Salem Elevator Works, Inc. v. Commissioner of Banks

The Cosmopolitan Trust Company, although conducting a general banking business in Boston up to the time when it was. closed, September 25, 1920, was not a member of the Clearing House Association and cleared all its checks through the National Union Bank of Boston, which acted as its agent in this respect. The plaintiff, the Salem Elevator Works, Inc., for some time prior to September 25, 1920, had been a depositor with the Cosmopolitan Trust Company, to whom it had forwarded by mail checks for various sums on sundry dates. On the afternoon of September 24, 1920, it mailed to the trust…