US vs Solito

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US vs Solito
G.R. No. L-12546
August 17, 1925

Facts:

Mariano Solito was a correspondence clerk and acting chief clerk in the office of the division superintendent of schools in the municipality of Dumaguete. As clerk, he was entrusted with the care of the correspondence of said office, and was authorized to open letters of an official character addressed to the office. It was the custom to the Director of Education to forward to the division superintendents of schools checks for the reimbursement for travel expenses and for the payment of the salary of employees.

On April, 19, 1915, a warrant was issued to Alvah D. Riley for the sum of P657.53 by the Auditor of the Philippine which was directed to the Treasurer of the Philippines. That on the same day said warrant was also sent to the Director of Education. However, the defendant presented said warrant to the municipal treasurer for payment and a note purported to have been written and signed by Riley, in which the latter requested the said treasurer to cash the warrant. Riley denies absolutely that he gave to the defendant said note. The note was a forgery. Riley never signed it nor authorized it.

Issue:

Do these acts of the defendant fall under any of the provisions of Act No. 1754? Is the defendant punishable under any of said provisions?

Held:

The warrant was a check issued by the Government of the Philippines and, therefore, an obligation of the Government as defined by section 1 of Act No. 1754. It was originally made payable to Alvah D. Riley, or to his order. When it was indorsed as above indicated, it became a check or warrant payable to bearer. The indorsement made a material alteration in said warrant. The indorsement changed said check from one payable to Alvah D. Riley, or to one to whom he ordered it paid, to one payable to bearer. The indorsement by the defendant had the effect of erasing the phrase "or order" upon the face of the warrant.

Whenever the holder of a check, without the consent of the maker, changes its terms so as to make it payable to bearer by erasing or changing the words "or order" after the payee's name, he thereby makes a material change in said document. Changing the phrase "or order" to "bearer" is a material alteration. While the instrument was payable to Alvah D. Riley, or order, it was negotiable by the indorsement of Alvah D. Riley only. The change made it payable to "bearer" and it was thereafter negotiable and transferable by delivery simply. In construing the effect of the indorsement we must only look to said indorsement, but to the face of the document also, for the purpose of ascertaining whether or not the indorsement operated to alter the terms or conditions of the original contract.

The defendant having passed and uttered an altered obligation of the Government of the Philippine Islands with intent to defraud, he is punishable under article 4 of Act No. 1754.