In Error to the Circuit Court oí the United States for the District of Oregon.

Action by the United States National Bank of Portland, Or., against the Amalgamated Sugar Company, judgment for plaintiff (179 Fed. 718), and defendant brings error.

The defendant in this action drew a clieck on its banker for $4,000, which in due course of banking business was received by the plaintiff, properly indorsed. and wiflioui knowledge of any defect impairing its commercial value. When presented for payment, the bank upon which it was drawn refused to pay for the reason that the drawer had ordered payment stopped. Thereupon the plaintiff instituted this action, and a judgment was rendered in its favor ior the amount of the check with interest and costs; and to test the validity of that judgment the defendant has brought tlie case to this court by a writ of error.

The undisputed facts of the case are as follows: Tlie defendant is a corporation actively engaged in business at Ogden, in the state of Utah, and at La Grande, in the stale of Oregon, and for convenience kept a hank account in each of said places, its La Grande hanker, at the times of the transactions involved. being the Farmers’ & Traders’ National Bank, which for convenience will be hereafter referred to in this opinion as the “insolvent bank.” The plaintiff is a national banking association located at Fortland, in the state of Oregon, and was at tlie times referred to tlie Fortland correspondent of the insolvent bank. The check on which the action is founded was drawn by the defendant on its Ogden banker, and was by indorsement made payable to the order of tlie insolvent bank and delivered to it, and the amount thereof was at once credited to the defendant on its deposit account subject to check. Only a few checks against that account were subsequently paid, amounting in the aggregate to less than the balance in the defendant’s favor immediately before it was augmented by tlie credit of $4,000 entered on account of said check. The deposit was made in accordance with the usual custom in that hank by accompanying the indorsed check with a depositor's memorandum slip on which there was printed the following specification of conditions: “Items listed hereon art taken at owner’s risk until we have reduced to our own possession the funds received by us in settlement thereof, and credits or remittances made by us therefor are subject to revocation until we have received actual final payment. Mediums of collection employed are your agents, and we assume no responsibility for their neglect, default, or failure. In making this deposit, the depositor expressly assents to the foregoing conditions.” The deposit was made October 0, 3008; the bank continued as a going concern until the close of the business day of Saturday, October 10th. On Monday, the 12th. it was not opened for business, and it was not until that day, or the day following, that the parties to this action were informed of its insolvent condition. October 8, 1908, the plaintiff received the check, made payable by indorsement to the order of any bank, or banker, inclosed in a letter from the insolvent bank, saying, “Inclosed find for collection and credit.” which words we interpret to mean that the check was transmitted for collection and the amount when collected to be credited to the transmitter on its current a'-eouut. The plaintiff according to its habitual practice immediately entered credit to the insolvent bank for tlie amount of tlie check on its current account, and thereafter paid drafts against that account and made remittances to the insolvent bank, so that its credit balance was reduced to the sum of $1.839.01 at the close of business October 10th and to $9.85 oh October 12th, which by the return of remittances not received by the insolvent bank was increased to .$370.37. The plaintiff sent the check to its correspondent at ¡Salt Lake for collection, and it was presented for payment October 14th after the defendant had notified the drawee to stop payment.