
    L. N. Jackson Company, Inc., Respondent, v. Erie County Trust Company, Appellant.
    
      Banks and banking — fraud—false information —extension of credit to insolvent■ corporation induced by false statement of bank.
    
    
      Jackson Co., Inc., v. Erie County Trust Co., 219 App. Div. 852, affirmed.
    (Argued October 14, 1927;
    decided November 22, 1927.)
    Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the fourth judicial department, entered March 17, , 1927, unanimously affirming a judgment in favor of plaintiff entered upon a verdict. The action was for fraud and deceit. Plaintiff was a dealer in oils with- its office in San Francisco. Having received inquiries for quotation of prices from East Aurora Vegetable Oil Refineries, Inc., it demanded a bank reference, whereupon it received the following telegram:
    “ 1920 Aug. 24 A. M. 7 15
    “ A 95D 23
    
      “ East Aurora, N. Y. 9A 24 “ L. N. Jackson and Co., Inc.,
    
      “ San Francisco, Calif.
    
      “ Referring East Aurora Vegetable Oil Refineries, Inc., now refining successfully with excellent prospects consider shipment with draft bill lading safe management honest and reliable.
    “ ERIE COUNTY TRUST COMPANY.”
    It thereupon shipped five carloads of oil to the East Aurora Company. Only one was paid for. There was evidence that the statements in the telegram were false and that the East Aurora Company was insolvent to the knowledge of defendant when it was sent.
    
      Wortley B. Paul and Wells W. Parker for appellant.
    
      Edward C. Schlenker, Joseph H. Morey and David T. Murray for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman and O’Brien, JJ. Not sitting: Kellogg, J.  