Bank of China v. Wells Fargo Bank & Union Trust Co.

For several years prior to the institution of this action on November 9, 1949, Bank of China, Shanghai was a depositor in defendant Wells Fargo Bank & Union Trust Co. It now has to its credit the sum of $626,860.97.

The Bank of China is a corporation established in 1912 under the laws of China. Two-thirds of its stock is held by the Government of China, and the remainder by Chinese nationals; It fs governed by a board of 25 directors, 13 appointed by the Government, and 12 elected by the private stockholders. TheCArticles of Association provide that the Head Office shall be maintained at Shanghai. Branch offices are maintained throughout the territorial mainland of China and abroad.

At the time that the Shanghai office of the Bank of China opened its aocount with Wells Fargo, and subsequently, facsimiles of signatures of those persons authorized to draw on the account were furnished Wells Fargo. Withdrawals were made from the account either by authenticated cable from the office in whose name the account was carried, or by letter carrying an authorized signature.

Near the end of April, 1949, when Chinese revolutionary forces neared Shanghai, the Head Office of the Bank of China…