Horace Harmon Lurton

“ The mere fact that the examination, if made by a reasonably competent person, failed to discover discrepancies covered up by false entries, or other bookkeeping devices, would not defeat the renewal. The case upon this point went to the jury upon the fact of reasonable examinations and the good faith of the bank in making the representation. The question of the weight or credibility of the evidence is not one for our consideration. ”

“ The bond on its face requires the employer 'to take and use all reasonable steps and precautions to detect and prevent any act upon the part of the employee which would tend to render the company liable for any loss.' It also provides that if the statements by the employer in the application 'shall be untrue, the bond shall be void.' The obligation in respect to examinations of the employee's accounts is found in the application. ”

“ A number of errors have been assigned which relate to this defense, but the argument has turned upon those which, in different ways, raise the question as to whether, after the defendant in error had made out a prima facie case by proving the bond and its breach by a refusal to indemnify him for losses sustained during its currency through the dishonesty of the employee guaranteed, the onus devolved upon the surety company to plead and prove that the loss had occurred through the fault of the employer in not making the monthly examinations which it had agreed to make. ”