 1. The fee of a United States district attorney for bring- ing an action to forfeit the charter of a national bank is limited by section 824, United States Eevised Statutes,' to $10. (U. S. C. C. 1891) Bashaw v. United States, 47 F. E. 40. 2. The banking act, in providing that a suit should be conducted by the United States attorney, is directory merely, and where the question is between the United States and its agents a third party cannot object. (U. S. Sup. Ct. 1869) Kennedy V. Gibson, 1 W. B. C. 17; 75 U. S. (8 Wall.) 498. 3. A district attorney of the United States is entitled to no compensation outside of his salary for conducting a suit arising under the national banking act in which 6 82 DIVIDEND, the United States is a party. (TJ. S. Sup. Ct. 1893) Gib- son V. Peters, 150 U. S. 342. 4. ]S^or can the expenses of the receivership cover such fees for such services. Ibid. 5. Actions before and after the appointment of a re- ceiver of a national bank in which the United States is a party are to be conducted by the district attorney of the United States under the direction of the solicitor of the treasury. (U. S. Sup. Ct. 1871) Bank of Bethel v. Pah- quioque Bank, 1 N. B. 0. 11; 81 U. S. (li Wall.) 383. DIYIDEND. Declaration of illegal, see CBnmsrAL Law, 9, 10. Action to compel, jurisdiction of, see Jtjrisdiction of Courts. Set-off against, see Set-off, 45. Taxation of, see Taxation, 193. Acceptance of, on claim, see Claims, 33. Estoppel by receipt of, see Liability of Shaeeholdeks, 10. 1. When a national bank in good faith and by mistake declares a dividend or makes an addition to its surplus or contingent fund when it is not in a good condition to do so, the mistake cannot be corrected in an action brought to recover a tax paid on the dividend. (U. S. Sup. Ct. 1890) Central Nat. Bank v.- United States, 137 U. S. 355. 2. An action by the receiver of a national bank against the stockholders to recover dividends wrongfully paid to them does not rest on the statute, but on the equitable doctrine that one who takes a trust fund with knowl- edge of the trust must repay it. Therefore such action can be sustained, and the remedies under the national banking act are not exclusive. (U. S. C. C. A. 1895) Hay- den V. Thompson, 71 P. E. 60; 17 C. C. A. 592; 36 IJ. S. A. 361. EXAMINATION OF NATIONAL BANKS. 83 3. An action to recover a dividend taken in good faith by the stockholders of a national bank is barred in Nebraska in four years from the receipt of such dividend. Ibid. 4. A bank has an equitable lien for debts due it on divi- dends declared in favor of stockholders. (Me. 1874) Hagar V. Union Wat. Bank, 63 Me. 509. 5. A dividend once declared becomes a debt and can- not be disposed of without the consent of him who is entitled to it. (IST. T. 1878) Seeley v. New York Nat. Ex- change Bank, 2 IST. B. 0. 340; 4 Abb. N. C. 61; 78 K T. 608. 6. Right of pledgee to. — The holder of national bank stock in pledge, of which the bank has notice, is entitled to and may recover the dividend thereon. (Neb. 1891) Central Nebraska Nat. Bank v. Wilder, 32 Neb. 454. ESTOPPEL By directors as to defense of usury, see Diebctors, 20. As to ownership of stock, see Liability oi" ShaKbholdeb, 1-10. During organization, see Obganization, IIL Of shareholder, .see Sharbholdeb, 1-3. As to ultra vires contracts, see Powbes, 100-102. Of bank as to acts of officers, see Officers, 12. By receipt of dividend, see Liability of Shaeeholdees, 10. EXAMINATION OF NATIONAL BANKS. 1. National bank examiner. — A national bank exam- iner is not an officer or agent of the bank, and has no au- thority to act for it in any manner, and cannot bind it by any act. (U. S. 0. C. 1887) Witters v. Sowles, 32 F. E. 763. 3. Examination by shareholder. — A shareholder in a national bank has a right to examine the affairs of such 84 EXTENSION OF COEPORATE EXISTENCE. bank in a state whioh grants this power to shareholders in other corporations established therein. (Ala. 1890) Winter v. Baldwin, 89 Ala. 483; Y S. K. Y34. 3. An examiner of a national bank, appointed under TJnited States Eevised Statutes, section 5240, is not a temporary receiver of such bank, and the assets in his hands are not for that reason exempt from a levy on exe- cution. (U. S. C. 0. 1898) KimbaU v. Dunn, 89 F. E. T82. EXPIRATION OF CORPORATE EXISTENCE. 1. Under the act of congress, July 12, 1882, directors of a national bank may, at the expiration of its corporate existence, continue and administer the assets and wind up its affairs. (Mass. 1889) Eichards v. Attleboro Ifat. Bank, 3 K B. C. 495; 148 Mass. 187. 2. After the expiration of the corporate existence of a national bank and during its liquidation, the stock is not transferable and the liability of the shareholders is fixed. Ibid. 3. A national bank, after the expiration of the time limit of its charter, continues to exist as a person in law, and may sue and be sued until the business is completely settled. (Minn. 1898) Farmers' Nat. Bank v. Backus, 17 ]Sr. W. E. 142. EXTENSION OF CORPORATE EXISTENCE. Stock of dissenting shareholder, see Capital Stock, 38; Shabb- HOLDER, 19. 1. An extension of the existence of a national bank does not affect its identity. (N. J. 1894) Trustees of First Presbyterian Church v. If at. State Bank, 57 N. J. L. 27; 29 Atl. E. 320. FALSE ENTRIES. 85 2. Where a national bank is reohartered and its exist- ence extended under the provisions of the law of 1882, all of the obligations due to and from it have the same force and effect as before such reorganization. There is no change in the status or legal effect or power of the corporation. (Conn. 1889) Nat. Exchange Bank v. Gay, 57 Conn. 224, 234. 3. Where a national bank prolongs its existence under the act of congress of 1882, the bank is not relieved from liability on a bond previously given as security for money deposited ; nor are the sureties on such bond discharged. (]Sr. T. 1889) People v. Backus, 117 K T. 196; 22 K E. E. 759. FALSE ENTRIES. See Criminal Law; Reports; Indictment. Indictment of directors, see Indictment, III Aiding and abetting in making, see Criminai Law, J, c, 1. Entry iu bank-boots. — Any entry in the books of a national bank which is intentionally made to represent what is not true or what does not exist, with the intent either to deceive the bank's officers or to defraud the as- sociation, is a false entry within the meaning of the na- tional banking act making such an entry a criminal of- fense. (U. S. C. C. 1887) United States v. Harper, 33 F. E. 471. 2. Erasing one or more figures from a number already written in a book of account and writing other figures in lieu thereof, so that the fact intended to be recorded is falsified, is a false entry within the meaning of the stat- ute. (IT. S. D. C. 1888) United States v. Crecelius, 34 F. E. 30. 3. A false entry under the statute is an entry known 86 FALSE ENTRIES. by the maker to be untrue and false, and by him inten- tionally entered while so knowing its false and untrue nature. Therefore, where the ofB.cer entered as " loans and discounts" items of "suspended loans," which were not loans, though he believed them to be so, he does not make a false entry. (U. S. D. C. 1892) United States v. Graves, 53 F. E. 634. 4. The entry of a transaction on the books of a national bank exactly as it occurred, though such transaction was in fact a fraud on the bank, does not constitute a false entry "within the meaning of the statute. (U. S. C. 0. A. 1897) Dow V. United States, 82 F. E. 904; 27 0. C. A. 140. 5. Report to comptroller. — It is an indictable offense under United States Eevised Statutes, section 5209, to make a false entry in a report to the comptroller or to aid and abet the making of such entry. (U. S. C. C. 1893) United States V. French, 57 F. E. 382; Same v. Work, 57 F. E. 391. 6. A report of a national bank, whether called for by the comptroller or not, which is in the usual form and is made by an officer of the bank acting officially, is a report, within the meaning of the statute, if it contains a false entry made with intent to deceive. (U. S. O. C. 1891) United States v. Hughitt, 45 F. E. 47. 7. The entry on the books of a national bank of a de- posit of funds left with such bank as a special deposit, and of which it is only a bailee, is a false entry within the meaning of United States Eevised Statutes, section 5209, when made with intent to deceive an examiner appointed by the comptroller. (U. S. 0. 0. 1898) United States v. Peters, 87 F. E. 984. 8. It is no offense under the banking act to make a false entry unless the report is otherwise in conformity with the law, and unless it is within the duty of the ac- cused as an officer of the bank. (U. S. G. C. 1892) United FALSE ENTRIES. 8T States V. Potter, 56 F. E. 97, disapproved by United States V. Booker, 80 F. R 376. 9. To constitute the offense of making a false entry in a report of a national bank within United States Eevised Statutes, section 5209, it is not necessary that the report be one which the bank is required by law to make. (U. S. D. C. 1897) United States v. Booker, 80 F. E. 376, dis- approving United States v. Potter, 56 F. E. 83, 97. 10. The defendant in an action for making false en- tries in a report of a national bank cannot be heard to say that he did not know the contents of such report when it was made and sworn to by him in the course of his official duty. (U. S. D. C. 1880) United States v. Allen, 47 F. E. 696. 11. A bookkeeper who makes false entries in a report made at the request of the bank examiner, and for the latter's benefit, is not guilty of making false entries under the national banking act. (U. S. D. G. 1892) United States V. Eqe, 49 F. E. 852. 12. Intent. — The intent which is the necessary ingre- dient to a false entry under the statute is an intent either to injure and defraud the bank or some other corporation, firm or person, or to deceive some officer of the bank, or to deceive some agent appointed or thereafter to be ap- pointed to examine the affairs of the bank. (U. S. C. C. 1893) United States v. AUis, 73 F. E. 165. 13. An indictment charging a false entry made with intent to deceive the comptroller of the currency is not within the provisions of section 5209, United States Ee- vised Statutes, such comptroller not being an officer of the bank nor an agent appointed to examine its affairs. (U. S. C. C. 1882) United States v. Bartow, '10 F. E. 874. 14. The word "false," as used in the phrase "false entry," means wilfully and intentionally false. (U. S. D. C. 1880) United States v. Allen, 47 F. E. 696. 88 FALSE ENTRIES. 15. Purposely, wilfully and knowingly ignoring facts plainly before hina will charge an officer with sufficient knowledge and intent. (U. S. D. C. 1892) United States V. Graves, 53 F. E. 634. 16. The entry complained of must be made with intent to defraud the bank, or the shareholders or directors. An intent to deceive creditors or depositors is not sufficient. Ibid. 17. Where all the officers were engaged together in putting out a false report of the bank's condition, one can- not be convicted of making such false report to deceive the others. (U. S. 0. 0. 1889) United States v. Means, 42 F. E. 599. 18. Under the statute making it a misdemeanor to make a false entry to deceive the officers of the bank, the word " officers " includes directors, and it depends on the circum- stances as to the particular bank whether or not the teller is included. Ibid. 19. The deception intended by the statute means a de- ception that has behind it some end to gain or design to be accomplished. Ibid. 20. Actual deception by a false entry is not necessary if the intent to deceive be proven. (U. S. D. C. 1892) United States v. Graves, 53 F. E. 634. 21. If an officer of a national bank makes a false entry in a report which it is his duty to make, the presumption is, there being no other testimony, that he knew such entry was false. (U. S. C. C. 1893) United States v. AUis, T3 F. E. 165. 23. Who liable — Officers generally. — An officer of a national bank called upon to make a report under the law is liable criminally and civilly for false statements made therein, though they be inserted by a subordinate or clerk. (U. S. C. C. 1880) United States v. Allen, 4T F. E. 696. FALSE ENTRIES. 89 23. , president. — Wliere false entries are made by a clerk in a national bank at tbe direction of the presi- dent, the president becomes a principal in the offense. (U. S. D. C. 1868) In re Yan Campen, 2 Ben. (U. S.) 419^ .1 ]Sr. B. C. 185; (U. S. C. C. 1885) United States v. Fish^ 24 F. E. 585. 24:. The president and the assistant cashier need not actually sign and verify a report in which they have made- a false entry to be indictable for the same. (U. S. Sup. Ct. 1894) Cochran v. United States, 157 U. S. 286. 25. , assistant cashier. — The assistant cashier of a national bank as a^clerk or agent of the bank is indict- able for making a false entry, although he is not one of the officers authorized to make the report. Ibid. 26. , directors.— Directors of a national bank can- not be held liable for making false entries in reports tO' the comptroller, since their duty only extends to attest- ing such reports. (U. S. C. C. 1892) United States v. Pot- ter, 66 F. E. 83. 27. , aiders and abettors. — Any persons, though not officers of a national bank, may be guilty as aiders and abettors of the president in the violation of the stat- ute as to making of false entries. (U. S. Sup. Ct. 1895) Coffin V. United States, 156 U. S. 432. 28. Actions^ evidence. — The finding of the jury that entries were made with guilty intent is sustained by tes- timony of the defendant that they were made by his di- rection and that he knew that they were not the transac- tions of the day on which they were entered on the books of the bank. (JS". Mex. 1894) United States v. Folsom, 38 Pac. K. 70; 7 Gilder. (N. M.) 532. 29. Evidence as to the custom of other banks making- certain entries will not be admitted as bearing on th& intent of the defendant, though his knowledge of such 90 FALSE ENTRIES. custom and practice may be considered for this purpose. (TJ. S. D. 0. 1892) United States v. Graves, 53 F. E. 634 30. Every overdraft is a loan and is required to be listed in tbe report of tbe bank to the comptroller. It is no defense in an action for false entries as to such over- drafts in a report to allege that such overdrafts, 6ot re- ported, Avere arranged for or secured, or that interest was to be paid on them, if such false entries were made with criminal intent. The understanding of the person making such entries is competent evidence bearing on such intent. 5. Clearing-house, note. — Where a national bank de- posits a note before maturity thereof with a clearing-house as security for its daily balance with such clearing-house, it loses title to such note and cannot set it oflf against a debt due to the maker thereof. (Pa. 1895) Philler y. Jewett, 165 Pa. St. 45; 31 Atl. E. 204. II. Insolvent Banks. a. In Oeneral. 6. The general equitable rules of set-oflf applicable to all insolvent corporations are those which alone are au- thorized by the national banking act. (U. S. C. 0. 1892) Tardley v. Clothier, 51 F. K. 506; (U. S. Sup. Ct. 1892) Scott V. Armstrong, 146 TJ. S. 499. 7. Where the credits between banks are reciprocal and parts of the same transaction, and such transaction raises the presumption of an agreement for an offset, equity will apply the principle of mutual credits, though both such demands are not technically due. (U. S. Sup. Ct. 1892) Scott V. Armstrong, 146 TJ. S. 499. 8. The national banking act does not forbid the applica- tion of the above rule to a case where a debtor deposits the amount borrowed in the bank to be drawn out by him, any balance thereof to be applied on payment of the note when it falls due, and the bank fails before maturity. Ibid. 9. The right of set-off upon the insolvency of a national bank depends upon the equities existing at the moment of insolvency and not upon those thereafter created. (U. S. Sup. Ct. 1897) Yardley y. Philler, 167 U. S. 344. 