Page:Federal Reporter, 1st Series, Volume 7.djvu/638

 626 I-BDERAL REPOaTBB. , ; �the statements and representations eontained in said instru- ments, the plaintifE purchased thera from the payee in good faith, in the usual course of businesSj before they were due, and without knowledge or notice that said representations were f aise, and paid him full face value. Is this suf&cient ? To state the question as eoncisely as possible, it is this : Assuming that the representations contained in the certificates were false and fraudulent, — that is, made with intent to d^oeive, — are we to assume that they were made -v^ith intent todeceive whoever should purchase the paper ? In the very nature of the case the defendant must have intended that his representations would or might be acted upon by any person or persons purohasing the certificates in the open market. He was placing paper upon the market where it was likely to be bought and sold. �The certificates were so drawn as to facilitate their nego- tiation; they were to pass from hand to hand without in- dorsement; they were to be payable to bearer. Why is it not a Sound rule of law and of morals that makes the signer of such paper liable in damages to any one who may be deceived and injured by having relied upon statements of fact fraudulently inserted therein? To say that it is neces- sary for plaintiii to show that defendant had a particular individual in view as the person to be defrauded, would be in effect to release him from liability for his representations; for a person who places such paper upon the market cannot know into whose hands it will pass, and therefore cannot have in view the person or persons who may be injured. The matters of fact stated in the certificates gave them cur- rency. If true, they made them amply secure, and very desirable as investments. The controlling question is, who had the right to act upon the representations, since the law will presume that they were addressed to all persons having such right ? Is there anything on the face of the paper to indicate that the representations were addressed to and intended for a particular individual and to no others ? I think, on the contrary, the representations were manifestly intended to be considered and acted upon by purchasers of the paper in the market. ��� �