Lynip

There is little, if any, controversy as to the facts involved herein. In the year 1911 one A. E. Pearson, as original contractor, was engaged in the construction of a grammar school building in the town of Alturas, Modoc County, under a written contract for the total price of $20,350. Defendants Auble, Ballard, and Smith were the trustees of the school district. On or about November 18th of said year said Pearson made application to the plaintiff, as cashier of the First National Bank of Alturas, for a loan of four thousand dollars, to enable said Pearson to pay for labor and materials for the construction of said building. Plaintiff, acting for said bank, loaned Pearson said sum and took an assignment to the extent thereof of the last or final payment which might become due said Pearson after the completion of said building.

On cross-examination plaintiff testified that this was not a personal transaction of his, that it was a “bank affair,” and that he was prosecuting the action for the bank. The record then shows the following: “Q. Who are the directors of your bank, that is, the First National Bank of Alturas? A. A. W. Toreson, D. C. Berry, A. B. Etes, H, B. Gaustad, John E.…