10. A depositor in a national bank who owes the bank a debt not yet due at the insolvency of the bank is not 198 SET-OFF, n, b. entitled at the maturity of the debt to any rights of set- off not existing at the time of such insolvency. (Ky. 1891) Armstrong v. Helm, 13 Ky. L. E. 460. 11. Claim, indebtedness.— The indebtedness of an in- solvent stockholder to a national bank may be set off in equity against a dividend payable to him as a creditor out of the trust fund in the hands of the receiver. (Ohio, 189'3) King V. Armstrong, Eeceiver, 50 Ohio St. 222; 34 IS". K K. 163. 12. As against third parties. — The appointment of a receiver of a national bank does not give such bank any right to set off a deposit therein against an obligation of the depositors, as against a check on such deposit in the hands of a third party in the regular course of business. (111. 1897) JSTiblack v. Park Nat. Bank, 30 OhL L. N. 103. b. To Whom Allowed. 13. Assignee.^ The assignee of a deposit in a national bank cannot set oflf the claim against his debt due the bank on its insolvency. (Pa. 1867) Venango Nat. Bank V. Taylor, 1 N. B. C. 842; 56 Pa. gt. 14. 14. A claim acquired after the insolvency cannot be used as a set-off by the assignee. (U. S. Sup. Ct. 1892) Scott V. Armstrong, 146 TJ. S, 499; (Pa. 1867) Venango Nat. Bank v. Taylor, 1 N. B. C. 842; 56 Pa. St. 14; (Mass. 1858) Colt V. Brown, 12 Gray (Mass.), 233. 15. Under Ee vised Statutes of United States, sections 6236, 5242, the rights of creditors of an insolvent national bank are fixed at the time of the commission of the act of insolvency by such bank, and a creditor cannot set off against his debt due the bank a claim acquired after such insolvency. (JST. Y. 1895) Davis v. Knipp, 92 Hun, 297; 36 N. Y. Supp. 705. 16. A certificate of deposit transferred to the holder SET-OFF, II, 0. 199 after insolvency cannot be set off against the note of the holder and another who transferred the certificate of de- posit to such holder and who still claimed an interest in it. (Texas, 1896) Beckham v. Shackleford, 29 S. "W. E. 200; 8 Tex. Civ. App. 660. 17. Joint makers. — One of the joint makers on a note due a national bank cannot set off against the note claims held by himself individually against the bank. (Minn. 1878) Balch v. Wilson, 2 IST. B. C. 274; 25 Minn. 299; 33 Am. E. 467. 18. Iiidorser. — The indorser of a note held by a na- tional hank, maturing after its insolvency and while in the hands of a receiver, can set off against such note the amount of his deposit in such insolvent bank. (U. S. C. C. A. 1892) Yardley v. Clothier, 51 F. E. 506. Disapprov- ing Armstrong v. Scott, 36 F. E. 63; (Mo. 1888) Stephens V. Schuhman, 32 Mo. App. 333; 3 KB. C. 540. 19. Partner. — The individual liability of a partner on national bank stock held by him cannot be used as a set- off against a debt due from the bank to another member of the firm. (TJ. S. C. C. A. 1894) Fisher v. Knight, 61 F. E. 491. 20. Pledgee of stock. — A debt due a national bank from a shareholder cannot be offset against a claim of a pledgee in good faith and for value of the stock of such stockholder. (Ohio, 1889) McConville v. Means, 21 Wkly. Law Bui. 193. c. Debts Matv/red at Time of Fcdlwre. See King et al. v. Armstrong, 50 Ohio St. 223, cited anta. 21. A right of set-off available and perfect at the time of the receiver's appointment is not affected by the in- solvencjr of the bank, but may be pleaded in defense to an action by such receiver. (Ohio, 1877) Hade, Eeceiver, v. McVay, 2 IST. B. C. 353; 31 Ohio St. 231. 200 SET-OFF, II, d. 22. The national banking act does not forbid the allow- ance of any valid set-off, legal or equitable, which a debtor of such bank may have against any obligation owing to it by him at the time of its insolvency. (Ohio, 1892) Armstrong v. -Warner, 49 Ohio St. 376. 23. A debt of the bank for services rendered to it be- fore its insolvency may be set off against a liability on a note held by the bank. (N. 0. 1894) Davis v. Industrial Mfg. Co., 14 K 0. 371. 24. A deposit becomes due on the insolvency of the bank, without demand or notice, so as to be a proper set- off against a demand of such depositor due to the bank. Ibid. 25. The credit of a depositor on the books of the bank cannot be set off against his notes held by the bank, un- less it appear that at the time of the insolvency the bank was the owner of the notes and entitled to collect the same. (TJ. S. C. 0. 1883) Balbach v. Frelinghuysen, Ee- ceiver, 15 F. K. 675. 28. A depositor in a national bank, who has paid over certain moneys on the promise of the receiver to allow the set-off of his deposit on other obligations due the bank, should recover the payment, it appearing that the bank had transferred the obligations, and that if it had held them the set-off would have been proper. (U. S. C. 0. 1888) Snyders' Sons Co. v. Armstrong, 37 F. E. 18. 27. A right of set-off must be perfect and available at the time of the appointment ' of the receiver, not to be affected by the bank's insolvency. (Mo. 1888) Stephens V. Schuhman, 3 JST. B. 0. 540; 32 Mo. App. 333. d. Deits Maturing After Failure. 28. "Where the circumstances give rise to the presump- tion of an agreement of set-off, equity will permit it SET-OFF, n, d. 201 whether the indebtedness songht to be set off had or had not matured at the time of the bank's suspension. (U. S. Sup. Ct. 1892) Scott V. Armstrong, 146 U. S. 499; (Pa. 1885) Skiles v. Houston, 110 Pa. St. 254. 29. A debtor of an insolvent national bank can set off against his indebtedness the amount of his claim against the bank, whether his debt is due or not, and such set-off does not violate section 5242, United States Kevised Stat- utes. (Mont. 1895) Mercer v. Dyer, 15 Mont. 317; 39 Pac. E. 314. 30. A note maturing after insolvency is a proper set- off against a deposit due at the time of insolvency. (U. S. C. C. A. 1892) Yardley v. Clothier, 51 F. E, 506. 31. The deposit of a debtor of an insolvent national bank cannot be set off against his debt not due. (Mo. 1897) Home v. Fat. Bank of Commerce, 41 S. W. E. 790. 32. The creditor of an insolvent national bank may set off any debt due from the bank to him at the time of failure against his note which does not become due until after failure. (U. S. C. C. 1893) Adams v. Spokane Drug Co., 57 P. E. 888. 33. The maker of a promissory note to a national bank may, at the time of failure, set off the amount of such note, though it is not yet due, against his claim, his right of set-off having attached before the lien of the creditors. (U. S. C. C. 1892) Yardley v. Clothier, 49 P. E. 337. 34. Preference, balance. — The allowance of a set-off to a debtor of a national bank against his obligation held by the bank is not a preference, but simply a determina- tion of the amount due on the obligation. Only the bal- ance due on such obligations after deducting the set-off constitutes the assets in the receiver's hands for distribu- tion. (Ohio, 1892) Armstrong v. "Warner, 49 Ohio St. 376. 35. In case of mutual debts, only the balance thereof 202 SET-OFF, II, e. is due by or to the insolvent bank, and the debtor is not required to pay in his debt and then stand, as to his set- off, with the other creditors. (IST. Y. 1892) Hughitt v. Haye^, 136 K Y. 163; 32 K E. K. T06. 36. When equitable considerations require that claims be applied to each other, equity will regard them as due -even if a technical demand is wanting. Ibid. 37. On the insolvency of one party, the Creditor, though his debt may not be yet due, may waive the credit, and ■equity will apply it on the debt of the insolvent, if that has matured. Ibid. 38. Deposit. — When a customer of a bank makes a deposit to take care of his note about to mature, and the bank fails in the meantime, he can set off the deposit .against the debt. (S. Y. 1872) Piatt v. Bentley, 1 JST. B. 0.758; 11 Am. L. E. 171. 39. The deposit of a debtor of an insolvent national bank cannot be set off against his debt not yet due. (Mo. 1897) Home v. ISTat. Bank of Commerce, 41 S. W. K. 790, oiting Chapman v. Bank, 120 Pa. St. 86; 13 Atl. R. 707; Spaulding v. Backus, 122 Mass. 553; Lockwood v. Beck- with, 6 Mich. 168. - 40. Waiver by debtor. — A debtor may waive the ad- ditional time on his note to an insolvent bank and elect to apply a demand due from the bank as payment. Equity will then set off one claim against the other. (IST. Y. 1896) Clute V. Warner, Bankers' Mag., September, 1896, p. 316. e. Against Assessment. 41. Individual claim. — The assessment of a stock- holder of a national bank cannot be paid by setting off against it the liability of the bank to such stockholder on an individual claim. (U. S. D. C. 1881) Hobart, Eeceiver, V. Gould, 8 F. R 57. SET-OFF, II, e. 203 42. Deposit. — A holder of stock in an insolvent national bank is not entitled to set off the amount of his deposits against an assessment made by the comptroller upon his stock. (U. 8. C. C. A. 1896) Wingate v. Orchard, T5 F. E. 241. 43. The deposit account of a shareholder in an insolv- ent national bank may be set off against the liability of such' shareholder, and such set-off may be made by the receiver whether such deposit account has been assigned or not, or whether such liability has been ascertained or not. (Ohio, 1880) . Erownell v. Armstrong; 20 W. L. B. 465, 44. Property delivered to bank. — Where an executor delivered property to a national bank to be applied on the debt of the estate to the bank, held, when not so ap- plied, that the executor might have an action against the bank, but not against the receiver, and that it was not a proper subject of set-off against the demand of the bank. (U. S. C. C. 1887) "Witters, Eeceiver, v. Soules, Executor, 32 F. K 130. 45. Liability, dividend.^ The individual liability of an insolvent stockholder in a national bank can be set off by the receiver against a dividend payable to such stock- holder upon his deposit account. (Ohio, 1893) King v. Armstrong, 50 Ohio St. 222; 34 IST. E. K. 163. 46. A national bank shareholder's liability becomes due on the insolvency of the bank, and an assignment of a claim of such stockholder against the bank after such in- solvency, but before the comptroller directs the enforce- ment of the individual's liability, will not affect the right of the receiver to set off the amount of the shareholder's liability against such claims. Ibid. 47. A national bank cannot borrow money and secu- 204 SET-OFF, II, e. rities to avoid insolvency, promising that in case of such insolvency they shall be applied on the assessment of the lender. Such lender becomes a simple creditor for such loan, and has no right of set-off superior to other credit- ors. (U. S. C. 0. 1889) Soules v. Witters et al., 39 F. E. 403. 48. Increase of stock, assessment. — "Where a sub- scriber for an increase of the capital stock of a national bank pays his subscription, and his name is entered in the bank books as a shareholder, he becomes a shareholder, though no certificate of stock is issued, and he cannot set off the amount thus paid against his liability as a share- holder. (U. S. Sup. Ct. 1891) Thayer v. Butler, 141 TJ. S. 234); (U. S. Sup. Ct. 1891) Butler v. Eaton, 141 U. S. 240; (U. S. Sup. Ot. 1891) Pacific IsTat. Bank v. Eaton, 141 TJ. 8. 22T. 49. A payment by a subscriber upon an unauthorized increase of national bank stock may, upon the insolvency of the bank, be set off against an obligation due the bank by such subscriber. (Ohio, 1892) Armstrong v. Law, 27 W. L. Bui. 100. 50. A voluntary assessment paid in by stockholders of an insolvent national bank is not a loan to, but an asset of, the corporation, and cannot be used as a set-off against such stockholders' liability. (U. S. C. C. 1895) Brodrick V. Brown, 69 F. E. 497. 51. Funds to replace impaired capital. — A fund raised by shareholders to replace impaired capital goes into the hands of the receiver as a trust fund payable to such stock- holders before the general distribution of the assets of the bank, and may be set off against the liability of such shareholders on their stock. (U. S. C. 0. 1889) "Welles v. Stout, 38 F. E. 807. SET-OFF, II, f — SHAREHOLDERS, L 205 f. Actions. 63. A question between a receiver and a claimant as to the right of set-off does not raise a federal question under United States Eevised Statutes, section 5242. (U. S. 0. 0. 1889) Tehan y. First Nat. Bank, 39 F. E. 577. SHAREHOLDERS. L Shareholders in General, IL Powers of Shareholders. See Capital Stock; Liability of Shareholders; Transfer op Stock. Right of, to inspect books, see Books op National Banks, 1, 3. Subscriber to unauthorized increase of capital stock, see CAprTAXi Stock, L Portion in moneys realized from bad debts, after reduction of capi- tal, see Capital Stock, 37. Lien of bank on stock of, see Transfer op Stock. Action by, against directors, see Directors, 57. Shareholder, effect of expiration of corporate existence, see Expira- tion OP Corporate Existence, 3. Taxation of, see Taxation, I (b), IL I. Shaeeholdees iir Genbeal. 1. Shareholder defined. — A shareholder, under sec- tions 5139, 5151, United States Eevised Statutes, is one who has a proportionate share in its assets, and is entitled to take part in its control and receive its dividends. (U. S. C. 0. A. 1895) Beal v. Essex County Savings Bank, 67 F. E. 816. 2. Where one becomes a stockholder. — The actual taking out of a certificate of stock is not necessary to con- stitute a subscriber a stockholder in a national bank when 20.Q SHAREHOLDERS, L he has actually paid his subscription and been entered on the books of the bank as a stockholder. (U. S. Sup. Ot. 1891) Pacific Nat. Bank v. Eaton, 141 TJ. S. 221; (U. S. Sup. Ct. 1891) Thayer v. Butler, 141 U. S. 234; (U. S. Sup. Ct. 1891) Butler v. Eaton, 141 U. S. 240. 3. Estoppel. — A person is not conclusively estopped to deny his liability on national bank stock by receiving a dividend thereon unless such dividend is received with full knowledge of its nature. (TJ. S. 0. C. 1890) Stephens V. FoUett et al., 43 F. K. 842. 4. Subscriber to increase. — Where a subscriber to an increase of national bank stock does not know of the transfer to him of such stock he cannot be held liable on it. Ibid. 5. After passage of a resolution to increase the stock tO' a certain amount and the taking of legal steps for such in- crease, the fact that some of the new stock was not sub- scribed for does not permit a subscriber to repudiate his subscription. (TJ. S. Sup. Ct. 18-89) Aspinwall v. Butler,. 133 U. S. 595; (TJ. S. Sup. Ct. 1890) Pacific IsTat. Bank v. Eaton, 141 TJ. S. 227. 6. Payment for shares, acceptance of the certificate and' retention of same during the period of reorganization amounts to a ratification on the part of a subscriber of the act of the association as to an increase. (TJ. S. Q. C. 1887) Butler, Eeceiver, v. Aspinwall, 33 F. E. 217. 7. One who subscribes for, pays for and receives the stock of a national bank, which stock has been lawfully created, makes himself a stockholder, and a change in the amount of the increase of such stock, of which his sub- scription is a part, does not change his status. (TJ. S. Sup. Ct. 1889) Aspinwall v. Butler, 133 U. S. 595. 8. The failure of a subscriber for an increase of the capital stock of a national bank to call for and receive SHAREHOLDERS, L 20T her certificate of stock, when she has in fact paid in the amount of her subscription and has received a receipt therefor, does not affect her status as a shareholder. (U. S. Sup. Ct. 1890) Pacific ISTat. Bank v. Eaton, 141 U. S. 227. 9. Where an increase of the capital stock of a national bank was never authorized by a vote of the stockholders or approved by the comptroller, a purchaser of such stock is a creditor and not a stockholder, and can maintain an action for money had and received. (Mo. 1888) Schieren- berg V. Stephens, 3 IST. B. C. 528; 32 Mo. App. 314; (Mo. 1888) Mchols V. Stevens, 32 Mo. App. 330. 