Stock Yards State Bank v. Merchants State Bank

The opinion of the court was delivered by

Burch, J.:

The action was one to recover a sum of money credited to the plaintiff on the defendant’s books, said to have been misappropriated to the payment of a personal obligation of the plaintiff’s cashier to the defendant. The defendant prevailed and the plaintiff appeals.

The claim of the plaintiff was that its cashier, Brown, undertook to buy shares of the capital stock of his own bank. To enable him to do this the defendant’s president, Dice, authorized him to check on the defendant. The overdraft on the defendant was taken up by Brown’s check on…