(2 of 2)
they acquired
virtually the sanctity of banknotes. Two of the drafts, indeed, were
cashed before their illegitimate origin was discovered; on the
third—the $225,000 draft to the Pueblo bank—the Chase bank refused
payment in order to make a test case, go into court and turn the
problem over to the law—or rather the lawyers— of the land. Certainly
the defrauded banks were sadly tricked. On the other hand the
innocently profiting banks have legally collected a legal debt and,
considering the Bank of Telluride's condition, they perhaps received
their money in the only manner that it could ever have been obtained.
Should they consider it their duty to their depositors to keep this
money, many a fine legal mind will soon be struggling with the problem
of whether a certified check is credit or money—whether it is a
promise to pay or an actual payment.
* The six banks and their respective contributions to the
$500,000 credit were: Chemical National Bank (on order of the First
National of Denver), First National (on order of Denver National) each
$100,000; Guaranty Trust Co., Harriman Trust Co., National City Bank
(on order—respectively—of U. S. National, American National, Colorado
National) and Equitable Trust Co., each $75,000. * The three banks and
the amounts he sent them were Hanover National of New York, $200,000;
First National Bank of Pueblo, Col., $195,000; Continental Bank of Salt
Lake City, Utah, $30,000. He also used $60,000 to pay off personal
obligations to the Hanover National.
