BANKS (continued.)

Transfer of property, not within. 58.

Implied authority of the president is dependent upon the course of busi-
ness in the bank. 59.

Binding effect upon the bank of the president's admissions depends upon
extent of his authority. 60.

BILLS AND NOTES. See CHECKS.

Acceptance.

Unintelligible words ("excepted, Sept. 18, L. B. M.") may be used,
and parol evidence is admissible to explain the meaning of the words
used. 204.

Alteration. See Filling Blanks.

Increasing the rate of interest and making the note joint instead of
several, are such alterations as avoid the note, but do not affect the
validity of a mortgage given to secure the note. 734.

Accommodation Notes.

Maker, who is the accommodating party, cannot set up that the holder
purchased the note on the credit of the indorsers only. 270.

Collateral Security.

Pledgee, ignorant of the history of the note, cannot recover the face
value, but only the amount of his debt, when the drawer establishes
want of consideration to the note. 271.

Collection. See Presentation.

Collection of a note in a manner recommended by the maker at the time
the note is cashed by a bank, creates no liability to the bank, on the
part of the maker, after he has paid the note. 605.

Collection Fee. See Negotiability.

Jurisdictional amount is fixed by including. 133.

Void, if unreasonable.

Consideration.

62.

Endorsement made after delivery of the note to the payee, upon his
promise of forbearance of suit against the maker, is not upon a suffi.
cient consideration. 605.

270.

Services rendered by daughter to widowed mother, sufficient.
Interest on prior note, conditionally paid by new note, not sufficient.
270.

Surrender of a certificate of homestead entry, is a sufficient consideration
for a promissory note. 133.

Verbal promise to pay a note made and sold to raise money to reimburse
an endorser for losses incurred for the maker, is binding upon the
party making such promise; it is not a promise to pay the debt of an-
other, and need not be in writing. 800.

Damages.

Damages for non-return of accepted draft until insolvency of acceptor, a
jury question.

133.

Days of Grace. See Negotiability.

Endorsee.

"For collection," open to same defences as payee.

63.

For collection, though not so expressed, is not open to defences until
want of consideration or bona fides is shown. 337.

Endorser.

Accommodation, discharged by extension of time upon a valid consider-
ation between the maker and holder. 204.

Protest must be personally notified to the endorser at his office or resi-
dence, where both are but two hundred yards distant from the post-
office where there is no carrier delivery, and are both open on the day
of protest; a drop letter placed in such post-office is insufficient. 735.
Endorsement.

Lost note must be proved to have been endorsed, to the satisfaction of
the Court, not the jury. 204.

BILLS AND NOTES-(continued.)

INDEX.

811

"Without recourse," still leaves the endorser liable, on an implied war-
ranty, for a deficiency caused by payment of usurious interest. 401.
Filling Blanks.

Blanks in a note can be filled before the note reaches the hands of an
innocent holder for value, without liability to the maker, for so doing.
270.

Forgery.

Estoppel en pais, or a new consideration, necessary to bind the person
whose name has been forged. 401.

Holder.

Partnership note made after dissolution is valid, unless holder knew of
dissolution.

336.

Partnership note endorsed "in liquidation," puts the holder to prove
authority of the endorsing partner. 336.

Maker.

Competent to testify to the relation of sureties, after the death of one.
271.

Discharge not effected by payment by guarantor, with express promise
of payee to keep the note alive for the benefit of guarantor. 204.
Parol evidence of intended number of makers may be given. 134.
Negotiability.

Future or contingent consideration destroys the negotiability. 62.
For this reason the insertion of a collection fee destroys the negotiability,
as it renders the amount of the debt uncertain. 204.

Stipulation contained in a note for the payment of all counsel fees and
expenses in collecting; or giving power to declare the note due before
its maturity, if the payee deems the note insecure; or promising to
pay the face of the note with exchange added, destroys the negotia-
bility. 660.

Railroad bonds and the interest warrants thereof are not negotiable
promissory notes, and not entitled to grace, in Massachusetts. 465.
Non-negotiable.

Valid in the hands of a person who takes the note on the makers' repre-
sentation. 62.

Valid, though providing for the seizure of property on non-payment. 63.
Parol evidence.

Destruction of the effect of a note by parol evidence that it had been ex-
ecuted to the defendants' mother-in-law, on an advancement to her
daughter for the purpose of securing the payment of interest for life,
is not allowable. 401.