10. A subscriber to capital stock at a certain amount of increase does not become a stockholder before the en- tire amount has been paid in and certified to by the comp- troller in the manner prescribed by United States Revised Statutes, section 5142. (U. S. C. C. A. 1895) McFarlin v. First IsTat. Bank, 68 F. E. 868. 11. Balance on stock, recovery. — A shareholder maj sue a national bank for his funds paid in on his stock, but misappropriated by the corporation. ("Wyo. 1873) "Wilson v; First Ifat. Bank, 1 Wyo. 108. 12. Pledgee. — The pledgee of national bank stock who- receives dividends, votes such stock, and receives a new certificate on the reduction of the capital stock, will be deemed to have acquired the stock as owner. (La. 1895) Succession of Lanaux, 17 S. E'. 200; 47 La. Ann. 643. 13. Married women. — A married woman has power to subscribe for and become the transferee of national bank stock. (Md. 1897) Kerr v. Urie, 86 Md. 72; 37 Atl. E. 789. 14. A married woman residing in Maryland may take^ by transfer, stock of a national bank located in Texas^. and will be liable thereon as a shareholder. Ibid. 208 SHAREHOLDERS, IL 15. Trustee. — One who appears on the books of a na- tional bank as the owner of stock therein is liable thereon, though he be in fact only a trustee. Ibid. 16. Executor. — An executor, receiving from the de- cedent's estate certificates of stock in a national bank, is vested with the legal title and is liable thereon. (U. S. 0. C. A. 1895) Parker v. Eobinson, Yl F. E. 256. 17. Beorganization. — A stockholder in the old bank, having accepted his part of the payments from the new bank to the old one; upon reorganization, cannot claim to be a shareholder in the new bank. (111. 1887) First JSTat. Bank v. Marshall, 3 IST. B. C. 401; 26 lU. App. 440. 18. In the absence of any showing of an unlawful com- bination, he is estopped from questioning the transfer of the assets of the old bank to the new, they being sold at their market value. Ibid. 19. Notice to. — Where a person holds national bank stock as collateral security and is not recognized as a stockholder nor votes such stock, he is not such a part of the corporation as to be bound by the knowledge of the facts known by the bank, its officers or officials. (Kan. 1882) Baker v. Woolston, 2T Kan. 185. 20. Amendments to articles, non-assenting share- holder. — The committee appointed under act of congress of July 12, 1882, section 5, to appraise national bank shares of shareholders not assenting to amendments in the arti- cles of association, may make a correction in the appraisal within thirty days, no appeal having been taken or sale made. (Pa. 1886) First Nat. Bank of Clarion v. Brennan's Executors, 3 N. B. 0. 755; 114 Pa. St. 315; 7 Atl. E. 910. II. Powers of Stockholders. 21. Sell shares. — Under the national banking act, a stockholder has the unrestricted right to make an out and out honajide sale of his shares, and transfer the same to SHAEEHOLDBRS, IL 209 any person or corporation capable of taking and being liable on the same. (U. S. C: 0. 1878) Johnson v. Laiflin, 1 K B. C. 331; 17 Alb. L. J. 146; 6 Bill. (U. S.)^ 65; (U. S. Sup. Ct. 1870) Bank v. LaniBr, 1 1^. B. C. 70;, 78 U. S. (11 Wall.) 369; (U. S. Sup. Ct. 1873) Bullard v. Bank, 1 IST. B. 0. 93; 86 U. S. (18 Wall.) 589. 22. Voting. — The past-dne and unpaid liability re- ferred to in United States Revised Statutes, section 5144, as disqualifying a stockholder from voting his stock, ap- plies only to liability for unpaid subscriptions of stock. (U. S. C. C. 1888) United States v. Barry, 38 F. E. 246. 23. A meeting not lawfully called cannot bind the cor- poration unless all the shareholders attend. (U. S. C. C. 1897) Matthews v. Columbia Nat. Bank et al., 79 F. E. 558. 24. A proxy is only authorized to attend at lawful meetings, and cannot bind his principal by a vote at a meeting called by the president and cashier, when the by- laws provide that it is to be called by any three share- holders. Ibid. 25. Action by shareholders. — A stockholder in a na- tional bank cannot interfere for the protection of the bank until the directors, on application, have refused to take the proper steps therefor. (U. S. C. C. 1880) Fifth Kat. Bank of Pittsburg v. Pittsburg & Castle E. E. Co., 3 E". B. C. 190; 1 F. E. 190; (U. S. C. C. 1880) Hobbs v. Western Kat. Bank, 2 N. B. C. 187; 8 W. JST. C. (Pa.) 131. 26. A stockholder has no standing in court to charge the directors for their neglect or mismanagement until the corporation itself has refused to act, and then the ac- tion is for the use ^.nd benefit of the corporation. (E". J. 1882) Conway v. Halsey, 3 N. B. C. 571; 44 K J. L. (15 Vroom), 462; (U. S. C- C. 1891) Howe v. Barney, 45 F. E. 668; (]Sr. Y. 1881) Nelson v. Burroughs, 9 Abb. JST. 0. (N. Y.) 280. 14 210 SPECIAL DEPOSITS. 27. An injured stockholder has a remedy in equity against the officers and directors of a national bank for mismanagement, the corporation itself having refused to bring such action. (U. S. C. C. 1893) Hirsh v. Jones et al., 56 F. E. 137. SPECIAL DEPOSITS. See Deposits. As to chattels deposited as collateral, see Powers, 77-79. Public money, bail6e of, see Deposits, 5-8. Cashier's power to receive for safe keeping, see CASmEE, 17. Eeoovery of, see Powers, 94. Deposits during organization, see Orgakization, 18. 1. Power of national bank. — The power to receive special deposits is neither directly nor impliedly denied to national banks by the national banking act, and, hav- ing received them, they are liable as other bailees. (Pa. 1875) Nat. Bank v. Graham, 1 N. B. 0. 875; 100 U. S. 699. 2. National banks have power, under section 5228 of United States Kevised Statutes, to receive special deposits and receipt for same. (III. 1891) Monmouth First Nat. Bank v. Strang, 28 111. App. 325. 3. A national bank has no implied power to receive government bonds on special deposit. (Vt. 1877) Whit- ney V. First Nat. Bank, 50 Vt. 388; 28 Am. E. 503. 4. National banks have no power to bind themselves by receiving special deposits, and no action lies against such banks for non-delivery of such deposits. (U. S. C. C. 1875) First Nat. Bank v. Citizens' Bank of Topeka, 9 Fed. Cas. 87; 2 Cent. Law J. 757. 5. National banks have authority to receive bonds and other securities gratuitously or otherwise for safe keeping SPECIAL DEPOSITS. 211 from third persons as a customary and usual incident of the business of banking. (JST. Y. 1880) Pattison v. Syra- cuse IS'at. Bank, 80 N. Y. 82; 36 Am. K. 582; (IST." Y. 1890) Ouderkirk v. Central ISTat. Bank, 119 K Y. 263. 6. A national bank has power to receive United States bonds and to convert them into other bonds, and such taking does not create a mandate. (Iowa, 1870) Leach v. Hale, 1 N. B. 0. 466; 31 Iowa, 69; 1 Am. E. 112. 7. Having such power to receive special deposits, na- tional banks are held to that degree of care which is necessary to avoid the imputation of bad faith, and this is measured by the carefulness which the depositary uses towards its own property of the same kind. (JS". Y. 1890) Ouderkirk v. Central ISTat. Bank, 119 JST. Y. 263. 8. National banks are empowered to receive special de- posits and are liable for any loss occurring through the want of that care which good business men would exer- cise as to property of the same value. (Ohio, 1883) Bank V. Zent, 3 K B. C. 698; 39 Ohio St. 105. 9. National banks are not authorized to take special deposits to be kept for the accommodation of the depositor. (Vt. 1875) Wiley v. First Nat. Bank of Brattleboro, 1 N. B. C. 905; 47 Vt. 646; 19 Am. R 112. 10. Negligence, liability.— A national bank which customarily receives special deposits for safe keeping with- out reward becomes a bailee and is responsible for gross negligence. (Ga. 1877) The Chattahoochee Nat. Bank v. Schley, 1 N. B. C. 379; 58 Ga. 369. 11. The bank is discharged from liability if it delivers up the deposit to one who afterwards turns out to be rightfully in possession, though at the time the bank was ignorant of his authority. Ibid. 12. A national bank cannot rightfully deliver stocks and bonds which it has for safe keeping on an order 212 SPECIAL DEPOSITS. simply to pay the coupons to the person, presenting same. Ibid. 13. A national bank receiving a special deposit is lia- ble for the loss of same through the fault of its officers. (Tex. 1895) El Paso ITat. Bank v. Fuchs (Tex. Civ. App.), 34 S. W. K. 203. li. Where a national bank, with the knowledge and acquiescence of its officers, receives a special deposit, it is liable for gross negligence in the care thereof. (Pa. 1875) K&t. Bank v. Graham, 1 ]Sr. B. C. 8Y5; 100 U. S. 699. 15. The burden is on the plaintiff to show gross negli- gence to charge a national bank as to a special deposit, and such gross negligence is the omission of that care which the most attentive person would take under like circumstances. (Pa. 1879) First Nat. Bank of AUentown V. Eex, 2 ]Sr B. 0. 373; 89 Pa. St. 308; 33 Am. E. 767. 16. A national bank receiving a special deposit with- out compensation is liable for damage occurring through want of ordinary care. (Pa. 1869) Lancaster Co. Nat. Bank v. Smith, 62 Pa. St. 47. 17. Where bonds left for safe keeping have been stolen from the bank, the bank cannot be held liable if it ap- pears that the officials used due care and diligence to re- cover the same. (U. S. Sup. Ct. 1886) Wylie v. Northamp- ton Nat. Bank, 3 N. B. C. 188; 15 F. R 428; 119 U. S. 361. 18. To charge a national bank for the loss of a special deposit, it must appear that it did not take all proper pre- cautions in the care thereof. (Pa. 1876) De Haven v. Kensington Nat. Bank, 1 N. B. C. 882; 81 Pa. St. 95. 19. A national bank, the receiptor of a deposit of prop- erty, which gives a receipt reading: "Received of J. D. Whitney four thousand dollars for safe keeping as a spe- cial deposit. A. M. Waite, Cashier," is not liable for the SPECIAL DEPOSITS. 213 theft or larceny of such property unless there was com- plicity or had faith, and is answerahle only for fraud or gross negligence. (Vt. 1882) Whitney v. First ]S"at. Bank of Brattleboro, 55 Yt. 154. 20. The fact of the silence and inaction of the bank officials after a robbery by which a special deposit is lost is properly given to the jury on the question of negli- gence. (Pa. 1875) First JSTat. Bank v. Graham, 1 N. B. C. 875; 79 Pa. St. 106. 21. Presideut, appropriation Iby — Knowledge of offi- cers,— Where the bank officers know and assent to the president hypothecating for his own use bonds left on special deposit, the bank is liable therefor. (Pa. 1879) First JSTat. Bank of AUentown v. Eex, 2 N. B. 0. 373; 89 Pa. St. 308; 33 Am. E. 767. 22. Cashier's dishonesty. — Where notice of cashier's dishonesty is brought home to the bank, it lays the bur- den on such bank of greater care in the protection of a depositor's interests, the degree of such care necessary to exempt the bank from liability being a question for the jury. (G-a. 1893) Merchants' ISTat. Bank v. Guilmartin, 21S. E.E. 55; 93Ga. 503. 23. In an action against a national bank for the value of a special deposit embezzled by the cashier, evidence that the bank under like circumstances intrusted its own property to such cashier does not alone establish proper care on the part of the bank. (Ga. 1895) Merchants' Nat. Bank v. Carhart, 22 S. E. E. 628; 95 Ga. 894. 24. , teller. — Where a gratuitous bailment is stolen by tho teller of the bank, nothing short of a knowl- edge of the true character of the teller, or of reasonable grounds to suspect his integrity, followed by a neglect to remove him, can be said to be gross negligence. (Pa. 1874) Scott V. ISTat. Bank of Chester Valley, 1 IST. B. 0. 864; 72 Pa. St. 471; 13 Am. E. 711. ■214 STATE BANKS, CONVERSION OF. 25. Damages, measure of.— In an action of trover for a special deposit, the rule of damages is the value of the property at the time of the conversion, with interest. (Mo. 1870) Coflfey v. The Nat. Bank of Missouri, 1 If. B. 0. 644:; 46 Mo. 140. 26. Evidence, negligence. — In an action against a na- tional bank for the conversion or loss of bonds deposited with it as a gratuitous bailee, gross negligence must be shown, and a mere showing of the loss under facts from which theft might be inferred does not show such gross negligence. (Mass. 1868) Smith v. Tirst Nat. Bank of Westfield, 99 Mass. 605. STATE BANKS, CONTERSION OP. I 1 PowBK OF Conversion. IL Effect of Conversion. IIL Actions. See Charter; Orgakezation. How affected by usury laws, see TJstjrt, 69. Certificate of comptroller, see Comptroller, 5. Directors after, see Dirbctors, 9. Liability of shareholder on, see Liability of Shareholders, 33. I. Power of Conveesioit. 1. Authority. — No authority from the state is neces- sary to enable a bank to change its organization from a state bank to a national bank. (U. S. Sup. Ct. 1876) Casey V. Galli, 1 K B. C. 142; 94 U. S. 673. 2. The national banking act contemplated the reorgan- ization of state banks as they then existed, and the voting stockholders could transfer the entire institution and all classes of stockholders, absolute or qualified, into the new corporation, unless they dissented and withdrew. (Conn. STATE BANKS, COJSTVEESION OF, II. 215 1861) State v. Phoenix Bank, Bi Conn. 206; State v. Hart- ford Bank, 34 Conn. 240. 3. Savings banks. — The proviso in the act of 1876 as to savings banks in the District of Columbia implies that such savings banks can avail themselves of the privilege of conversion into national banks. (U. S. Sup. Ct. 1883) Keyser v. Hitz, 133 U. S. 138. II. Effect of Conveesiok. 4. Dissolution. — The process of converting a state bank into a national bank is not an annihilation or a dissolu- tion, but rather a change. (Pa. 1870) Maynard v. Bank, 1 K B. C. 892; 1 Brewster (Pa.), 483. 5. Identity, actions. — The conversion of a state bank into a national bank does not affect its identity or its right to be sued upon obligations or liabilities incurred by it as a state bank. (U. S. Sup. Ct. 1891) Michigan Insur- ance Bank v. Eldred, 143 U. S. 293. 6. Contracts, — The provisions as to conversion apply to all pending executory contracts, and such contracts may be enforced after such conversion in the same mah- ner as before. (IST. Y. 1884) City Nat. Bank of Poughkeep- sie V. Phelps, 97 K T. 44; 3 JST. B. C. 627; 49 Am. E. 513. 7. Liability, circulation. — The conversion of a state bank into a national bank does not destroy the identity or the corporate existence of such state bank, nor dis- charge it as a national bank from its liability to holders of its outstanding circulation, issued vrhile a state institu- tion. (D. S. Sup. Ct. 1891) Metropolitan Nat. Bank v. Claggett, 141 U. S. 520. 8. The provisions of the state statutes as to the redemp- tion of the circulating notes of state banks do not apply to a state bank converted into a national bank and not " closing the business of banking." Ibid. 216 STATE BANKS, CONVEESION OF, IL 9. Liability^ depositors, — A national bank organized from a state bank, taking its assets and continuing its ex- istence, will be liable to the depositors of the state bank. (Mo. 1883) Evans v. Exchange Bank, 79 Mo. 182. 10. Assets. — A national banking association, organ- ized as, successor to a state bank, takes and holds the as- sets of the state bank, though there was not a formal con- version from such state to the national bank, but it took as if by sale, and purchase. (Ohio, 1884) Western Reserve Bank v. Mclntyre, 40 Ohio St. 528. 11. Continuing guaranty. — A guaranty given to a state bank inures to the benefit of the national bank con- verted therefrom, and the national bank can main-tain an action thereon. QS: Y. 1884) City JSTat. Bank of Pough- keepsie v. Phelps, 3 ]Sr. B. 0. 627; 97 JST. T. 44; 49 Am. E. 513. 