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CITY AND COUNTY LOSE IN ACTION
(CONTINUED FROM PAGE ONE.) the mayor and the city clerk both admitted no previous time had the city any at any time from bank for its deposit, nor since that time had the city seits deposits. According Judge Dennis' summary, D. Robinson, an attorney neting for the city in the arranging for the testified that no securities but that they took all could get and the best that could be obtained. County Case. In the removal from the bank by M. Mobley Judge attention that the testimony Edmunds, W. Aycock Tobias, of whom had with Mr. Mobley to the failure bank previous employment as plaintiff's attorney: in this mained uncontradicted and that such established that soon after the city Columbia had for its deposit, Mr. ley, heard of the condition of the bank, made demand upon Mr. for securities tect the deposit and that such the form of notes and other of debt were turned over to "Un the evening the day the bank closed, Judge Dennis of the 'and' some effort to its affairs, Mr. Mobley fell into with Mr Aycock and Mr. Edmunds, and told them that he had been very uneasy for the last two three days, scarcely able to the situation regarding his deposit and expressing the hope that some way might be found so that the bank could resume "An stated. Judge Dennis continued his summary given plaintiff's and no mony the part the county Richland and no made with regard the matter, other than that contained its verified answers which makes the referred in the opening part this decree. Mimnaugh Case. As to the defendant John L. Mim naugh, Judge Dennis found that his attorney, John Earle, had heard rumors the run of the American Bank Trust and had for Mr. Mimnaugh and present the American Bank & Trust company for his de$20,000. Mr. naugh that time was out of the city, Judge Dennis found, but following day, June 25 He took the check Columbia mony heard by Judge Dennis, for the of depositing it and was vised by the president of that that the bank did not care to handle the check but Mr. Mimnaugh present the check to the Bank Trust and obtain the funds called for. Mimnaugh accordingly went the American Bank & Trust company, cording to saw Mr. and check. Mr. Matthews told Mr Mim naugh, Dennis found that time and could not pay the check but expected make with some during the day, that quarter was all and that he would be able to care for the by Mr. Mimnaugh, and the he give him security for the check This security was accepted by Mr naugh who declared that he did so in protect his case the bank failed. Judge Dennis found. In summing up the entire case, supported number of thorities he called attention, Judge Dennis part Bank & company that had he that the officers of the the effect making take the institution its must defeated the payment the the be the Richland and John Mimnaugh the The the transaction not the had required and that unusual parties The were alarmed the the transfers the expense badge of fraud the been Such taste and that the had that the get before the they knew being injure other Besides when the meet its insolvent deposits presentation and knew that that and have sarily known further that which meet deposits facts ants, all the defend. all presented the payment of their and the heen unable for cash or to arrange "Third. the examine value or appraise badge the case of the city Mr. Robinson, acted that behalf the city, testified took same. offered being him without as glad anything he could get; and Mr. Mobley apparent- ly did not examine his securities because he said he not know whether they 'were good or not, stating further that was left therefore, clear his idea was to get what he could get without any regard to the securities, and he did this with full knowledge of the situation. "Fourth, a fourth badge of fraud this forth in which like for the first badges of fraud to, the failure to testify with regard to the matter. This particular badge fraud relates the matter the to county. Reference has already made the fact that Mr. Mobley did not offer any testimony nt Nor was any else offered on behalf of Richland county as witness The authority to on matter in part as follow: Where the under which of property by debtor made are suspicious, the failure of the party to testify or to produce available explanatory rebutting evidence is badge of fraud. The that they could have truthfully to facts showing the bona fides of the con veyance. would have done is wholly immaterial that their failure or refusal to do based on the advice of strong prima facie showing was made the plaintiff against the county of Richland and the failure of the county to meet is against With re gard to the city of Columbia and John such was not only to meet the case of the plaintiff, but in fact strengthened
The Decree. Judge Dennis' decree: therefore ordered adjudged, and decreed that the plaintiffs entitled and are hereby given judgment follows: Against the of Columbia Richland and John tate of James Mimnaugh cancellation assign ments of deposit whereby the American Trust tranferred or the 23rd 24th and 25th of June, 1926 list of which have heretofore been fur nished by said defendants to James receiver the American bank and Trust company all of said securities be and at the are hereby declared be the proper goods and chattels the James E. Peurifoy. as the same to be taken In charge by him and administered other of said bank. the action which shall taxed by the clerk and enup as part this against said "For the right for the same James E. Peurifoy receiver, apply at the foot of this decree and judgment for any which may be to carry the same into full (Signed) "E. "Presiding Judge."
