West St. Louis Savings Bank v. Shawnee County Bank - 95 U.S. 557 (1877)
U.S. Supreme Court
West St. Louis Savings Bank v. Shawnee County Bank, 95 U.S. 557 (1877)
West St. Louis Savings Bank v. Shawnee County Bank
95 U.S. 557
The cashier of a bank is not, by reason of his official position, presumed to have the power to bind it as an accommodation endorser on his individual note, and the payee who fails to prove that the cashier, as such, had authority to make the endorsement cannot recover against the bank.
Parmelee, cashier of the Shawnee County Bank, made his individual note for $3,000, payable to the order of the West St. Louis Savings Bank, endorsed it "G. F. Parmelee, cashier," and gave as collateral security a certificate of stock in the Shawnee County Bank, issued to and owned by him. The consideration of the note was money lent to him by the payee, who was advised that he intended to use it to pay for his stock in the Shawnee County Bank. He failed to pay the note, whereupon this suit was commenced by the payee against him as maker, and the Shawnee County Bank as endorser, of the note.
The court passed a decree against Parmelee, but dismissed the bill so far as it asked relief against the Shawnee County Bank.
The complainant then brought the case here.
The remaining facts in the case are stated in the opinion of the Court.