Emerson v. Merrimack River Savings Bank

On May 1, 1930, the plaintiff deposited in the Merrimack River Savings Bank the sum of $20,000. At that time the bank was insolvent, and it had been insolvent for several years prior thereto. The insolvency was caused by illegal manipulations of investments and accounts by the bank’s treasurer, Hale, who had concealed these practices and the bank’s condition from the trustees and other agents of the bank and from the Bank Commissioner. For several years Hale had known of the insolvency.

The plaintiff made arrangements for his deposit with Hale personally, and remained ignorant of the bank’s…