Duke

The defendant in error (a surety company) was defendant to this action, which was brought in the court below by the plaintiff in error to recover upon certain of its bonds to reimburse the insolvent Kelso State Bank of Washington for losses sustained by the rascality of its-cashier. The case has been here before (293 F, 661), when the judgment which had been given by the trial court against the surety company was reversed and the case remanded for a new trial. In the course of the opinion rendered in support of that judgment, this eourt said, among other things:

The record shows that the Kelso Bank, having made application to the American Bonding Company (predecessor of the defendant in error) to become surety on a bond for its then cashier, one Stewart, in the amount of $25,000, the bonding company, before passing on the application, required the applicant to make answer to a series of questions pertaining to the application, which answers to be “warranties and form a part of and be conditions precedent to the issuance, continuance or any renewal of or substitution for, the bond that may be issued” in favor of the bank upon the cashier mentioned.

The answers so required were…