CROSSED CHEQUES.

Waikato Times, Volume XXXVIII, Issue 3085, 23 April 1892, Page 1 (Supplement)

CROSSED CHEQUES.

The " Sydney Mornitur Herald " reports : —By the vreneral public, and oven commercial oirolrn, the oxnct measure of protection afforded by what is known nn " crossing " a cheque, and the responsibility attaching to persons such orders, iippcartn be not quite understood. A cheque is ofr.en " crossed " or drawn to " order " with a vn-nn idea that wrae proteeion is thus afforded to the drawer ; but vrry few pooplo know that the lnw irives absolute protection to the person Inking those precautions. A case in point bus jnst come under our notice A business firm of hi«h standing in this city recently cashed a cheque drawn to " order " and " crossed " The cheque was passed through the bank, and it was afterwards discovered that it had been in wron» hands, and that the endorsement of the payee was a. forgery. The drawer churned thnt as he had taken all responsible precautions by both " crossing " the cheque and drawing , it to " order " the loss niusi fall upon the firm cashing the chsque.becinHe the hnnafides of the person representing himself as the payee wore not asnnrtained as this might havo been. The case was sent for arbitration to a high legal authority , who has decided in favour ef the drawer, and against the firm for cashing the cheque. It appears that there is a decision of the English Court which clearly fix's the responsibility of ascertaining tho bona fides of the payee on the party paying on such a cheque.