Not admissible to show that a note, drawn-"we promise to pay," etc.-
and signed: "I. M. Co., B. S. B., Pres., D. B. S., Secy.," was only
the note of the company, and so known to the payee when he took the
note. 800.

Payment.

Not involuntary when made to preserve credit, though under protest;
coercion is essential to a recovery back of the amount paid. 465.
Conclusively presumed when a new note, given to take up an old one,
is endorsed to a third party. 134.

Presumed when new note is given to take up old one. 134. Contra. 204.
A note, made by a third party, is not presumed to be taken in absolute
payment, from being credited on the plaintiff's books and in state-
ments of account rendered to the debtor. 660.

Presentation.

Not made in time, where a bank receives a draft payable at another
bank in the same city, but distant three miles, and does nothing until
the next day, when it mails the draft; on the day of the receipt of
the draft, and also of the mailing, there were funds in the other bank
to pay the draft; on the third day the draft was received by the

BILLS AND NOTES-(continued.)

bank upon whom it was drawn, but was not paid, because of the
bank's failure and suspension on that day: the collecting bank is lia-
ble for such negligence. 660.

Protest. See Endorser.

Surety.

Discharge is not affected by the discounting bank without the knowledge
of the surety, accepting from the principal, in settlement of the origi-
nal note, other notes with forged endorsements, and surrendering the
original note, the bank being ignorant of the forgeries. 735.
Writing the word "security" after the name of a payee and endorser
will not allow him to claim contribution from the makers, when they
objected and were not in fact co-sureties. 800.

Does not become a principal debtor by paying on account and endorsing
an extension on the note, at the instance of the principal debtor.
800.

Usurious.

Holder of negotiable paper, originally given for an usurious loan, must
show affirmatively either that he was a bona fide purchaser, before ma-
turity and without notice of the usury, or that he obtained the note
from such a bona fide purchaser. 806.

BILL OF LADING.

Damages.

Full actual damage to the goods must be paid when the bill of lading
limits the liability to the invoice or declared value for customs duty,
and the damage is less than the invoice value, with the cost of impor-
tation added. 626.

Otherwise, if the clause of limitation relates to the liability, and not to
the measure of the damages. 628, 631.

Delivery of goods.

Direction to notify another will not prevent delivery to consignee. 210.
Production of the bill of lading should be required upon delivery of the
goods. 210.

Discharging the goods from a ship on to a pier, after notice to the con-
signee of their arrival, and after reasonable opportunity to remove
them, is a constructive delivery and terminates the carrier's liability;
but, until actual delivery, the carrier remains a warehouseman. 735.
Exceptions.

Acceptance of a bill of lading, without dissent, raises a presumption
that all limitations contained therein were brought to the knowledge
of the shipper and were agreed to by him. 569.

Contra, in Illinois. 569.

Exemption from liability for the negligence of the carrier or its servants,
cannot be contracted for in the bill of lading. 556.

One of a succession of carriers may stipulate that its liability shall not
extend beyond its own line, as it is under no obligation to carry beyond
its line. 568.

Reasonable contracts for limiting the common law liability of a common
carrier, will be upheld by the courts. 556, 638.

Negligence.

A bill of lading, exempting from loss by fire, requires proof of negligent
burning. 540.

A despatch company cannot, by a special clause in its bill of lading,
throw upon the shipper a loss from the negligence of a transporting
railroad company or its employés. 554, 570.

This is because the transporting company is the agent of the despatch
or express company. 565.

The rule forbidding a carrier from demanding a contract which would
release it from liability for its own negligence or that of its servants,
is designed to promote the greater security of the consignors. 562.

BILL OF LADING-(continued.)

Through Bill of Lading.

567.
567.

The first of a number of successive common carriers may bind itself to
deliver goods beyond the terminus of its own line, so as to become respon-
sible for the safe carriage of the goods over the entire distance.
567.
The American rule, unlike the English, holds each company liable only
for its own line, unless there is a special contract.
Tennessee has, however, followed the English rule.
Accompanied with a deposit on account of the freight a through bill of
lading issued by the first carrier, amounts to an engagement to carry
over its line, and to so deliver the goods to the next carrier as to create
the same obligation in the second carrier. 609.

Where connecting carriers have agreed that goods should not be con-
sidered as delivered by one to the other, unless the freight were prepaid
or guaranteed on the way bill, the first carrier remains liable to the
consignor until this agreement is carried out though the goods have
been actually placed in the station of the second carrier. 609.
Title to consigned property.

