Charles Evans Hughes

“ Two of these statements-official reports formally attested-were, as we have said, annexed to the petitions. The proof of representations chiefly concerned these reports and others of a similar sort. In contemplation of law, the question upon the case made by the plaintiffs was essentially one as to the liability of these directors for conduct governed by the Federal act. The conclusion of the trial court that there could be a recovery at common law, independent of the Federal statute, did not alter the inherent character of the actions. ”

“ If the defendant Thompson participated in or assented to the making and publication of the official reports to the Comptroller of the Currency, which were made in the year 1892, knowing that they were false reports, he was liable to the plaintiffs deceived and damaged thereby under the express terms of the statute; and he could not escape this liability simply because, while he thus participated or assented, other directors gave the formal attestation. ”

“ It was further found 'that the allegations of plaintiff's amended petition are true.' The trial court, as to each of the defendants, also set forth its conclusion that the plaintiffs were entitled to recover 'in an action of deceit under the principles of the common law exclusive of the requirements of the national banking act,' and fixed the damages sustained. ”

“ Assuming that they were ignorant of the frauds that had been committed and concealed by falsified entries, there was warrant for the conclusion that they could not have failed to acquire sufficient information to be aware that the representations in the official reports of the latter part of the year 1892 were materially false and calculated to deceive. The questions of fact, so far as they arose upon a substantial conflict in evidence, were for the trial court. Citizens Ins. ”

“ Every association shall make to the Comptroller of the Currency not less than five reports during each year, according to the form which may be prescribed by him, verified by the oath or affirmation of the president or cashier of such association, and attested by the signature of at least three of the directors. ”

“ They only require that the rule of responsibility declared by them shall be satisfied.' If the plaintiffs' cause of action required the application of the Federal statute in defining the liability of these directors with respect to the acts alleged and proved, the plaintiffs were entitled to its correct application. ”

“ Apparently the Comptroller of the Currency was not satisfied. For it appears that he wrote another letter under date of August 31, 1892, which, having been lost, was not introduced in evidence. But the letter in reply, which the directors, including Yates, Hamer, and Thompson signed individually (under date of September 19, 1892, as stated by defendants' counsel) , is in evidence and its significance cannot be overlooked. ”

“ While, as pointed out on the former writ of error, the act did not expressly require that these reports 'should contain a 'true' statement of the condition of the association,' yet 'by necessary implication, such is the character of the statement required to be made, and by the like implication the making and publishing of a false report is prohibited.' 206 U.S. p. ”