12. Obligations of state bank. — A national bank created by the conversion of a state bank does not lose any of the assets or escape any of the liabilities of the state institution. (Pa. 1871) Kelsey v. Nat. Bank of Craw- ford, 1 ]Sr. B. C. 847; 69 Pa. St. 426. 13. A national bank organized from a state bank and receiving its assets is liable for its debts. (Pa. 1867) Thorpe V. "Wegefarth, 56 Pa. St. 82; 93 Am. Deo. 789. 14. Directors. — The directors of the state bank con- tinue to be the directors of the national bank into which it is cpnverted until an election or appointment by the national bank. (R. I. 1869) Lockwood v. The American Nat. Bank, 1 JST. B. C. 895; 9 E. I. 308; 11 Am. E. 253. 15. A majority of all the former directors is required to make a quorum, irrespective of the number who took the oath. Ibid. ' 16. State bank notes, set-off. — A debtor of an in- solvent national bank which was organized from a state STATE BANKS, CONVERSION OF, IH 217 t bank cannot set off against Ms debt the circulating notes of the state bank purchased after the act of insolvency. (Pa. I'SeT) Thorpe v. "Wegefarth, 56 Pa. St. 82; 93 Am. Dec. t89. 17. Conversion of national into state, elfect. — A state bank converted from a national bank may enforce a guar- anty given to the former bank and succeeds to all its rights and liabilities. (Mich. 1895) First Com. Bank v. Talbert, 103 Mich. 625. 18. Taxation. — A state bank in process of conversion into a national bank continues subject to state taxation until the requirements of the statute are strictly complied with. (Pa. 1874) Commonwealth v. Manufacturers' & Mechanics' Bank of Philadelphia, 2 IST. B. C. 459; 2 Pear- son's Decisions (Pa.), 386. 19. A state bank becoming a national bank on Octo- ber 28, and not furnishing evidence to the auditor-gen- eral of having complied with the state act enabling such change until December 19, which evidence was duly cer- tified and published December 19, is liable to the state for all taxes to December 19. (Pa. 1872) Manufacturers' & Mechanics' Nat. Bank v. Commonwealth, 72 Pa. St. 70. III. Actions. 20. Against president. — A national bank created out of a state bank acquires a right of action the latter had against its president for money had and received. (Mass. 1875) Atlantic ISTat. Bank v. Harris, 2 N. B. C. 454; 118 Mass. 147. 21. In which name. — A national bank converted from a state bank may sue- by its name as a national bank, or may, in pursuance of a state law, sue by the state bank name. A state law permitting such action does not con- 218 TAXATION. flict with the banking act. (Md. 1876) Thomas v. Farm- ers' Bank of Maryland, 2 IST. B. C. 248; 46 Md. 43. 22. Mortgage foreclosure.— A national bank organ- ized as successor of a state bank may bring action to fore- -close a real-estate mortgage executed to the state bank and assigned by it to such national bank on the reorgan- ization, (isreb. 18Y9) Scofield v. State Nat. Bank, 9 Neb. 316; 31 Am. E. 412; 2 K W. K. 888. TAXATION. L What Taxable. a. Capital Stock. b. Shares of Stocle. c. Surplus. d. Dividends. e. Circulation. f. Beal Estate. g. Privilege and Licenses. h. Miscellaneous. n Where Taxablk- a. In General. b. Shares of Residents. c. Shares of Non-residents, III. To Whom Taxable. IV. For What Purpose. V. Discrimination Against National Banks. a. In General. b. Valuation. c. State Banks and Corporations. d. Deductio7is. e. Exemptions. VI Valuation and Assessment. a. In General. b. Deductions. o. Exemptions. VIL Method of Assessment. VIIL Remedies for Erroneous Taxation. IX. Collection of Tax. X. Eeceiver. XL Constitutional Law. TAXATION, I, a. 219 Exhibiting books to state officers, see Books, 3. Liability for, on conversion of state bank, see State Bank, Conver- sion or, 18, 19. I. "What Taxable. a. Capital Stock. 1. A state can tax the shares of the capital stock of national banks, but not the capital stock itself. (Mich. 1868) Smith v. First Nat. Bank, 17 Mich. 479; (Mich. 1890) First Nat. Bank v. Watkins, 21 Mich. 483. 2. The capital of national banks cannot be taxed by state authority, but the shares can be so taxed at a rate not exceeding that imposed on state banks. (Iowa, 1867) Hubbard v. Board of Supervisors, 23 Iowa, 130. 3. The capital stock of a national bank, as such, can- not be taxed by the state. State taxation can reach only the shares of the stockholders. (U. S. D. C. 1867) Col- lins V. Chicago, 1 N. B. C. 191; 4 Biss. (U. S.) 472. 4. Section 5219, United States Eevised Statutes, does not authorize the taxation of national bank siodk in, solido against the corporation, and a state cannot, by an act of the legislature, validate such an assessment. (U. S. C. C. 1890) JSTat. Bank of Virginia v. City of Eichmond, 42 F. R. 877; Same case, 39 F. E. 309; (TJ. S. Sup. Ct. 1888) Whit- beck V. Mercantile Bank, 127 U. S. 193; 3 N. B. C. 309. 5. The national banking act does not forbid the assess- ment of the capital stock of a national bank m solido to the bank. The manner of such taxation rests with the states, subject to the restrictions imposed by section 5219, United States Eevised Statutes. (Wash. 1893) Aberdeen First Nat. Bank v. Chehalis County, 6 Wash. 604; 32 Pac. E. 1051. 6. California revenue act.— Under the revenue act of California, a national bank is not liable to taxation on its 220 TAXATION, I, a. capital stock when it is not the owner thereof. (Cal. 1876) People V. ISTat. Gold Bank, 51 Oal. 508. 7. Invested in United States securities.— The capital stock of a national bank invested in United States securi- ties is not subject to state taxation, though the shares of the stockholders in such bank are. (U. S. Sup. Ct. 1869) Nat. Bank v. Commonwealth, 1 N. B. C. 34; 9 Wall. (U. S.) 353; (U. S. C. C. 1867) Collins v. Chicago, 1 N. B. C. 191; 4 Biss. (U. S.) 472; (U. S. Sup. Ct. 1890) Palmer v. Mc- Mahon, 133 U. S. 660. 8. Without the permission of congress, neither a na- tional bank nor United States securities, constituting its capital stock, can be taxed by the state or territorial au- thority. (Utah, 1876) Salt Lake CityJSTat. Bank v. Gold- ing, 2 Utah, 1. 9. State authorities will be enjoined from collecting a tax upon the capital stock of a national bank. (U. S. C. C. 1873) First Nat. Bank y. County of Douglass, 1 N. B. C. 267; 3 Dillon (U. S.), 298. 10. A state has power under the national banking act to tax the shares of national bank stock in the hands of shareholders, where the capital of such bank is wholly invested in stock and bonds of the United States. (U. S. Sup. Ct. 1865) Yan Allen v. Assessors, 1 JST. B. C. 1; 3 Wall. (U. S.) 573. 11. It is immaterial on the right of a state to tax na- tional bank stock whether or not the capital of such bank is invested in United States securities, even if such securities are by themselves exempt from taxation. (La. 1889) First Nat. Bank of Shreveport v. Board of Review- ers, 41 La. Ann. 181; 5 S. R. 458. 12. The right of a state to tax shares of stock in na- tional banks is not affected by the investment of the capi- tal of such bank in United States securities. (Ind. 1866) Wright V. Stilz, 27 Ind. 338. TAXATION, I, b. 221 13. Bon'js on state bank, conversion. — A state has no right to exact a bonus or a tax from a state bank for its franchise and privileges after such bank has been con- verted into a national bank. The right to exact it ceased on the conversion. (Md. 18Y0) State v. Nat. Bank of Baltimore, 1 K B. C. 527; 33 Md. 15. b. Shares of Stock. M. The power to tax national bank stock is -wholly de- rived from congress. (Ind. 1886) Wasson v. First Nat. Bank, 107 Ind. 206; 8 N. E. K. 97. 15. In general. — The shares of national bank stock are taxable for state purposes as a part of the personal estate of the holder. , (Pa. 1867) Mintzer v. County of Mont- gomery, 54 Pa. St. 139; (La. 1869) First Nat. Bank of Shreveport v. Board of Eeviewers, 41 La. Ann. 181 ; 5 S. B. 408; (Ind. 1866) Wright v. Stilz, 27 Ind. 338; (Ky. 1897) Deposit Bank of Owensboro v. Davies County (Ky. Ap- peals), 39 S. W. E. 1030. 16. Shares of bank stock are to be included in and form a part of the personal property of the stockholders. (N Y. 1897) ^tna Ins. Co. v. The Mayor, 153 N. T. 331; 47 N. E. E. 593. 17. A state tax on shares of stock in national banks held valid, though the tax against state banks was not w nomine a tax on shares. (Ohio, 1868) Frazer v. Seibern, 1 K B. C. 936; 16 Ohio St. 614; (Wis. 1869) Yan Slyke V. State, 1 K B. C. 939; 23 Wis. 655; (Wis. 1869) Bag- noli V. State, 25 Wis. 112. 18. A state has the power to tax shares of stock in na- tional banks, and may authorize the assessment thereof in the city or town within the state where the owner of such shares resides. (Mass. 1867) Austin v. Board of Alder- men, 14 Allen (Mass.), 359. 222 TAXATION, I, b. ' 19. The national banking act permits the state in which a national bank is located to tax all the shares of capital stock without regard to ownership; and this necessarily implies the power to tax a national bank upon shares owned in another national bank. (U. S. Sup. Ct. 1888) Bank of Redemption v. Boston, 125 U. S. 60; 3 N. B. C. 300. 20. In territories. — Neither the constitution of the TJnited States nor the national banking act forbids the leg- islature of a territory taxing the shares of stock in a na- tional bank. (Utah, 1876) Salt Lake City iSTat. Bank v. Golding, 2 Utah, 1. 21. Territories as well as states have power to tax the shares of stock in national banks. (Mont. 1887) Commis- sioners of Silyerbow County v. Davis, 3 N". B. C. 546 ; 6 Mont. 306; (U. S. Sup. Ct. 1891) Talbott v. Silverbow County, 139 U. S. 438. 28. Wliat interest taxable. — A state tax on national bank stock of so much a share is a tax on the entire in- terest of the stockholder, and includes his interest in the surplus and undivided profits as well as the authorized capital and assets of the bank. (Ky. 1884) Covington City Nat. Bank v. City of Covington, 21 F. E. 484. 23. Taxation direct upon shareholder. — A tax of so much a share on national bank stock is a tax on the shares of the shareholders and not on the capital stock of such banks. (U. S. Sup. Ct. 1869) First Nat. Bank of Louis- ville V. Kentucky, 76 U. S. (9 Wall.) 353. 24. State taxation of national bank stock should be di- rectly against the shareholders and not against the cap- ital of the bank itself. (Mo. 1868) Lionb'erger v. Eonse, 43 Mo. 67; (Mo. 1869) First Nat. Bank v. Meredith, 44 Mo. 500, approved by Curtis v. "Ward, 58 Mo. 295. 25. The right of the state to tax stock of national banks is undisputed in this state, whether the tax be against the TAXATION, I, c, d. 223 corporation or against the stock in the hands of individ- ual shareholders. (N. J. 1866) State v. Haight, 31 JST. J. L. 128. 26. Double taxation. — Taxation, of the real and per- sonal estate of a national bank as well as of its stock is double taxation, since the stock of a bank represents its entire property. (Md. 18TT) County Commissioners v. farmers' & Mechanics' Nat. Bank, 2 :N'. B. C. 252; 48 Md. 117. c. Surphis. 27. The undivided surplus of a national bank, not in- vested in federal securities, may be lawfully taxed against the bank, if it is not included in estimating the value of the shares. (]N".' J. ISTT) State, ISTorth Ward ISTat. Bank V. City of Newark, 1 N. B. C. 672; 39 E. J. L. (10 Vroom), 380. 28. The undivided surplus of a national bank is en- tirely separate from its capital stock, and state taxation of it does not interfere in any way with the operations of the bank as an instrument of the government^ and hence is valid. (N. H. 1875) First JSTat. Bank v. Peter- borough, 1 K B. C. 658; 56 N. H. 38. 29. If the shares are estimated on the basis of the assets and the surplus, it will amount to double taxation if the surplus is also taxed. (N. J. 1877) State, North Ward ^ Nat. Bank v. City of Newark, 1 N. B. C. 672; 39 N. J. L. (10 Vroo]?i), 380. d. Dividends. 30. The liability of a national bank for a tax on its dividends rests on the fact that such dividends were de- clared due and payable from the earnings, income or gains, and that any sums were added to its surplus or contingent 224 TAXATION, I, e. fund. (U. S. Sup. Ct. 1890) Central Nat. Bank v. United States, 137 U. S. 355. 31. If a bank which has declared a dividend thrcrugh a mistake does not rescind such action before the time for the return to the assessor for the purpose of taxation, the question, so far as the taxation is concerned, is closed. Ibid. e. Gircwlation. 32. Irrational bank notes are obligations of the govern- ment and cannot be taxed by the state. (Miss. 18T6) Home V. Greene, 1 N. B. C. 643; 52 Miss. 462. Confy'a: (Ind. 1869) Board of Commissioners v. Elston, 1 'E. B. C. 425; 32 Ind. 97; (K C. 1873) Lilly v. The Commission- ers, 69 N. C. 300. 33. State notes. — The act of 1866 which provides for the taxation of state bank notes is a constitutional enact- ment to protect the national currency. (TJ. S. Sup. Ct. ' 1869) Veazie Bank v. Fenno, 1 JST. B. C. 22; 8 WaU. (K T.) 533. 34. The statute imposing a tax on the amount of notes of any town, city or municipal corporation . paid out is Constitutional. (U. S. Sup. Ct. 1879) Merchants' ]S"at. Bank of Little Book v. United States, 101 U. S. 1; 2 N. B. 0. 160. 35. Such a tax is not laid on the obligation, but on its use, and is valid as a restraint of a use of such notes against the policy of the United States. Ibid. 36. Congress has power to exempt national bank notes from state taxation, but not having done so they are tax- able by the states. (U. S. Sup. Ct. 1869) Veazie Bank v. Fenno, 1 N. B. C. 22; 8 Wall. (U. S.) 533; (N. C. 1873) Euffln V. Board of Commissioners, 1 N. B. C. 806; 69 ]Sr. C. 498. TAXATION, I, £, 225 f . Real Estate. 37. National banks are subject to taxation only on the real estate and the shares of stock, and not on mortgages held by them. (Nev. 1893) Winnemucca First Nat. Bank V. Krieg, 21 Nev. 404; 32 Pac. E. 641. 38. Where shares of national bank stock are assessed at their actual market value, the real estate of such bank should not be taxed eo norrvme. (Minn. 1877) Commis- sioners of Kice County v. Citizens' Nat. Bank of Faribault, 23 Minn. 280. 39. Where a building occupied by a national bank rep- resents part of its capital stock, and the shares are taxed at their par value, the building cannot be taxed. (Pa. 1879) County of Lancaster v. Lancaster County Nat. Bank, 2 N. B. C. 415; 7 W. N. C. 29. 40. Under the national banking act no property of a national bank is subject to state taxation except the real estate of the bank and the shares of its stockholders. (Iowa, 1868) Nat. State Bank v. Young, 25 Iowa, 311. 41. The banking house of a national bank is to be as- sessed to the bank as real estate in the taxing district where the bank is located, and its value is to be deducted in the valuation of the shades of the stockholders. (N. J. 1895) Orange Nat. Bank v. Williams, 32 Atl. E. 145; 58 N. J. L. 45. 48. Eeal estate belonging to a national bank should be assessed to such bank in the county, township, town or city where it is located and not as a part of the capital stock. (Ind. 1882) Loftin v. Citizens' Nat. Bank, 85 Ind 341. 43. Eeal estate owned by a bank constitutes a part of its assets to be assessed'with the privilege tax under the code of Mississippi. (Miss. 1890) Vicksburg Bank v. Wor- rell, 7 S. E. 219 ; 67 Miss. 47. 15 226 TAXATION, I, g, h. 44. Pennsylvania. — The real estate of a national bank is subject to taxation apart from its capital under act of June 10, 1881, of Pennsylvania. (U. S. D. 0. 1882) Second Nat. Bank v. Caldwell, 13 F. K. 429. g. Prvoileges cmd Licenses. 45. The authorities of a municipality have no power by ordinance to levy a " privilege " tax on national banks. (Tenn. 1875) Nat. Bank of Chattanooga v. Mayor, 1 N. B. C. 903; 8 Heisk. (Tenn.) 814. 46. The right of a national bank to operate and do a banking business cannot be taxed by the state. (Ga. 1877) Mayor v. First Nat. Bank of Macon, 59 Ga. 648. 