Henderson v. Farmers Savings Bank

Arthur, J. —

I. The Farmers Savings Bank of Harper, Iowa, was a small bank, having a capital stock of $15,000. At the time of the transactions involved, R. F. Palmer was cashier of the bank. Palmer, cashier, was intrusted by the board of directors with' full management of the bank. In June, 1920, one H. C. Staggs, accompanied by W. F. Wilson, entered the bank, and represented to Palmer that they were selling stock in the Mid-Continent Gas & Oil Refining Company, which had its principal place of business in the town of Washington, Iowa. Palmer knew Wilson as a former banker in Washington, Iowa.…