224 F. 251 (W.D.S.C. 1915), In re M.L.B. Sturkey Co., Inc.
|Citation:||224 F. 251|
|Party Name:||In re M. L. B. STURKEY CO., Inc. In re CHASE CITY MFG. CO.|
|Case Date:||July 06, 1915|
|Court:||United States Courts of Appeals, Court of Appeals for the Fourth Circuit|
J. Moore Mars, of Abbeville, S.C., for trustee.
Featherstone & McGhee, of Greenwood, S.C., for claimant.
JOHNSON, District Judge.
This case came on to be heard before me, at the request and by consent of counsel, on exceptions to the report of the referee. On May 1, 1914, M. L. B. Sturkey Company, a mercantile corporation, entered into a contract with the Chase City Manufacturing Company for the purchase of a car load of wagons,
to be shipped October 1 to November 1, 1914. It is provided in the said contract, among other things, as follows:
'It is expressly understood and agreed that all goods on hand and proceeds of all sales of goods received under this contract, also of all goods hereafter shipped to the maker of this contract, whether the proceeds are in notes, cash, or book accounts, are to be held as collateral security in trust and for the benefit of and subject to the order of the Chase City Manufacturing Company, until full cash settlement has been made of all obligations due to the said Chase City Manufacturing Company; that the title and ownership of all goods shipped under this contract shall remain vested in the Chase City Manufacturing Company until the price thereof shall have been paid in cash, or until all notes given under this contract are paid; but nothing in this clause shall be considered a release from making payments as provided elsewhere in this contract. If said goods, or any part thereof, be lost, damaged, or destroyed, before payment in full therefor by us, there shall be no rescission of the contract nor abatement in the price, but same shall be our loss, and not that of the Chase City Manufacturing Company.
'It is further understood and agreed that notes taken by the Chase City Manufacturing Company in settlement are not accepted as payment, but only as evidence of indebtedness. We further agree that a receipt from transportation company for goods delivered in good order shall be a release to the Chase City Manufacturing Company, and agree to look to the transportation company for all losses occasioned by rubbing, chafing, or any damage which may occur to goods while in transit, or the nondelivery of any goods receipted for.
'It is further agreed that in...
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