47. A license tax which undertakes to tax the opera- tions of national banks is unconstitutional. (U. S. D. C. 1882) Second Nat. Bank v. Caldwell, 13 F. K. 429; (U. S. Sup. Ct. 1891) Shelton v. Piatt, 139 U. S. 591. 48. A state or municipality has no power to exact a license fee from a national bank for the privilege of doing business within its limits. (Mo. 1880) City of Carthage V. First Nat. Bank of Carthage, 2 N. B. 0. 279; 71 Mo. 508. h. Miscdlomeous. 49. Banking house. — The banking house is a part of the capital stock of a national bank, and a tax upon the shares of such bank at their par value is a tax upon such banking house. (Pa. 1880) County of Lackawanna v. First Nat. Bank of Scranton, 94 Pa. St. 221. 50. Furniture. — The furniture of a national bank is exempt from state taxation, since congress has not per- mitted it ; but real estate of such institutions is expressly subjected to such taxation by permission of congress. (U. S. C. C. 1884) Covington City Nat. Bank v. City of TAXATION, II, a. 237 Covington, 21 P. E. 484; (Iowa, 1868) l^at. State Bank v. Young, 25 Iowa, 311; (Iowa, 1867). Hubbard v. Board of Supervisors, 23 Iowa, 130. 51. Mortgages.— Mortgages held by a national bank cannot be subjected to state taxation. (Nev. 1893) Win- neuiucca First Nat. Bank v. Krieg, 21 Nev. 404 ; 32 Tac. E. 641. 52. Paid checks.— Paid checks are not "articles or objects subject to taxation " within the meaning of the act of congress, and the bank may lawfully refuse to allow a collector of internal revenue to examine them. (U. S. Sup. Ct. 1877) United States v. Mann, 1 JS". B. C. 154; 17Alb. L. J. 85;95U. S. 580. 53. The personal property of a national bank is not taxable to the bank, the taxation thereof being prohibited by the national banking act. (Mont. 1878) First Nat. Bank of BiUings v. Province, 51 Pac. E. 821. II. Where Taxable. a. In General. 54. Shares of stock in national banks are personal prop- erty, and the national banking act creating them could give them a situs of their own, apart from the owners, for the purpose of taxation. (U. S. Sup. Ct. 1873) Tappan v. Merchants' Nat. Bank, 86 U. S. (19 Wall.) 490. 55. Location of bank. — It is in the power of the state to fix the situs of a national bank as to taxation, and a state statute is valid providing that shares of national hanks shall be taxed in the county, town or district where the bank is situated. (111. 1872) First Nat. Bank v. Smith, IN.B. C. 390; 65 IlL 44. 56. The forty-first section of the national banking act simply confines the power of taxation of shares of national bank stock to the state having jurisdiction of the place 228 TAXATION, II, a. \5rliere the bank is located. (Yt. 1869) Olapp v. City of Burlington, 42 Yt. 5T9. 57. Shares in national banks are taxable for ^tate, county and municipal purposes at the place where the bank is located. (Tenn. 18T2) McLaughlin v. Chadwell, 7 Heisk. (Tenn.) 389. 58. Shares in national banks owned by residents of a gtate may be assessed either at the place where the owner resides or where the bank is located. (N. 0. 1878) Buie V. Commissioners of Fayettesville, 2 K B. C. 343; 75 K 0. 267. 59. Ifational bank stock can be taxed only at the loca- tion of the bank. (Ind. 1870) Strader v. Manville, 33 Ind. 111. 60. " Place " defined. — The word " place," in the pro- viso in paragraph 41, chapter' 106, of the act of congress of June 3, 1864, has reference to the location of the bank and not to the authority under which the tax is to be as- sessed. (Me. 1867) Packard v. City of Lewiston, 55 Me. 456. 61. The word "place," in section 41 of the national banking act, has relation to the kind of tax levied. If a state tax, it refers to the state in which the bank is lo- cated; if a county, to the county; and thiis with reference to the different kinds of taxes and localities. (N. J. 1866) State V. Haight, 31 N. J. L. 128. ~ 62. The limitation of the national banking act that na- tional bank shares are to be taxed " at the place where the bank is loclited and not elsewhere " should be con- strued to refer to the state within which the bank is lo- cated. (Idaho, 1873) People v. Moore, 1 Idaho, 504. 63. What is sufficient location.— The doing of a de- posit business in a state other than that of its principal location does not make the bank an inhabitant of the tAXATION, li, b. 229 former state. (TJ. S. C. C. 18Y8) Nat. Bank of Camden v. Pierce, 2 N. B. C. 177;' 18 A. L. J. 16. 64. Conflict of law. — In considering whether or not a state statute allowing shares of national bank stock to be taxed at the residence of the owner is in conflict with the banking aotj which directs them to be taxed at the locar tion of the bank and not elsewhere, the court can only consider the statute in reference to the case before it, and where the results produced do not conflict with the act of congress the court will not interfere. (U. S. Sup. Ot. 1866) Austin v. Aldermen, 1 N. B. C. 15; 7 Wall. (U. S.) 691 b. Sha/res of Residents. 65. A resident national bank shareholder has no reason to complain of the failure of the assessors to notify the bank of the completion of the assessment, since such re- quirement under the New York statutes is, as it seems, for the purpose of creating a lien on the shares of non- residents only. (IST. T. 1888) People v. Smith, 50 Hun (N. T.), 39; 2]Sr. T. S..460. 66. It is no excuse for the making of an assessment on national bank stock to the bank itself that the share- holders do not all reside in the ward where the bank is located. The assessment must be made to the share- holder where he resides. (N. J. 1878) State, North Ward Nat. Bank t. Newark, 2 N. B. 0. 290; 11 Yroom (N. J.), 659. 67. Notice of residence. — Under a state statute re- quiring shareholders in national banks to give notice of their residence, the decision of such shareholders as to such place of residence must stand unless shown to be intentionally false. (Mass. 1873) Goldsbury v. Inhabit- ants of Warwick, 1 N. B. C. 592; 112 Mass. 384 230 TAXATION, II, c. c. Shares of Nonresidents. 68. It is no objection to the taxation of national bank stock at the location of the bank that the stockholder re- sides in another county or state. (Ind. 1870) Whitney v. Kagsdale, 1 N. B. C. 429; 33 Ind. lOY. 69. Shares of national bank stock owned by non-resi- dents should be taxed in the district where the bank is located. QS. J. 1898) Crossley v. Township Commission- ers, 16 Bk. L. J. 34. 70. Shares of stock in national banks cannot be taxed by any state except that within which the bank is lo- cated. (]Sr. J. 1892) State, Debaun v. Smith, 55 K J. L. (26 Vroom), 110. 71. Shares of non-residents of the state are to be taxed in the city or town where the bank is located, and not elsewhere. The taxing power looks not to the individ- ual, but to the bank. (IST. C. 18Y6) Kyle v. The Mayor, 1 ]Sr. B. 0. 808; T5 IS. C. 445. 72. The requirements as to taxation at the location of the bank in the case of non-residents applies to non-resi- dents of the state only, and not to those of a village or township. Stockholders of a national bank who live in another township of the same county should be taxed in the township where they reside. (Mich. 1877) Howell, v. Yillage of Cassopolis, 1 N. B. C. 627; 35 Mich. 471. 73. Under the Eevised Statutes of the United States, section 5219, non-resident stockholders are entitled to the same exemptions and deductions against the value of their stock as are granted to resident shareholders. (U. S. C. C. 1894) Mercantile Nat. Bank v. Shields, 59 F. R. 952. 74. The denial to non-residents of a right to vote for municipal officers, which power was granted to them in a proviso to an act giving the municipality power to tax TAXATION, IIL 231 such non-residents, does not abrogate that power of taxa- tion. (N. C. 1878) Moore v. Mayor and Commissioners of Faj^ettesville, 2 K B. C. 350; 80 JST. C. 154; 30 Am. K. 75. III. To Whom Taxable. 75. Owners. — National bank stock should not be as- sessed m solido to the bank, but to the respective share- holders as their individual interests appear. (IST. M. 1891) Albuquerque ISTat. Bank v. Perea, 25 Pac. K. 776 ; 5 Gilder. (]Sr. M.) 664. 76. Where the bank lists the shares as its own property and not as that of its shareholders, and neglects to apply to the proper tribunal for the correction of the assess- nient, it is estopped from thereafter setting up the de- fense. Ibid. 77. Taxes on national bank stock should be assessed against the stockholder, and the assessor is not warranted in making the assessment in any other mode, by the re- fusal of the bank's officers to disclose to him the names of the stockholders. (Mo. 1885) City of Springfield v. First ]Srat. Bank of Springfield, 3 N. B. C. 524; 87 Mo. 441. 78. Transfer of stock, liability for tax. — The laws of Wisconsin (Acts 1865, ch. 400) as to taxation of na- tional bank stock imposed the taxes as a lien on such stock, and a subsequent transferee can recover the amount of such lien paid by him after a transfer where the non- payment of the taxes has been concealed. (Wis. 1876) Simmons v. Aldrich, 1 JST. B. C. 921 ; 41 Wis. 240. 79. Invalid against bank in solido.-^ The assessment of the entire capital stock of a national bank against the bank im, soUdo is invalid under United States Eevised Statutes, section 5219. Such tax can be levied only against the individual shareholders. (Kan. 1891) Leoti First Nat. Bank v. Fisher, 26 Pac. E. 482; 45 Kan. 726. 232 TAXATION, IIL 80. An assessment upon the capital stock of a national bank in gross is invalid, and a provision that such tax should be paid by the bank for the shareholders thereof is invalid and inoperative. (Ala. 1878) Sumter County ]Srat. Eank v. Gainesville, 2 IST. B. C. 449; 62 Ala. 464. 81. Payment by bank. — Louisiana Act 85 of 1888, section 2Y, which provides that shares in national banks shall be assessed to the shareholders, but that the bank shall pay the taxes and collect them from the sharehold- ers, imposes a tax upon the shares and not upon the cor- poration. (TJ. S. 0. C. 1890) Whitney Nat. Bank v. Parker, 41 F. E. 402. 83. It is necessary to show that the shares are under the control and management of the association before it can be made liable, and if there have been dividends "it must be shown that the bank had at the time dividends or other money or property belonging to the shareholder. (Iowa, 1872) Hershire v. First Nat. Bank, 1 K B. C. 476; 35 Iowa, 272. 83. State taxation required to be paid by the bank, and by the bank collected from the dividends and stockhold- ers, is taxation on the bank itself, and therefore illegal. (TJ. S. C. C. 1893) Citizens' Nat. Bank of Louisiana v. Board of Assessors, 54 F. R. 73; 49 Am. E. 513. 84. The liability of a national bank to pay a tax upon its shares rests upon its power to collect the same of the money or property of its shareholders in its hands, and when it has no such money or property it is not so liable. (Iowa, 1894) Farmers' & Traders' Nat. Bank v. Hoffman, 93 Iowa, 119; 61 N. W. E. 418. 85. If no property has been set apart by such share- holders and no dividend has accrued on the stock, the lia- bilit}'^ of the bank cannot be sustained. Ibid. 86. The limitation as to taxation of the bank means TAXATION, IV. 233 only that the shares alone can be taxed, and does not apply to the method of collecting the taxes. (U. S. Sup. Ct. 1869) Nat. Bank v. Commonwealth, 1 N. B. C. 34; 9 Wall. (U. S.) 353. 87. A statute Requiring' national banks to pay the tax Imposed upon them, and empowering them to collect it of the shareholders, imposes a tax on the shares and not on the corporation. (U. S. 0. 0. 1890) "Whitney Nat. Bank T. Parker, 41 F. K. 402. TV. Foe What Ptjepose. 88. Municipal purposes, school. — "Municipal," under the Indiaiia statutes, is held to have reference to the in- corporated cities and towns in the state having authority to levy and collect taxes, and the restriction extends only to such city or town purposes. A school tax is not a tax for municipal purposes. (Ind. 18Y1) Boot v. Erdlemeyer, 1 N. B. 0. 432 ; 3T Ind. 225. See (U. S. Sup. Ct. 18T4) Hep- burn V. School Directors, 1 IST. B. C. 113; 23 Wall. (U. S.) 480. 89. Under the Indiana tax law of 186Y, shares of na- tional banks could not be taxed for municipal purposes, (Ind. 18T2) City v. Bayard, 39 Ind. 450. 90. Under the general law of Indiana for the incorpo- ration of cities, no tax can be imposed for municipal pur- poses on state banks, and therefore not on shares in national banks. (Ind. 1866) Craft v. Tuttle, 27 Ind. 332. '91. County purposes. — Shares of stock in national banks are assessable for county purposes under the Penn- sylvania acts of April 12, 1867, and April 2, 1868. (Pa. 1872) Everitt's Appeal, 71 Pa. St. 216. 92,. Fire district. — Under Public Statutes (ch. 13, par. 8-19), the holders of national bank stock residing in a regu- larly organized fire district in the town in which the 234: TAXATION, V, a. bank is located cannot be taxed for fire-district purposes. (Mass. 1885) Eioh v. Packard Nat. Bank, 138 Mass. 527. 93. School district.— Under General Statutes (ch. 39), and the statute of 1873 (ch. 315), the stock of a national bank situate in one town belonging to an inhabitant of another cannot be taxed to pay the expenses of building a school-house in the latter. (Mass. 1881) Little v. Little, 131 Mass. 367. V. DlSOEIMINATIONS AgAINST NATIONAL BaNKS. a. In General. 94. Any system of assessment of taxes which exacts from the owners of shares of a national bank a larger sum in proportion to the actual value of those shares than it does from any other moneyed capital, valued in like man- ner, taxes the shares at a greater rate, within the meaning ■of the act of congress, irrespective of the valuation. (U. S. Sup. Ct. 1879) Pelton v. Commercial Nat. Bank, 2 N. B. 0. 85; 101 U. S. 143. 95. The provisions of section 5219, United States Re- vised Statutes, do not require absolute equality between national banks and other moneyed capital, but only that there be no unjust discrimination unfavorable to national bank shareholders. (U. S. Sup. Ct. 1887) Davenport Bank V. Davenport, 3 N. B. C. 285; 123 U. S. 83. 96. State taxation of national bank stock is subject to the restriction that such tax should not exceed the burden imposed on similar property in the state. (U. S. C. C. 1890) First Nat. Bank v. Herbert, 44 F. R. 158. 97. Fact of discrimination sufficient. — A state tax law, to be invalid as discriminating against national banks, need not express such discrimination in words, but it is sufiicient if it in fact does so discriminate against such banks. (Tex. 1876) Harrison v. Vines, 46 Tex. 15. TAXATION, V, a. 235 98. Intention to discriminate. — A clear intent to dis- criminate against national banks in the state taxation of corporate stools: and personal property violates the statute providing for such taxation. (K". T. 1886) McMahon v. Palmer, 102 K T. 176; 6 N. E. E. 400. 99. Simply the existence of inequalities in the valuation of property for taxation does not establish a discrimination as provided by the national banking act to avoid the as- sessment of national bank stock. It must be shown either by direct proof, or by proof of inequalities so gross as to show to the court that an intentional discrimination act- ually existed against such national bank stock. (U. S. C. C. 1884) Exchange ISTat. Bank v. Miller, 19 F. E. 3T2. 100. To constitute a discrimination against national banks it must appear either that it was the intention of the statute to so discriminate, or there must be some agreement or combination on the part of the assessors, the necessary effect of which is to produce such a result. (U. S. C. 0. 1881) First Nat. Bank v. Farwell, 7 F. E. 518. 