Joseph McKenna

“ The language there is 'that where by law a responsibility is made to arise from the violation of a statute knowingly, proof of something more than negligence is required,-that is, that the violation must in effect be intentional.' Not, therefore, that as a condition of liability there should be proof of something more than recklessness,-not that there should be an intentional violation,-but a violation 'in effect' intentional. ”

“ The plaintiffs in error, indeed, are quite at pains to show that a representation, to be actionable for deceit, must not only be false, but must be known to be false. In other words, to quote from their brief, 'To sustain an action for deceit, not only falsity but knowledge of falsity of representation must be shown;' and for this New York cases are cited. In another part of their argument they say actual knowledge is not necessary, but that the action may be supported if reckless inattention has made the injury possible. ”

“ All through the argument of plaintiffs in error runs the insistence that the common-law action of deceit does not lie against the directors of a national bank, and that the only measure of their responsibility is laid down in the national banking laws. This is admitted. It was conceded by the appellate division as having been established by Yates v. Jones Nat. Bank, supra, and the question in the case comes to the simple one, whether the appellate division rightly decided that the findings in the case at bar satisfied the test of liability declared in the Yates Case. ”