City National Bank v. Sternberg

The McKinney Bayou Drainage District was organized in 1923 and issued $446,000 in 5y2 per cent, bonds. I. H. Nakdimen was the president and active manager of the City National Bank of Fort Smith, Arkansas.

It is undisputed that in July, 1929, appellee was in the City National Bank and that I. H. Nakdimen said he was on a trade for some bonds. About six weeks after that time the appellee bought twenty-three $1,000 bonds at 95 cents on the dollar.

Appellee testified that when Nakdimen spoke to him about the bonds he.called appellee’s attention to the fact that appellee owned some Fayetteville…