101. Kate, moneyed capital. — The rate of taxation upon the shares of national bank stock should be the Same as or not greater than upon the moneyed capital of the individual citizen liable to taxation, *. e., no greater in proportion or percentage of tax on the valuation of the shares should be levied than upon moneyed capital in the hands of citizens. (TJ. S. Sup. Ct. 1877) New York v. Commissioner of Taxes, 4 Wall. (U. S.) 244; (U. S. Sup. Ct. 1877) Adams v. JSTashville, 1 N. B. C. 148; 95 U. S. 19; (U. S. C. C. 1889) Eichmond First ISTat. Bank v. Eichmond, 39 F. E. 309 ; (U. S. Sup. Ct. 1876) People v. Commission- ers, 95 U. S. (4 Otto), 415; (Tex. 1887) Eosenberg v. Weekes, 67 Tex. 578; 18 Am. & Eng. Corp. Cas. 140. 102. The restriction as to the taxation of national bank shares applies solely to a parallel with an individual or 236 TAXATION, V, a. corporation whose capital is used with a view of compen- sation for the use of the money. (U. S. Sup. Ct. 1890) Talbott V. Silverbow County, 139 U. S. 438. 103. Section 5219, United States Kevised Statutes, per- mits the taxation of national bank stock by local govern- ments, but prohibits an adverse discrimination as com- pared with the assessment by the same government of other moneyed capital invested to secure a profit from the use thereof as money. (U. S. C. C. 1893) Puget Sound Nat. Bank v. King County, 61 F. E. 433. 104. Moneyed capital^ definition. — "Moneyed capi- tal," under TJnited States Eevised Statutes, section 5219,. includes shares of stock and other interests owned by in- dividuals in all enterprises in which the capital employed in carrying on its business is money, and where the ob- ject of the business is the making of profit by its use as money. (U. S. Sup. Ct. 1887) Mercantile Nat. Bank v. New York, 3 N. B. C. 243; 121 U. S. 138; (U. S. Sup. Ct. 1887) Newark Bank v. Newark, 121 U. S. 163; (U. S. Sup. Ct. 1891) Talbott v. Silverbow County, 139 U. S. 438. 105. " Other moneyed capital," as used in the national banking act (TJ. S. Kev. Stat., sec. 5219), means other tax- able moneyed capital. (U. S. C. C. 1884) Exchange Nat. Bank v. Miller, 19 F. E. 372. 106. The term ," moneyed capital " means money emr ployed in a business of loaning money for hire, discount- ing bills of exchange, or receiving deposits payable on demand. (U. S. C. C. 1894) Mercantile Nat. Bank v. Shields, 59 F. E. 952. 107. " Moneyed capital " does not mean ordinary cred- its or the stock of railroad, mining or insurance corpora- tions, but includes shares of stock or other interests owned by individuals in enterprises in which the capital em- ployed is money, and whose object is the making of a TAXATION, V, b. 237 profit by its use as money. (Wash. 1893) Aberdeen First Nat. Bank v. Ohehalis County, 32 Pac. E. 1051; 6 Wasb. «04. 108. Proof of discrimination. — To bold an assess- ment on tbe sbares of stock in a national bank invalid under United States Kejised Statutes, section 5219, it must be shown tbat there is an actual discrimination against such stock; and simple proof that the laws of the state provide for a different manner of taxing other mon- eyed capital invested in savings banks is not sufficient. (U. S. C. C. 1887) Richards v. Incorporated Town of Eock Eapids, 31 F. E. 505. 109. The interest of individuals in insurance and trust companies is not moneyed capital, and a discrimination between such companies and national banks is not a vio- lation of the national banking act. (U. S. Sup. Ct. 1888) JSTat. Bank of Eedemption v. Boston, 3 1^1". B. C. 300; 125 U. S. 60. b. YaZuation. 110. An intentional excessive valuation of national banks shares over other moneyed capital renders the as- sessment void. (U. S. Sup. Ct. 1879) Pelton v. N^at. Bank, 2KB. C. 85; 101 U. S, 143. 111. "Where the inequality of valuation is a result of a statute of the state designed to discriminate injuriously against any class of persons or property, a court of equity will give appropriate relief; or where, the law being proper, the officers combine to discriminate in the valua- tion, like relief will be granted. (TJ. S. Sup. Ct. 1881) German ISTat. Bank of Chicago v. Kimbal, 3 IST. B. C. 9; 103 TJ. S. 732. 112. The equalization of bank shares among themselves, but not with other moneyed capital, does not furnish a 238 TAXATION, V, b, system of valuation which will avoid a discriminatioii against national bank shares. (U. S. Sup. Ct. 1888) "Whit- beck V. Mercantile Bank, 127 TJ. S. 193; 3 If. B. C. 309. 113. The provisions of section 5219, United States Ke- vised Statutes, as to discriminations against national banks, applies only to over-assessment and not to over- valuation. (K T. 1878) Williams v. Weaver, 75 IS". T. 30. Gonl^a, People v. Weaver, 100 U. S. 539; 2 IST. B. 0. 57; Supervisors v. Stanley, 105 TJ. S. 305; Bressler v. Wayne Co., 32 Neb. 834; 49 K W. E. 787. 114. Where national bank shares were taxed at their full value and other moneyed capital at only forty per cent, of its value, held a discrimination and void, whether done by inadvertence or design. (U. S. C. 0. 1878) Mer- chants' Nat. Bank of Toledo v. Gumming, 1 JST. B. 0. 926; 17 Fed. Cas. 60; (U. S. C. C. 1877) City Nat. Bank of Pa- ducah V. Paducah, 5 Cent. L. J. 345. 115. The restriction in the national banking act as to the assessment of national bank shares prohibits an as- sessment based on a, valuation which discriminates un- fairly against such bank shares, and is not meant merely to secure equality in the rate of the tax after such assessment has been made. (U. S. C. G. 1881) Albany City Nat. Bank v. Maher, 6 F. K. 417. 116. Shares of national bank stock can be assessed at their appraised valuation to an amount exceeding their face value, if such valuation does not exceed that of other moneyed capital. (U. S. Sup. Ct. 1874) Hepburn v. School Directors, 1 N. B. C. 113; 23 Wall. (IT. S.) 480. 117. Valuation of franchise. — A state statute which levies a tax on the real and personal property of national banks and on their franchises, to be assessed by subtract- ing the value of the tangible property from the A^alue of the capital stock, is not in violation of the United States TAXATION, V, c, 239 Eevised Statutes, section 5219, since the sum total of the value of the franchise and the tangible property is in effect the capital stock of the bank. (U. S. 0. C, 1898) First JSTat. Bank v. Stone, 88 F. K. 409. c. State Bcmks and State Corporations. 118. Shares of other banking institutions incorporated in the state being other moneyed capital, the tax on na- tional bank shares must be at the same rate as that im- posed on such institutions. (TJ. S. C. C. 1890) Wilmington First ]Srat. Bank v. Herbert, 44 F. E. 158. 119. "Where state banks are taxed only on their capital, national banks cannot, by a statute of that state, be sub- jected to taxation on their shares, for a tax on the capital is not equivalent to a tax on the shares. (U. S. Sup. Ct. 1865) Van Allen v. The Assessors, 1 N. B. C. 1; 3 Wall. (U. S.) 573; (U. S. Sup. Ct. 1866) Bradley v. The People, 1 K B. C. 14; 4 Wall. (U. S.) 459. 120. Where the taxation of the shares of state banks is not provided for, shares in national banks cannot be taxed, and it is immaterial that there are no state banks in existence to be taxed. (Iowa, 186T) Hubbard v. Board of Supervisors, 23 Iowa, 130. ' 121. Where no tax is imposed on the shares of banks organized under state authority, no tax can be levied against the shares of national bank stock. (Ind. 1866) Wright V. Stilz, 27 Ind. 338. 122. The national banking act means only that the states should, as far as possible, tax in like manner the shares of state banks and the shares of national banks. (U. S. Sup. Ct. 1869) Lionberger v. Rouse, 1 IST. B. C. 41; 9 Wall. (IT. S.) 468. 123. Tne fact that certain state banks are by their charters privileged with a certain rate of taxation does 340 TAXATION, V, c. not make necessary the imposition of tHe same rate on natioiial banks, when other moneyed capital is assessed at a higher rate. Ibid. 124. The restriction of state taxation on shares of na- tional banks to the same rate as on other moneyed capital arises from the intention to discourage unequal and unfair competition, and in this sense moneyed capital is to be in- terpreted to include shares of stock or other interests owned by individuals in all enterprises in which the cap- ital employed is money, where the object of the business is the making of profit by its use as money. (TJ. S. Sup. Ct. 1886) Mercantile ISTat. Bank v. New York, 121 TJ. 8. 138; 3 K B. C. 243; (U. S. Sup. Ct. 1886) ISTewark Bank V. Newark, 121 U. S. 163; (U. S. Sup. Ct. 1888) Bank of Eedemption v. Boston, 125 U. S. 60; 3 JST. B. 0. 300. 125. The allowing an unincorporated state bank to de- duct the amount of its indebtedness from its credits is not necessarily a discrimination against national banks. Such state banks having no shares of stock, a different method of taxation must necessarily be adopted. (Neb. 1891) Bressler v. Wayne County, 32 Neb. 834; 49 N. W. E. 787. 12S. An exemption by a state from taxation of all shares of stock in corporations whose capital consists of property which is required to be listed for taxation does not refer to national banks whose capital consists of United States securities. (Ala. 1895) Molver v. Eobin- son, 53 Ala. 456. 127. The fact that there is no discrimination in taxa- tion between national banks and other corporations does not validate the tax when there exists a discrimination in favor of other moneyed capital. (TJ. S. C. C. 1890) Whit- ney Nat. Bank v. Parker, 41 F. E. 402. 128. National bank stockholders are not exempt from taxation because the stock of mining corporations is ex- TAXATION, V, d. 241 empt, such stock not being moneyed capital within the meaning of the statute, which refers to capital used with a view of compensation for its use as money. (U. S. Sup. Ct. 1891) Talbott v. Silverbow County, 139 U. S. 438. 129. A national bank which has retained out of its divi- dends sums to pay the state tax should include such sums in its return for the purposes of taxation. (TJ. S. Sup. Ct. 1890) Central ]S"at. Bank v. United States, 137 U. S. 355. 130. Where there is no intention to discriminate, a slight advantage accruing to savings bank capital over national bank capital will not vitiate the law providing for the taxation of such savings bank capital stock. (Iowa, 1894) Davenport JSTat. Bank v. Board of Equalization, 64 Iowa, 140; 19 JST. W. K. 889. d. Ded/iictions. 131. "Where state statutes permit a deduction of indebt- edness to owners of some personal property, but not to owners of national bank stock, it makes an unjust dis- crimination and is void, at least to a shareholder who has such debts to deduct. (TJ. S. Sup. Ct. 1882) Supervisors V. Stanley, 3 K B. C. 33; 105 U. S. 305; (IT. S. Sup. Ct. 1882) Evansville Nat. Bank v. Britton, 105 U. S. 322; 3 ¥. B. C. 48; (U. S. Sup. Ct. 1882) Hill v. ]S"at. Albany Exchange Bank, 105 U. S. 319; 3 1^. B. C. 45. 132. A state law which refuses to owners of national bank shares a deduction for debts which is allowed from other moneyed capital is ia conflict with the national banking act and void. (IT. S. Sup. Ct. 1879) People ex rel. Williams v. Weaver, 2 N". B. C. 57; 100 U. S. 539, revers- ing same case, 67 IST. T. 516, and overruling People v. Dolan, 36 N. Y. 59. 133. Where deductions to the amount of the lonafide indebtedness of the owner are allowed as against moneyed 16 242 TAXATION, V, d. capital other than shares of national bank stock, discrimi- nation against such stock arises and the tax is void. (TJ. S. C. C. 1894) Mer-cantile Nat. Bank v. Shields, 59 F. R. 952. 134. Non-resident shareholders in national banks are entitled to the same deductions as resident, and are en- titled to relief against the same discrimination. Ibid. 135. A state tax against national bank shares is illegal, which denies to the owner a deduction of his debts there- from, when it allows to other citizens a deduction of debts from "credits" which include some form of moneyed capital. (Ohio, 1894) First Nat. Bank v. Chapman, 9 Ohio .Cir. Ot. E. 79. 136. Where deductions of debts from the value of a person's taxable property are permitted, the same deduc- tion must be made from the value of national bank shares. But an assessment without such deduction is voidable *only. (U. S. Sup. Ot. 1889) Palmer v. McMahon, 133 U. S. 660. 137. It appearing that no deduction is allowed from national bank shares for debts and that there is a class of moneyed capital from which deductions for debts can be made, it must also appear that the amount of such capi- tal is so great as to amount to an illegal discrimination against the national banks before the tax can be avoided. (U. S. Sup. Ot. 1895) First Nat. Bank v. Ayers, 160 U. S. 660; 66F. E. 160. 138. Under a provision in the state statute that all debts due and owing by the taxpayer may be deducted from the gross amount of money and credits held, the owners ' of national bank shares are entitled to such de- duction. (U. S. 0. 0. 1887) Eichards v. Incorporated Town of Eock Eapids, 31 F. E. 505. 139. Under section 5219 an actual higher burden of tax on national bank shares must be shown, and simply a TAXATION, V, d. 24a different manner of taxation of moneyed capital is not suificient. Ibid. 140. The individual stockholders of a national bank are to be allowed the same deductions from the assessment upon their shares as other taxpayers owning moneyed capital are allowed thereon. (Kan. 1891) Leoti First Nat. Bank v. Fisher, 45 Kan. T26; 26 Pac. E. 482. 141. Where the rate fixed by the state (sec. 27, rev- enue law) for the taxation of moneyed capital in the hands of individual citizens situated similarly to that in- vested in national banks-is Jiotless than that placed upon national bank shares, the rule of uniformity is main- tained. (Keb. 1891) Bressler v. "Wayne County, 32 ISTeb. 834; 49 IST. W. E. T87. 142. The statute of ISTew York allowing a deduction for debts to owners of certain kinds of personalty which is not allowed to national bank shareholders is valid only as to those shareholders who have no. debts to deduct. (U. S. Sup. Gt. 1882) Supervisors of Albany v. Stanley, 3 K B. 0. 33; 105 U. S. 305. 143. Under the New York statutes 'providing for a de- duction of debts from an individual's personal property, and the provisions as to the taxation of national bank stock, an owner of such stock is not entitled to a deduc- tion therefrom for his debts, but such stock is to be taxed at its actual value, independent of the circumstances of the owner. (U. S. Sup. Ct. 1879) People ex jrel. Cogger V. Dolan, 1 N. B. C. 684; 36 IST. Y. 59. Overruled by Peo- ple ex rel. "Williams v. "Weaver, 2 N. B. C. 57; 100 U. S. 539. 144. An act denying deductions for the indebtedness of the owner of national bank shares from the value of his stock, when it is allowed to debtors in general, is void as to shareholders who have debts. (N. C. 1887) McAden 244 TAXATION, V, e. V. Commissioners of Mecklenburg County, 3 E". B. 0. 694; 91 K 0. 355. 145. The Ohio statutes allow a deduction for lonafde debts to the owner of moneyed capital, and such deduc- tion should be allowed to owners of national bank stock, or the assessment is void. (U. S. C. 0, 1894) Mercantile lij"at. Bank v. Shields, 59 F. E. 952. 146. Under the statutes of Ohio there is no discriminar tion in taxation against holders of shares of stock in na- tional banks by reason of such statutes not allowing to such holders a deduction for their debts, since such de- duction is not allowed to holders of stock in state or pri- vate banks, nor to owners of moneyed capital generally. (Ohio, 1897) Chapman v. First mt. Bank, 47 IST. E. E. 54. 147. A shareholder in a national bank in "Washington is entitled to have his 'bona fide debt set oflf against the value of his stock when such set-off and deduction is al- lowed against credits generally, including shares of stock in state banks. (Wash. 1897) Newport v. Mudgett, 51 Pac. E. 466. e. ExempUons. 