Bank of Italy v. Sierra Valley Bank

By its complaint in this action appellant, a banking corporation organized under the laws of the state of California, seeks judgment against respondent, also a banking corporation organized under the laws of the state of California, for the sum of $60,000, in which amount appellant claims it has been damaged through an alleged conversion of certain personal property by respondent belonging to appellant. At the time of the transactions out of which the action arises the principal place of business of appellant was at the city and county of San Francisco, California, and that of respondent was at Loyal-ton, Sierra County, California, and between the two places there was a daily communication by United States mail.

The evidence introduced at the trial of the action, and which consists largely of undisputed letters and telegrams passing between the parties, shows that on August 16, 1921, two individuals named Mont Berg and W. H. Duncan appeared at the head office of appellant in San Francisco and that Berg made application for a loan of $25,000 to be-secured by 250 shares of the capital stock of a bank known as the Indian Valley Bank of Greenville and 176 shares of the capital stock…