Austin v. Second Nat. Bank of Houston

This litigation arose out of these facts: On April 17, 1923, S. O. Smith, for the firm of Smith & Davis, in payment of indebtedness of the firm of R. F. Mc-Ginty, gave him a draft for $947.30 on the Hitchcock State Bank. McGinty deposited this draft with the Farmers’ State Bank at Alvin, Tex., and his account with that bank was credited with the amount of the draft. The draft was forwarded by* the Alvin Bank to its correspondent, the Second National Bank of Houston, and, upon its receipt by that bank, the Alvin bank was given credit for the amount of the draft, and in due course of business…