148. Object of statute. — There must be a substantial equality in the taxation of national bank stock and other moneyed capital, and when there exists an inequality because of exemptions allowed to such moneyed capital a,nd not to the bank, so gross as to show an illegal dis- crimination, the tax will be set aside. (U. S. Sup. Ct. 1885) Boyer v. Boyer, 3 N. B. C. 151; 113 U. S. 689. 149. The national banking act does not curtail the state power of taxation nor out off the right of the state to make certain property exempt from taxation altogether. (TJ. S. Sup. Ct. 1877) Adams v. Mayor of ]S"ashville, 1 N. B. C. 148; 95 U. S. 19. TAXATION, V, e. 245 150. The provision of the national banking act that taxation of national bank stock shall not be at a greater rate than is assessed on other moneyed capital relates only to the rate of taxation and does not refer to exemp- tions by state statute. (Pa. 1872) Gorgas' Appeal, 79 Pa. St. 149^ 151. Other moneyed capital. — National bank shares are exempt from state taxation where a very material part relatively of the other moneyed capital in the hands of individuals is exempt. (TJ. S. Sup. Ot. 1885) Boyer v. Boyer, 3 JST. B. 0. 161; 113 TJ. S. 689. 152. A case of discrimination against national banks arises only when moneyed capital employed by individual owners in carrying on operations of the same general character as those within the power of national banks, and thus competing with national banks, is exempt from taxation by the wilful act of the assessors to some con- siderable amount. (Wash. 1894) "Washington ISTat. Bank V. King County, 9 Wash. 607; 38 Pac. E. 219. 153. An exemption of all mortgage judgments and recognizances from taxation is not such a discrimination in favor of moneyed capital as to vitiate a tax on national bank shares. (U. S. Sup. Ct. 1874) Hepburn v. School Directors, 1 JST.B.C. 113; 23 Wall. (U. S.) 480. 154. State and national securities. — The exemption of non-taxable national and state securities being allowed to individuals by the Louisiana act 85 of 1888, but not al- lowed to national banks, that act discriminates against national banks. (La. 1890) Whitney Nat. Bank v. Par- ker, 41 P. E. 402. 155. State banks. — The exemption of state banks from municipal taxation by a statute passed prior to the na- tional banking act does not exempt national banks from a like tax. (Ind. 1874) City of Eichmond v. Scott, 1 N. 246 TAXATION, VI, a. B. C. 445; 48 Ind. 568; (Ind. 1874) Stilz v. Tutewiler, 48 Ind. 600. 156. Savings deposits.— Savings deposits are moneyed capital in the hands of individuals, but they are not within the meaning of the banking act, so that national bank stock must be exempted from taxation if such deposits are so exempted. (U. S. Sup. Ct. 188Y) Mercantile Bank V. New York, 3 N. B. C. 243; 121 U. S. 138; (U. S. Sup. Ct. (1887) E'ewark Bank v. Newark, 121 U. S. 163; (TJ. S. Sup. Ct. 1888) Bank of Kedemption v. Boston, 3 N. B. C. 300; 125 U. S. 60. 157. Credits. — The exemption from taxation of cred- its, such as accounts, notes and mortgages, is not a discrim- ination against national banks, such credits not being within the term " moneyed capital," as used in the stat- ute. (Wash. 1893) Aberdeen First Nat. Bank v. Ohehalis County, 32 Pac. E. 1051; 6 Wash. 604. 158. The capital stock of a national bank in Louisiana is not exempt from taxation, though invested in United States bonds and securities, and the words " exempt prop- erty," found in section 28 of act 98 of 1886, does not apply to United States or state bonds in which the capital of such bank has been invested. (La. 1889) First Nat. Bank V. Board of Reviewers, 41 La. Ann. 181. VI. YALITATIOlf AND ASSESSMENT. a. In Oeneral. 159. Actual and market value.^The shares of stock in national banks may be assessed in the hands of each owner at their actual and not their par value, notwith- standing part or the whole of such capital stock is in- vested in United States securities. (U. S. Sup. Ct. 1889) Palmer v. MoMahon, 133 U. S. 660. TAXATION, VI, b. QiT 160. The capital- stock of national banks should be as- sessed at its full and true value, though that be in excess of its par value. (N. T. 18Y4) People ex rel. Williams v. Assessors of Albany, 1 IST. B. 0. 116; 6 Thomp. & Cook to forfeit franchise, 81. to recover assessment, 124. to recover usurious interest, 38& to redeem stock pledged, 37. ADMINISTKATOR — liability of, on stock, 117. AFFIDAVIT — by cashier in action, 7. AGENCY— power of bank to act as agent, 158. AGENT OP SHAREHOLDERS, 10. AIDERS AND ABETTORS — in making false entries, 89. indictment for aiding and abetting director, 96i INDEX 301 AMOUNT — in controversy in action, 4 APPEAL BOND, 7, ASSESSMENT— application of, to restore impaired capital, 121. authority of assessing officers, 250. excessive, 123. for benefit of creditors, officers' liability for, 264 interest on, 120. of national bank stock, for purpose of taxation, 248. recovery of, 124 second, by comptroller, 123. to restore impaired capital, 120. ATTACHMENT, 11. action on attachment bond, 6. against national banks, 11. conversion of stock by, 259. damages for wrongful, 15. priority of, over transfer of stock, 261. priority of, on national banTk stoo^ 15. remedy for illegal, 15. service by, 14 waiver of prohibition, 14 ATTORNEY— employment of, by bank, 166. ATTORNEY FEES — usurious, 270. B. BAILMENT— remedy for, in hands of the receiver, 53. BILLS AND NOTES, 15. action upon, by bank, 3. ' eflEect of usury on negotiability of, 274 presentment of at office of receiver, 41. BILLS OF EXCHANGE, 16. BILLS OF LADING, 16. BONDS — power of bank to take as collateral, 154 purchase of by national bank, 161. sale of mortgage bond by cashier, 30. 302 INDEX. BONDS OF OFFICERS, 16. approval of, 16. directors' liability for failure to take, 73. liability of sureties on, 16. BOOKS — entries in, as evidence in action against receiver, 13. false entries in, 85. inspection of for purposes of taxation, 18. inspection of by shareholders, 18. stock in the name of the pledgeej 113. trusteeship must appear on, 114 BRANCH BANKS, 18. BROKER, 19. BY-LAWS (see Dieectoes) — relating to transfer of stock, 259. 0. CAPITAL STOCK (see infra, Stock), 19. 1 Inoeease of Capital Stock, 19. IL Reduction of Capital Stock, 24 IIL Sale of Capital Stock, 24 contribution of directors to make up as preferred claim, 5L subscription to increase of, as claim, 40. unpaid, right of creditor to, 44 CASHIER, 27. L PovraES OF, 28. II. Liability of, 31. IIL Liability of Bank foe Acts of, 32. IV. Miscellaneous, 34 afiBdavit by, in action, 7. certificate of deposit issued by, without consideration, 84 directors' liability for mismanagement, 72. engaging in other profession, 33. false entries by assistant, 89. liability of bank on note of, 164 liability of for excessive loans, 31. on shares, 112. on contract made during organization, 139. misconduct of, 32. misrepresentations of, 32. INDEX 3oa CASHIER (oontinued)— negligence of in hiring clerk, 33, notice to, 33. to transfer stock, 265. notice of dishonesty of, S13. powers of, 28. agreement to pay usury, 30. to certify checks, 30. to buy draft, 80. to receive property for safe keeping, 31. to guaranty paper, 29. to discharge debts, 27. to borrow money, 29. ratification of acts of by bank, 32. recovery of money embezzled by, 33. retirement of, 31. CEETIFIOATE OP DEPOSIT, 34 liability of bank for fraudulent, 34 power of bank to issue, 34 OEETIPICATE OF ORGANIZATION, 13& CERTIFICATES OF RECEIVER, 187. CERTIFICATION OF CHECKS, 35. CHARTER — forfeiture of, 36, 167. proof of, 36. CHATTEL MORTGAGES, 37. CHECKS — certification of, 35, by cashier, 35. indictment for wrongful certification, 97. oral certification of, 35. over-certification of, 38. payment of, at place different from residence of bank, 141, CIRCULATION, 38. imprint of seal of treasury on, 38. of state bank on conversion, 215. redemption of, 39. set-oflE against bonds securing circulation, 88. state bank notes, 38. taxation of, 224 304 INDEX CITIZENSHIP — bearing upon action by bank, 3. CLAIMS, 39. L Allowance of, 40. a. Interest on Claims, 43. XL Action on, 43. ni Composition of Claims, 43. rv. Payment of Claims, 43. v. Peefbrred Claims, '45. a. Deposits, 45. b. Collections, 47. c. Miscellaneous, ^9. d. The United States, 53. collateral security, 40. collections, 47. composition of, 25. demand, 41. dividend on, 43. interest on, 43. judgment against receiver upon, 40. part payment of, estoppel by, 44 payment of, 43. payment of, from impaid capital stock, 44 presentment of, 41. priority, 45. proof of, 40. rents, 41. subscription to increase of stock, 41, who can prove, 41. CLEARING-HOITSE, 5a COIN — power of bank to buy and sell, 163. purchase of by bank, 165. COLLATERAL — application of on claim, 40, 44 COLLATERAL SECURITIES, 53. liability of holder of stock held as, 113. COLLECTIONS — as preferred claims, 47. power of bank as to, 165. COMMERCIAL PAPER, 54 INDEX. 305 COMMISSION — power of bank to sell on, 156. COMPTROLLER OF THE CURRENCY, 54 affirmation of, in suit to enforce shareholders' liability, 125. appointment of, 54 decision of, as to shareholders' liability, 123. deputy, 54 determination of, as to receiver, conclusive, 182. order of, as to action by receiver, 187. power of, 54 to appoint receiver, 180. to remove receiver, 181. CONFLICT OF LAWS, 55. as to limitations of actions as to usury, 287. national bank stock, 339. proof of national bank's organization, 138. preference, 171. state police law, 66. taxation, 357. usury, 273. usurious penalties, 381. CONGRESS — power, of as to jurisdiction of state courts, 110. power to abolish jurisdiction of state courts, 105. CONSTITUTIONAL LAW, 56. as to attachment, 15. as to taxation, 257. provisions of national banking act as to attachment, 18. CONTRACT OF RECEIVER, 186. CONTRACTS (see infra. Powers) — effect of conversion of, 215. effect of usury on, .274 CONVERSION (see infra, State Banks, Conversion of)— of stock by pledgee, 11. of national into state banks, 217. CORPORATE EXISTENCE — expiration of, 84 > extension of, 84 COSTS — guaranty for, 7. 20 306 INDEX. COUNTY — taxation of national bank stock for county purposes, 333. COUNTY FUNDS — as preferred claims, 49. COURTS (see Jueisdiction of). COVERTUEE — effect on shareholders liability, 115. CREDITOR — remedy against insolvent bank, 100. CRIMINAL LAW, 57. L Offenses Punishable Under United States Statutes, 58. a. Misapplication of Funds, 58. b. Embezzlement and Abstraction, 60. c. Aiding and Abetting, 63. d. Miscellaneous Offenses, 68. IE Offenses Punishable Undeb State Statutes, 64, abstraction of funds, 60. aiding and abetting, conviction of principal, 63. conspiracy, 59. criminal responsibility of agent of shareholder, 10. declaration of illegal dividend, 59. defense under state statutes, 64. deposit fraudulently received, 65. embezzlement, 60. embezzlement of property deposited with bank, 65, evidence of misapplication, 60. forgery, 64. fraudulent discount, 60. indictment, 91. jurisdiction of claim of embezalement, 63. larceny,. 65. liability of surety on bonds, 17. misapplication of funds, 58. misdemeanor in engaging in other profession, 33. perjuiy, 64. punishment of embezzlement, 63. ' purchase of stock with intent to defraud, 63. recovery of money embezzled by cashier, 33. wrongful certification of checks, QL INDEX 307 D. DAMAGES — measure of, in action on special deposits, 214, DEPOSITS, 66. demand for, after insolvency, 43. fraudulent receipt of, 65. indictment for fraudulent receipt of, 98. in insolvent bank, when due, 68. interest on, after suspension, 43. liability of director for, received when insolvent, 74, 75. liability for special, made during organization, 139. liability of United States for public money, 67. of savings banks as preferred claims, 49. receipt after insolvency, priority as claim, 45. savings deposits as moneyed capital, 346. set-off against note at bank, 203. DEPUTY COMPTEOLLER OF THE CURRENCY, 54 DIRECTORS, 68. I. In Gbnbeal, 68. II. LlABIUTY of, 71. a. Acts of Other Officers, 71. b. Excessive Loans, 73. c. Insolvency of Bank, 75. III. Actions to Enforce Liability, 76. actions against, for making false entries, 90. action by receiver against, 188. disqualified as judge, 71. duties of, 69. duty on insolvency, 75. estoppel of, as to usury, 71. false entry by, 89. indictment for aiding and abetting, 96. knowledge of, 70. as to loan by president, 177. liability of bank, 70. liability for excessive loans, 73. on shares, 112. for fraud, 73. for neglect to take bonds, 73. for mismanagement of ofBcers, 73. for acts of agent, 71. 308 INDEX. DIRECTOES (continued)— limitation of actions against, 79. meeting of, 70. oath of, as to ownership of stock, 69. of savings bank holding share on conversion, 70. of state bank on conversion, 216. pleading and practice in actions against, 78. quo warranto to try office of, 70. ratification of acts of president, 177. removal of, 70. resignation of, 70. resolution of, as to deed of real estate, 179. DISCOUNT — definition of, 144. usury in, 371. DISSOLUTION, 80. (See Liabujtt op Sharbholdbes.) effect of appointment of receiver, 183. efEect of conversion of state banks, 315. DISTRICT ATTORNEY, 81. DIVIDEND, 83. estoppel by reception of, 113. taxation of, 323. DOMICILE — with reference to action, 4 DRAFT— payment of by cashier, 30. E. ELECTION OF REMEDIES — to enforce shareholder's liability, 135. EQUITY— action to cancel fraudulent certificates of indebtedness by re- ceiver, 193. action to recover possession of notes, 193. does not lie to recover usmy paid to national banks, 888. relief for wrongful taxes, 353. ESTATE — liability of, on stock, 116. INDEX. 309 ESTOPPEL, 83. as to organization, 139. as to the power of cashier, 30. as to re-issue of old certificates, 113. as to stock standing in name of national bank, 113. as to contesting illegal taxes, 354. as to ultra vires contract by national bank, 158. in actions to enforce shareholder's liability, 135. EVIDENCE — as to appointment of receiver, 188. of negligence as to special deposits, 314 organization certificate, 187. presumption of organization from title of bank, 189. proof of authority to do business, 173. proof of discrimination in taxation of national banks, 387. that stock is held as collateral security, 114 EXAMINATION OF NATIONAL BANKS, 88. EXAMINER— possession of bank by, 75. EXECUTION— sale of stock on, 35. EXECUTOR — liability of, on stock, 117, 308. EXEMPTION— waiver of, as to action, 5. from taxation, 344 EXPIRATION OF CORPORATE EXISTENCE, 84 EXTENSION OF CORPORATE EXISTENCE, 84 F. FALSE ENTRIES, 85. (See Criminal Law; Indictment.) aiding and abetting in making, 89. FEDERAL COURTS, 104 actions by national banks in, 3. jurisdiction of, as to actions by receiver, 18& removal of action to, 8. FORFEITURE OF CHARTER, 36. precedent to liability of directors, 74 310 INDEX FORFEITURE OF POWER, 167. FRAUD— ^ directors' liability for, 73, FURNITURE — taxation of, 226. Q. GARNISHMENT— ' of national bank, 14 of receiver of national bank, 14 to collect taxes, 255. GRAIN— sale of, by bank, 167. GUARANTY — by president of notes for the bank, 173. contract of, 2. effect of usury on, 274 on conyersion of state bank, 216. power of bank as to, 164 power of cashier, 30. I. INCORPORATION — proof of, 6. INCREASE OP CAPITAL STOCK (see infra, Stock, Inoebase op)— subscriber to, 206. INDICTMENT, 91. , I. SUFFIOIENCT m GBNEEAL, 91. II Foe Misappuoation and Embezzlement, 93. IIL For Making False Entries, 94 IV. Miscellaneous, 96. for abstraction of funds, 97. IND0R8ER— set-off by, in action by receiver on note, 199; cannot recover penalty for usury, 284 INFANTS — liability of, as shareholders, 115. INJUNCTION— in federal courts, 99. in state courts, 98. INDEX. 