The opinion of the court was delivered
The general principles of law laid down in the charge were such as were indicated when this cause was here before, 12 Casey, 501, and are well supported by the most approved authorities. The first two assignments of error are not quite just to the learned judge, for, though .they present his language, they present it without the connections and qualifications with which he expresses it to the jury. Taking the charge and answers to points as they were delivered, we see nothing in them of which the plaintiff in error has reason to complain.
The only point on which we have had any doubt has reference to the repayment of the original deposit of $3,000. That, on the-14th June, 1854, the Hagerstown Bank deposited that sum with the Loudon Savings Fund Society, is past all doubt. And it is not decisive against the bank that it was not an ordinary deposit in the authorized and customary course of business which the Savings Fund was raised up to conduct; for if the Savings Fund, tempted from the purposes of its original institution, engaged in borrowing money at 4 per cent, to reloan at 6 per cent., the acts of Easton in pursuance of this policy would bind the Savings Fund just as effectually as if this had been one of the expressed purposes of the association. If a bank should engage in building a railroad, for instance, it would violate the law of its existence, but the acts of the cashier in pursuit of the unauthorized purpose would bind the bank. As between the bank and those who contracted with it, the new enterprise would become a part of its usual and appropriate business, in the conduct of which it would be liable for the acts of its agents.
But if its agents departed from that new enterprise and attempted to involve the bank in other unlawful pursuits without the express sanction of the directors or stockholders, there would be no legal ground of liability. The question in all such cases is whether the agent is acting in pursuance of his authority, it being a universal rule in the law of agency that in order -to bind the principal upon a contract made' by an agent, the contract must be within the authority committed to the agent, and the authority should be strictly followed. Bank of Kentucky v. Bank of Schuylkill, Parsons, 182. But the authority of the agent is not to be denied, if the principal have engaged him in a different business from that for which he was originally employed, so long, at least, as he confines'himself to the pursuit of that business.
If such was Mr. Easton’s conclusion from the book-entries, why should counsel be surprised that the directors of the Savings Fund and the jury thought the debt paid? Easton was the plaintiffs’ witness, a stockholder in their bank, their customer who had conducted all the business 'between them and the Savings Fund, and his judgment as to what the books imported, he having controlled the entries, ought, we would think, to command the respect of the plaintiffs. At least they ought not to complain that the jury took the judgment of their own witness as the basis of the verdict.
The judgment is affirmed. -
