Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/146

 § 161.] THE LAW OF PRIVATE CORPORATIONS. [CHAP. VII. further been held within the powers of a bank to receive a de- posit under an agreement to hold it as collateral security for the performance of a contract between the depositor and a third person. 1 A national bank may lawfully engage in the business of ex- changing and dealing in government securities ; 2 but not in that of dealing in stocks, 3 or selling railroad bonds on commission. 4 JNor is it within the powers of a state bank to subscribe for the stock of a railroad corporation. 5 Any bank may assign or convey property owned by it, and enter into the common covenants of warranty. 6 And a national bank in selling real estate competently acquired by it may take back a purchase- money mortgage. 7 v. Prather, 137 U. S. 614, where bankers were held liable, tbe bonds on special deposit being stolen by their cashier. But only if the loss occur through gross negligence. First Nat. Bank v. Rex, 89 Pa. St. 308; Lloyd v. West Branch Bank, 15 Pa. St. 172. In Bank v. Gent, 39 O. St. 10."), it was held that a national bank is liable for the loss of a spe- cial deposit " occurring through the want of that degree of care which good business men would exercise in keeping property of such value." That the safe of a national bank is broken and bonds stolen by burglars is not evidence of negligence. Wylie v. Northampton Bank, 119 U. S. 361; First Nat. Bank v. Graham, 79 Pa. St. 106. But see Wylie v. First Nat. Bank, 47 Vt. 546; Whitney v. Same, 50 Vt. 388; S. C, 55 Vt. 154; First Nat. Bank v. Ocean Nat. Bank, 60 N. Y. 278; and compare Foster v. Essex Bank, 17 Mass. 479; Comp v. Carlisle Deposit Hank, 94 Pa. St. 409. In Greeley v. Nashua Savings Bank, 63 N. H. 145, the (savings) bank was held not to be liable for bonds re- ceived by its clerk on its behalf, there being no further proof that 126 the bonds or their proceeds had come into its possession. See, also, §337. iBushnell v. Chautauqua County Nat. Bank, 74 N. Y. 290. 2 Van Leuven v. First Nat. Bank, 54 N. Y. 671; Yerkes v. Nat. Bank, 69 N. Y. 382. 3 First Nat. Bk. v. Nat. Ex. Bk., 92 U. S. 122; California Bk. v. Kennedy, 167 U. S. 362. 4 Weckler v. First Nat. Bank, 42 Md. 581; First Nat. Bank v. Hoch, 89 Pa. St. 324. 5 Nassau Bank v. Jones, 95 N. Y. 115; see § 130, note. 6 Talman v. Rochester City Bank, 18 Barb. 123. 7 New Orleans Nat. Bank v. Ray- mond, 29 La. Ann. 355. Unauthor- ized conveyances and mortgages to a national bank are valid for all pur- poses until questioned by the United States. National Bank v. Matthews, 98 U. S. 621; Mapes v. Scott, 94 111. 379; Winton v. Little, 94 Pa. St. 64; Oldham v. First Nat. Bank, 85 N. C. 240; see §303.