Title Trust Guarantee Company Case (No. 2)

Opinion by

Mr. Chief Justice Kephart,

The Title, Trust and Guarantee Company of Johns-town, Pa., had long been insolvent before the events here narrated, and the bank’s officers knew this, but its doors were deliberately kept open for business, receiving deposits and handling trust funds. Many things contributed to its insolvency, but one outstanding thing was heavy loans, far in excess of the legal maximum, to officers and directors of the bank and their affiliates, only a small portion of which were collectible. During this period of insolvency, bonding companies withdrew as sureties for…