311 INJUNCTION (continued) — of action by receiver to enforce shareholder's liability, 136. priority of, 99. to restrain collection of illegal taxes, 353. INSOLVENCY— actions on, 100. definition of " contemplation of insolvency," 168. directors' duty on, 75. payment of claims on, 39. priority of claims upon, 45. proceedings on, 100. proof of, 99. transfer voidable on knowledge of, 367. INSOLVENT NATIONAL BANKS — attachment against, 11. INSURANCE — contract to procure by bank, 157. INTENT — to make false entry, 87. INTEREST (see Usury) — on assessment, 130. on claims, 43. forfeiture of, for usury, 878. forfeiture of after maturity, for usury, 376. forfeiture of on renewals, for usury, 377. liability of shareholders for, on claim, 130. rate of state banks of issue, 103. rate prescribed by state, 100. INTERNAL REVENUE — examination of national banks by officers of, 353. J. JOINT MAKER — set-off by, in action on note, 199. cannot recover penalty for usury, 383. JUDGE — disqualification of director as to, 71. JUDGMENT — against national bank after voluntary liquidation, 138. against receiver on claim, effect of, 40-43. bank may sell, 166. 312 INDEX. JUDICIARY ACT, 3. JURISDICTION OF COURTS, 104 L Federal Courts, 104 a. In General, 104. b. United States Supreme Court, 105. c. United States Circuit Court, 106. d. United States District Court, 107. II. State Courts, 107. of action against directors, 76. of action for penalty, 109. of actions on contract for transfer of stock, 368. of action to enjoin the collection of a tax, 354, of actions by receiver, 188. of action for usury, 394 of ofifense of receiving deposits by insolvent bank, 67. JURISDICTIONAL AMOUNT, 106. L. LEASE, 110. action on, against bank, 110. by national bank, 166. LEGAL REPRESENTATIVE — action by, for penalty for usury, 384 LEGAL TENDER, 38. LIABILITY OP NATIONAL BANK — for acts of president, 176. for act of director, 70. on certified check, 36. during organization, 189. LIABILITY OP OFFICERS, 135. president, 175. LIABILITY OP RECEIVER, 194 LIABILITY OF SHAREHOLDERS, 110. L Who Liable, 111. a. Ouoner of Shares, 111, b. Pledgee, 113. c. Trustee, 114 d. Married Woman, Infant, 115. e. Survival Against Estate, 116. II Nature and Extent of Liability, 118. INDEX. 313, LIABILITY OF SHAREHOLDERS (continued) — IIL DiSOHABGE OF LIABILITY, 131. IV. Enforcement of Liability, 133. V. Actions, 134. expenses of receivership, 120. infants, 115. interest on assessment, 120. over-issue of stock, 112, state bank, 113. survival of liability, 116.^ when shareholder induced to become so by fraud, 131. LICENSES — taxation of, 236. LIEN-- bank may acquire prior, 147. lien of bank on stock, 360. LIMITATION- of defense of usury, 394. of setofiEof usury, 386. LIMITATIONS OF ACTIONS — to determine charter, 37. as to usury, 385. actions by receiver, 193. to recover an assessment of a sliareholder, 126. LIQUIDATION — effect of, 137. authority of president after, 173. LOANS — "" authority of bank to make, 129. excessive, 73. liability for excessive, 73. liability of cashier for excessive, 31. power of bank to make for others, 105. recovery of excessive, 129. LOCATION — with reference to action, 3. M. MARRIED WOMEN — liability of as shareholders, 115. power of bank to take mdorsement of, as security, 155, 314 INDEX MISAPPLICATION AND EMBEZZLEMENT, 93. MONEY— meaning of, 93. MONEYED CAPITAL— discrimination in favor of, 234 definition of, 236. exemption of, from taxation, 245. MORTGAGE, 133. action to cancel, 109. bank may take, 148. bank may take assignment of, 166. effect of usury on, 274 MUNICIPAL— taxation of national bank stock for municipal purposes, 333. NAME — prohibition of the word "national," 133. l^ATIONAL BANKING ACT, 133. NEGLIGENCE — directors Liable for, 73. NEGOTIABLE PAPER — discount and purchase of, by bank, 143. JSTOTICE — in tax proceedings, 355. to cashier, 33. to shareholders, 308. o. OATH — indictment for false, 94 OATH BY DIRECTOR, 69. OFFICERS, 133. bonds of, 16. acts done at other than place of business, 141. action against, 185. duty to transfer stock, 364 effect of liquidation on authority of, 138. false entries by, 87. INDEX. 315 OFFICERS (continued) — indictment for misapplication by, 93. indictment for making false entries, 94 knowledge of president's wrongful act, 313. liability of, 135. liable for excessive loans, 78. > liability of bank on fraudulent certificate of deposit issued by, 31 mortgage given to, to secure loan by bank, 150. power of, 133. refusal of, to transfer stock, 265. transfer of stock by, 263. usurious commission paid to, 373. OFFICE OF BANK, 140. ORGANIZATION, 136. OVERDRAFTS — usurious interest on, 378. OWNER OF SHARES — liability of. 111. P. PARTNER — set-off by, in action by receiver, 199. PARTNERSHIP — power of bank to enter, 157. PENALTIES AND FORFEITURES — as to usury, 375. PERJURY — by director, 69. indictment of officer for, 97. PLACE — definition of, 228. PLACE OF BUSINESS, 140. specification of in organization certificate, 136. PLEADING AND PRACTICE — action against directors, 78. by or against national banks, 6. by receiver, 191. to recover usurious interest, 288. to enforce liability of shareholders, 135. following state practice, 7. 316 INDEX PLEDGEE — right to dividend, 83. liability of, on stock, 113. set-oflf against claim of, 199. shareholders, 307. transfer of stock by, 114 ■vfiU be deemed owner of stock, 307. POLICE LAWS — as to usury, 381. POST NOTES — power of bank as to, 34 POWER OF COURT — to order payment of debts by receiver, 186. POWER OF DIRECTORS, 68. POWER OF NATIONAL BANKS, 143. 1 In General, 143. II. Discount and Purchase op Negotiable Paper, 143. IIL To Take Security, 146. a. Real Estate, 146. (1) Matured Indebtedness, 146. (8) Present or Future Indebtedness, 149. (3) Ultra Vires Loan, by Whom Voidable, 151, b. Chattel, 153. 0. Collateral, 153. d. Security of Own Capital Stock, 154 e. Indorsement, Deposit, Contract, 155. IV. Contracts, 156. V. Agency, 158. VL Brokerage, Stocks, Bonds and Trade Options, 159. VIL Borrow Money, 163. Vm. Guaranty and Suretyship, 164 IX. Miscellaneous, 165. X Forfeiture of Powers, 167. certificate of deposit, 34. clearing-house, 53. miscellaneous, 165. purchase of coin, 165. collections, 165. donation, 166. assignment of mortgage, 166. employment of attorney, 166. lease, 166. improvement of real estate, 166. INDEX 317 POWER OF NATIONAL BANKS (continued) — purchase of grain, 167. insurance application, 157. as to special deposits, 209. to enter partnership, 157. to deal in negotiable paper, 145. to hold savings bank stock, 161. to make loans, 129. to purchase own stock, 160. to sell on commission, 156. to sue in federal courts under judiciary act, 3. to take personalty in trade, 156. PREFERENCE, 167. (See Attachment. 11.) allowance of set-off as, 197. payment of debt by insolvent bank, 76. PREFERRED CLAIMS, 171. arising from fraudulent rediscounts, 50. arising from fraudulent sale of stock, 50. arising from officer's fraud, 50. collections, 47. contribution of directors to make up capital, 51. deposits of savings bank, 49. the United States, 52. trust funds, 51. PRESIDENT, 171. action in name of, 7. application of bank funds to personal debts, 174. appropriation of special deposits by, 213. authority, 172. authority of after liquidation, 172. consent of to embezzlement, 62. false entries by, 89. indictment of for fraudulent purchase, 97. indictment of for false entries, 94 jurisdiction of actions against, 109. knowledge of, 174. liability of, 175. power to pay promoter, 174. to employ counsel, 178. to check on bank's account, 178. to borrow money, 173. to subscribe money for the bank, 173. 318 INDEX. PRESIDENT (contlnusd)— ' to compromise debts, 173. purchase of stock by. from bank, 34. representations of, 35, 175. resignation of director to, 70. removal of, 177. PRIOEITY OF CLAIMS, 45. PRIVILEGES AND LICENSES — taxation of, 236. PUBLIC MONEYS — liability of United States for deposit in national banks, 67, Q. QUORUM OF DIRECTORS, 70. QUO WARRANTO — to try the office of director, 70. E. REAL ESTATE, 177. action to enjoin sale of, 178. bank may acquire title to, 148. failure to sell after five years, 178. held by national bank, title voidable, 178. improvement of, by bank, 166. purchase of, by bank, 178. resolution of directors as to deed of, 179. taxation of banking house, 336. taxation of, belonging to national bank, 335. RECEIVER, 179. I. Appointment of, 180. II. Title of, 184 III Powers of, 185. IV. Recbivebs' Certificates, 187. V. Expenses of Receivership, 187. VI Actions, 187. a. In General, 187. b. Jurisdiction of Courts, 188. c. Pleading and Practice, 191. d. Removal of Causes, 193. VIL Sales by Receivers, 194. VIIL Liability, 194. INDEX. EECEIVER (continued) — actions by, 187. actions against directors by, 77. action by, for penalty for usury, 385. appointment of, efEect, 80. appointment of, by court, 181. collection of taxes of, 356. effect of appointment, 183. expenses of, 130, 187. identification of preferred claims in receiver's hands, 47. legality of appointment of, 183, liability of, 194. lien of, priority, 99. notice of authority of, 186. payment of claim against bank in hands of, 39. pleading and practice by, 191. powers of, 185. in general, 185. contract, 185. to compromise debts, 186. to compromise shareholders' liability, 186.^ presentment of paper at oflSce, 41. removal of, 181. removal of action by, 193. sales by, 194. title of, to bank assets, 184 to take possession under, 110. RECEIVER'S CERTIFICATE, 187. REDEMPTION OF CIRCULATION, 39. REMOVAL OP ACTIONS, 8. against directors, 79. by receiver, 193. REMOVAL OF DIRECTORS, 70. REMOVAL OF PRESIDENT, 177. RENT — liability of receiver for, 194 REORGANIZATION — shareholders upon, 308. REPLEVIN — of money fraudxilently received by insolvent bank, 46, SI* 320 INDEX REPORT, 194 form of, 195. effect of false report, 195. notice to whom, 195. false report, effect of, 195. false entries in, 86. indictment for making false, 91. effect of fraudulent report, 156. REPRESENTATIVES — liability of personal, on stock, 116. RESIDENCE — notice of, by national bank shareholders, 339. RESIGNATION OF DIRECTORS, 70. s. SALE OF NATIONAL BANK STOCK — when complete, 363. SALES BY RECEIVER, 194 SAVINGS BANKS — conversion of, 315. directors of, holding over on conversion, 70. stock may be held by national bank, 161. SCHOOL — taxation of national bank stock for school purposes, 333. SET-OFF, 196. 1 SoLTiENT Banks, 196. IL Insolvent Banks, 197. a. In General, 197. b. To Whom Allowed, 198. 0. Debts Existing at Time of Failure, 199. d. Debts Maturing After Failure, 300. e. Against Assessment, 303. f. Actions, 305. against assessment, 303. against dividends, 196. against deposits, 196. by assignee, 198. INDEX 321 SET-OFF (continued) — by indorser, 199. by joint maker >99. by partner, 19i>. deposit, 303. dividends, 203. funds to replace impaired capital, 204. increase of stock, 204. insolvent banks, 199. individual claim, 202. in action for penalty for usury, 283. plea of, in action by receiver, 193. preference, 201. usurious interest, 389. waiver of, by debtor, 303. SHAREHOLDERS— I. In General, 305. II. PowEES or Shaeeholdebs, 308. action by, 809. agent of, 10. amendments of articles of association by, 308. definition of, 305. estoppel, 206. examination of bank by, 83. executors as, 308. liability of. 111. compromise of, by receiver, 186. notice to, 308. pledgee, 207. termination of UabUity of, 367. trustee, 208. upon reorganization, 208. voting, 309. SOLVENT NATIONAL BANKS — attachment against, 11. SPECIAL DEPOSITS, 310. appropriation of by president, 313. cashier's power as to, 81. contract for recovery of, 156. liability for, during organization, 139. negligence as to, 211. power of bank as to, 310. 21 322 INDEX, SPECIFIC PERFORMANCE— ' of contract to sell stock, 35. STATE BANKS — conversion of, 314 power of conversion of, 314 actions, 317. effect of conversion of, 315. usury, 383. exemptions of, from taxation, 245. liability of as owner of stock, 113. taxation of bonus on conversion of, 331. taxation of in relation to that of national banks, 339. STATE COURTS — actions in, 4 jurisdiction of, 107. STATE NOTES — taxation of, 334 STOCK — action to redeem, 37. agreement to sell, rescission of, 25. assessment to raise impaired capital, 34 . conversion of by pledgee, 41. increase of, 19. assent of comptroller, 31. certificate of comptroller, 33. irregularities in, 30. payment of, 20. ratification of change in amount, 21. recovery of subscription, 33. indictment for fraudulent purchase, 97. misrepresentations in purchase of, 36. nature and extent of shareholder's liability on, 118. ownership of by directors, 69. priority of attachment on, 15. purchase of by bank, recovery for, 25. I'eduction of, 34 distribution of proceeds, 34 sale of capital stock, 34 sale of, by bank, 27. by bank to president, 34 to pay assessment, 35. on execution, 35. INDEX 323 STOCK (continued) — taxation of, 219. listing of, for purposes of taxation, 250. transfer of priority of attachment as to, 15. STOCKS — power of bank to deal in, 159. SURETIES— on bonds of officers, liability of, 16. SURETY — set-ofE by, of usurious interest, 289. SURETYSHIP — contract of, by bank, 2. power of bank, 164. SURPLUS — taxation of, 223. T, TAXATION, 218. 1 What Taxable, 219. a. Capital Stock, 219. b. Shares of Stock, 221. c. Surplus, 233. d. Dividends, 223. e. Circulation, 224. f. Seal Estate, 225. g. Privileges and Idoenses, 22S. h. Miscellaneous, 226. n Whebb Taxable. a. In General, 227. b. Shares of Residents, 229. c. Shares of Nonresidents, 230. III. To Whom Taxable, 231. IV. FOK What P0r^osb, 233. V. DiscRnrtNATioN Against National Banes. a. In General, 234. b. Valuation, 235. c. State Banks and Corporations, 239. d. Deductions, 241. e. Exemptions, 244 g24 INDEX. TAXATION (continued) — Vl Valtjation and Assessment. a. In Qeneral, 346. b. Deductions, 347. c. Exemptions, 348. VIl Method of Assessment, 351. VIIL Remedies fok Erroneous Taxation, 353. IX Collection of Tax, 355. X Eboeiybr, 356. XI. Constitutional Law, 357. of bonus on conversion of, 331. of banking house, 336. of furniture, 336. of mortgages, 237. of paid checks, 337 of state banks in process of conversion, 317. TELLER — theft of, 313. TERRITORY — power as to taxation, 357. taxation of national bank stock in, 333. TRANSFER OF STOCK, 258. L In GrENEEAL, 359. IL Method of Transfer, 363. , III. Transfer to Avoid Liability, 366. liability of transferee for taxes, 331. TRUST DEED — to national bank, 151. TRUST FUNDS — as preferred claims, 51. TRUSTEE — to close up affairs of bank, 138. liability of on stock, 114. on books of bank, 308. effect of appointment of to close up bank, 138. u. ULTRA VIRES — defense on contract by bank, 157. loan 01^ capital stock, 37. INDEX. 325 ULTRA VIRES LOAN — by whom voidable, 151. ULTRA VIRES PURCHASE — of negotiable paper by national bank, 145. UNITED STATES- as a preferred claimant against insolvent bank, 53. UNITED STATES ATTORNEY, 193. action by receiver, 193. UNITED STATES BONDS AND NOTES — deduction for, by national bank stockholders, 349. UNITED STATES CIRCUIT COURT, 106. UNITED STATES DISTRICT COURT — jurisdiction of, 107. actions against banks in, 4. UNITED STATES SECURITIES — taxation of stock invested in, 330. UNITED STATES SUPREME COURT— jurisdiction of, 105. USURY— L What Constitutes Usxjbt, 269. a. In General, 369. b. Conflict of Laws, 373, 11 Effect on Contract, 373. in Penalties and Foefeitubes, 375. a. In General, 375. b. Forfeiture, 378. o. Conflict of Laws, 381. rv. Action for Penalty, 383. a. Nature of Action, 383. b. Who Can Recover, 283. 0. lAmitations, 285. d. Defenses, 28.7. e. Pleading and Practice, 288. V. Set-off, 389. a. Usurious Interest May be Set Off, 289. b. Usurious Interest May Not be Set Off, 290. VI. UsiTRY A Defense, 393. VTL Jtjeisdiction of Courts, 394. agreement by cashier to pay, 31. attorney fees, 370. 326 , INDEX USURY (oontimied) — commission to officer, 373. estoppel of director as to, 70. in renewal note, 371. Y. VALUATION OF NATIONAL BANK STOCK FOR TAXATION, 337. VARIANCE AS TO INDICTMENT, 93. VICE-PRESIDENT, 396. ownership of stock by, 396. powers, 397. ratification of acts by bank, 397. W. \ WAIVER— of prohibition as to attachment, 14 ■WAREHOUSE RECEIPT — pover of bank to hold as collateral security, 154