The bill of lading is evidence that the title to the consignment is in the
person in whose name the bill has been made out. 115.

Duplicate bill of lading, taken as collateral by a bank, transfers to the
extent of the discount, and paramount to a consignee knowing of the
discount before giving value. 401.

BRIDGES.

Authority to Construct.

A State may authorize the bridging of a navigable stream. 177, 469.
Congress may authorize the erection of a bridge, which is part of the
means of inter-state communication, though a State may have forbidden
such erection.

Eminent Domain.

775.

No compensation need be given for the use of the lands of a State, be-
tween high and low water mark, taken for the piers of a bridge, which
has been authorized by Congress as an instrument of inter-state com-
merce. 776.

BUILDING ASSOCIATIONS.

Fines: See CORPORATIONS.

Borrowers or depositors cannot be fined, unless members. 372.

Cash payment may be required. 372.

Equity will enforce a reasonable fine, in a foreclosure suit. 373.

Interest on fines not allowed. 372.

Married women's liability varies according to capacity to control. 372.
Mortgage may secure. 372.

Not a penalty, to be relieved against in equity.

373.

Penna. Act of 1879, limited to two per cent. per month on all arrearages.
366.

Previous fines cannot be made the subject of a new fine. 360, 364.
Mortgage.

Illegal fines to be deducted in computing the amount due. 369.

CHARITABLE BEQUESTS AND DEVISES.

The trustee has no personal interest in the subject-matter of the bequest.
213.

Discretionary.

Equity will dispose of such funds as the testator intimates an object for.
224, 227.

The heir can never obtain the subject-matter, in England. 213.

Otherwise, in Iowa and Connecticut. 214.

In Pennsylvania, a discretionary devise is valid. 214.

CHARITABLE BEQUESTS AND DEVISES-(continued).

Distribution.

Scheme for distribution cannot be formulated here under chancellor's
power, on behalf of the Crown, as parens patriæ; our Courts do not
possess this power. 216, 229.

Scheme formulated under this power, in England, where the gift is for
some illegal object. 217.

Or when the specific object is not in existence. 217, 218.

Or where the bequest is positively declined. 217, 218.

Or where the legacy is wholly indefinite. 217, 219.

Or where the will is indefinite and the indicated means fail. 217, 220.
Invalid.

Too indefinite, where a Roman Catholic Church was to be selected, for
prayers for the testator's family, and all others in purgatory. 406.
But a bequest of money, "in trust for the benefit of the Catholic Church
on my farm in T. County," that "service shall be held in said
church, for my soul, yearly," is good although the church be not in-
corporated. 801.

Denunciation of secure title to land in private individuals in the works
of Henry George, avoids a devise of rest and residue to Henry George,
for the free distribution of such of his works as he might think proper.
610.

CHECKS.

Assignment of a Fund.

An ordinary check does not operate as an assignment, pro tanto, of the
fund against which it is drawn. 337.

Certification: See Stopping Payment.

Bank is primarily liable, when certifying at the request of the drawer.
151, 153, 141.

Binding effect of a certification is overcome by a warning carried on the
face of the check.

145.

Conduct of the bank's officers alone, may have the same effect as a cer-
tification, as the jury shall find the facts. 141.

Drawer of a check becomes surety for the bank, when he requests the cer-
tification. 153, 156.

Drawer of a check is discharged by certification at the request of the
payee or a subsequent holder. 149, 150.

Effect is to make the check practically the promissory note of the bank.
151.

Endorser is discharged by a certification at the request of the holder of
the check. 150.

Otherwise, when at the request of the drawer. 153.

Form of certification is immaterial. 141.

Forgery of certification is of no greater validity than the forgery of a bill
of exchange. 144.

Garnishee process will lie by a creditor of the holder, against the bank
certifying the check.

149.

Liability created by certification is no greater than that by the accept-
ance of a bill of exchange. 142.

Mistake in certifying may be rectified by the bank, if it can do so before
the holder changes his position, to his disadvantage, on account of the
certification. 145.

148.

Novation occurs when the bank certifies at the request of the payee or
a subsequent holder, as the bank thereby becomes the debtor.
Proper officer must certify, or it is not valid.

146.

Statute of Limitations ceases to run, from the time of certification until

presentation for payment. 152.

Usage, when followed, makes a valid certification. 147.

Written certification is unnecessary.

141.