Howell On Bohemian Oat Notes

Jiuljtc Elowell recently ilclivered a very exhaustiva opinión in the Lena wee circuit court upon the liability of' the makers of the Bohcmianoat notes. Tlie opinión was given in tlie fora of a charge to the jury in a test case which carne before him, and it is clear anü able. He holds tliat a person purchasinga negotiable promissory note, which on its face bears no evidenre that it was procureil by fraud,i s not bouud to inquire into i lic consideration for which the note was given. If the signaluie to tlie note was procurad by t'raudulent rei reMDtatloni the note would be sroldable except in the hands of a purchaser for valnablc oonsidcration who had no knowledge or notice of tlie frand hy which tlie maker was induced to sign tlie instrument. The bad faitliof the pnrehMerof tlie note cannot be establ'shed ezeept by clear and substantial proof. General impressions and suspicions that lie knew all bout Üw (rama praottced la proonrlnjr the note are not sufflcient. The mere tact that a purchaser of n notp knew that it was ri ven for lioliemian oats will not justity charging ti i tu wil li bad failh. It tlie pürolmser of the note had nu fjreater knowledgc tliat a traud WM practleed thsntke maker of the Dote hinisclf had wlien he signed it, the latter eannot be lieard to coniilain. The Judgealso holds that If I maker of a note ffave the instrument for Bohemtan oats at #10 a busliel, kllOwinf all the time theinliinsic value of the ouls was butSO cents a busliel, lic caunot nfterwards be lieanl to say that the note was without sulHcient consideration. The oats at the contract priOi of i?l() a bochel (Urnhb a consideration in law and i'i fact. In view of this opinión itseemstous loolish for tlie farmers toseek to avoid paymein t [faelr notes when such notes are held by bona fidc purchasers lor a valuable consideration. Of course notes held by agente of the Boliemian oat company or by others who particlpated in the fraud are not collectable.